Search found 3563 matches

by stlutz
Tue Feb 28, 2017 12:09 am
Forum: Investing - Help with Personal Investments
Topic: schwab lowering ER's
Replies: 25
Views: 2476

Re: schwab lowering ER's

As for being more expensive, the annual report for SCHC (page 20) lists the revenue from securities lending to be ~1.2bp. According to the prospectus only 90-92.5% of revenue is even returned to the fund (lending agent fees). For Schwab, the lending agent indemnifies the fund against any loss resul...
by stlutz
Mon Feb 27, 2017 11:42 pm
Forum: Personal Finance (Not Investing)
Topic: Ugh, why is buying a new car so painful?
Replies: 32
Views: 2954

Re: Ugh, why is buying a new car so painful?

Here is the thread to consult:

viewtopic.php?t=124638
by stlutz
Sun Feb 26, 2017 4:06 pm
Forum: Investing - Help with Personal Investments
Topic: Donating Vanguard Admiral shares to Fidelity Charitable
Replies: 11
Views: 759

Re: Donating Vanguard Admiral shares to Fidelity Charitable

I do this with Schwab Charitable a couple of times per year. It's no problem. I just fill out the donation form provided by Schwab Charitable, return it with a copy of the statement that shows I own the shares, and they handle it from there. Once they have possession of the shares, they'll sell them...
by stlutz
Sat Feb 25, 2017 12:00 pm
Forum: Investing - Help with Personal Investments
Topic: risk of my Tesla deposit
Replies: 119
Views: 7045

Re: risk of my Tesla deposit

What happened to people who had put money down to special order a GM car back in 2008? What happens to people who buy a $1400 plane ticket to Europe 6 months ahead of time and the airline files for bankruptcy? The answer in the first case is that people still got their cars and the answer in the sec...
by stlutz
Fri Feb 24, 2017 7:42 pm
Forum: Investing - Theory, News & General
Topic: new study on Investor behavior being disconnected from financial theory and reality
Replies: 86
Views: 4506

Re: new study on Investor behavior being disconnected from financial theory and reality

As I was reading the article, I found that the points kept leading me in the direction of thinking that the preference for dividends is rational, not irrational. As they explained it, at least before frictions like trading costs and taxes, investors should be indifferent to $1 in the form of a divid...
by stlutz
Sun Feb 19, 2017 4:55 pm
Forum: Investing - Theory, News & General
Topic: VGK, VPL, VWO, & VSS vs VXUS?
Replies: 9
Views: 725

Re: VGK, VPL, VWO, & VSS vs VXUS?

Is the any reason to overweight any of these segments in your portfolio--i.e. because you think one or the other will provide above market returns? If not, then VXUS is almost certainly the answer.
by stlutz
Sun Feb 19, 2017 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Should we purchase a $1 Million dollar home with all cash?
Replies: 43
Views: 5179

Re: Should we purchase a $1 Million dollar home with all cash?

Your real question isn't whether you should put $1M into the house--if that is what is cost then that is what you'll pay. The real question is whether you have a need to take a leverage position in the stock market based on your current situation. That is: Option A: I have 1 million dollars. I'll bu...
by stlutz
Sat Feb 18, 2017 10:26 am
Forum: Personal Finance (Not Investing)
Topic: converting Vanguard Total Stock Fund to ETF
Replies: 18
Views: 1317

Re: converting Vanguard Total Stock Fund to ETF

Two different things are getting mixed up here. There are tax lots with fractional shares and there are holdings with fractional shares. That is, you may hold 100.282 shares of VTI, with one tax lot of 47.584 shares and the other with 52.698 shares. When you transfer, only the whole number of shares...
by stlutz
Tue Feb 14, 2017 12:58 am
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

low vol for example cannot be a risk factor since by definition it's less risky I'd suggest we need another definitional clarification between a "risk factor" and a "risk premium". Low volatility can be considered a risk factor. If you concentrate your portfolio in low vol stock...
by stlutz
Sun Feb 12, 2017 9:49 pm
Forum: Personal Finance (Not Investing)
Topic: transfer from vanguard
Replies: 8
Views: 668

Re: transfer from vanguard

You need to call them but yes you can.
by stlutz
Sat Feb 11, 2017 12:39 pm
Forum: Investing - Theory, News & General
Topic: "factor investing is more art, and less science"
Replies: 11
Views: 649

Re: "factor investing is more art, and less science"

Wow--excellent article! As a piece of history it's the best writeup I've run across on "how we got here" when it comes to factor investing.
by stlutz
Sat Feb 11, 2017 3:22 am
Forum: Personal Finance (Not Investing)
Topic: Consolidating to Wells Fargo?
Replies: 18
Views: 998

Re: Consolidating to Wells Fargo?

How is having a credit card with Wells Fargo simpler than having a card with anybody else. Certainly using one card is simpler than using many--but is it really any different paying a Capitol One CC vs. a Wells Fargo one? And, for that matter, how is having a Wells Fargo brokerage account and a Well...
by stlutz
Fri Feb 10, 2017 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: IT Corporate Bond Funds/ETFs: VCIT, LQD, others?
Replies: 10
Views: 433

Re: IT Corporate Bond Funds/ETFs: VCIT, LQD, others?

iShares Corporate bond funds tend to trail their benchmarks by .1 or .2% more than their expense ratios pretty consistently. Vanguard's tend to trail by their [lower] expense ratio. For this reason I would personally rather pay a $7.95 commission to have the better fund. To round out your options, I...
by stlutz
Fri Feb 10, 2017 6:48 pm
Forum: Investing - Theory, News & General
Topic: TIPS are great in "theory." But real world...
Replies: 34
Views: 3590

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

To go back to the OP, every risk identified is real. That is: a) The government [i]could[/i] change the CPI calculation in a way that would be unfavorable to people holding TIPS. Yes, yields would adjust, bout that only impacts future TIPS purchases; one can't go back and change a 1% coupon to a 2% ...
by stlutz
Fri Feb 10, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: Total Bond is safe. Is it prudent?
Replies: 39
Views: 3918

Re: Total Bond is safe. Is it prudent?

Here's the dichotomy. Government bonds have less credit risk, lower return, and higher liquidity; corporates have more credit risk, higher return, and lower liquidity. I suggest one revision to nisi's post. Corporate offer higher "yields". Whether they actually offer higher returns depend...
by stlutz
Fri Feb 10, 2017 6:23 pm
Forum: Personal Consumer Issues
Topic: Terrible negotiator - need help with words to use [Buying a car]
Replies: 94
Views: 6156

Re: Terrible negotiator - need help with words to use [Buying a car]

I hate negotiating as well. So, I shop. I recently bought a car. After deciding exactly what I wanted on went onto each dealer's website in my city (6 of them) and found the closest match. I clicked on the button to "request today's super duper wonderful price." In the comments I asked the...
by stlutz
Fri Feb 10, 2017 1:49 am
Forum: Personal Consumer Issues
Topic: Sonoma/Napa or Banff for anniversary?
Replies: 12
Views: 934

Re: Sonoma/Napa or Banff for anniversary?

Cycling--Sonoma; Hiking: Banff

Cooler weather: Banff; hotter weather: Sonoma (unless you're right on the coast)
by stlutz
Thu Feb 09, 2017 9:33 pm
Forum: Investing - Theory, News & General
Topic: Do Index Funds/ETF really hold a fraction of each company it tracks?
Replies: 21
Views: 1595

Re: Do Index Funds/ETF really hold a fraction of each company it tracks?

On thing that is actually kind of fun is to look way down at the bottom of the holdings list to see the small little holdings it has. For example, the iShares Total US Stocks Market ETF (ITOT) has $6.9 billion in assets. It owns $365 worth of XG Technology Inc (XGTI) and $63 worth of Delcath Systems...
by stlutz
Thu Feb 09, 2017 8:50 pm
Forum: Personal Finance (Not Investing)
Topic: Failed to file 1099-R/8606 more than 3 years ago
Replies: 19
Views: 1663

Re: Failed to file 1099-R/8606 more than 3 years ago

When did you recharacterize each time? Was it before or after you filed your taxes each year?

A 1099R is something the investment firm would provide to you (and the IRS); it's not something you file.

It's not yet clear to me that anything was done incorrectly in the first place.
by stlutz
Wed Feb 08, 2017 11:06 pm
Forum: Personal Consumer Issues
Topic: Brokerage with Easiest Steps for IRA Conversion
Replies: 11
Views: 715

Re: Brokerage with Easiest Steps for IRA Conversion

In terms of ease, I'd say VG is easier than Fido having done it at both. But Fido isn't super difficult either. As with all things Fidelity, you can do it all online.
by stlutz
Wed Feb 08, 2017 2:12 am
Forum: Investing - Theory, News & General
Topic: Any definitive consensus on placement of different factors
Replies: 4
Views: 495

Re: Any definitive consensus on placement of different factors

Put the funds you're sure you want to hold forever in taxable. Those are usually the funds with "total" in their name. The preferred SV fund can change over time--easier to make that change 10 years from now if it's in an IRA.
by stlutz
Mon Feb 06, 2017 9:11 pm
Forum: Investing - Theory, News & General
Topic: A short study of the recent Japanese crisis
Replies: 56
Views: 4331

Re: A short study of the recent Japanese crisis

I remember that time because of my love of bicycling. Graduating in 1992, I had wanted a Miyata touring bicycle as probably the best long distance cycles made. Unfortunately, the yen appreciated so much just before my graduation, that "Made in Japan" steel bicycles had become unprofitable...
by stlutz
Mon Feb 06, 2017 9:08 pm
Forum: Investing - Theory, News & General
Topic: Research Affiliates Latest Research
Replies: 4
Views: 609

Re: Research Affiliates Latest Research

I thought the article would be more interesting than it was (usually I like reading RA's stuff). Summary: --The factors everyone talks about as beating the market have in fact beat the market (i.e. they re-ran the same exact backtest as everyone else). --The more factors you incorporate into your po...
by stlutz
Mon Feb 06, 2017 8:23 pm
Forum: Investing - Theory, News & General
Topic: A short study of the recent Japanese crisis
Replies: 56
Views: 4331

Re: A short study of the recent Japanese crisis

My impression from having many Japanese friends is that "a Japanese passive investor" has never invested that much in the stock market.


Currency speculation is a big thing among Japanese women. Google "Mrs. Watanabe" to find a bunch of stories on this.
by stlutz
Mon Feb 06, 2017 8:18 pm
Forum: Investing - Theory, News & General
Topic: A short study of the recent Japanese crisis
Replies: 56
Views: 4331

Re: A short study of the recent Japanese crisis

Wow, nice writeup Siamond! Might this be the first in a series on market crashes? :wink: I think my takeaways based solely on this situation are: a) It's more important to focus on being globally diversified than on selecting the correct stocks in one's home market. b) If one does (a), the 4% rule l...
by stlutz
Sun Feb 05, 2017 12:30 pm
Forum: Investing - Theory, News & General
Topic: bond funds vs owning individual bonds
Replies: 45
Views: 3221

Re: bond funds vs owning individual bonds

I own bond funds, bond ETFs, and some individual bonds (mostly brokered CDs but a few nominal treasuries and a couple of munis). I think the difficulty/challenge of assembling and maintaining a portfolio of individual bonds is often vastly overstated, provided one sticks with the highest rated issue...
by stlutz
Sat Feb 04, 2017 6:53 pm
Forum: Investing - Theory, News & General
Topic: ETF Premium/Discount - Vanguard vs iShares
Replies: 13
Views: 742

Re: ETF Premium/Discount - Vanguard vs iShares

You can get a longer view of this by going over to the etf.com page for each of these funds (http://www.etf.com/VIOV & http://www.etf.com/IJS) and clicking on the "Tradeability" tab. You'll see a chart plotting the premium/discount over time. IJS tracks more closely as one would expect...
by stlutz
Sat Feb 04, 2017 6:46 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation Feedback ( Ferri, Swedroe, Concepts), Is TILT a 4 letter word?
Replies: 10
Views: 819

Re: Asset Allocation Feedback ( Ferri, Swedroe, Concepts), Is TILT a 4 letter word?

1. I know that past performance doesn't mean future results, but most of the portfolios on the lazy portfolio doc plus Swedroe are all tilting value. I am currently using VBR, however I am considering a bigger dose of it for more tilt, or, a switch to VIOV- which doesn't have as much Mid-Cap Value ...
by stlutz
Sat Feb 04, 2017 2:40 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

Sounds like you believe in the risk factor of market beta. The equity risk premium is just that. It's not always positive. Since 1927 17% of rolling 10 year periods have shown a negative ERP relative to 30 day treasury bills. Astounding but not unexpected. It just shows how the one risk factor (bet...
by stlutz
Sat Feb 04, 2017 1:44 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

Why would you do that? HML is by definition long/short and (I believe, but I'm not sure) zero market beta. So depends on what you mean by "50% growth". Could be small growth or large growth or midcap growth. Certainly not zero beta, unless you go short. Don't know any long equity portfoli...
by stlutz
Sat Feb 04, 2017 1:24 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

Let's try this The value factor has different exposures to different risks than does the market beta factor. That is why the correlation of the two factors is effectively zero. By diversifying across factors you now expose the portfolio to different risks than a TSM only portfolio does. There are m...
by stlutz
Sat Feb 04, 2017 1:03 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

Re Line 2: Not sure what you mean. Can you explain please? Moving from negative to positive along an axis e.g. in 3D space means you have to be at zero at some point. So what is your definition of "zero" along the value axis? What he is saying that is that line is compared against a portf...
by stlutz
Fri Feb 03, 2017 8:28 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

After reading the various "diversification" threads that Larry starts every couple of weeks, I've realized I have an angle to get a job as head of marketing for a not-very-good airline. I'll convince in_reality to buy a ticket. Being a not very good airline, his flight will be scheduled to...
by stlutz
Fri Feb 03, 2017 7:28 pm
Forum: Investing - Theory, News & General
Topic: VTEB vs MUB [Vanguard Tax-Exempt vs. iShares National Muni Bond ETF]
Replies: 24
Views: 3564

Re: VTEB vs MUB [Vanguard Tax-Exempt vs. iShares National Muni Bond ETF]

According to Vanguard, VTEB returned .31% for the year ending 12/31: https://personal.vanguard.com/us/funds/snapshot?FundId=4391&FundIntExt=INT According to iShares, MUB returned .06% for the same period: https://www.ishares.com/us/products/239766/ishares-national-amtfree-muni-bond-etf I think s...
by stlutz
Fri Feb 03, 2017 7:21 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 940

Re: Bond Premium Amortization

So, I think that I just learned a fairly big downside to buying individual municipal bonds at a premium. If I understand correctly, that premium is amortized so that there is no capital loss when the bond matures. However, the annual deduction for the amortized premium is deducted from tax exempt i...
by stlutz
Fri Feb 03, 2017 7:16 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 940

Re: Bond Premium Amortization

Your 1099 will include amortization for bonds which you acquired after 1/1/2014. For bonds you acquired before then, your broker may provide you with supplemental information about this, but it's not officially part of your 1099 and it's not reported to the IRS. Fidelity and Schwab provide the info....
by stlutz
Fri Feb 03, 2017 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Review after one month with Fidelity Cash Management
Replies: 33
Views: 2825

Re: Review after one month with Fidelity Cash Management

No overdraft. It bounced. The dealer was understanding and waiting for the funds to complete their transfer. I've made many posts here praising Fidelity. But they sure let me down here. I've been with Fidelity a LONG time. When I called them I blasted them hard. After that I received an invitation ...
by stlutz
Fri Feb 03, 2017 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Premium Amortization
Replies: 17
Views: 940

Re: Bond Premium Amortization

How long ago was "a few years ago?" Which brokerage did you purchase them at? Whether/how the information is reflected on your 1099 depends on those questions.
by stlutz
Thu Feb 02, 2017 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Review after one month with Fidelity Cash Management
Replies: 33
Views: 2825

Re: Review after one month with Fidelity Cash Management

No cashier check either. Their fee schedule says: Cashier’s Check $10 Available by overnight delivery to customer’s address by calling a Representative, or in person at the Boston ongress St. Investor Center. Cashier’s Checks, which are purchased with funds from a Fidelity account, are subject to a...
by stlutz
Wed Feb 01, 2017 11:08 pm
Forum: Investing - Theory, News & General
Topic: Is a total market fund the most diversified
Replies: 157
Views: 13451

Re: Is a total market fund the most diversified

Diversification as a concept is not really that complicated. -Owning lots of stocks is more diversified than owning fewer stocks. -Owing stocks representing lots of industries is more diversified than concentrating in a few industries. -Owning stocks with varying characteristics (e.g. both growth an...
by stlutz
Wed Feb 01, 2017 7:09 pm
Forum: Investing - Help with Personal Investments
Topic: Are TIPS Treasury Inflation Protected Securities Funds Falling?
Replies: 6
Views: 733

Re: Are TIPS Treasury Inflation Protected Securities Funds Falling?

SCHP is at $55.16 now. It was at 54.22 back in mid-December. It was at $57.08 at the end of September. So I'm not sure whether it's rising or falling.

TIPS have been outperforming nominal Treasuries over the past year.
by stlutz
Sun Jan 29, 2017 11:07 pm
Forum: Investing - Help with Personal Investments
Topic: Best place to buy individual govt. bonds? [Calif. tax-free]
Replies: 2
Views: 416

Re: Best place to buy individual govt. bonds?

Fidelity. Good platform and a large number of bonds available.
by stlutz
Sat Jan 28, 2017 3:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Reports Lower Expense Ratios For 21 Fund Shares Resulting In $25 Million In Savings For Investors
Replies: 20
Views: 2753

Re: Vanguard Reports Lower Expense Ratios For 21 Fund Shares Resulting In $25 Million In Savings For Investors

One of my favorite pastimes (well okay, maybe not) is seeing how long it takes for Schwab to respond and re-establish themselves as have the lowest ER by .01% for every ETF. VTIP dropped to .07%. Will see how long it takes Schwab to drop SCHP from .07% to .06%.
by stlutz
Sat Jan 28, 2017 3:06 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity 1099-R issue
Replies: 21
Views: 1015

Re: Fidelity 1099-R issue

Can I contact Vanguard and have them roll it over to a Roth IRA now, pay the taxes as in on my federal returns, and avoid the IRS stormtroopers? I don't think so--that would be reported as an additional rollover. So, then you'd have tax forms saying that you rolled $15K from your pension plan to a ...
by stlutz
Sat Jan 28, 2017 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: Game won with market up and retire or Not Yet?
Replies: 33
Views: 4868

Re: Game won with market up and retire or Not Yet?

$160K in expenses divided by $5.6 million in financial assets comes out to a 2.8% withdrawal rate. You could both retire today and most likely be just fine financially, especially given that you have plenty of room to cut back on expenses in down market periods. Whether you want to do that or not de...
by stlutz
Sat Jan 28, 2017 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity 1099-R issue
Replies: 21
Views: 1015

Re: Fidelity 1099-R issue

According to this (https://www.hrblock.com/get-answers/taxes/income/reporting-401k-rollover-into-ira-10437) , 2a should be zero for what actually happened (rollover to traditional IRA). For what you told them was happening (rollover to Roth), I think it is correct. I would send a secure message thro...
by stlutz
Thu Jan 26, 2017 12:12 am
Forum: Investing - Help with Personal Investments
Topic: Telephoning Vanguard
Replies: 77
Views: 5220

Re: Telephoning Vanguard

Thanks for posting the update--good to hear!
by stlutz
Thu Jan 26, 2017 12:06 am
Forum: Investing - Theory, News & General
Topic: Bid-ask Spread tips for a first time EFT buyer?
Replies: 27
Views: 1997

Re: Bid-ask Spread tips for a first time EFT buyer?

Don't make things more complicated than they are. I bought an ETF at Fidelity today. Placed an odd-lot order at the ask price and it executed just over halfway between the bid and ask.

The time spent on the entire process (including logging into my account) was about 90 seconds.
by stlutz
Wed Jan 25, 2017 11:58 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Merill Edge deposit options
Replies: 2
Views: 310

Re: Question about Merill Edge deposit options

I have read others here say that you can direct dividends directly to an external bank account. Not sure about buying w/o having money in your account.

You might want to try calling them to ask--would be a good chance to test if you find their customer service to be helpful or not.
by stlutz
Wed Jan 25, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why is Vanguard not answering the phone
Replies: 20
Views: 1870

Re: Why is Vanguard not answering the phone

Just for kicks I just tried calling and the call was picked up in one minute and 36 seconds. Used the general number and not the Flagship or Voyager numbers.

Go to advanced search