Search found 4956 matches

by triceratop
Wed Jun 26, 2019 6:19 pm
Forum: Investing - Theory, News & General
Topic: How discount brokerages make money
Replies: 18
Views: 3155

Re: How discount brokerages make money

I find that completely ridiculous. For core holding ETFs such as VTI, SPY, VOO, ITOT, etc., you're supposed to hold them forever ! As I mentioned in my previous posts, I would go even further and say that you shouldn't sell them even for rebalancing purposes. Additionally, every single ETF listed in his example (excluding ITOT because I added that myself) has an expense ratio that's less than ten basis points. Actually when the person(s) who came up with the concept of the ETF originally pitched it to Jack Bogle their pitch was something to the effect of "ETFs are mutual funds that you can trade like stocks all day long !" Jack Bogle said something to the effect (perhaps not to this person's face), "That sounds like a stupid...
by triceratop
Wed Jun 26, 2019 5:11 pm
Forum: Investing - Theory, News & General
Topic: How discount brokerages make money
Replies: 18
Views: 3155

Re: How discount brokerages make money

AlohaJoe wrote: Wed Jun 26, 2019 2:59 am
monkeydluffy wrote: Wed Jun 26, 2019 1:48 am Quoting a comment from Hacker News:
I wouldn't pay much attention to what people on HN say about finance. It is far outside their collective area of expertise (not that that ever stopped any forum thread anywhere on the Internet).
It's particularly funny seeing people on HN talk about front running, as they seem to believe all frontrunning is illegal despite the academics being quite clear that the term is more expansive than that which is understood to be illegal. Definitely do *not* take HN serious on finance.

Note: some of the stuff in the linked post probably relies on what would be included in an academic-finance definition of "front running".
by triceratop
Tue Apr 02, 2019 9:46 am
Forum: Personal Finance (Not Investing)
Topic: Taxation of NSF REU undergraduate research stipend
Replies: 51
Views: 21531

Re: Taxation of NSF REU undergraduate research stipend

I did an NSF REU (I screwed up the taxes, too!), wanted to chime in that all this advice seems correct. I can confirm that the NSF GRFP also is not taxable compensation, nor are several other federal graduate fellowships (no free lunch in picking among the several one may win). The "SCH" on the dotted line is how I have prepared my taxes for several years; it's weird, but it is what the IRS expects and is fine with it.

Oh, one other thing: make sure not to claim the saver's credit as a grad student.
by triceratop
Mon Mar 25, 2019 5:43 pm
Forum: Investing - Theory, News & General
Topic: Who discovered sequence of returns risk?
Replies: 47
Views: 4391

Re: Who discovered sequence of returns risk?

White Coat Investor wrote: Fri Mar 22, 2019 7:35 pm Not Dave Ramsey. :)

Seriously though, it's the underlying issue behind the Trinity Study data in 1997--The fact that you can't take out 8% a year even if your portfolio has 8% average returns.
Yep, and much earlier than that, too! The inequality of arithmetic and geometric means (related to Young's inequality -- the classic Peter-Paul inequality) is a result dating at least back to Cauchy from 1821, see Cours d'analyse de l'École Royale Polytechnique, première partie, Analyse algébrique
by triceratop
Sun Mar 24, 2019 4:07 pm
Forum: Investing - Theory, News & General
Topic: Small/Emer Tilt vs 3Fund - Anyone ?
Replies: 24
Views: 2540

Re: Small/Emer Tilt vs 3Fund - Anyone ?

I am doing these tilts. I do not know if long-term they will provide risk-adjusted returns higher than market-weight 3-fund portfolios. However, I am just hoping they provide higher returns, period, as I am already at a 100% stock allocation. This can be a rational thing to do, then, even if risk-adjusted the returns are not higher.

Obviously I have no idea what the future holds.
by triceratop
Fri Mar 22, 2019 1:03 pm
Forum: Personal Investments
Topic: Moving from Vanguard to Merrill Edge
Replies: 127
Views: 21902

Re: Moving from Vanguard to Merrill Edge

Just for the bonus and the Preferred Rewards status ;-) https://www.bankofamerica.com/preferred-rewards/es/#benefits https://www.merrilledge.com/offers/900offer My plan is to get a Cash Management account Move $200k to ME from Vanguard, just bond funds (VSIGX, VLGSX, VTABX). Note that this funds cannot be purchased at ME After 90 days (I'd qualify for the $900 bonus) move back $100k to Vanguard I keep the $100k a ME so I qualify from platinum honors Sounds like a good plan? In my opinion it is additional cost and complexity. More important things to do in life. Consolidating and moving our investments to Vanguard was the best financial decision we ever made. If one is consolidating at Merrill Edge instead of Vanguard, where is the addition...
by triceratop
Mon Mar 18, 2019 2:59 pm
Forum: Personal Consumer Issues
Topic: What are the purposes of your travels?
Replies: 60
Views: 5006

Re: What are the purposes of your travels?

I travel to visit family (none of whom live close to me), to share my academic research efforts with others so that the ideas spread more, and to do social dance in new places and with new people.
by triceratop
Sat Feb 23, 2019 5:13 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 170
Views: 65930

Re: 2017 Relative Tax Efficiency

gmc4h232 wrote: Sat Feb 23, 2019 9:15 am So by looking at 3 yrs of data, is it a correct assumption to say that the tax efficiency of international vs us varies year to year depending on factors out of the individual investor's control, so we shouldn't worry too much about trying to optimize VTI vs VXUS holdings in a taxable account if we have adequate tax advantaged space?
I think that's reasonable, but again it's easy to see approximately what the differences are in your situation -- it requires about 3 tax numbers.

Of course, when I get around to it (soon, I hope...) you'll have 4 yrs of data :)
by triceratop
Thu Feb 07, 2019 3:21 pm
Forum: Investing - Theory, News & General
Topic: Robeco Says Factors Persistent Across Two Centuries
Replies: 9
Views: 1429

Re: Robeco Says Factors Persistent Across Two Centuries

I don't find this surprising, nor particularly good evidence for the future persistence of factors. To quote Matt Levine from today : I guess my question is: If you know that some broad market anomaly (not a quirky one like “executives who play a lot of golf have below-average stock returns,” but a general one like “stocks that have been going up tend to keep going up”) has worked for a few decades recently, would you expect that anomaly to have been stronger or weaker in the early 1800s? My intuition is, mostly, stronger. A simple (though debatable) way to think about these anomalies is that they are instances of market inefficiency, of asset prices somehow not incorporating all available information: Value works because market prices don’...
by triceratop
Wed Feb 06, 2019 3:19 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 170
Views: 65930

Re: 2017 Relative Tax Efficiency

bakerjin wrote: Wed Feb 06, 2019 3:03 pm Thanks for everyone's work here, especially triceratops with all your contributions and helpfulness!

Sorry if I missed it but one thing you can do to fix the ref errors is to change the Fidelity funds to the funds they were rolled into.
i.e. FSTVX -> FSKAX, FTIPX -> FTIHX, FUSVX -> FXAIX
That fixes the ref errors but don't you have to do a NAV-NAV conversion to make sure the numbers transfer across the ticker change? I write that not knowing whether or not the share price changed discontinuously across the folding event.
by triceratop
Tue Feb 05, 2019 9:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Total World Stock (VTWAX) and All-World ex-US Small Cap Admiral Shares (VFSAX) now available (February 7)
Replies: 181
Views: 27520

Re: Vanguard Total World Stock (VTWAX) and All-World ex-US Small Cap Admiral Shares (VFSAX) available February 7

Do we know yet what the expense ratio will be on the Admiral shares funds, e.g. VFSAX? Or will it still be worthwhile for folks to buy VSS?
by triceratop
Tue Feb 05, 2019 4:16 pm
Forum: Investing - Theory, News & General
Topic: Crypto Exchange goes bankrupt after owner dies with only password
Replies: 111
Views: 18086

Re: Crypto Exchange goes bankrupt after owner dies with only password

I am no promoter, nor even defender, of cryptocurrencies, but my impression from the information reported is an organizational failure of QuadrigaCX, which clearly had no succession plan for the unfortunate event of the demise or incapacity of its founder Gerald Cotten. Every enterprise faces similar issues, not just ones centered around cryptocurrencies. A business plan that relies on the assumption no one ever dies or becomes incapacitated is a poorly thought out one. A critic might say caveat emptor , but how many closely held companies are willing to publish their succession procedures? All sympathies to everybody personally touched by his death. PJW In light of this post it's amusing to note that he was wise enough to put into place a...
by triceratop
Tue Feb 05, 2019 12:49 am
Forum: Investing - Theory, News & General
Topic: Crypto Exchange goes bankrupt after owner dies with only password
Replies: 111
Views: 18086

Re: Crypto Exchange goes bankrupt after owner dies with only password

So the treasure hunt is on to crack the password. I suspect NSA / CIA / MI6 / Russian folks will get their hands on this. You'll be pleased and amused to learn that cracking specific wallets, and entire cryptocurrencies in general, is an active niche subfield of the cryptography community in Computer Science. I have links, of course, if desired. However, I doubt intelligence agencies with massive black budgets have an interest in the actual monetary value of the wallets. With nation state resources behind them, it's probably worth far more to them to have cracked it and not have anyone else know, for intelligence gathering purposes. So, if they crack it, I don't expect any use of the exploit nor to hear anything. Would love some of these l...
by triceratop
Mon Feb 04, 2019 9:34 pm
Forum: Investing - Theory, News & General
Topic: Crypto Exchange goes bankrupt after owner dies with only password
Replies: 111
Views: 18086

Re: Crypto Exchange goes bankrupt after owner dies with only password

livesoft wrote: Mon Feb 04, 2019 7:56 pm So the treasure hunt is on to crack the password. I suspect NSA / CIA / MI6 / Russian folks will get their hands on this.
You'll be pleased and amused to learn that cracking specific wallets, and entire cryptocurrencies in general, is an active niche subfield of the cryptography community in Computer Science. I have links, of course, if desired.

However, I doubt intelligence agencies with massive black budgets have an interest in the actual monetary value of the wallets. With nation state resources behind them, it's probably worth far more to them to have cracked it and not have anyone else know, for intelligence gathering purposes. So, if they crack it, I don't expect any use of the exploit nor to hear anything.
by triceratop
Mon Feb 04, 2019 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: Are You Really Supposed to Use Stupid Tax Table?
Replies: 26
Views: 3741

Re: Are You Really Supposed to Use Stupid Tax Table?

Yes, this is actually required by U.S. law. However, in the past before becoming aware of this law I have mistakenly figured my own tax and I have not yet spent a day in jail. So it is perhaps not a big deal if you have done so in the past. Still, for the future, yes you are required to do so.
by triceratop
Mon Feb 04, 2019 1:22 pm
Forum: Investing - Theory, News & General
Topic: MSCI was forced to add China into its emerging market index...
Replies: 24
Views: 3208

Re: MSCI was forced to add China into its emerging market index...

I merged the discussion by Gleevec into the original discussion here.
by triceratop
Sat Feb 02, 2019 12:43 pm
Forum: Personal Consumer Issues
Topic: Organizing Yubikeys
Replies: 11
Views: 2219

Re: Organizing Yubikeys

Note that if you use your yubikey as your PGP key then it is not sufficient to have a backup Yubikey as you cannot export the private key, and one cannot do all operations one would wish with a yubikey-only private key. One needs an encrypted thumb drive with the private key on it for these operations.
by triceratop
Thu Jan 31, 2019 8:21 pm
Forum: Personal Consumer Issues
Topic: Yubikey and Linux
Replies: 2
Views: 640

Re: Yubikey and Linux

You may find it useful to know the command to reload udev rules dynamically:

Code: Select all

udevadm control --reload-rules && udevadm trigger
by triceratop
Tue Jan 29, 2019 11:36 am
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

in a nutshell it's an AE/ME degree pretending to be something else... It's not pretending to be something else. As it says, it's an AE/ME degree with focus on computational methods to solve AE/ME problems. Focusing on this is as legitimate as focusing on any other area of engineering. Just because isn't not a CS degree, Applied Math degree, etc., doesn't make it a poor choice. Actually this solidifies it as an Aerospace degree, and a somewhat weak one without classes such as composites, vibration, transonic fluid flow, or control systems past the basics of one linear course. Hell, how can you presume to take FEA or CFD courses without even being required to take a heat transfer course? Engineering education is always a balance of what is t...
by triceratop
Mon Jan 28, 2019 9:22 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

HAL 9000 wrote: Mon Jan 28, 2019 8:38 pm
surveyor wrote: Mon Jan 28, 2019 7:49 am Read flag is that it is under Aerospace and not EE.
Yup, to judge a book by its cover, it looks like a ME/AE major with a 'finite element analysis' tilt
Fortunately we don't have to judge a book by its cover and can look at the degree page description, which shows it is not at all how you judged it. As I recall, "judging a book by its cover" was a cautionary tale.
by triceratop
Mon Jan 28, 2019 1:37 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

KyleAAA wrote: Mon Jan 28, 2019 11:37 am Looks fairly interesting, but a niche field. CS is broader and more future-proof IMO based on 20 seconds of reading. Probably can't go wrong with either from IT, as it is a top CS school.
It is very niche (which is why I wouldn't do the program), but very future-proof. CS is a younger field which is just more well-known.
by triceratop
Mon Jan 28, 2019 11:28 am
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

Thanks to everyone that has responded, seems like we do have lots of technical BHs. I get a sense that the majority of people feel that the traditional path for undergrad (eg ME, CS, EE, CE) would best. I guess the thing that is confusing to me is that from my understanding (I am not an engineer but have met many so this could all be BS): 1) many engineers end up working in fields unrelated to their major (some highly technical but many less technical eg sales) 2) much of what people study in engineering or CS undergrad is not used in the work place 3) many engineers learn (on their own) or are taught skills (by their employer) that were not part of their degree so that they can do their job So why do people feel so strongly about the trad...
by triceratop
Sun Jan 27, 2019 7:35 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

I don't want to get dragged into a back and forth, I'll leave by contextualizing in this way: the undergraduate degree program is run by the school/program (Austin / ICES) which people in the field would and do say is the best in the world. Folks saying the undergraduate degree will necessarily vanish in the future are not necessarily speaking from the most informed perspective.

That is not to say a kid should not do general engineering if there is a doubt that they may not want to pursue a computational path. But UT Computational Engineering is something I would send my hypothetical kid to without flinching.
by triceratop
Sun Jan 27, 2019 7:04 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

Computational Engineering is a real thing. It's not a fad. It is absolutely something you can do for a full undergraduate degree. It would be rather akin to double majoring in engineering and appied math / numerical analysis. triceratop, <<Computational Engineering is a real thing. It's not a fad. It is absolutely something you can do for a full undergraduate degree.>> Let's wait another 10 years. I heard this song and dance too many times. Remember industrial engineering. <snip> There is no need to wait. Computational Engineering preceded the existence of the digital computer, with major pillars of the field (see: Ritz, Courant, Galerkin) established before the invention of the transistor. :happy Maybe computers, being the younger field, ...
by triceratop
Sun Jan 27, 2019 6:54 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

Computational Engineering is a real thing. It's not a fad. It is absolutely something you can do for a full undergraduate degree. It would be rather akin to double majoring in engineering and appied math / numerical analysis. There is nothing wrong with specializing that heavily as an undergrad. Specializing and quickly proceeding to taking higher level classes is a great way to impress graduate admissions committees. The problem is that you have to be very very sure that that is what you want to do. Thus, for most people the wise choice is to do a general area of engineering. You can always focus in your electives, anyway. Contrary to what KlangFool suggests, there is a lot more to computational engineering than "knowing how to progra...
by triceratop
Sun Jan 27, 2019 6:50 pm
Forum: Personal Finance (Not Investing)
Topic: Opinions on Computational Engineering Undergraduate Major
Replies: 91
Views: 6220

Re: Opinions on Computational Engineering Undergraduate Major

ME and EE are out as he wants more programming/CS than your average ME degree. And he is not so keen for EE as he is not so interested in all the electronics/circuits/power etc. CS is still on the table and he is accepted at Northeastern in CS and physics (combined degree) physiorol, <<ME and EE are out as he wants more programming/CS than your average ME degree.>> How would he last 30+ years if he only knows how to programme? << And he is not so keen for EE as he is not so interested in all the electronics/circuits/power etc. >> That is the whole point. If you only learn what you like, how strong your foundation could be? How would he handle a quantum computer? If that is what we are going to use for modeling? https://en.wikipedia.org/wik...
by triceratop
Sun Jan 27, 2019 3:50 pm
Forum: Investing - Theory, News & General
Topic: 2017 Relative Tax Efficiency
Replies: 170
Views: 65930

Re: 2017 Relative Tax Efficiency

I'm trying to stay away from considering bonds in this work because I want to avoid the "bonds in taxable" debacle into which it would quickly degenerate. Besides, bond funds are relatively more simple to evaluate for tax purposes.
by triceratop
Wed Jan 16, 2019 4:18 pm
Forum: Investing - Theory, News & General
Topic: John Bogle has died at age 89
Replies: 856
Views: 81289

Re: RIP Jack Bogle

I moved this post to the Bogleheads Community forum from the Investing Theory one, as Jack Bogle was most certainly a member of the community.

Rest in Peace.
by triceratop
Tue Jan 15, 2019 1:50 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 49
Views: 6895

Re: PG&E Bonds

I don't disagree with the statement. Of course, bonds which are below BBB- are high-yield "junk". Yes that has nothing to do with the ratings.

Whether that has implications for the risk-adjusted reward of a given bond, viewed as an event study pre- and post-downgrade is a matter which market participants might disagree on, but it isn't a disagreement of definitions.
by triceratop
Tue Jan 15, 2019 12:55 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 49
Views: 6895

Re: PG&E Bonds

By all means buy a high-yield bond fund if that's your desire. Last decade's financial crisis has nothing to do with a decision today. You're justified in being skeptical of bond ratings, but that has always been the case, and everybody else knows it too. PJW I am struggling to see what your comment about high-yield bond funds has to do with the present question. Since alex_686 is pointing out a structural problem with bonds which were rated Not-Junk at issue and downgraded subsequent to being owned by Investment-grade indexes, what does an asset class (High-yield) which contains many bonds issued as Junk . The proper comparison is a bond index fund to a Fallen Angel fund like FALN, as has been pointed out. The question was also not one of...
by triceratop
Tue Jan 15, 2019 12:24 pm
Forum: Investing - Theory, News & General
Topic: What do futures really leverage exposure to?
Replies: 28
Views: 3574

Re: What do futures really leverage exposure to?

finite_difference wrote: Tue Jan 15, 2019 11:28 am
triceratop wrote: Mon Jan 14, 2019 7:58 pm
finite_difference wrote: Mon Jan 14, 2019 7:31 am You can get the ebook for $23-25 on eBay (electronic or paper), and if you are not picky about the latest edition, can score it for like $13, maybe less.
I obtained my e-book for much less than $13. About $13 less. OP, it's a great book and I learned much from it.
For free? From where? In that case, should add the link to the Wiki.
Sorry, I meant physical book. Sometimes there are incredible deals on eBay where items are listed as $0.99 and you just have to buy them. I managed to get one of those. I was very lucky.

A free e-book is probably not possible without violating the law.
by triceratop
Tue Jan 15, 2019 10:21 am
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 49
Views: 6895

Re: PG&E Bonds

By all means buy a high-yield bond fund if that's your desire. Last decade's financial crisis has nothing to do with a decision today. You're justified in being skeptical of bond ratings, but that has always been the case, and everybody else knows it too. PJW I am struggling to see what your comment about high-yield bond funds has to do with the present question. Since alex_686 is pointing out a structural problem with bonds which were rated Not-Junk at issue and downgraded subsequent to being owned by Investment-grade indexes, what does an asset class (High-yield) which contains many bonds issued as Junk (edit: to add) have to do with the question The proper comparison is a bond index fund to a Fallen Angel fund like FALN, as has been poi...
by triceratop
Mon Jan 14, 2019 7:58 pm
Forum: Investing - Theory, News & General
Topic: What do futures really leverage exposure to?
Replies: 28
Views: 3574

Re: What do futures really leverage exposure to?

finite_difference wrote: Mon Jan 14, 2019 7:31 am You can get the ebook for $23-25 on eBay (electronic or paper), and if you are not picky about the latest edition, can score it for like $13, maybe less.
I obtained my e-book for much less than $13. About $13 less. OP, it's a great book and I learned much from it.
by triceratop
Sat Jan 12, 2019 10:51 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

. 3) triceratop's point: When a fund issues a dividend, it sells shares of the assets it holds, and you thus own-through your ownership of the fund-fewer shares of the underlying equities that comprise the fund. Unless it is a UIT like SPY which Triceratops noted. The reinvesting/divesting thing is just to goose returns on the guess that markets will go up. Where does it say in the prospectus that they have to do it or it is even a strategy. Is it mentioned at all? In fact we have people assuming that big V does it, but is that a fact or an assumption? If my ETF makes money from Securities Lending should I feel bad that I am profiting from short sellers? It is a fact with the supporting evidence being that there is exceptionally little var...
by triceratop
Sat Jan 12, 2019 10:41 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

But, still, the statement that launched this whole exchange stands: (underlying) shares are being sold without your input or control. Respectfully, that is not what the statement said. Rather, the statement was: “- Dividends are only "passive income" in the sense that they are your shares being sold off without your input or control.” (emphasis added). And that is true. You were evidently confused because you posted: I’m pretty sure that when I receive dividends from my Total Stock Market fund, none of my shares are being sold off. This is a false statement. Your equity market shares implicitly held through your TSM fund are definitely being sold off. I would think reinvestment gets you back to the same ownership of the underlyin...
by triceratop
Sat Jan 12, 2019 7:33 pm
Forum: Investing - Theory, News & General
Topic: The case for China A-Shares
Replies: 29
Views: 4046

Re: The case for China A-Shares

One prior discussion that goes in the opposite direction of many posts so far in this thread: Avoid Emerging Markets due to stricter securities regulation in Developed Markets? Lessons from SZSE..Maybe not?
by triceratop
Sat Jan 12, 2019 7:24 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

If you don't have other sources of income to live on than your investments a case could be made that you came out ahead because you didn't have to sell stock shares in December at their lowest prices to pay your bills. An argument could be made that the fund managers and companies sold stock shares at their lowest prices in order to pay out the December dividends they paid. The fund is distributing dividends the stocks it holds have paid over the past couple months, not selling shares of the stocks. These companies, if well run, are distributing a share of profits to the shareholders who are part owners of the companies, not selling shares to fund the dividend. If you actually observe real stock prices after distributions you will see the ...
by triceratop
Fri Jan 11, 2019 10:29 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

There was incorrect information that I corrected. Correctness matters for its own sake. Whether it matters to an individual investor as a standalone point really doesn't enter my calculus. I would not make many posts on such a detail except there was a question raised about whether what I posted was accurate. Actually, per your explanation of TSM's reinvestment and distribution mechanism, this statement you made was incorrect (or at least inconsistent) Day T+0: TSM has a value of $100M (invested in the stock market). 100M shares each $1. Day T+1: TSM pays a $0.01 dividend. TSM now has a value of $99M (invested in the stock market). 100M shares each $0.99. The last part would be 99M shares each $1 per your continuation of the explanation. R...
by triceratop
Fri Jan 11, 2019 8:36 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

There was incorrect information that I corrected. Correctness matters for its own sake. Whether it matters to an individual investor as a standalone point really doesn't enter my calculus. I would not make many posts on such a detail except there was a question raised about whether what I posted was accurate.
by triceratop
Fri Jan 11, 2019 8:29 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

In your own post you say it has 100M shares before and after the distribution. Are you confusing share count with market cap? I never stated that the share count of the TSM fund changes. I did not confuse anything. You stated, "You own fewer shares of each of the individual companies in TSM" after a distribution in an earlier post. Is this really a true statement? If Apple pays a dividend and TSM owned X number of shares before the dividend, does that number X go down? What if Apple was the only stock TSM owned? If I have 10 Apple shares and Apple paid a 10% dividend, does my share count go down to 9? The TSM fund dividend does not coincide with any particular company's dividend. TSM reinvests dividends it receives over the cours...
by triceratop
Fri Jan 11, 2019 8:23 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

chinchin wrote: Fri Jan 11, 2019 7:58 pm In your own post you say it has 100M shares before and after the distribution. Are you confusing share count with market cap?
I never stated that the share count of the TSM fund, the number of shares of the TSM fund that exist, changes. I did not confuse anything.

edit: to add subordinate clause to clarify.
by triceratop
Fri Jan 11, 2019 7:29 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

A few points that all investors should drill into their head: - Dividends are only "passive income" in the sense that they are your shares being sold off without your input or control. And remember that income in this situation doesn't mean "gain wealth"... it's more like a simple cash transfer from your brokerage account to your bank account (with a tax transfer fee). I’m pretty sure that when I receive dividends from my Total Stock Market fund, none of my shares are being sold off. The shares may be worth less the day after the dividend than they were the day before the dividend, but I still have the exact same number of shares after the dividend is paid that I had the day before the dividend is paid. You own fewer sh...
by triceratop
Fri Jan 11, 2019 7:11 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

A few points that all investors should drill into their head: - Dividends are only "passive income" in the sense that they are your shares being sold off without your input or control. And remember that income in this situation doesn't mean "gain wealth"... it's more like a simple cash transfer from your brokerage account to your bank account (with a tax transfer fee). I’m pretty sure that when I receive dividends from my Total Stock Market fund, none of my shares are being sold off. The shares may be worth less the day after the dividend than they were the day before the dividend, but I still have the exact same number of shares after the dividend is paid that I had the day before the dividend is paid. You own fewer sh...
by triceratop
Fri Jan 11, 2019 6:59 pm
Forum: Investing - Theory, News & General
Topic: Around 43K in dividends last year - feel good about it ?
Replies: 188
Views: 25019

Re: Around 43K in dividends last year - feel good about it ?

Why are so many people acting like dividends are optional? I like seeming my dividend amount go up because it means I have more money. My portfolio is set the way I like it and dividends are a fact of life with that portfolio. The extent to which you receive dividends on a diversified portfolio of a given size is optional. Thus, you should be proud(I guess, I feel pretty 'meh' about my portfolio no matter its size -- it's just there, it's a thing) of the size of your diversified investment portfolio and not the amount of dividends it throws off. There are diversified ETFs which are more tax efficient than TSM, e.g. IJR (or even IJS if you want value exposure which is responsible for much of the good performance of dividend-focused) funds. ...
by triceratop
Fri Jan 11, 2019 5:29 pm
Forum: Investing - Theory, News & General
Topic: It was a dip. Did you notice? The December drop is over.
Replies: 96
Views: 14038

Re: It was a dip. Did you notice? The December drop is over.

I noticed that when I went to 100% equities it was timed quite well. But I suppose now I am bored because I am going to be building up my bond cushion a bit now. Dumping cash into Intermediate-term treasury isn't very exciting.
by triceratop
Thu Jan 10, 2019 7:16 pm
Forum: Investing - Theory, News & General
Topic: Vanguard explains the increase in ex-us allocation
Replies: 34
Views: 5825

Re: Vanguard explains the increase in ex-us allocation

It's actually an interesting question on asset allocation for the next ten years. The days of cheap, near zero interest rates are over and we're in a rising rate environment that will lead to P/E contraction. Many leading analyst are basically giving their future 10-year guidance with over whelming consensus that US stocks will under perform relative to International and Emerging Markets. Some are even predicting US bonds will out perform US large cap equities over next ten years due to rising interest rates. This is mainly due to future EPS earnings growth decline and raising interest rates that will also result in P/E contraction. From what I've found for the next 10-15 years, many analyst are projecting 3-5% US equities, 3-4% US Agg Bon...
by triceratop
Wed Jan 09, 2019 6:30 pm
Forum: Personal Consumer Issues
Topic: NYC restaurant hidden gems?
Replies: 25
Views: 2898

Re: NYC restaurant hidden gems?

Ramen: Totto (midtown manhattan)
by triceratop
Wed Jan 09, 2019 2:58 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 10773

Re: BHers, what is your Roth IRA %?

I have about 20% of my IRA money in tax exempt. That placement is unnecessary since the money is not taxed while it is in the IRA. When it is withdrawn, it is taxed as ordinary income, not tax-exempt. I suggest putting the tax-exempt funds in your taxable account instead, where the tax-exempt status of the fund will be useful. I'm not sure what you are saying. Would you prefer if I worded it "I have 20% of my IRA money in a Roth IRA"? Same thing. After all, that was the OPs question. This is a miscommunication. celia took your phrasing of "tax exempt" which you meant to be the Roth portion of your IRA to instead be tax-exempt bonds, which should not be placed in any kind of tax-advantaged wrapper, Roth or otherwise.
by triceratop
Wed Jan 09, 2019 2:50 pm
Forum: Investing - Theory, News & General
Topic: BHers, what is your Roth IRA %?
Replies: 137
Views: 10773

Re: BHers, what is your Roth IRA %?

About 10% of my net assets are in Roth IRAs; the rest is in taxable. I was Roth-ineligible for the previous 4 years which made me sad. But I have about 45 years before I have to worry about RMDs.
by triceratop
Tue Jan 08, 2019 9:25 pm
Forum: Personal Investments
Topic: Understanding tax efficiency of ETFs vs Mutual Funds in taxable
Replies: 9
Views: 1959

Re: Understanding tax efficiency of ETFs vs Mutual Funds in taxable

neatp wrote: Tue Jan 08, 2019 12:01 am Thanks for sharing that. Unfortunately, the spreadsheet linked doesn't seem to be working anymore.
After modifying the dates to select price data from 2016/12/30 instead of 2016/12/31 It appears to be working for me except for the Fidelity funds.