Search found 4046 matches

by triceratop
Wed Apr 25, 2018 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: Tax inefficiency
Replies: 5
Views: 373

Re: Tax inefficiency

Sell now, if the capital gains distributions the fund throws off are regularly that large. The expected break even date is less than 2 years.
by triceratop
Wed Apr 25, 2018 5:31 pm
Forum: Investing - Theory, News & General
Topic: Graph of various Vanguard fund SEC Yields for the past year
Replies: 8
Views: 512

Re: Graph of various Vanguard fund SEC Yields for the past year

What about the fact that the taxable bond funds receive state-tax exempt interest from US Treasuries; is that handled? Prompted by your question, I just checked, and the long-term bond index has 40% in Treasury/Agency bonds. I hadn't realized there might be such a high proportion of treasuries in t...
by triceratop
Wed Apr 25, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Graph of various Vanguard fund SEC Yields for the past year
Replies: 8
Views: 512

Re: Graph of various Vanguard fund SEC Yields for the past year

The second graph is the same set of funds, but with assuming a 41% federal marginal rate and an 11% NY/NYC rate, which roughly correspond to the highest brackets +/- NIIT and extra medicare. What about the fact that the taxable bond funds receive state-tax exempt interest from US Treasuries; is tha...
by triceratop
Wed Apr 25, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 39
Views: 5265

Re: 2017 Relative Tax Efficiency

This is a really great tool. I'm really intrigued to see the tax efficiency number for Small Cap Value (VBR) being so good compared to e.g. S&P 500 VOO. Is it possible that the numbers for VBR are not updated for 2017? I do not have the expertise to check the QDI number but the dividend / share num...
by triceratop
Wed Apr 25, 2018 10:01 am
Forum: Investing - Theory, News & General
Topic: Interest rates have no impact on equity markets...
Replies: 4
Views: 618

Re: Interest rates have no impact on equity markets...

... only high yield does. I'm amazed at how many people don't know this. I've looked at data from 1945. Equities have rallied and fallen during rising rates. There is no correlation. https://fred.stlouisfed.org/series/BAMLH0A0HYM2 Your graph doesn't show that high yield has an impact on equity mark...
by triceratop
Tue Apr 24, 2018 11:48 pm
Forum: Investing - Help with Personal Investments
Topic: Time for Taxable?
Replies: 8
Views: 1111

Re: Time for Taxable?

...the mutual fund equivalent has double the ER. Vanguard's Total Stock Market investor-class shares have an ER almost four times that of the ETF: 0.15 for VTSMX vs. 0.04 for VTI. But on an absolute basis, if one has just under the amount needed for admiral-class (VTSAX, also a 0.04 ER), the extra ...
by triceratop
Tue Apr 24, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Yes but if I make $50k for 24 years and $100k the last year and then apply your simple rule, I've really only saved for the annual expense I had during the first 24 years even though in each year I saved the requisite amount. That is an extreme example, but it also applies if one gradually makes mo...
by triceratop
Tue Apr 24, 2018 6:07 pm
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 246
Views: 26839

Re: Case study Broker trade executions

motorcyclesarecool wrote:
Tue Apr 24, 2018 6:04 pm
Yes. Is a limit order at the ask not marketable?
Only if your limit order is a limit buy order.
by triceratop
Tue Apr 24, 2018 4:41 pm
Forum: Investing - Theory, News & General
Topic: Why are rising Bond Yields bad?
Replies: 35
Views: 3297

Re: Why are rising Bond Yields bad?

I'd like to add a question (I am curious): What is the 'magic' about a 3% yield on the 10-year treasury bond? Why is 3% so important, and not 4%, or 3.25 or 7%? It seems to me, long term, stocks average 7%-8% nominal. With a 3% yield on bonds, I am thinking, "Pffffft. Big deal. Bonds have a long wa...
by triceratop
Tue Apr 24, 2018 12:53 pm
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 811

Re: Where to find call dates for bonds in Vanguard Bond Funds

Isn't that the opposite of what we are saying. :? In any case I can see where the semi-active fund manager can get some benefit by not having to buy market weight of each issue in the index. The new 2-yr issue just cleared auction. The index manger had to buy some share and they need to sell someth...
by triceratop
Tue Apr 24, 2018 12:43 pm
Forum: Investing - Help with Personal Investments
Topic: Time for Taxable?
Replies: 8
Views: 1111

Re: Time for Taxable?

Whatever else you do, I hope you realize that VFIFX holds 40% of stocks in international and VTI holds 0%. Are you aware that your current plan results in you tilting away from international stocks?

I would use "VT" -- Vanguard Total World Stock.
by triceratop
Tue Apr 24, 2018 12:33 pm
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 811

Re: Where to find call dates for bonds in Vanguard Bond Funds

I'll look next into whether funds take advantage of this. Probably in a new topic. I'm missing something here I think. Is a US Treasury 1.75% 01/31/2023 on the run? I can currently get multiple bid/asked for $10 million and even up to $25 million. :? Hey, you were the one who chose a 5-year maturit...
by triceratop
Tue Apr 24, 2018 10:13 am
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 811

Re: Where to find call dates for bonds in Vanguard Bond Funds

Okay. Just to be clear, are you referring to the $300mm ouststanding liquidity requirement for local currency issues(references: Treasury , or General Index Methodology )? I guess I don't see why a treasury would no longer meet that requirement when it goes off-the run. The liquidity screen is not ...
by triceratop
Tue Apr 24, 2018 2:21 am
Forum: Investing - Help with Personal Investments
Topic: What happens when you speak in TICKER language.
Replies: 130
Views: 10881

Re: A Rant about Ticker Speak

It's time to remind posters that ticker speak is inconsiderate and a lazy habit. retiredjg and others said it better than I can. Maybe this thread should be bumped at least once a year? I prefer tickers. Perhaps it is a personal preference? Of course if one wants the broadest perspective then addin...
by triceratop
Mon Apr 23, 2018 9:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard factor funds slow to catch on
Replies: 50
Views: 3974

Re: Vanguard factor funds slow to catch on

Whole lotta factor squeezing going on here. Will there be any juice left? I guess that's the risk you get. The factor funds being slow to catch on is evidence that there is squeezing occurring? What would your conclusion be if the adoption were more rapid? Is there a set of facts that doesn't lead ...
by triceratop
Mon Apr 23, 2018 7:39 pm
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 811

Re: Where to find call dates for bonds in Vanguard Bond Funds

By the way, and this is slightly off topic, but this made me think: does anyone know how Vanguard (or Blackrock for that matter) runs their indexed treasury products? Would it be a good idea for them to buy off-the-run treasuries to get a yield bump for their investors? That would seem to benefit l...
by triceratop
Mon Apr 23, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Where to find call dates for bonds in Vanguard Bond Funds
Replies: 19
Views: 811

Re: Where to find call dates for bonds in Vanguard Bond Funds

I would think that effective maturity is with the call dates factored in. It would not be synonymous with effective duration, at least mathematically. To calculate effective duration you first need to build a yield curve. Lots of math, lots of inputs, some subjectivity. For example, do you use only...
by triceratop
Mon Apr 23, 2018 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about investing through Roth internationally
Replies: 3
Views: 229

Re: Questions about investing through Roth internationally

Hello, Background: I am an Indian citizen, living and working in the US. I have been contributing to a Roth account through both the IRA backdoor and employee after tax option, and plan to continue doing this going forward. So some of the 2-3 year CDs offered through banks in India offer close to 7...
by triceratop
Mon Apr 23, 2018 4:29 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5589

Re: Factor Investing - A convincing article

afan, completely agree. While I do tilt to small value I do this not in any expectation of higher risk-adjusted return but instead out of a higher return in absolute terms than I could with a 100% equity portfolio. I like the phrase “far more interesting than useful” very much; it describes many thi...
by triceratop
Mon Apr 23, 2018 3:30 pm
Forum: Investing - Theory, News & General
Topic: Factor Investing - A convincing article
Replies: 67
Views: 5589

Re: Factor Investing - A convincing article

I am doubt these require a graduate math background, just some patience. They are written by finance professors for finance professors. To be a finance doctoral student one has to be comfortable with math, but does not need an advanced degree in the field. If you have that background then you will ...
by triceratop
Mon Apr 23, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

T. Warren Buffet (Berkshire Fund) buys dividend paying companies. But just because WB buys dividend paying companies does not mean that Berkshire has to pay a dividend. WB has said that he wants to reinvest the dividends into other companies instead of paying out a dividend. He has said that if you...
by triceratop
Mon Apr 23, 2018 1:15 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Pajamas, What I got out of the video is: 2). A stock that doesn't pay a dividend is a speculation. As we kids say, "big, if true". Then why would you affirmatively quote Warren Buffett, who by your understanding is a massive speculator (since BRK has never paid a dividend), since his entire net wor...
by triceratop
Mon Apr 23, 2018 11:34 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

snarlyjack wrote:I have no idea what other people are doing.
snarlyjack wrote:
Sun Apr 22, 2018 11:39 am
Most (not all) of the FIRE community is using dividend paying stocks to set themselves free.
:confused
by triceratop
Mon Apr 23, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard factor funds slow to catch on
Replies: 50
Views: 3974

Re: Vanguard factor funds slow to catch on

Technically I posted this four days ago, but that thread got no responses so no reason to merge the two. I'll just quote myself. https://www.bogleheads.org/forum/viewtopic.php?t=247524 Thanks for the link and for your thoughts; I always enjoy your posts. Normally I would merge these topics as the s...
by triceratop
Mon Apr 23, 2018 10:54 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 39
Views: 5265

Re: 2017 Relative Tax Efficiency

I've seen comments about mid cap indexes being inefficient due to companies' valuations dropping into small cap space or rising into large cap space. Is that sort of "index churn" reflected in the short or long term gains? Are the generic "distributions" only due to dividend payouts? I like this sh...
by triceratop
Mon Apr 23, 2018 10:26 am
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 39
Views: 5265

Re: 2017 Relative Tax Efficiency

Johan, I have not checked your numbers. However, they do not seem unreasonable. So far I've been going off the "general advice", including the wiki, which indicates that large cap or total market should be the most efficient, followed by mid or small cap funds. A lot of opinions I've read on the for...
by triceratop
Mon Apr 23, 2018 10:17 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

If you reinvest qualified dividends, which are taxed the same as capital gains, is that not tax efficient? As he said, at best you break even. You have identified the break even strategy. I'm being obtuse. Why is that break even? Is the belief that deferring taxes has no value? Or that paying now (...
by triceratop
Mon Apr 23, 2018 9:21 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Nisiprius & T. I've analyzed the portfolio's or funds that the FIRE community uses. Same thing, you have a mix of funds... Some people really have a grasp on what their doing & others don't. One of my favorite bloggers (Millennial Revolution) use a 60/40 Balanced Fund. Other FIRE people use individ...
by triceratop
Mon Apr 23, 2018 8:55 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

P.S. I' am personally not interested in taxes (all of these funds throw off dividends/interest). Zero Coupon Bonds will not help me in a emergency. Dividends will... snarlyjack, Did you miss this post by FiveK? It's a little strange you maintain taxes are not a significant factor but are ignoring q...
by triceratop
Sun Apr 22, 2018 3:00 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Triceratop, I understand exactly what you are saying & I appreciate your comments. As far as I' am concerned we have no problem. You must realize that converting from 1 fund to another fund later on in life can be super expensive. Some of us do have money in taxable accounts & yes, we do have taxes...
by triceratop
Sun Apr 22, 2018 2:41 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

The difference is: I can live off of my dividends without having to liquidate any of my shares, (forever...). The larger the portfolio the better, more dividends coming my way. So in Montana the tax rate is 6.9% It's still way cheaper tax wise than working & paying all sorts of taxes. You can look ...
by triceratop
Sun Apr 22, 2018 2:07 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

(Sorry for the late response...I' am mowing the lawn). I' am paying the low tax of qualified long term dividend taxes. (Which in my tax bracket are very low). As far as being diversified (Off the top of my head). VHDYX has about 395 companies. VDAIX has about 175 companies. Total companies/stocks a...
by triceratop
Sun Apr 22, 2018 1:43 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

I' am sure that you watched the "Yield On Cost" video that I just posted. What does that mean? What is it telling me? One of the things that Ian did was invest in 2007/2008 & his yield on cost is approx. 10% now. (according to the video). My plan is not to time the market. My plan is to DCA into an...
by triceratop
Sun Apr 22, 2018 1:14 pm
Forum: Personal Finance (Not Investing)
Topic: What is a good flat rate cash back credit card?
Replies: 77
Views: 6339

Re: What is a good flat rate cash back credit card?

The regular Bank of America Cash Rewards card with $100k at M-E. ....keep an account around with nothing in it and use it solely for collecting rewards and moving them to wherever you actually want the money. Is there a M-E savings account that earns 2.00% interest, similar to https://www.populardi...
by triceratop
Sun Apr 22, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

What I look for is the "cross over point" in my analysis. The most important thing to me is the cross over point. What that means is = my dividends are more than my expenses. Once I've met my cross over point I' am free. If I get laid off, disabled, or want to take a extended vacation I can do it w...
by triceratop
Sun Apr 22, 2018 11:52 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Ok...Here is my opinion, for what it's worth. Some Bogleheads & the other FIRE communities use the 2 dividend paying index funds. We have that in common. But the Bogleheads are anti dividend funds where the FIRE community isn't. The Bogleheads are trying to be super tax-efficient where the FIRE com...
by triceratop
Sun Apr 22, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Their is another benefit to dividends... Let's say my dividend portfolio is throwing off $10,000 a year in dividends. Their is nothing that say's I can't take the dividends & invest that money into other funds. Their is no reason why I could not fund any fund that I would like to. This would spread...
by triceratop
Sun Apr 22, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: Boglehead Philosophy Open To Change?
Replies: 197
Views: 8400

Re: Boglehead Philosophy Open To Change?

Ok...Here is my opinion, for what it's worth. Some Bogleheads & the other FIRE communities use the 2 dividend paying index funds. We have that in common. But the Bogleheads are anti dividend funds where the FIRE community isn't. The Bogleheads are trying to be super tax-efficient where the FIRE com...
by triceratop
Sun Apr 22, 2018 11:26 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

triceratop, <<Rule #6 Invest using all-in-one funds such as lifestrategy or target retirement fund. Do not go into slice and dice until your portfolio is 6 figures or bigger.>> To be precise, my rule says that stay in the all-in-one fund until the portfolio is 6 figures or larger. KlangFool Right, ...
by triceratop
Sun Apr 22, 2018 10:49 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Folks, Slice and dice versus all-in-one fund. Let's assume 50K in a taxable account with AA of 60/40. 1) You could put all the money into a Lifestrategy Moderate Growth Fund. Then, you add the money to the fund every month. Or, 2) You could put the money into the 3 funds and start a spreadsheet. Th...
by triceratop
Sun Apr 22, 2018 12:07 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Folks, Slice and dice versus all-in-one fund. Let's assume 50K in a taxable account with AA of 60/40. 1) You could put all the money into a Lifestrategy Moderate Growth Fund. Then, you add the money to the fund every month. Or, 2) You could put the money into the 3 funds and start a spreadsheet. Th...
by triceratop
Sat Apr 21, 2018 8:46 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

It’s unfortunate for KF’s hard and fast rules are so inflexible as to recommend a poor result for me, but that’s what happens with over-general rules. If simple rules worked so well with such generality, we wouldn’t need Bogleheads ;) Hmmmm... From the wiki: The Bogleheads® Philosophy Develop a wor...
by triceratop
Sat Apr 21, 2018 4:21 pm
Forum: Investing - Theory, News & General
Topic: White Coat Investor Interviews Paul Merriman
Replies: 8
Views: 2377

Re: White Coat Investor Interviews Paul Merriman

It’s not even really a refutation of what Dr Life said because Lo was speaking about behavioral problems with buy-and-hold.

I will listen to the podcast later, out of interest. The two people on the podcast are excellent and interesting people.
by triceratop
Sat Apr 21, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: White Coat Investor Interviews Paul Merriman
Replies: 8
Views: 2377

Re: White Coat Investor Interviews Paul Merriman

I listened to the podcast... Thank you for posting it. I would like to offer a article that will refute most of what he said. Enjoy... http://jlcollinsnh.com/2012/04/15/stocks-part-1-theres-a-major-market-crash-coming-and-dr-lo-cant-save-you/ I haven’t even listened to the podcast and I know that t...
by triceratop
Sat Apr 21, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

I do not think my situation is so atypical. If my memory is not failing, didn't we have this conversion few months ago where you actually said that your situation was far from typical???? (aka having 6 figures while still in school because of some unfortunate circumstances?) No, that couldn’t have ...
by triceratop
Sat Apr 21, 2018 10:29 am
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Rule #6 Invest using all-in-one funds such as lifestrategy or target retirement fund. Do not go into slice and dice until your portfolio is 6 figures or bigger. Why wait until your portfolio is 6+ figures before breaking out of all-in-one funds? RamblinDoc, Unless and until your portfolio is big en...
by triceratop
Fri Apr 20, 2018 7:30 pm
Forum: Investing - Help with Personal Investments
Topic: Merrill Edge "Money Account" Question
Replies: 17
Views: 1728

Re: Merrill Edge "Money Account" Question

indexfundfan wrote:
Fri Apr 20, 2018 6:25 pm
You can request to use the BIF Money Fund as sweep. This is a government/treasury MMF. Current yield 1.17%.

https://www.blackrock.com/cash/en-us/products/282856/
Right, so it earns .49% less than the equivalent Vanguard Treasury Money Market Fund. Not a bad deal for Blackrock!!
by triceratop
Fri Apr 20, 2018 6:08 pm
Forum: Investing - Help with Personal Investments
Topic: Merrill Edge "Money Account" Question
Replies: 17
Views: 1728

Re: Merrill Edge "Money Account" Question

ME is not a great place to hold cash (just use a ETF for this). Triceratop, I did not know that an ETF money market fund was even a thing. Do you mean something like BIL? BIL should be fine. I would take a bit more term and credit risk I guess but BIL gives good exposure to T-Bills. Up to you, just...
by triceratop
Fri Apr 20, 2018 4:21 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Yes but if I make $50k for 24 years and $100k the last year and then apply your simple rule, I've really only saved for the annual expense I had during the first 24 years even though in each year I saved the requisite amount. That is an extreme example, but it also applies if one gradually makes mor...
by triceratop
Fri Apr 20, 2018 3:44 pm
Forum: Investing - Theory, News & General
Topic: KF's simple rules to achieve FI [Financial Independence]
Replies: 263
Views: 15678

Re: KF's simple rules to achieve FI

Folks, The followings are some of the rules that I used. It may work for some folks. On this thread, I will compile some of them and provide the reasoning and thought behind those rules. You should adjust them based on your own circumstances. I am an engineer. So, I am biased towards my income and ...