Search found 332 matches

by welderwannabe
Mon Oct 16, 2017 7:47 am
Forum: Investing - Help with Personal Investments
Topic: Why not CDs instead of Short Term Bonds or TIPS
Replies: 16
Views: 1807

Re: Why not CDs instead of Short Term Bonds or TIPS

I think from discussions we have had here that the prudent investor does not have more than half of her fixed income investments in SVF. You are basically going on the insurance company's credit rating. And if there is another bad market crash like 2008-09, many insurers could be in a lot of troubl...
by welderwannabe
Sun Oct 15, 2017 9:48 am
Forum: Investing - Theory, News & General
Topic: Basic portfolio math question
Replies: 6
Views: 484

Re: Basic portfolio math question

You can value a bond by calculating the present value of sum of all of its future cash flows. I suppose you could do that here with this income stream. Your case doesn't seem all that different than calculating the present value of an annuity to me. The wisdom of treating these future cash flows as ...
by welderwannabe
Sat Oct 14, 2017 4:20 pm
Forum: Personal Finance (Not Investing)
Topic: Silly accounting question [How do I record these transactions?]
Replies: 7
Views: 722

Re: Silly accounting question

In quicken, when I log the deposit of the rebate check, I would put it against the Auto category. That way when I track my spending, it will end up showing the net auto expenses properly. I do most of my own auto repair, and I do the exact same thing when I return my cores and get the core charge re...
by welderwannabe
Sat Oct 14, 2017 12:53 pm
Forum: Investing - Theory, News & General
Topic: IBonds - now or wait? [November 2017 rate]
Replies: 39
Views: 3784

Re: November 2017 - New I bond rate?

That's not what I stated. The composite rate for I Bonds bought in November will be based on the 1.24% semi-annual inflation rate to be officially announced November 1st, not on the 0.98% one announced last May. Good, so I don't have a misunderstanding then. Had the inflation rate gone down in Nove...
by welderwannabe
Sat Oct 14, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: "Dumb and dumber" from Allan Roth
Replies: 10
Views: 2750

Re: "Dumb and dumber" from Allan Roth

You are of course correct. In the future I'll choose my words more carefully. Having said that, I still stand behind my primary point which is that rising interest rates benefit long-term bond investors. Completely agree with you here. The point is that coupons from existing holdings are being used...
by welderwannabe
Sat Oct 14, 2017 9:48 am
Forum: Investing - Theory, News & General
Topic: IBonds - now or wait? [November 2017 rate]
Replies: 39
Views: 3784

Re: November 2017 - New I bond rate?

The first sentence is correct; but the second one is only half-correct, WW. If you buy in October you'll get the composite of the 0% fixed rate and 0.98% semi-annual inflation rate for the first six months. The next six months you'll get the composite of the 0% fixed rate and the new semi-annual in...
by welderwannabe
Sat Oct 14, 2017 7:23 am
Forum: Investing - Help with Personal Investments
Topic: Please help a rookie with my portfolio
Replies: 8
Views: 768

Re: Please help a rookie with my portfolio

Desired Asset allocation: 70% stocks / 30% bonds (but still working on this...currently on the aggressive side for my age because income could help offset a market drop. Not sure if this is the right way to think about it.) That isn't super aggressive. I am 41 and am 80/20. I will be moving to 75/2...
by welderwannabe
Sat Oct 14, 2017 7:18 am
Forum: Personal Finance (Not Investing)
Topic: Pay down mortgage or maintain liquidity for future home improvements
Replies: 10
Views: 1211

Re: Pay down mortgage or maintain liquidity for future home improvements

We just bought a house this year and want to do some fairly major work on it. We don't have a definite timeline, but probably more than 1 year (baby on the way) and within 3 years. We have been saving in taxable in mostly CA munis. Question: what would be the pros and cons of putting the home impro...
by welderwannabe
Sat Oct 14, 2017 6:46 am
Forum: Investing - Theory, News & General
Topic: IBonds - now or wait? [November 2017 rate]
Replies: 39
Views: 3784

Re: November 2017 - New I bond rate?

The inflation rate will be the same for new ibonds and existing ibonds come November. Maybe I am missing something (and I probably am), but how do you know the semi-annual inflation rate isn't changing in November? If they change the rate in November, and you buy a bond that is issued in November, ...
by welderwannabe
Sun Oct 08, 2017 1:36 pm
Forum: Investing - Theory, News & General
Topic: I'm thinking about cashing completely out of equites....
Replies: 75
Views: 8040

Re: I'm thinking about cashing completely out of equites....

I wouldn't want to be 100% bonds nor 100% stocks. A portfolio with combined asset classes that are not (or less) correlated with eachother is more stable than one with only a single asset class. 50/50 is already pretty conservative. If you want to start dropping your equity allocation to get down to...
by welderwannabe
Sun Oct 08, 2017 9:33 am
Forum: Personal Finance (Not Investing)
Topic: Anyone go 100% Ally or another online bank for all banking needs?
Replies: 61
Views: 4900

Re: Anyone go 100% Ally or another online bank for all banking needs?

I am 99% Ally. The 1% is a local credit union account I keep a couple thousand in 'just in case'. All DDs and billpay comes out of Ally. I use the credit union for my 1st tier emergency fund. It is also useful if I need to deposit cash, or get foreign currency, etc. I would never get rid of a local ...
by welderwannabe
Sun Oct 08, 2017 7:12 am
Forum: Personal Finance (Not Investing)
Topic: 3x gross income = house purchase price, should interest rate be taken into account?
Replies: 26
Views: 2118

Re: 3x gross income = house purchase price, should interest rate be taken into account?

When we bought about 15 years ago we bought a house priced at 2.5X our income, and I felt we overreached a bit at the time and still think so now. It worked out because we didn't buy at the peak, but that same gamble didn't work for others. I would want to have a minimum of 6 months of mortgage paym...
by welderwannabe
Sun Oct 08, 2017 7:02 am
Forum: Investing - Help with Personal Investments
Topic: mimicking duration of total bond using municipal bond funds
Replies: 5
Views: 665

Re: mimicking duration of total bond using municipal bond funds

I am not currently in the short-term fund. I moved my short-term taxable money into the municipal money market. It is 82bp right now versus 91bp for the short term fund.The MM yields very close to the same amount as the short term bond but has principal stability in the face of rising rates (if you ...
by welderwannabe
Wed Oct 04, 2017 8:47 am
Forum: Investing - Theory, News & General
Topic: Does anyone hold cash?
Replies: 58
Views: 5518

Re: Does anyone hold cash?

My taxable is 80/15/5. 80% stocks, 15% bonds, 5% cash.

I don't hold a sizable cash position in tax deferred.
by welderwannabe
Tue Oct 03, 2017 4:15 pm
Forum: Investing - Help with Personal Investments
Topic: Chickened out... Now unsure where to start.
Replies: 33
Views: 3673

Re: Chickened out... Now unsure where to start.

johnfromtexas wrote:
Tue Oct 03, 2017 12:36 pm
Fidelity Total Market Index Fund Premium Class (FSTVX)
Fidelity Total International Index Fund Premium Class (FTIPX)
Fidelity U. S. Bond Index Fund Premium Class (FSITX)
Three great funds. Hard to go wrong with these.
by welderwannabe
Tue Oct 03, 2017 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity Money Market - FDCXX
Replies: 8
Views: 709

Re: Fidelity Money Market - FDCXX

Wow, FDCXX is one awful looking money market. If you want to use a Fidelity money market take a look at FZFXX or SPRXX.
by welderwannabe
Tue Oct 03, 2017 11:50 am
Forum: Investing - Help with Personal Investments
Topic: VWEHX High-Yield Corporate bond
Replies: 26
Views: 1568

Re: VWEHX High-Yield Corporate bond

Safest bang for the buck is a 1 year CD at 1.5%. Anything more than that isn't safe. Also, this sounds like an awful lot of effort you are considering having to 'actively manage' this money as you put it, to watch it like a hawk and pull out when you think it is about to go south. For $10k it just w...
by welderwannabe
Mon Oct 02, 2017 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: VWEHX High-Yield Corporate bond
Replies: 26
Views: 1568

Re: VWEHX High-Yield Corporate bond

Finding something that yields 2-3X the current risk-free rate that will be stable over the next year is just not realistic. I don't consider junk bond funds a place to put money I want to get back out in a year. If you do, then go for it and I hope you come back here in a year and tell us all the mo...
by welderwannabe
Mon Oct 02, 2017 2:24 pm
Forum: Investing - Help with Personal Investments
Topic: 401K help please!
Replies: 2
Views: 283

Re: 401K help please!

If your plan offers VFORX without any sort of crazy ER, I would go that route. Set and forget.
by welderwannabe
Mon Oct 02, 2017 9:07 am
Forum: Investing - Help with Personal Investments
Topic: VWEHX High-Yield Corporate bond
Replies: 26
Views: 1568

Re: VWEHX High-Yield Corporate bond

I have a small pile of money ($10k) that I'd like to take a risk with for exactly 1 year. I have a small appetite for losing 1-2%, but hopefully looking for something more generous than the 1.2% I can get with an online savings account. I'm thinking junk bonds may be a solution, and possibly VWEHX ...
by welderwannabe
Mon Oct 02, 2017 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond Index IRA vs CD IRA
Replies: 9
Views: 832

Re: Total Bond Index IRA vs CD IRA

In my solo 401k (non megacorp) plan I have about half of my 'treasury' allocation in 2 year CDs. I kept the other half in a treasury fund for rebalancing fodder.
by welderwannabe
Mon Oct 02, 2017 8:42 am
Forum: Investing - Help with Personal Investments
Topic: Question on Bond Portion of AA
Replies: 16
Views: 973

Re: Question on Bond Portion of AA

Chrysler's plan structure was not that unusual. A lot of them are just another general obligation of the insurance company running them.

I am with dude2. Go with 50/50 and don't look back. Best of both worlds.
by welderwannabe
Sun Oct 01, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: How Safe are Stable Value Funds
Replies: 24
Views: 1974

Re: How Safe are Stable Value Funds

Not to be contrarian, but the exact opposite thing happened to me. About 6 months ago they dropped our short term bond fund (it was Vanguard short term investment grade) and swapped it out for a stable value.
by welderwannabe
Sun Oct 01, 2017 12:20 pm
Forum: Investing - Help with Personal Investments
Topic: How Safe are Stable Value Funds
Replies: 24
Views: 1974

Re: How Safe are Stable Value Funds

Stable Values tend to invest in longer maturity debt than money market funds. Even though money markets got regulated more strictly after the financial crisis it seems that stable values were largely left alone. Why I am not sure as there were as many SV issues in 2008/2009 as money market issues. R...
by welderwannabe
Sat Sep 30, 2017 3:44 pm
Forum: Investing - Help with Personal Investments
Topic: How Safe are Stable Value Funds
Replies: 24
Views: 1974

Re: How Safe are Stable Value Funds

The answer is probably. No one knows for sure, and many of stable values don't really provide details as to their investments. Chances are in a normal market correction stable value funds will be OK. I would be more concerned about them in another credit crisis, although in 2008/2009 there were very...
by welderwannabe
Thu Sep 28, 2017 10:11 am
Forum: Personal Consumer Issues
Topic: Propane Stove For Earthquake Kit
Replies: 24
Views: 1398

Re: Propane Stove For Earthquake Kit

A propane tank should hold, (4.2 pounds/gallons) * (3.6 gallons) = 15 pounds. I have two options and used them both after losing power for 6 days after Hurricane Wilma and I had to work 12 hours a day since I worked for a utility. I had a side burner on my grill and I had a turkey fryer that really...
by welderwannabe
Mon Sep 25, 2017 2:58 pm
Forum: Personal Finance (Not Investing)
Topic: Financial advice pay off mortgage now or keep cash for closing
Replies: 13
Views: 1260

Re: Financial advice pay off mortgage now or keep cash for closing

Without having all the details as to the term of your current loan and how far into it you are, I can't build the amoritization schedule to figure out exactly how much interest you will pay over the next 15 months since I assume you are paying some principal every month. However, and ignoring tax de...
by welderwannabe
Mon Sep 25, 2017 2:51 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Help
Replies: 5
Views: 547

Re: 401k Help

I don't even see a Stable Value there? I see a category called 'MONEY MARKET/STABLE VALUE' that only has a JP Morgan money market under it. It is hard to pass up a tax deduction for a 401k, but if I were in your shoes I would probably just create a taxable account with Vanguard and invest myself. Th...
by welderwannabe
Mon Sep 25, 2017 10:08 am
Forum: Investing - Help with Personal Investments
Topic: Shifting 100% Stock → 35% Stock & 65% Bonds / REITs
Replies: 52
Views: 6080

Re: Shifting 100% Stock → 35% Stock & 65% Bonds / REITs

Everything is expensive today. Stocks and bonds. I am just commenting on the bond portions. If you are gonna go heavy on bonds I would suggest a good measure of corporates, along the line of portfolio #1. I like the 50/50 mix of corporates/treasuries there. I am not a fan of portfolio #2 as it is 65...
by welderwannabe
Sun Sep 24, 2017 8:47 pm
Forum: Investing - Help with Personal Investments
Topic: How do I retain check writing on bond fund?
Replies: 21
Views: 1756

Re: How do I retain check writing on bond fund?

The message I received said if I write a check that clears by the end of October, I will maintain the check writing privleges. I am going to write a check for $.02 and deposit it in my checking account. That should do it. I think their checkwriting policy is that a check must be for at least $250. ...
by welderwannabe
Sun Sep 24, 2017 8:44 pm
Forum: Investing - Help with Personal Investments
Topic: 401k Help
Replies: 5
Views: 547

Re: 401k Help

After seeing this, I will never complain about my plan again.
by welderwannabe
Sat Sep 23, 2017 2:46 pm
Forum: Personal Finance (Not Investing)
Topic: Transfering 250K online from one bank to another
Replies: 15
Views: 1747

Re: Transfering 250K online from one bank to another

Ally's Transfer Limits: From an external bank to Ally: Transfer Speed Maximum Per Day Maximum Every 30 Days 1 business day $250,000 $1,000,000 3 business days $250,000 $1,000,000 From Ally to an external Bank: Transfer Speed Maximum Per Day Maximum Every 30 Days 1 business day $150,000 $600,000 3 bu...
by welderwannabe
Sat Sep 23, 2017 7:07 am
Forum: Personal Finance (Not Investing)
Topic: Invest, or Buy a $25,000 Screened-in Deck?
Replies: 24
Views: 2222

Re: Invest, or Buy a $25,000 Screened-in Deck?

We went through this debate years ago and haven't regretted having the screened in porch (don't tell my wife I said this since she won that argument. :) If not for her convincing me I wouldnt have spent the money on the porch nor the inground pool - I havent regretted either - investing for your fu...
by welderwannabe
Fri Sep 22, 2017 3:23 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

But it will take something outside of the fund itself, like bankruptcy of the parent company. I think we are talking past eachother here. I just don't understand what you are trying to say. I am trying to say people shouldn't put all their eggs in a stable value basket, and you are telling me Lehma...
by welderwannabe
Fri Sep 22, 2017 3:08 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

That's like saying that homeowner's insurance is bad because here's an example of someone who canceled their insurance and later had a fire. Had Lehman continued the insurance even while in bankruptcy, the plan would have not suffered the loss. I am sorry but that analogy makes no sense to me and t...
by welderwannabe
Fri Sep 22, 2017 3:04 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

That's like saying that homeowner's insurance is bad because here's an example of someone who canceled their insurance and later had a fire. Had Lehman continued the insurance even while in bankruptcy, the plan would have not suffered the loss. I am sorry but that analogy makes no sense to me and t...
by welderwannabe
Fri Sep 22, 2017 10:47 am
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

With a stable value fund or money market, lost money means you have a loss of principal in any month. Something that should never happen with either one.

Yes, I am aware that overall for the year the fund was up.
by welderwannabe
Fri Sep 22, 2017 7:51 am
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

Am I better off doing the stable "today" and wait on the other bond half of my investments? I know the risk is that this bull stock market crashes. You need to decide whether the perceived stable principal value of the stable value fund is worth whatever additional risk you perceive that it has. Ma...
by welderwannabe
Thu Sep 21, 2017 12:54 pm
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

They can, but the often don't. Mine is run by an insurance company. They state that the fund is guaranteed by them. No mention of any other entities, but it is very opaque and they dont provide a lot of details to me even when I asked. Another reason why I limit it to 50%. I count my stable value as...
by welderwannabe
Thu Sep 21, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Stable value fund
Replies: 27
Views: 1963

Re: Stable value fund

Regardless of how good the stable value fund looks to be, I would not put all my eggs in that basket. They are generally backed by insurance companies, who as we all know from 10 years ago, could have some troubles. I limit my Stable Value exposure in my IPS to no more than 50% of my fixed income. I...
by welderwannabe
Thu Sep 21, 2017 9:17 am
Forum: Investing - Help with Personal Investments
Topic: $200,000 Saved - Mid 50's - Best Approach [US Citizen in UK]
Replies: 9
Views: 1636

Re: $200,000 Saved - Mid 50's - Best Approach

Too risky. Don't put all your eggs in some high flying mutual fund. History is littered with stories like this and they almost always end badly.
by welderwannabe
Wed Sep 20, 2017 3:09 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance Help
Replies: 6
Views: 330

Re: Life Insurance Help

Term is almost always the right answer.

You really need to explain your goals for the insurance. It probably isn't to pay for college since that should be wrapped up in 4 years.
by welderwannabe
Tue Sep 19, 2017 2:24 pm
Forum: Investing - Theory, News & General
Topic: Any "average Joe" here actually make out well with individual stocks?
Replies: 108
Views: 12456

Re: Any "average Joe" here actually make out well with individual stocks?

Avoid diversifiable risk. There is enough systematic (undiversfiable) risk already, you don't need to add to it. This is especially true if you are a individual investor and don't have the vast resources to spend on trying to manage the diversifiable risk and look for alpha.
by welderwannabe
Tue Sep 19, 2017 9:36 am
Forum: Investing - Help with Personal Investments
Topic: Rebalancing - In Taxable Account
Replies: 13
Views: 1018

Re: Rebalancing - In Taxable Account

You still adding to taxable? If so you can rebalance slowly by moving all your new taxable contributions into a bond fund. That is what I try to do in taxable, unless it gets so out of whack due to a major market runup that I start to sweat.
by welderwannabe
Tue Sep 19, 2017 9:33 am
Forum: Investing - Help with Personal Investments
Topic: Opinions on moving to VG
Replies: 19
Views: 1673

Re: Opinions on moving to VG

Your expense ratios are fine, but watch out for any annual administrative fees. My workplace plan charges a fee of .38% of AUM every year. So, while the ERs on the individual funds are pretty low, once you add in the .38% it doesn't look so good...although it is better than some. As soon as I am giv...
by welderwannabe
Tue Sep 19, 2017 9:08 am
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 4729

Re: What is the main purpose of rebalancing?

flyingaway wrote:
Tue Sep 19, 2017 9:05 am
Do you have a specific band to decide when to rebalance?
Anything more than 1% is fair game for me. The conventional wisdom says 5%, but that is too big of a swing for my emotions. I would never rebalance from bonds into stocks if I waited for a 5% delta! Little bites make it easier for me.
by welderwannabe
Tue Sep 19, 2017 9:02 am
Forum: Investing - Help with Personal Investments
Topic: Invest in CDs rather than bonds
Replies: 9
Views: 1090

Re: Invest in CDs rather than bonds

I split the difference in my portfolio. For my non-corporate bond allocation in tax advantaged I hold 50% in CDs and 50% in Treasuries.
by welderwannabe
Tue Sep 19, 2017 9:00 am
Forum: Investing - Theory, News & General
Topic: What is the main purpose of rebalancing?
Replies: 59
Views: 4729

Re: What is the main purpose of rebalancing?

I love nothing more than rebalancing into bonds. It makes me feel good to take a profit and move it somewhere more safe. My emotions get in the way of the reverse...when stocks are down and I need to rebalance from bonds into stocks. That is where I have a hard time pulling the trigger. All of our e...
by welderwannabe
Mon Sep 18, 2017 4:20 pm
Forum: Investing - Theory, News & General
Topic: Good books for bond investing?
Replies: 16
Views: 1223

Re: Good books for bond investing?

Annette Thau's The Bond Book is great. I recommend it highly.

As nsiprius said, it isn't a good book to understand how bond funds work, but it is good to understand how individual bonds work.
by welderwannabe
Sun Sep 17, 2017 9:41 pm
Forum: Investing - Theory, News & General
Topic: Basic questions on credit ratings
Replies: 5
Views: 673

Re: Basic questions on credit ratings

VFSUX already has 18% Treasury/Agency. You mix in a 50% treasury fund and and you are up to almost 60% Treasury/Agency. At that point you have basically built yourself a shorter duration version of Vanguard Short-Term Bond Index Fund Investor Shares (VBISX). I don't think VFSUX or VUSFX has a lot of...