Search found 3747 matches

by stlutz
Sun Jun 25, 2017 7:41 pm
Forum: Personal Consumer Issues
Topic: Which Dealer Cost/Invoice does one use?
Replies: 4
Views: 314

Re: Which Dealer Cost/Invoice does one use?

Who cares what the dealer invoice cost is. All that matters is what you can buy the car for. Best BH thread on car buying: viewtopic.php?t=124638
by stlutz
Sun Jun 25, 2017 7:38 pm
Forum: Investing - Theory, News & General
Topic: BIV Question
Replies: 7
Views: 416

Re: BIV Question

Does Vanguard hold the individual bonds to maturity


No. Essentially what it does is buy bonds that have 10 year of maturity left and then hold them until they have 5 years of maturity remaining. That is what is meant by it tracking a "5-10 year" index.
by stlutz
Sun Jun 25, 2017 2:06 pm
Forum: Personal Consumer Issues
Topic: Chrome vs Firefox
Replies: 4
Views: 459

Re: Chrome vs Firefox

I find it to be inconsistent. On the machine I'm typing from now, no issues. I have another machine where I do experience waits. Both machines are on Windows 10.

No issues on Linux.
by stlutz
Sun Jun 25, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Downside Risk of Ultra-Short Credit Bond Funds
Replies: 5
Views: 386

Re: Downside Risk of Ultra-Short Credit Bond Funds

Not in those IRAs. You would need to open a new IRA at Ally and transfer the money over. Some people (i.e. me) find that to be too much work and therefore haven't done so. Others find it well worth the trouble.

In my IRA I only hold treasury bond funds and brokered CDs on the fixed income side.
by stlutz
Sun Jun 25, 2017 1:19 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs or Mutual Funds for an inexperienced investor
Replies: 32
Views: 1396

Re: ETFs or Mutual Funds for an inexperienced investor

This looks like a sane process and what happened when I did "market" orders, but at that time I didn't know you weren't supposed to buy Market. After that relatively easy buy, I came across Bogleheads and read somewhere to never use Market orders, so the next time, I tried to do Limit ord...
by stlutz
Sun Jun 25, 2017 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: Downside Risk of Ultra-Short Credit Bond Funds
Replies: 5
Views: 386

Re: Downside Risk of Ultra-Short Credit Bond Funds

The downside risk corporate bonds funds in 2008 was driven by credit risk, not duration risk. Switching to shorter term bonds doesn't really remove that risk. Actually, longer-term credit funds did better than shorter term ones in '08. VG LT investment grade was up slightly in '08 while short-term i...
by stlutz
Sat Jun 24, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs or Mutual Funds for an inexperienced investor
Replies: 32
Views: 1396

Re: ETFs or Mutual Funds for an inexperienced investor

We should ask--what ETFs do you own are are you considering purchasing?
by stlutz
Sat Jun 24, 2017 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs or Mutual Funds for an inexperienced investor
Replies: 32
Views: 1396

Re: ETFs or Mutual Funds for an inexperienced investor

It does seem more complex. I tend to look after trading hours to try and familiarize and educate myself, so the asking prices seem way high. How do you come up with your asking price? If something is currently at $125, but the asking price is something like $140. What to do? Don't place trades on S...
by stlutz
Sat Jun 24, 2017 8:25 pm
Forum: Investing - Help with Personal Investments
Topic: ETFs or Mutual Funds for an inexperienced investor
Replies: 32
Views: 1396

Re: ETFs or Mutual Funds for an inexperienced investor

If you are trading highly liquid ETFs like VTI, VXUS, and BND, market orders work just fine 99.99999% of the time. For any other ETF, I use a "marketable limit order". That is, I'll place an order at the ask and just let my broker execute it. Generally I get a better price than the ask. If...
by stlutz
Sat Jun 24, 2017 7:23 pm
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 49
Views: 3548

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

P.S. Why A-L and M-Z rather than A-M and N-Z?


It's to distinguish the Stlutz family of mutual funds from Nisiprius Investments. :D
by stlutz
Sat Jun 24, 2017 7:07 pm
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 42
Views: 3010

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

Just to take a very comparable company, Charles Schwab has a net profit margin of 25%. That's pretty good. As such, I don't feel any need to worry about how they are making money off of me. They will still be around next year and they don't need jack up costs to be very profitable.
by stlutz
Sat Jun 24, 2017 7:01 pm
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 49
Views: 3548

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

Is there any fundamental reasons to only own the stocks whose names start with the letters A through L? If it's a global market and all companies (at least big ones) get revenue from all over the world, then the decision to exclude them really falls into the A-L category. That said, is there any mas...
by stlutz
Sat Jun 24, 2017 6:53 pm
Forum: Personal Consumer Issues
Topic: Subaru to Prius?
Replies: 44
Views: 3092

Re: Subaru to Prius?

Looking at the site "zeroto60times.com", the 2.5L Outback does 0-60 in about 9 seconds; the 3.5L Outback does so in around 7 seconds. The Prius, regardless of the year, does 0-60 in about 9.5 to 10 seconds. If you have the Outback with the bigger engine, the Prius will feel slower; if you ...
by stlutz
Fri Jun 23, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed
Replies: 44
Views: 2429

Re: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed

Odd. In practice it looks like VGIT has usually outperformed SCHR by about 5-10 basis points. I figured the explanation is either due to agency debt or Schwab making a profit. I'd think agency debt must be at least a part of it. Comparing the funds' benchmarks: VGIT: 1 yr. .32 3 yr. 2.19 5 yr. 1.47...
by stlutz
Fri Jun 23, 2017 8:36 pm
Forum: Investing - Theory, News & General
Topic: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the day."
Replies: 49
Views: 3548

Re: "Home Bias Blues: Investors really should get out more. The reasons for sticking to local stocks are fewer by the da

We experienced major dollar weakening during 2002-2007. Well, I ask you--did you notice runaway inflation or anything else terrible as a result? Energy prices. First of all, the premise of the article is that currency risk is bad, that currency-hedged international stock funds are good, and their a...
by stlutz
Fri Jun 23, 2017 8:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed
Replies: 44
Views: 2429

Re: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed

i have never understood this fund. as i think other's have pointed out it seems to run with a duration a year or more less than its target index. and the way interest rates have gone the past say 10 years that means it has underperformed it's index. i am in the camp that there is no good reason for...
by stlutz
Fri Jun 23, 2017 8:04 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed
Replies: 44
Views: 2429

Re: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed

VGIT/VSIGX Vanguard Intermediate Government: This fund includes agency debt, which increases yield a tiny amount, about 0.1% over SCHR. In theory there may be credit risk to agency debt, but it has not shown up and standard deviation has been identical to SCHR. SCHR Schwab Intermediate treasury: Al...
by stlutz
Thu Jun 22, 2017 10:49 pm
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS auction 6/22: yield 1.0%?
Replies: 37
Views: 3495

Re: 30 yr TIPS auction 6/22: yield 1.0%?

With a 30 year inflation breakeven of 1.84%, the TIPS seemed like a very good value and possibly helped drive demand.

I have no evidence to actually indicate that this is what people were thinking, but it should be good enough analysis to get me on CNBC. :D
by stlutz
Wed Jun 21, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: HOW MUCH active management is right for you? :(
Replies: 37
Views: 2601

Re: Vanguard: HOW MUCH active management is right for you? :(

Just to make a cautionary point, there is commonly an assumption on this board that passive investing necessarily outperforms active investing. It generally does, but that is because of costs. If the cost of active = the cost of passive, then any active fund has a 50/50 chance of outperforming. Or t...
by stlutz
Wed Jun 21, 2017 9:01 pm
Forum: Investing - Theory, News & General
Topic: 30 yr TIPS auction 6/22: yield 1.0%?
Replies: 37
Views: 3495

Re: 30 yr TIPS auction 6/22: yield 1.0%?

Well secondary mkt yield is now 0.91% so 1% very unlikely at tomorrow's auction.

I'm now hoping for 0.95%


Auction rates are generally a little lower than secondary markets (due to liquidity). .90% is a more realistic hope.
by stlutz
Tue Jun 20, 2017 10:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed
Replies: 44
Views: 2429

Re: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed

Capital gains are taxed at a lower rate than interest. The cap gains is probably a result of roll yield which is usually thought of as a good thing. Even better is an ETF that doesn't need to distribute capital gains--you can defer those until you sell instead of having to pay tax now. One time I m...
by stlutz
Tue Jun 20, 2017 9:33 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed
Replies: 44
Views: 2429

Re: Vanguard Intermediate Term Treasury (VFITX) - Actively Managed

On 12/22 VFITX had a capital gain distribution of about 1%.
by stlutz
Sat Jun 17, 2017 4:58 pm
Forum: Personal Consumer Issues
Topic: 100k Service - 2010 Camry & Corolla - All Maintenance Deferred
Replies: 17
Views: 1919

Re: 100k Service - 2010 Camry & Corolla - All Maintenance Deferred

Aren't coolant, transmission fluid, and spark plugs 100K mile items on those cars anyhow? The Corolla (and I assume the Camry) have timing chains instead of a timing belt, so I think you are okay there. I'm not sure that you've really deferred as much as you think you have aside from air filters.
by stlutz
Thu Jun 15, 2017 9:13 pm
Forum: Personal Finance (Not Investing)
Topic: Capital One $400 bonus for new checking account
Replies: 25
Views: 4108

Re: Capital One $400 bonus for new checking account

From the link:

"IF YOU DID NOT RECEIVE AN EMAIL OR MAIL PIECE DIRECTLY FROM CAPITAL ONE 360 WITH THE ABOVE CODE, YOU ARE INELIGIBLE FOR THIS BONUS OFFER."
by stlutz
Tue Jun 13, 2017 8:40 pm
Forum: Investing - Help with Personal Investments
Topic: Question on Schwab Fundamental ETFs vs. Mutual Funds
Replies: 4
Views: 399

Re: Question on Schwab Fundamental ETFs vs. Mutual Funds

My sense is that in tax advantaged accounts they may be interchangable. In taxable, ETFs may be a better choice due to tax costs. +1 The thing I don't like about these funds (or ETFs) in general is that they basically trail their index by about the expense ratio. On the other hand, the cap-weighted...
by stlutz
Sat Jun 10, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: Russell 2000 Pro's and Con's
Replies: 5
Views: 683

Re: Russell 2000 Pro's and Con's

Here is a good article on the subject on R2K frontrunning: http://ibd.morningstar.com/article/article.asp?id=686165&CN=brf295,http://ibd.morningstar.com/archive/archive.asp?inputs=days=14;frmtId=12,%20brf295 All smallcap indices are subject to this issue--the R2K just has the most issues with it.
by stlutz
Sat Jun 10, 2017 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Which Bond Category to Choose?
Replies: 14
Views: 1302

Re: Which Bond Category to Choose?

Is this in a taxable portfolio? If so, what tax brackets are you in (federal and state)? This impacts the relative value of munis and treasuries as compared to other bonds.
by stlutz
Sat Jun 10, 2017 2:06 pm
Forum: Investing - Theory, News & General
Topic: HEHR-tolerance versus Loss Aversion--why setting and maintaining your own AA might be a mistake
Replies: 139
Views: 6702

Re: HEHR-tolerance versus Loss Aversion--why setting and maintaining your own AA might be a mistake

Was just catching up on this thread today. A few thoughts: It's clear that the word "rebalancing" in the paper has caused a lot of consternation. Since this word has a very specific definition to us that is not what the authors were saying, I think we should substitute "decision point...
by stlutz
Sat Jun 10, 2017 12:00 pm
Forum: Investing - Theory, News & General
Topic: Interesting Study in Factor Investing
Replies: 4
Views: 478

Re: Interesting Study in Factor Investing

In fairness, there has always been agreement that "value" stocks do in fact identify companies that will in fact have poorer future performance in every way except stock price--value metrics do accurately predict lower future earnings growth, ROE etc. The argument is that the market in som...
by stlutz
Sat Jun 10, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank - Is this a safe/best place to stash some cash?
Replies: 108
Views: 16960

Re: Ally Bank - Is this a safe/best place to stash some cash?

You used to have to call to close out a "no penalty" CD--you can now do it online. I closed one out earlier in the year--I forget if the money showed up in my savings account immediately or the next day, but you get the point on the liquidity of this. The 1.35% rate is new as of yesterday
by stlutz
Sat Jun 10, 2017 11:46 am
Forum: Personal Finance (Not Investing)
Topic: GS Bank raised rate to 1.20%
Replies: 20
Views: 3108

Re: GS Bank raised rate to 1.20%

Ally has been behind slightly for years.


Some banks attract deposits by having high rates; others do it by having a lot of advertising.
by stlutz
Sat Jun 10, 2017 11:44 am
Forum: Personal Finance (Not Investing)
Topic: Changing State Residences for ACA Coverage
Replies: 15
Views: 1311

Re: Changing State Residences for ACA Coverage

Also keep in mind that you may not have to move to a different state. In my state at least, there are a lot of counties with only 1 insurer, but if you go 50 miles over, that county has 6 choices.
by stlutz
Sat Jun 10, 2017 11:42 am
Forum: Investing - Theory, News & General
Topic: Is Inflation Dying of Old Age?
Replies: 82
Views: 6743

Re: Is Inflation Dying of Old Age?

However, in a wholesale structural shift to a low inflation future, portfolio allocations to commodities and TIPS might be reconsidered. Your thoughts? To step away from the theory and back to the practical, I think think allocations to TIPS should be reconsidered, but not in the way I think you we...
by stlutz
Fri Jun 09, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistence Of The Value Premium
Replies: 47
Views: 4786

Re: Larry Swedroe: Persistence Of The Value Premium

On the question of whether there is a value premium, let's update the since inception number of the various VG funds: large cap since 1992: growth: 9.42% value: 9.43% Midcap since 2006: growth: 8.63% value 8.72% Smallcap since 1998: growth: 8.35% value: 8.60% A win by value in all 3 cases, but are t...
by stlutz
Fri Jun 09, 2017 6:27 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistence Of The Value Premium
Replies: 47
Views: 4786

Re: Larry Swedroe: Persistence Of The Value Premium

I have to compare the question, "Is the value premium behavioral or risk?" to asking "Will the Yankees or the Mets win the World Series this year?" The obvious response to the second question is, "Uh, there *are* other teams." And that is my response to the former as we...
by stlutz
Wed Jun 07, 2017 6:44 pm
Forum: Investing - Theory, News & General
Topic: The Funded Ratio over the LifeCycle - Part 3 of Funded Ratio series
Replies: 16
Views: 1377

Re: The Funded Ratio over the LifeCycle - Part 3 of Funded Ratio series

As a nit note that you were looking at the price chart and not total return (see this one instead): http://performance.morningstar.com/funds/etf/total-returns.action?t=PBP&region=usa&culture=en-US The conclusion is still pretty much the same though: it declined somewhat less in '08 (because ...
by stlutz
Mon Jun 05, 2017 1:50 am
Forum: Investing - Help with Personal Investments
Topic: Do municipal bond funds make sense for me?
Replies: 8
Views: 839

Re: Do municipal bond funds make sense for me?

Arizona is a small state and has a relatively low tax rate. As such, having a lot of money in an AZ muni bond fund probably doesn't make a lot of sense. If you are going with munis, I would opt for one of two ETFs if investing at Fidelity. MUB trades commission free. VTEB has a commission but has a ...
by stlutz
Sun Jun 04, 2017 12:19 pm
Forum: Personal Consumer Issues
Topic: Road bike tour to Europe
Replies: 10
Views: 755

Re: Road bike tour to Europe

I always prefer trips where I can stay in 1 location as opposed to having to move around every day. For me, I find this gives more flexibility to adjust my riding around weather and how I feel each day as opposed to the itinerary saying that we have to ride from X to Y in a driving rainstorm. Girona...
by stlutz
Sun Jun 04, 2017 10:03 am
Forum: Personal Finance (Not Investing)
Topic: Bond Ladder Floor - Retirement Plan.
Replies: 25
Views: 2106

Re: Bond Ladder Floor - Retirement Plan.

Some things I would consider thinking about a little further: a) I would plan to eliminate anything with complexity in your portfolio by age 70 or 75. By then, if you have TIPS, just have a TIPS fund (like VAIPX or SCHP). As one gets older, complexity tends to lead to decisions like day trading or h...
by stlutz
Fri Jun 02, 2017 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Money Markets
Replies: 5
Views: 682

Re: Fidelity Money Markets

iShares SHV is a good alternative to a money market fund at Fidelity. It holds T-bills/notes/bonds with a maturity of less than 1 year. Average maturity is around 4 months. It does have a floating price, so it's not exactly like a money market fund, but it's the best option if you are looking for a ...
by stlutz
Fri Jun 02, 2017 12:59 am
Forum: Investing - Theory, News & General
Topic: Differing expense ratio reports for same ETF
Replies: 2
Views: 230

Re: Differing expense ratio reports for same ETF

IB doesn't keep their info. up to date. Not much to explain.
by stlutz
Thu Jun 01, 2017 11:08 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Explaining The Low Vol Anomaly
Replies: 16
Views: 1937

Re: Larry Swedroe: Explaining The Low Vol Anomaly

Short-term semi-annual performance does not matter. It's noise. He's talking about 5-10 year expected returns based on current valuations. For 5 years Swedroe has been warning against the dangers of investing in low volatility stocks and for 5 years he has been wrong. That could mean that his analy...
by stlutz
Tue May 30, 2017 11:46 pm
Forum: Investing - Theory, News & General
Topic: Does your username at fidelity.com get hidden?
Replies: 12
Views: 816

Re: Does your username at fidelity.com get hidden?

Mine has never been hidden.
by stlutz
Tue May 30, 2017 9:46 pm
Forum: Investing - Theory, News & General
Topic: Using Funded Ratio to drive retirement investment plan - Part 1 of Funded Ratio series
Replies: 67
Views: 5328

Re: Using the Funded Ratio to drive your retirement investment plan

I actually have a question for you BobK (which hopefully doesn't take us off topic). How would you approach it if you were eyeing a very early retirement? That is, suppose someone was 50 and was thinking of stopping working and would otherwise live off a 3% withdrawal rate adjusted for inflation hav...
by stlutz
Mon May 29, 2017 3:06 pm
Forum: Investing - Theory, News & General
Topic: Using Funded Ratio to drive retirement investment plan - Part 1 of Funded Ratio series
Replies: 67
Views: 5328

Re: Using the Funded Ratio to drive your retirement investment plan

how do you "use the Funded Ratio to drive your retirement investment plan" when the funded ratio is exactly as volatile as your portfolio? One critical point that bobcat has explained in other threads is that the "funded ratio" is somewhat impervious to interest rate changes. If...
by stlutz
Mon May 29, 2017 2:45 pm
Forum: Investing - Theory, News & General
Topic: Using Funded Ratio to drive retirement investment plan - Part 1 of Funded Ratio series
Replies: 67
Views: 5328

Re: Using the Funded Ratio to drive your retirement investment plan

Round-trip trade spreads on individual TIPS are around .5% to .75%. The round-trip trade cost on LTPZ is currently .22% and it has a .20% expense ratio. Basically the individual issue would be cheaper for holding periods of > 2 years. I guess I would use the individual issue issue in an tax-advantag...
by stlutz
Mon May 29, 2017 2:08 pm
Forum: Investing - Help with Personal Investments
Topic: Need Inflation Protected Securities fund?
Replies: 7
Views: 629

Re: Need Inflation Protected Securities fund?

I market time them based on the assumption that over the long haul the Fed will pretty much achieve it's 2% inflation target. When the yield difference between nominals and TIPS is low (as in early 2016), I'll move more toward TIPS. When the gap gets larger, I opt for nominals. https://fred.stlouisf...
by stlutz
Mon May 29, 2017 11:36 am
Forum: Investing - Theory, News & General
Topic: Using Funded Ratio to drive retirement investment plan - Part 1 of Funded Ratio series
Replies: 67
Views: 5328

Re: Using the Funded Ratio to drive your retirement investment plan

I think someone in the forum posted that The Principal still writes CPI-linked annuities, but the question is where to go to get a quote. I am able to get a quote at immediateannuties.com for one. For $100,000, I can get $547/mo. with no adjustment, $400 with a 3% annual adjustment, and $384 with a...

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