Search found 1355 matches

by patrick
Wed Jan 18, 2017 8:36 pm
Forum: Investing - Theory, News & General
Topic: TIPS are great in "theory." But real world...
Replies: 31
Views: 2205

Re: TIPS are great in "theory." But real world...

It does not really matter if the CPI accurately measures inflation or not. The TIPS market prices effectively take that into account. I have never subscribed to the conspiracy theory that they will arbitrarily cook the CPI numbers. While the market could account for a bad inflation index, I don't s...
by patrick
Wed Jan 18, 2017 8:00 pm
Forum: Investing - Theory, News & General
Topic: TIPS are great in "theory." But real world...
Replies: 31
Views: 2205

Re: TIPS are great in "theory." But real world...

grap0013 wrote:I agree. I don't like TIPS. I've seen no benefit in the real world. Only theoretical.


If you buy fire insurance and then your house doesn't burn down ... does that mean the insurance has no benefit in the real world, only theoretical?
by patrick
Wed Jan 18, 2017 7:55 pm
Forum: Investing - Theory, News & General
Topic: Should you be worried about losing money in bonds?
Replies: 13
Views: 2018

Re: Should you be worried about losing money in bonds?

Chart of historical drawdowns of U.S. bonds vs. stocks since 1926. How risky do bonds look? If you update the chart to account for inflation, they would look risky. For example, from the end of 1940 to the end of 1981, 10-year treasuries had a 55% loss after accounting for inflation (see http://pag...
by patrick
Tue Jan 17, 2017 8:21 pm
Forum: Investing - Help with Personal Investments
Topic: Help me choose a 457 provider?
Replies: 5
Views: 364

Re: Help me choose a 457 provider?

If you have good options in the 403b (or money outside of employer plans that you can put anywhere) you shouldn't need to use any high cost funds in the 457. This plan has very low cost S&P 500 and total (US) stock market funds. You could invest the 457 only in one of those and then buy all the ...
by patrick
Sun Jan 15, 2017 4:16 pm
Forum: Investing - Theory, News & General
Topic: Why not put it all in TIPS?
Replies: 87
Views: 4885

Re: Why not put it all in TIPS?

The SPIA does add the additional risk that the insurance company will fail, but that may not be a huge risk. Both government regulations and business sense would require the insurance company to have enough reserves to pay out its policies, and if it does fail anyway there are guaranty associations...
by patrick
Sun Jan 15, 2017 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Cardinal Sin - went to cash the day before 2016 election
Replies: 56
Views: 6112

Re: Cardinal Sin - went to cash the day before 2016 election

Well, if you had the experience and access to insiders that George Soros has - you would have still made the same mistake! The conventional wisdom regarding both the election and the affect of the election on the markets was incorrect the entire year. Ironically, if you are wrong on both questions ...
by patrick
Sat Jan 14, 2017 9:41 pm
Forum: Investing - Theory, News & General
Topic: Why not put it all in TIPS?
Replies: 87
Views: 4885

Re: Why not put it all in TIPS?

Why do folks who might otherwise encourage somebody to sink most/all of their liquid assets into a SPIA have such a problem with putting most/all assets into TIPS? Is that insurance company investing in something safer than TIPS?? :confused There are benefits of the SPIA over TIPS (assuming an infl...
by patrick
Sat Jan 14, 2017 4:08 pm
Forum: Investing - Theory, News & General
Topic: Shouldn't everyone do a traditional IRA/401k instead of a Roth?
Replies: 132
Views: 7073

Re: Shouldn't everyone do a traditional IRA/401k instead of a Roth?

You are better off with a Roth if your expected marginal tax bracket in retirement is higher than your marginal tax bracket now. There's only two ways that could be true: A) You plan on requiring more money in retirement than you earn today B) You expect that real tax brackets might be higher when ...
by patrick
Sat Jan 14, 2017 4:02 pm
Forum: Investing - Theory, News & General
Topic: Texasaver by Greatwest reduction in 401k, 457 fees
Replies: 2
Views: 604

Re: Texasaver by Greatwest reduction in 401k, 457 fees

If you have only $50 in the plan, your fee of $1.18 per month would seem quite extreme.
by patrick
Sat Jan 14, 2017 10:36 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 961
Views: 119669

Re: What's Your Credit Card Rewards Strategy?

Speaking to using Korean Air miles on partner flights, this is echoed on several sources from a google search...so it appears...yes I'm sure. But not happy about it. http://onemileatatime.boardingarea.com/2014/02/14/how-to-redeem-korean-air-skypass-miles/ Thank you for the link. Initially I was ver...
by patrick
Thu Jan 12, 2017 2:24 am
Forum: Personal Finance (Not Investing)
Topic: Where do you keep your emergency fund?
Replies: 80
Views: 5997

Re: Where do you keep your emergency fund?

Mine is in LifeStrategy Conservative Growth (as another poster mentioned up above). At a certain point once your net worth gets positive and you have access to credit cards, etc., I don't see the point in keeping a cash emergency fund . I could not disagree more with the bolded statement. The EF is...
by patrick
Wed Jan 11, 2017 11:38 pm
Forum: Personal Finance (Not Investing)
Topic: Chasing bank opening rewards
Replies: 6
Views: 661

Re: Chasing bank opening rewards

ChexSystems actually does keep track of account openings as well as negative information, but it should not be a problem except in extreme cases. See http://www.doctorofcredit.com/an-introd ... k_accounts
by patrick
Tue Jan 03, 2017 10:39 pm
Forum: Investing - Theory, News & General
Topic: Marijuana stocks
Replies: 17
Views: 1645

Re: Marijuana stocks

there are a lot of opportunities in this area. here are some links to investigate https://finance.yahoo.com/news/5-best-marijuana-stocks-2016-191206061.html http://marijuanastocks.com/content/list-marijuana-stocks/ https://marketfy.com/portal/420investor/ At a glance all of these stocks look like O...
by patrick
Mon Jan 02, 2017 4:04 pm
Forum: Investing - Help with Personal Investments
Topic: Why are my Fidelity dividends showing as non-qualified?
Replies: 11
Views: 823

Re: Why are my Fidelity dividends showing as non-qualified?

I'd guess this is just because the final determinations of what is qualified for 2016 haven't been entered yet. See https://www.fidelity.com/mutual-funds/i ... n/year-end for estimates of how much of the year-end dividends are qualified.
by patrick
Mon Jan 02, 2017 1:24 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Fund Options in 401K
Replies: 4
Views: 449

Re: Bond Fund Options in 401K

The difference between those two funds seems rather small. I'll note that both have high costs. Are there any low cost stock funds in the 401K? If so, it might be better to use those in the 401K and buy bonds outside.
by patrick
Sat Dec 31, 2016 11:05 am
Forum: Investing - Help with Personal Investments
Topic: International Small Cap Value?
Replies: 23
Views: 1840

Re: International Small Cap Value?

If DLS isn't so tax friendly, FNDC (Schwab Fundamental International Small - i.e. RAFI) has performed very similarly over it's life to date as DLS and DISVX have. Last year the QDI percent was 79.71% and it's current SEC Yield (30 Day)12/30/2016 is 1.83% It's developed countries only. Not sure if D...
by patrick
Fri Dec 30, 2016 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Is it safe to use debit cards? Anybody here have one compromised?
Replies: 67
Views: 4502

Re: Is it safe to use debit cards? Anybody here have one compromised?

The other side of the question is if there are any advantages in using one instead of a credit card or an ATM card. I have never seen any advantage to using a debit card and lots of reasons not to. There is an advantage in the form of reward checking accounts. Lake Michigan Credit Union pays me 3% ...
by patrick
Fri Dec 30, 2016 4:13 pm
Forum: Investing - Theory, News & General
Topic: VMMXX-Vanguard Prime Money Market is 55% Yankee/Foreign
Replies: 25
Views: 2263

Re: VMMXX-Vanguard Prime Money Market is 55% Yankee/Foreign

I do not think this is a big risk. However, I would still avoid money market funds because bank deposits can pay more interest. Redneck Bank pays me 1.25% on the money market deposit account, and unlike the money market fund they have FDIC insurance, and best of all a debit card with a picture of a ...
by patrick
Thu Dec 29, 2016 8:52 pm
Forum: Investing - Theory, News & General
Topic: Ownership of international stock during wars
Replies: 25
Views: 2069

Re: Ownership of international stock during wars

German and Japanese companies with very few exceptions went bankrupt at the end of WW2 and while some were restructured and survived, investors in the original companies were wiped out. I don't believe that is accurate. The Credit Suisse Yearbook (https://www.credit-suisse.com/us/en/about-us/resear...
by patrick
Wed Dec 28, 2016 1:06 am
Forum: Investing - Theory, News & General
Topic: 100% TIPS and 0% in Nominal Bonds?
Replies: 168
Views: 8615

Re: Diversification: A "Free Lunch"

Do any Bogleheads own 100% of their fixed-income in TIPS? neomutiny06: Holding 100% in any single type of bond could be a mistake. Diversification in bonds is similar to diversification in stocks--it is often called [i]"the only free lunch in investing."[/url] This is the primary reason I...
by patrick
Fri Dec 23, 2016 10:37 pm
Forum: Personal Finance (Not Investing)
Topic: How to get a real Chip and Pin card?
Replies: 88
Views: 13152

Re: How to get a real Chip and Pin card?

Lots of merchants are using the chip transition to remove the credit/debit choice (which was always a terrible naming: it was really choosing between Visa/MC or the debit network) for debit cards and defaulting to debit network/PIN based transactions. Since there are new terminals, it is easy to pr...
by patrick
Thu Dec 22, 2016 8:30 pm
Forum: Investing - Help with Personal Investments
Topic: Looking for a good way to get some exposure to SHORT TERM international bonds via ETF or mutual fund
Replies: 6
Views: 495

Re: Looking for a good way to get some exposure to SHORT TERM international bonds via ETF or mutual fund

It may depend on just what type of bonds you want, but you may want to look to the BWZ ETF. It has 1 to 3 year nominal foreign government bonds, investment grade only, not currency hedged, with 0.35% expenses. Be warned however that short term bonds have even lower yields than the extremely low yiel...
by patrick
Tue Dec 20, 2016 8:25 pm
Forum: Personal Finance (Not Investing)
Topic: Moved to the USA one year ago, how to build credit?
Replies: 12
Views: 825

Re: Moved to the USA one year ago, how to build credit?

You can check your US credit report for free once a year with https://www.annualcreditreport.com/ -- however this does not include the credit score. A US credit score would only be based on your US credit file. If you haven't ever used any US credit cards or other US based debt, then your US credit ...
by patrick
Mon Dec 19, 2016 9:42 pm
Forum: Personal Finance (Not Investing)
Topic: Chase $500 Bonus For New Checking/Savings Accounts - Worth It?
Replies: 28
Views: 3285

Re: Chase $500 Bonus For New Checking/Savings Accounts - Worth It?

1. The usual credit report only deals with credit cards and other kinds of debt, so it won't be affected. There is however another "famous" credit reporting agency called ChexSystems which reports about checking accounts, but just opening and closing accounts won't be much of a problem. 2/...
by patrick
Sun Dec 18, 2016 5:27 pm
Forum: Personal Consumer Issues
Topic: Chase Sapphire Reserve: Too good to be (completely) true
Replies: 186
Views: 25056

Re: Chase Sapphire Reserve: Too good to be (completely) true

The 5/24 rule is widely discussed on these forums and all over the internet. I would love to see a list of high reward cards that aren't subject to the rule. Most cards offer $100-$200 bonus which just isn't worth it in my opinion. If I can get 50k airline miles or more than $500 in value, then I'l...
by patrick
Sat Dec 10, 2016 11:16 am
Forum: Personal Consumer Issues
Topic: recommendations for video recording with image stabilization
Replies: 2
Views: 155

recommendations for video recording with image stabilization

Many standalone cameras, and even cameras in phones, claim to support image stabilization which in principle should allow recording non-shaky video when holding the camera by hand. However, my experience with this has been poor. Could anyone suggest a device that stabilizes video effectively?
by patrick
Sat Dec 03, 2016 2:36 pm
Forum: Personal Consumer Issues
Topic: 32 GB or 128GB storage for a new smartphone?
Replies: 35
Views: 2786

Re: 32 GB or 128GB storage for a new smartphone?

A quick search on Newegg finds 128GB SD cards for only $34.99 --- it seems a bit excessive to charge $100 more to upgrade the internal storage to that level. Too bad that so many recent phones have removed the SD card slot!
by patrick
Fri Dec 02, 2016 8:36 pm
Forum: Investing - Theory, News & General
Topic: PSA - Bonds are on sale!
Replies: 5
Views: 1258

Re: PSA - Bonds are on sale!

Although bonds prices have gone down a little (= yields up a little), note that bond yields are still extremely low by historical standards. Which doesn't necessarily mean that yields will rise further (= prices down further), but if they don't, then long term bond returns will be poor since you'll ...
by patrick
Fri Dec 02, 2016 8:33 pm
Forum: Personal Consumer Issues
Topic: CBP (INS) Global Entry program worth it?
Replies: 38
Views: 1963

Re: CBP (INS) Global Entry program worth it?

It may not save as much time as you expect -- getting through the immigration check faster may just mean more time standing around waiting at baggage claim.
by patrick
Wed Nov 30, 2016 7:41 pm
Forum: Personal Consumer Issues
Topic: Naive question about laptop repair
Replies: 13
Views: 1099

Re: Naive question about laptop repair

If it doesn't display anything at all, that suggests the problem is harder to fix than just installing a hard disk. While it might be a bad display, it could also be the motherboard -- either way is not good.
by patrick
Tue Nov 29, 2016 8:04 pm
Forum: Personal Consumer Issues
Topic: Credit Card bonuses
Replies: 19
Views: 2597

Re: Credit Card bonuses

Hijacking this thread a bit...I had the Chase preferred, used up all the bonus and recently cancelled it. Can I still sign up for the Chase Reserved? Will Chase honor? Typically in the terms and agreement, you need to wait 2 years before reapplying. But since it is a "different" card, doe...
by patrick
Tue Nov 29, 2016 7:39 pm
Forum: Personal Consumer Issues
Topic: Would I notice a difference between an i3-6100 and an i5-6200 processor?
Replies: 20
Views: 1119

Re: Would I notice a difference between an i3-6100 and an i5-6200 processor?

Either one of these processors should be sufficient for just about all "normal" activities. If you are going to look at benchmarks, note whether the model number has a U (meaning the ultra low power version) at the end as the U version of the processor is slower (but still probably fast en...
by patrick
Mon Nov 28, 2016 5:12 pm
Forum: Investing - Theory, News & General
Topic: Commodities in your assets allocation
Replies: 22
Views: 1086

Re: Commodities in your assets allocation

1) Decades ago, and I mean decades--referring to direct investment on the commodities exchange--Andrew Tobias, in The Only Investment Guide You Will Ever Need , wrote: It is a fact that 90% of all people who play the commodities game get burned. I submit that you have now read all you ever need to ...
by patrick
Sun Nov 27, 2016 10:26 am
Forum: Investing - Theory, News & General
Topic: Composition of US National Debt
Replies: 28
Views: 3461

Re: Composition of US National Debt

Like a real household, it makes no sense to focus solely on debt and ignore assets. You may have a $500k mortgage on a $1 million house, it does not mean you are deeply in trouble.... I don't believe bulk of US debt is backed by any assets other than the good faith of the US government, no? So the ...
by patrick
Thu Nov 17, 2016 12:03 am
Forum: Personal Finance (Not Investing)
Topic: In total how much have you earned in credit card rewards?
Replies: 32
Views: 2571

Re: In total how much have you earned in credit card rewards?

$1143 since the beginning of 2014, using the lower bound estimate of points being worth their cash redemption value.
by patrick
Tue Nov 15, 2016 9:30 am
Forum: Personal Consumer Issues
Topic: Chase Sapphire Reserve: Too good to be (completely) true
Replies: 186
Views: 25056

Re: Chase Sapphire Reserve: Too good to be (completely) true

Should I take advantage of the CSR soon, before the end of the year to get the $300 travel credit? According to http://www.doctorofcredit.com/300-chase-sapphire-reserve-travel-credit-work-triggers/ the bonus is given based on the statement date, so purchases made late in December that end up on the...
by patrick
Mon Nov 14, 2016 10:06 pm
Forum: Personal Consumer Issues
Topic: Chase Sapphire Reserve: Too good to be (completely) true
Replies: 186
Views: 25056

Re: Chase Sapphire Reserve: Too good to be (completely) true

Should I take advantage of the CSR soon, before the end of the year to get the $300 travel credit? According to http://www.doctorofcredit.com/300-chase-sapphire-reserve-travel-credit-work-triggers/ the bonus is given based on the statement date, so purchases made late in December that end up on the...
by patrick
Mon Nov 14, 2016 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve
Replies: 191
Views: 22593

Re: Chase Sapphire Reserve

does anyone have a general breakdown of chase UR vs. amex MR value. i'm not sure whether i should be using the sapphire reserve or amex prg for everyday and travel purchases. they're comparable in point redemption for the type of spending i do, but want to make sure i'm maximizing the rewards. than...
by patrick
Thu Nov 03, 2016 10:10 pm
Forum: Personal Consumer Issues
Topic: Chase Sapphire Reserve: Too good to be (completely) true
Replies: 186
Views: 25056

Re: Chase Sapphire Reserve: Too good to be (completely) true

Actually, you don't always clear customs in Canada. I flew Porter from Toronto to Chicago and customs is cleared in Chicago. Were you using Global entry ? The pre-clearance might be only for known travelers - ie. Global entry members. Other travelers would clear customs upon landing in the US as us...
by patrick
Wed Nov 02, 2016 12:56 am
Forum: Investing - Help with Personal Investments
Topic: When should Cash supersede Bonds?
Replies: 16
Views: 2280

Re: When should Cash supersede Bonds?

While stable value is not FDIC insured but backed by an insurance company, I'm not aware of a SVF busting the buck even in the 2008 crisis. If I had access to a SVF yielding over 2.5%, I'd be all over it for my FI allocation in the current low rate environment. SVF losses have happened according to...
by patrick
Mon Oct 24, 2016 8:08 pm
Forum: Personal Finance (Not Investing)
Topic: Worth Keeping AMEX Gold Delta Skymiles CC?
Replies: 13
Views: 1060

Re: Worth Keeping AMEX Gold Delta Skymiles CC?

Have you had good results in redeeming Delta Skymiles in the past?
by patrick
Mon Oct 24, 2016 8:04 pm
Forum: Investing - Theory, News & General
Topic: A better measure of retirement security
Replies: 13
Views: 3094

Re: A better measure of retirement security

An important takeaway of the best measure of retirement security ... but rather long-term real bonds that are duration matched to your targeted stream of retirement income. BobK With LMP I'd say the real risk is failure to recognize the large size of future need. This can be due to longevity, infla...
by patrick
Mon Oct 24, 2016 7:50 pm
Forum: Investing - Help with Personal Investments
Topic: 403b fees-what is reasonable?
Replies: 19
Views: 1609

Re: 403b fees-what is reasonable?

I think you may have missed the REIT fund -- it seems to actually be the lowest cost of the choices. I wouldn't suggest putting everything in there, but being the lowest cost choice may make it worth using for some of the money.
by patrick
Mon Oct 24, 2016 7:33 pm
Forum: Investing - Theory, News & General
Topic: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?
Replies: 13
Views: 1085

Re: How to Replicate a 3X ETF using 1x ETF Price Data in Excel?

I think you actually have the formula right in terms of calculating what the 3X daily ETFs are designed to do. This may instead be a problem with trading costs inside the funds -- SPXL has a turnover of 254%.
by patrick
Fri Oct 21, 2016 6:33 pm
Forum: Personal Finance (Not Investing)
Topic: Chase Sapphire Reserve
Replies: 191
Views: 22593

Re: Chase Sapphire Reserve

When I first heard about this card I had assumed that the main point was to brag that you were rich enough to pay a $450 annual fee. But after looking closer it seemed like a very good deal with at least $1000 signup bonus so I applied for it. I was initially given the "wait 7-10 days" res...
by patrick
Fri Oct 21, 2016 6:29 pm
Forum: Investing - Help with Personal Investments
Topic: How Should I Invest My Annuity?
Replies: 9
Views: 960

Re: How Should I Invest My Annuity?

Hmm ... what is being guaranteed at 5.5%
by patrick
Thu Oct 20, 2016 9:53 pm
Forum: Investing - Theory, News & General
Topic: How the Internet Destroyed Actively Managed Funds
Replies: 24
Views: 2680

Re: How the Internet Destroyed Actively Managed Funds

...Vanguard certainly A winner but there are others with even lower costs, and in some cases better products, more complex though... Please give us some specific examples of pairs of comparable funds, Vanguard and a rival, in which the rival has a better product with lower costs. I can think of exa...
by patrick
Sun Oct 16, 2016 10:01 pm
Forum: Investing - Theory, News & General
Topic: So LT bonds haven't been so bad after all
Replies: 26
Views: 2404

Re: So LT bonds haven't been so bad after all

Hindsight bias and recency bias. Both term risk and credit risk have been rewarded in recent years, but the next 5-15 years is unlikely to resemble the last 5-15 years. Just look at the SEC yields of those funds at the beginnings of these past periods and compare them to now. Kevin The current yiel...
by patrick
Sun Oct 16, 2016 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Money Market Fund regulation changes...what are people doing?
Replies: 12
Views: 1626

Re: Muni Money Market Fund regulation changes...what are people doing?

Ervin wrote:
patrick wrote:I'm sticking with an FDIC-insured bank account yielding 1.25% for my excess cash.

Which one?


All American Bank - Mega Money Market

(Not the same as a money market fund in spite of the name)
by patrick
Sun Oct 16, 2016 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: Muni Money Market Fund regulation changes...what are people doing?
Replies: 12
Views: 1626

Re: Muni Money Market Fund regulation changes...what are people doing?

I'm sticking with an FDIC-insured bank account yielding 1.25% for my excess cash.

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