Search found 334 matches

by ArmchairArchitect
Thu Jun 15, 2023 9:54 am
Forum: Investing - Theory, News & General
Topic: Money Market Fund vs. High-Yield Savings Account (Taxes, FDIC insurance, Yields)
Replies: 5
Views: 999

Re: Money Market Fund vs. High-Yield Savings Account (Taxes, FDIC insurance, Yields)

jebmke wrote: Thu Jun 15, 2023 9:49 am Tax treatment is the same for Federal purposes. Income from a pure Treasury MM fund would likely be excludable income on a state tax return.
Gotcha- I wasn't sure if there were any money market funds (from Vanguard or other) that reinvest the interest internally to the fund rather than paying it out to investment holders, thereby the yields were more fund price appreciation rather than interest payouts, creating capital gains at sale rather than ordinary income throughout ownership?

Any idea on my other questions?
by ArmchairArchitect
Thu Jun 15, 2023 9:46 am
Forum: Investing - Theory, News & General
Topic: Money Market Fund vs. High-Yield Savings Account (Taxes, FDIC insurance, Yields)
Replies: 5
Views: 999

Money Market Fund vs. High-Yield Savings Account (Taxes, FDIC insurance, Yields)

Currently have my cash in a Citizens Online high-yield savings account paying 4.5% interest and is FDIC insured. Downside is it's subject to ordinary income tax versus capital gains tax.

I've never used a money market fund but thinking about it- what are the pros and cons compared to a high-yield savings account. Are Vanguard's money market funds all FDIC insured? Is that tax treatment any different (capital gains tax versus ordinary income tax on interest), and are the yields any better than the current 4.5% I'm getting?

Thanks in advance.
by ArmchairArchitect
Wed Dec 22, 2021 8:33 am
Forum: Investing - Theory, News & General
Topic: Effect of interest rates on housing affordability
Replies: 15
Views: 2065

Re: Effect of interest rates on housing affordability

MrBeaver wrote: Mon Dec 20, 2021 12:42 am The greatest quote on housing policy I’ve seen (unattributed):
Housing cannot be simultaneously a good investment (grows faster than inflation) and remain affordable (rise at or below inflation).
What’s scary is we have a society of people (not bogleheads) whose primary net worth is in their home. Therefore, you either hurt old people by allowing housing prices to collapse, or you hurt young people by allowing them to continue returns higher than inflation.
Low interest rates lead to inflation which hurts old people on fixed incomes. Property prices affect old people less as they typically are not selling their homes.
by ArmchairArchitect
Mon Dec 13, 2021 1:09 pm
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

Re: When will Vanguard's Direct Indexing be Available to Retail Investors?

Great point. I do want my voting rights. I am a quite annoyed that I give up my voting rights with indexing. Do you really want to vote 3,600 or so proxies for all the holdings of Vanguard Total Stock Market Index? Do you want to haul 3,600 annual reports to the recycle bin every year? I own almost 25 stocks individually, before most of this stuff went electronic, I got an immense amount of mail just from a relative smaller group of stocks. Just think of getting 3,600 messages in your e-mail inbox. Vanguard could digitally archive all of that information for us and make it easy to vote on the matters we care about. We could fill out a form and have them vote for us automatically according to our wishes. That would not be hard to do. Instea...
by ArmchairArchitect
Thu Dec 09, 2021 6:52 am
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

Re: When will Vanguard's Direct Indexing be Available to Retail Investors?

1) The beauty of it is, one can choose if/when to utilize the tax loss harvesting feature. There's literally zero downside to having this increased level of control as an individual versus it being out of one's control.

2) I don't want to get into politics, but there are more and more companies that I would like to exclude from my index funds due to the political causes they support or unethical business dealings they engage in. One can still have a very diversified index fund even after excluding a handful of companies and there's not much effort required of the individual to accomplish this.
by ArmchairArchitect
Wed Dec 08, 2021 8:11 pm
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

Re: When will Vanguard's Direct Indexing be Available to Retail Investors?

Gaston wrote: Wed Dec 08, 2021 8:07 pm My understanding (and pls correct me if I am wrong) is that, with direct indexing, the benefit of tax-loss harvesting will diminish over time. And then you’ll be left with a portfolio of possibly several hundred stocks that you can never unwind. Unwind = convert back into an ETF without incurring massive tax consequences.
Most likely, but the tax savings from the enhanced tax-loss harvesting can more than make up for it if the capital gains down the road are incurred once you have retired and thus in a lower/zero tax bracket (even for capital gains tax which you can pay as little as 0% for based on income) than when you were working and tax-loss harvesting.
by ArmchairArchitect
Wed Dec 08, 2021 4:00 pm
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

Re: When will Vanguard's Direct Indexing be Available to Retail Investors?

My guess is never to Vanguard retail self directed investors, it would be bundled into an AUM advisory service as a "premium" service. But that's a guess. Assuming your prediction ends up being correct, how does an individual get access to their premium/advisory offerings? Are these offerings no-charge based on dollar amount of invested assets, or do they operate on some fee structure? Vanguard being a company that is owned by investors, this should really be offered to all retail investors as a value-add given the cost is minimal to Vanguard. How do you know the cost is minimal? Think of how big the 1099 forms would be, and the resulting avalanche of support calls every time they come out--some for errors on the forms, others ju...
by ArmchairArchitect
Wed Dec 08, 2021 3:42 pm
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

Re: When will Vanguard's Direct Indexing be Available to Retail Investors?

stan1 wrote: Wed Dec 08, 2021 3:37 pm My guess is never to Vanguard retail self directed investors, it would be bundled into an AUM advisory service as a "premium" service. But that's a guess.
Assuming your prediction ends up being correct, how does an individual get access to their premium/advisory offerings? Are these offerings no-charge based on dollar amount of invested assets, or do they operate on some fee structure?

Vanguard being a company that is owned by investors, this should really be offered to all retail investors as a value-add given the cost is minimal to Vanguard.
by ArmchairArchitect
Wed Dec 08, 2021 3:27 pm
Forum: Investing - Theory, News & General
Topic: When will Vanguard's Direct Indexing be Available to Retail Investors?
Replies: 46
Views: 5657

When will Vanguard's Direct Indexing be Available to Retail Investors?

I know they acquired a company and plan to offer this soon, but when? Looking forward to the ability to exclude certain companies I am not a fan of from my index fund portfolio, as well as the tax advantages. https://www.wsj.com/articles/pros-and-cons-of-direct-indexing-11638390453 EDIT. I may have found the answer to my own question: https://riabiz.com/a/2021/10/2/ink-dry-on-check-vanguard-group-is-set-to-disrupt-etfs-and-other-index-funds-using-mostly-rias-that-manage-3-trillion-to-unleash-its-direct-indexing-sma-subsidiary If true, I will probably cease putting any new funds into Vanguard and go with a brokerage that offers direct indexing to retail investors. Anyone know of a reputable brokerage that offers this right now or very soon?
by ArmchairArchitect
Mon Nov 08, 2021 11:08 am
Forum: Investing - Theory, News & General
Topic: Direct Indexing? Schwab's Next Big Thing
Replies: 244
Views: 33978

Re: Direct Indexing? Schwab's Next Big Thing

I like index funds, but like the ability to exclude certain companies from my index investments due to performance or philosophical reasons. Especially these days as many companies have been getting involved with politics.

This direct indexing is very appealing to me for those reasons and something I asked about on this forum years ago.
by ArmchairArchitect
Wed Aug 11, 2021 9:42 am
Forum: Personal Finance (Not Investing)
Topic: Were your last few career years a slog?
Replies: 83
Views: 12250

Re: Were your last few career years a slog?

Have you considered freelancing? That's the route I went, and you can search the market for opportunities before you resign. Couldn't be happier- I have SO much more job autonomy now, ie. pick clients/companies I like, can leave much easier if I don't like it, no administrative/extracurricular responsibilities outside of the core work itself (which is NEVER accounted for in your work schedule when an FTE), can take half the year off if I want, much higher compensation, etc. etc.
by ArmchairArchitect
Mon Feb 01, 2021 11:21 am
Forum: Investing - Theory, News & General
Topic: Physical Silver VS SLV
Replies: 49
Views: 6168

Re: Physical Silver VS SLV

Just keep in mind it's a hoarding of resources.

Just one example: the more that silver is hoarded (as a store of wealth), the higher the price of solar panels (which use silver), thus less solar panels out there in the world providing a benefit to society.
by ArmchairArchitect
Wed Dec 09, 2020 5:45 pm
Forum: Personal Investments
Topic: 401k - High Fees - Need Advice
Replies: 15
Views: 1270

Re: 401k - High Fees - Need Advice

If it's a large company, she should put a little pressure on HR/the plan administrator (ADP can tell you who this is at her company and their contact info) to offer lower fee funds. Have her share some credible whitepapers/articles to back up her assertions and educate them, since usually these HR Plan admins are the exact opposite of savvy finance people (even though they should be).

There shouldn't be any ruffling feathers being new because HR is a separate group than her department and her hiring manager would likely never even know or never even heard of who these HR/Plan Admin contacts are.
by ArmchairArchitect
Wed Nov 18, 2020 1:14 pm
Forum: Personal Investments
Topic: Alternatives to not-so-high yield savings??
Replies: 21
Views: 2334

Re: Alternatives to not-so-high yield savings??

Mike Scott wrote: Wed Nov 18, 2020 9:48 am I let it sit. The interest is still better than nothing and that's not the reason the $$ is in a savings account.
Wrong. You're losing money when you take inflation into account, of which a TON is coming due to massive fiscal stimulus/bailouts, and the Fed's decision to go above the 2% inflation target, of which the official figures underrepresent actual inflation to begin with.

Gold or Bitcoin as inflation hedges is my pick. Almost all fiat currencies around the world are going to be inflated to hell after dealing with the fiscal fallout of the CCP virus.
by ArmchairArchitect
Thu Nov 12, 2020 12:38 pm
Forum: Personal Consumer Issues
Topic: Must See Places in Southern France?
Replies: 40
Views: 3177

Re: Must See Places in Southern France?

We stayed coastal, but did Nice as home base, with easy day trips (via train, bus, or rental car) to Cannes, Antibes, and Monaco. Liked Nice the best out of the coastal towns.
by ArmchairArchitect
Thu Oct 15, 2020 9:45 am
Forum: Investing - Theory, News & General
Topic: Big Mac Index and Bogleheaders' Thoughts on it
Replies: 41
Views: 4400

Re: Big Mac Index and Bogleheaders' Thoughts on it

Used to be fairly accurate back in the day, but in these days of "technology deflation" as an additional variable, it's not really a useful measure anymore.

It was always intended to be a "fun" measure, not anything scientific.

That being said, the CPI is garbage.
by ArmchairArchitect
Thu Oct 15, 2020 9:32 am
Forum: Investing - Theory, News & General
Topic: Why is Large Growth disliked?
Replies: 77
Views: 9446

Re: Why is Large Growth disliked?

I switched a lot of my holdings from VTSAX to a few Vanguard large growth funds after I updated and solicited responses to this old thread, right after I saw how resilient they were in the COVID market crash:

viewtopic.php?f=10&t=1542&p=5238866#p5238866

I was attracted by the higher upside in a good market, long-term performance (10 year and "since inception") but more importantly, the resiliency as compared to VTSAX during the COVID crash/bad times.

Keep in mind too that VTSAX includes all those Chinese stocks (eg. Luckin Coffee) that don't have to meet PCAOB auditing requirements like everyone else; that's reason enough alone to avoid it (even if they don't make up a huge portion yet).
by ArmchairArchitect
Thu Oct 15, 2020 9:26 am
Forum: Personal Consumer Issues
Topic: BISSELL Spinwave Powered Hardwood Floor Mop and Cleaner?
Replies: 6
Views: 821

Re: BISSELL Spinwave Powered Hardwood Floor Mop and Cleaner?

I'd be very apprehensive about any power cleaner making actual physical contact with the hardwood. If it has hard plastic brushes or anything other than microfiber (which would need to be cleaned or replaced each time to remove dirt specs that can scratch the floors) it's likely to leave microscratches and swirl marks on the top protective layer of the hardwood, eventually dulling it out and losing shine over time (until you have your floors re-polished).

Being a car enthusiast, I know that using anything other than a 100% clean microfiber cloth on the paint leaves swirl marks and microscratches which dull the paint over time.
by ArmchairArchitect
Thu Oct 15, 2020 9:10 am
Forum: Personal Finance (Not Investing)
Topic: Should we refinance to a 15-year mortgage?
Replies: 74
Views: 6944

Re: Should we refinance to a 15-year mortgage?

I'm currently refinancing to another 30 year mortgage at an interest rate of 2.625% with zero lender fees, no appraisal required, and a $1500 lender credit toward 3rd party closing costs. The 15 year rate is about 0.5% less from what I've seen. The extra money from the lower payments on the 30 year mortgage (as compared to the 15 year) could be placed in index funds or some pretty conservative investments, and then one has a nice arbitrage between the low interest rate, and your investment returns. Similar to not paying a mortgage off even when one can- when interest rates are this low, that money is better put to work elsewhere, earning a better return. In other words, "positive carry" and opportunity cost. I'm also a CPA, if tha...
by ArmchairArchitect
Mon Jul 13, 2020 4:30 pm
Forum: Investing - Theory, News & General
Topic: 4% rule - confidence poll
Replies: 457
Views: 32597

Re: 4% rule - confidence poll

gougou wrote: Wed Jul 01, 2020 2:23 pm Some large cap A-rated REITs are yielding 4% or more, such as AVB, BXP, SPG (or VNQ if you like ETF). These companies also only pay out 40% to 70% of their cashflow and invest the rest for growth. Real estate probably will beat inflation, so the 4%+ dividend should be pretty safe and inflation protected over the long run. What am I missing here?
What you're missing is the short and long term collapse of the commercial real estate market due to the CCP virus...
by ArmchairArchitect
Thu Jul 09, 2020 10:25 am
Forum: Investing - Theory, News & General
Topic: Vanguard Sells out to China
Replies: 8
Views: 2090

Re: Vanguard Sells out to China

You certainly can divest in funds that you are not happy about. I've been only in funds that shun China and Russia for quite a few years and will continue to do that. Yes, that goes without saying. What I'm talking about is Vanguard weighing in on regulations, purporting to represent a consensus among investors. A vast majority of investors would prefer all US- exchange listed companies to follow PCAOB's auditing, transparency, and disclosure requirements, which are designed to increase investor confidence and reduce fraud/financial misstatement. Not giving a free pass to some companies to ignore these rules (especially since that free pass has already resulted in fraud/financial misstatement. We are talking about Chinese/foreign stocks li...
by ArmchairArchitect
Thu Jul 09, 2020 10:03 am
Forum: Investing - Theory, News & General
Topic: Vanguard Sells out to China
Replies: 8
Views: 2090

Vanguard Sells out to China

https://www.bloomberg.com/news/articles/2020-07-09/vanguard-nyse-set-to-weigh-in-on-u-s-crackdown-on-china-firms "Vanguard believes that global diversification and investing in China is beneficial for investors” What does this have to do with forcing Chinese (or any foreign) companies to comply with PCAOB auditing requirements for companies listed on US exchanges? Nothing at all. Investors would still be able to invest in China if they comply with PCAOB requirements, or if they don't, then via foreign exchanges. "There are more than 200 Chinese corporations that have been allowed to sell shares in the U.S. without complying [with PCAOB requirements], according to the PCAOB." As a CPA and investor in Vanguard (and all investor...
by ArmchairArchitect
Fri Jun 05, 2020 3:13 pm
Forum: Personal Investments
Topic: Vanguard Website not working right ??
Replies: 18
Views: 1953

Re: Vanguard Website not working right ??

Same issue here. Overview/dashboard is in "old" style.
by ArmchairArchitect
Wed May 27, 2020 12:24 pm
Forum: Personal Investments
Topic: Timing 401k Rollover from ADP to Vanguard
Replies: 7
Views: 795

Re: Timing 401k Rollover from ADP to Vanguard

retiredjg wrote: Wed May 27, 2020 11:30 am Maybe this is not the best time to do a rollover. Can it wait?
It can, but I want to get my 401k out of ADP asap as their fees/expense ratios are sky high.
by ArmchairArchitect
Wed May 27, 2020 10:45 am
Forum: Personal Investments
Topic: Timing 401k Rollover from ADP to Vanguard
Replies: 7
Views: 795

Re: Timing 401k Rollover from ADP to Vanguard

Elysium wrote: Wed May 27, 2020 9:55 am I wouldn't worry about timing. You aren't likely to miss very much, and even if you miss 1% to 2%, in the long run that wouldn't matter. Talk to ADP first, chance are it takes 3-5 business days.
1% to 2% of a large chunk of cash, of course that matters (especially when compounded over the years)! If it didn't matter, none of us would care about Vanguard's low fees/expense ratios compared to other FIs.
by ArmchairArchitect
Wed May 27, 2020 9:24 am
Forum: Personal Investments
Topic: Timing 401k Rollover from ADP to Vanguard
Replies: 7
Views: 795

Timing 401k Rollover from ADP to Vanguard

Anyone have experience with rolling over a 401k administered by ADP over to Vanguard? Specifically how long this process takes start to finish?

My concern is missing out on market gains while the money is in transit from ADP to Vanguard. Obviously the market could go down as well.

I would like to minimize the amount of time that the money is in transit and missing out on market activity, so what would be the best day/time of the week to initiate the rollover?
by ArmchairArchitect
Fri May 15, 2020 8:43 am
Forum: Personal Investments
Topic: Anyone familiar with 401k administration? Employer withdrew my personal funds from 401k "temporarily" due to "testing".
Replies: 4
Views: 766

Re: Anyone familiar with 401k administration? Employer withdrew my personal funds from 401k "temporarily" due to "testin

Sounds like you are an HCE (Highly Compensated Employee, which by IRS definition is anyone earning more than $130k per year). Every 401k plan is subject to tests called ADP (actual deferral percentage) and ACP (actual contribution percentage) testing annually. In this testing, if any HCE is deemed to have deferred more than what the non-HCE employees have deferred into the plan, the excess must be removed and returned to the HCE employee. This is all perfectly legal, and in fact mandated by the ERISA act under which all 401k plans operate. Answer 2): Difficult to answer, if the rollover had been processed and funds moved to an IRA or another 401k plan, the employer would not have the ability to remove the excess funds. So perhaps you did l...
by ArmchairArchitect
Fri May 15, 2020 8:00 am
Forum: Personal Investments
Topic: Anyone familiar with 401k administration? Employer withdrew my personal funds from 401k "temporarily" due to "testing".
Replies: 4
Views: 766

Anyone familiar with 401k administration? Employer withdrew my personal funds from 401k "temporarily" due to "testing".

Short summary: I have a 401k through an employer, all contributions are my own as employer does not offer any matching contributions. 401k is administered by ADP. I left the company at the end of April, and was preparing a rollover to Vanguard when I happened to notice that in March, approximately $4k of my balance was removed with a description of "Excess Return - EE". I contacted ADP who said that's typical of employers who have to perform 401k "testing" ( https://www.irs.gov/retirement-plans/401k-plan-fix-it-guide-the-plan-failed-the-401k-adp-and-acp-nondiscrimination-tests "). They told me to contact the 401k administrator on my employer's end. I did so two weeks ago, and was told that it was "in error do t...
by ArmchairArchitect
Sun May 10, 2020 10:26 am
Forum: Personal Investments
Topic: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?
Replies: 12
Views: 7969

Re: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?

Sounds like the bid/ask spread of ETFs is a factor, per a poster from that other thread:

"One advantage of mutual funds is there is no bid/ask spread. You know you are buying at the fair and exact market price. This is especially important for DRIP. The bid/ask spread of ETF's can add up over time if you use DRIP."

Also found this Vanguard whitepaper on the topic:
https://personal.vanguard.com/pdf/ISGCETF.pdf
by ArmchairArchitect
Sun May 10, 2020 9:28 am
Forum: Personal Investments
Topic: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?
Replies: 12
Views: 7969

Re: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?

nisiprius wrote: Sun May 10, 2020 9:17 am ability to make automatic periodic purchases or sales (mutual funds)
Thanks, didn't realize you couldn't do automatic investments with Vanguard for ETFs, that's definitely one factor to consider.
by ArmchairArchitect
Sun May 10, 2020 9:22 am
Forum: Personal Investments
Topic: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?
Replies: 12
Views: 7969

Re: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?

Xrayman69 wrote: Sun May 10, 2020 9:17 am What type of account are you considering? Taxable or tax advantage account?

I believe Mutual fund can exchange for different more fund easily at end of day prices for each. while ETF requires a sell in real time of whole shares during trading hours then a purchase of alternative in whole shares.
Taxable account.
by ArmchairArchitect
Sun May 10, 2020 9:16 am
Forum: Personal Investments
Topic: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?
Replies: 12
Views: 7969

Re: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?

mega317 wrote: Sun May 10, 2020 9:00 am On those websites you linked, or other sites like yahoo or Morningstar, what does it say about the history of capital gains distributions?

There are many differences between mutual funds and ETFs. They are small and personal so no one can really answer for you. Your choices are either to read and read and read many hours about it or you can start using both and see what you like. The difference in expense ratio can be ignored and is IMO the least important difference.
I'm mainly interested in performance differences and tax differences. Cliff's notes?
by ArmchairArchitect
Sun May 10, 2020 8:46 am
Forum: Personal Investments
Topic: VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?
Replies: 12
Views: 7969

VIGAX (Mutual Fund) versus VUG (ETF) - Identical funds, but which to choose?

These are both identical index funds, what are the advantages/disadvantages of choosing the mutual fund version or ETF version of the fund?

- I assume VIGAX has annual capital gains distributions since it's a mutual fund, which I don't want. Unless Vanguard uses the same trick/loophole they use for some of their other mutual funds to avoid this (https://www.bloomberg.com/graphics/2019 ... tax-dodge/)
- Looks like VUG has a slightly lower expense ratio at 0.04% rather than VIGAX's 0.05%.

https://investor.vanguard.com/mutual-fu ... file/VIGAX

https://investor.vanguard.com/etf/profile/overview/vug

Sounds like VUG is the winner, or am I missing something?
by ArmchairArchitect
Fri May 08, 2020 11:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard U.S. Growth: Give me a reason
Replies: 30
Views: 8989

Re: Vanguard U.S. Growth: Give me a reason

Revisiting this old thread because when looking at Vanguard's current lineup and how it's fared during the CCP virus downturn, VWUSX/VWUAX seems to be the best positioned out of all of Vanguard's funds when you look at both short and long-term performance/resiliency (YTD, 1 Year, 5 year, 10 year, and Since Inception at 5.74% 12.89% 13.41% 14.28% 10.62% respectively).

https://investor.vanguard.com/mutual-fu ... nd-returns

Thoughts?
by ArmchairArchitect
Wed Apr 15, 2020 9:03 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard or any other institution offer the ability to customize index funds?
Replies: 40
Views: 2479

Re: Does Vanguard or any other institution offer the ability to customize index funds?

celia wrote: Wed Apr 15, 2020 5:37 pm If you had a few companies you wanted to exclude (say, fewer than 10), it would be possible to find all the funds that own them and just avoid those funds. But you probably wouldn’t be diversified very well.
If I'm 95% of VTSAX holdings (the other 5% being sectors or companies I want to exclude), I would say that's pretty well diversified still...

Anyway, thanks all for the responses. Seems the financial industry isn't up to this level of innovation yet. I'll have to be patient.
by ArmchairArchitect
Wed Apr 15, 2020 4:16 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard or any other institution offer the ability to customize index funds?
Replies: 40
Views: 2479

Re: Does Vanguard or any other institution offer the ability to customize index funds?

Silk McCue wrote: Wed Apr 15, 2020 4:13 pm Some folks talk about using M1 Finance to build your own "index" using fractional stock shares. No institution is going to build one that matches your specifics. The fees would be outrageous.

https://www.m1finance.com/how-it-works/invest/

Cheers
Why would the fees be outrageous? Vanguard is buying the stocks that comprise the index regardless; you would just be telling them to skip buying particular stocks as part of that index.
by ArmchairArchitect
Wed Apr 15, 2020 4:05 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard or any other institution offer the ability to customize index funds?
Replies: 40
Views: 2479

Does Vanguard or any other institution offer the ability to customize index funds?

I'd like to have a broad/diversified index fund investment, but exclude certain industries/sectors (airlines, oil, Chinese IPOs) etc. or even certain companies from my portfolio based on poor performance or not wanting to invest in them for personal reasons.

So for example, Vanguard Total Stock Market Index Fund (VTSAX) but then exclude industries/sectors or individual stocks from that.

Anyone offer customizable index funds?

Doing this manually by investing in a large basket of individual stocks would be unfeasible from a time required and transaction cost standpoint; not to mention unnecessary when I just want to exclude a handful or industries of individual stocks from the entire index.
by ArmchairArchitect
Mon Mar 09, 2020 9:22 am
Forum: US Chapters
Topic: [Archived] Bogleheads community discussion - Coronavirus
Replies: 4963
Views: 298143

Re: Bogleheads community discussion - Coronavirus

Iran and Italy are not good studies for what would happen in the US. Iran is obvious, but also Italy is pretty much a "1.5 world" country rather than a first world country as far as economy, government efficiency, quality of healthcare, etc.

South Korea or Japan are probably the best studies right now of what could happen in the US, so follow those countries outbreaks closely, not Italy.
by ArmchairArchitect
Sun Mar 08, 2020 10:33 am
Forum: Investing - Theory, News & General
Topic: Coronavirus and the market
Replies: 4089
Views: 392188

Re: Coronavirus and the market

This alone is worthwhile. When you don’t do this the CFR rises as we’ve seen in Wuhan. It is not “just like the flu” in impact, economic or human. That’s the point. So we know to start social distancing and other policies at a greater level than the normal flu. The markets will go down as a result but eventually they will recover only with less fatalities. The markets would have gone down anyway if they did nothing because the underlying premise (“it’s just the flu”) is incorrect. So I don’t get it. If folks are “stay the course is always the right thing” because they have the right asset allocation and a 20+ year time horizon why does anyone care that the markets get hurt from quarantines? The market index always goes up eventually right?...
by ArmchairArchitect
Sun Mar 08, 2020 10:03 am
Forum: US Chapters
Topic: [Archived] Bogleheads community discussion - Coronavirus
Replies: 4963
Views: 298143

Re: Coronavirus and the market

This alone is worthwhile. When you don’t do this the CFR rises as we’ve seen in Wuhan. It is not “just like the flu” in impact, economic or human. That’s the point. So we know to start social distancing and other policies at a greater level than the normal flu. The markets will go down as a result but eventually they will recover only with less fatalities. The markets would have gone down anyway if they did nothing because the underlying premise (“it’s just the flu”) is incorrect. So I don’t get it. If folks are “stay the course is always the right thing” because they have the right asset allocation and a 20+ year time horizon why does anyone care that the markets get hurt from quarantines? The market index always goes up eventually right?...
by ArmchairArchitect
Sat Feb 29, 2020 9:07 am
Forum: Investing - Theory, News & General
Topic: Coronavirus and the market
Replies: 4089
Views: 392188

Re: Coronavirus and the market

pokebowl wrote: Sat Feb 29, 2020 8:23 am Post-Coronavirus manufacturing numbers from China posted last night. Unfortunately worst numbers since 2008 if I am reading it correctly. Looks like the market will be responding to this next week too.
Already expected, and priced into the market.

Also, focus on US numbers, not China's. Many US companies began diversifying their supply chains prior to the Wuhan virus, because of the trade war.
by ArmchairArchitect
Fri Feb 28, 2020 3:50 pm
Forum: Investing - Theory, News & General
Topic: How will banks profit from making 30 year fixed rate mortgages?
Replies: 38
Views: 4009

Re: How will banks profit from making 30 year fixed rate mortgages?

The loans in the aggregate aren't held for 30 years.

The average amount of time homeowners remain in a home is 8 years.

Source: https://ipropertymanagement.com/researc ... eownership
by ArmchairArchitect
Thu Feb 27, 2020 1:43 pm
Forum: Investing - Theory, News & General
Topic: Coronavirus and the market
Replies: 4089
Views: 392188

Re: Coronavirus and the market

In a year and a half to two years there will be a vaccine. The whole thing will be cleared up within 3 years. A vaccine has already been developed and is going to clinical trials: http://archive.vn/H45i9 "Public-health authorities say advances in vaccine technology, aided by government and private investments, are shortening development timelines when outbreaks occur. In the past, researchers scrambled to develop vaccines in response to outbreaks such as SARS, Ebola and Zika with mixed results. Older types of vaccines are developed from viral proteins that must be grown in eggs or cell cultures, and together with animal testing it can take years before a vaccine can be used in humans. Newer approaches rely on what are known as platfor...
by ArmchairArchitect
Thu Feb 27, 2020 1:39 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks in free fall
Replies: 36221
Views: 4651078

Re: U.S. stocks in free fall

1) Vaccine will most likely be found in following months; Please tell me why my logic is faulty, it might as well be. I don't know where some are getting their information. We are being told by health professionals that it will take a year or more to find a vaccine, then who knows how long to mass manufacture and distribute it. And we don't know how effective it will be - even the flu vaccine is only partially effective. PS: I don't think the stock market would take kindly to up to 35 million people dying from a viral disease, though in that unlikely event we will all have a lot bigger problems. False. A vaccine has already been developed and is going to clinical trials: http://archive.vn/H45i9 Most health professionals are old school and ...
by ArmchairArchitect
Tue Feb 25, 2020 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: 30 year mortgage under 3%
Replies: 301
Views: 53952

Re: 30 year mortgage under 3%

I've always used Zillow's mortgage/refinance marketplace to get tons of customized rate quotes all at once, then sort by APR:
https://www.zillow.com/refinance/#/

Just make sure to pick a company with stellar reviews.
by ArmchairArchitect
Thu Feb 13, 2020 8:57 am
Forum: Personal Consumer Issues
Topic: Protection Against Home Intruders
Replies: 387
Views: 34962

Re: Protection Against Home Intruders

- Simplisafe or Ring Home Security system ($15/mo and $10/mo respectively). Our Simplisafe system came with little "remotes" that we keep next to our bed (one on each side for me and my wife), with a panic button which dispatches police that same way that triggering the alarm would.
- Security cameras (cheap these days). But don't buy the kind that require a subscription, buy the kind that allow you to record to your own storage (NVR or computer). I have the SV3C cameras from Amazon which are $35/each and they've been running flawlessly for over 1.5 years.
- Stun gun/taser.
by ArmchairArchitect
Thu Feb 06, 2020 12:11 pm
Forum: Personal Consumer Issues
Topic: PSA: Replace the anode rod on your water heater every few years to prolong its life.
Replies: 128
Views: 15225

Re: PSA: Replace the anode rod on your water heater every few years to prolong its life.

I think in Chicago area our water is relatively "hard" which prolongs the life of water heaters yes? I was all ready to replace my anode rods back in 2014 when the heaters were about 10yrs old. Couldn't budge them even with some cheater bar and help from my Dad. We gave up in the end rather than risk breaking the top seal or piping or something especially since the heaters were seemingly working fine. I think now that I have a proper impact wrench I would try to use that, but I'm perhaps reluctant to disturb a non-leaking 16yr old unit. I have 2 that are plumbed in series so the chances they both fail at the same time are low. They are on tile floor in the utility room of the basement but unfortunately no drain pans it seems...th...
by ArmchairArchitect
Mon Feb 03, 2020 2:50 pm
Forum: Personal Consumer Issues
Topic: PSA: Replace the anode rod on your water heater every few years to prolong its life.
Replies: 128
Views: 15225

Re: PSA: Replace the anode rod on your water heater every few years to prolong its life.

hand wrote: Mon Feb 03, 2020 2:21 pm
criticalmass wrote: Sun Feb 02, 2020 6:57 pm
Bradford White water heaters are the best (for the plumber). As a consumer, I avoid them.
That is my conclusion too - there is no other excuse for intentionally making required maintenance more difficult.
Unfortunately I agree. And plumbers are in on Bradford White's game as they all seem to recommend Bradford White for the extra work (fees) it creates for them in the long-term.

Our house came with a Bradford White but when the purchase decision is mine, I will avoid this brand because of its anti-consumer practices/design.
by ArmchairArchitect
Sun Feb 02, 2020 8:59 pm
Forum: Personal Consumer Issues
Topic: PSA: Replace the anode rod on your water heater every few years to prolong its life.
Replies: 128
Views: 15225

Re: PSA: Replace the anode rod on your water heater every few years to prolong its life.

I looked into this a few years ago. Anode rod replacement seems to be dependent on geography. Around where I live the hardware stores don’t even sell anode rods, and a local master plumber told me that this wasn’t necessary. So just because you can't get a specialty part locally means you can't obtain the part? I bought mine online, cheap, $28 shipped (as mentioned). If I had to count only on local stores for parts to maintain all my possessions, I'd be SOL. Your local "master" plumber telling you that = he's either an idiot, or prefers the more profitable work of replacing the entire water heater down the line. The entire purpose of the anode rod is to take a sacrificial hit and rust/deteriorate so that your tank itself does not...
by ArmchairArchitect
Sun Feb 02, 2020 3:43 pm
Forum: Personal Consumer Issues
Topic: PSA: Replace the anode rod on your water heater every few years to prolong its life.
Replies: 128
Views: 15225

Re: PSA: Replace the anode rod on your water heater every few years to prolong its life.

quantAndHold wrote: Sun Feb 02, 2020 3:07 pm So if the hot water heater is 15+ years old with no maintenance in the meantime, should I still do this, or am I asking for trouble?

Asking for a friend...
Still do it, you'll extend the life of your water heater because the anode rod helps prevent further corrosion of the inside of your tank.