Search found 356 matches

by VaR
Mon Oct 16, 2017 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds v. bond funds
Replies: 36
Views: 1894

Re: Bonds v. bond funds

Of course, the principal of an individual bond does fluctuate. The 'principal' doesn't fluctuate (whether an individual bond or for the bonds held by a fund) but the value does. My guess is a lot of the confusion between individual bonds and funds is in one you see the changing value every day and ...
by VaR
Sat Oct 14, 2017 11:55 pm
Forum: Personal Consumer Issues
Topic: Tesla roof deposit: Anyone paid one?
Replies: 16
Views: 2078

Re: Tesla roof deposit: Anyone paid one?

Yes, it's 4000 sq ft roof in Souther California. I spent $13.5k on GAF timberline cool roof shingles. They come with a 10 year warranty against leaks, and should last about 22-25 years. What state are you in? I'd bet that Tesla won't be installing solar roofs in quantity until 2019 at the earliest ...
by VaR
Sat Oct 14, 2017 6:46 pm
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 463
Views: 41971

Re: Picking College and College Scholarships

This is just my personal opinion, but making a school more challenging by finishing sooner isn't making it more challenging in a good way. I think it's important for the actual coursework to be challenging in difficulty, not in quantity. And I think it's important to be able to have classmates who ...
by VaR
Sat Oct 14, 2017 1:14 am
Forum: Investing - Theory, News & General
Topic: Offensive Valuations
Replies: 45
Views: 4098

Re: Offensive Valuations

To the point about revenue - FASB issued a new standard on revenue recognition in 2014. I don't know whether its impact was to reduce or increase revenue in the current year. Their stated goal was to standardize revenue recognition practice across industries so I imagine that some went up and some w...
by VaR
Fri Oct 13, 2017 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Voluntary Corporate Action Tendered Offer Wal-Mart questions
Replies: 8
Views: 594

Re: Voluntary Corporate Action Tendered Offer Wal-Mart questions

I'll chime in and say that it's probably a good opportunity to simplify your portfolio if you want to reduce your individual bond holdings. With corporate bonds, I generally think it's better to hold them in funds or ETFs. I think you need at least 10, if not 20 well-chosen names to adequately diver...
by VaR
Fri Oct 13, 2017 11:42 pm
Forum: Investing - Help with Personal Investments
Topic: “Going Long Volatility”
Replies: 16
Views: 863

Re: “Going Long Volatility”

"Going long volatility" is trader jargon that makes for good press. In the past 10 years or so, there's been a lot of financial press focus on market volatility as a measure and a product - in particular after the explosion on popularity of the CBOE VIX index. I was surprised to learn that it was cr...
by VaR
Fri Oct 13, 2017 11:26 pm
Forum: Investing - Help with Personal Investments
Topic: Does Vanguard make sense without a computer ?
Replies: 22
Views: 2272

Re: Does Vanguard make sense without a computer ?

What about Vanguard PAS or Schwab Intelligent Advisory? The 30 basis points will buy them decent professional advice at low cost.
by VaR
Fri Oct 13, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: wellington fund ( VWELX )
Replies: 24
Views: 2491

Re: wellington fund ( VWELX )

I recommend doing a search on these forums. There are plenty of discussion threads on Wellington, including some that are very quantitative.
by VaR
Mon Oct 09, 2017 2:19 am
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 463
Views: 41971

Re: Picking College and College Scholarships

Admissions officers at top school are definitely not trying to pick only one “type” these days, they are interested in building - purposefully constructing - classes of diverse talents and backgrounds that can serve as a synergistic whole and learning resource for one another. Joel's Father: I just...
by VaR
Sun Oct 08, 2017 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 463
Views: 41971

Re: Picking College and College Scholarships

Yes, I think that he'll be challenged at all the schools (that he applied to). While MIT might be the high end of challenging (guessing), some of the other schools could be made more challenging by finishing sooner (ex: 3 years), double major, etc. This is just my personal opinion, but making a sch...
by VaR
Tue Oct 03, 2017 1:44 am
Forum: Personal Finance (Not Investing)
Topic: Picking College and College Scholarships
Replies: 463
Views: 41971

Re: Picking College and College Scholarships

I think I've mentioned it before, but I'd like to mention the importance of having your kid go to a university where they will be challenged - both generally and in their field of study. On the other end I guess I've also heard that it's important that they not be outmatched as well.
by VaR
Tue Oct 03, 2017 1:12 am
Forum: Investing - Theory, News & General
Topic: How do you avoid bad market timing for lump sum investments?
Replies: 67
Views: 6744

Re: How do you avoid bad market timing for lump sum investments?

Hoops and Earl, you seem to be having a side conversation with just each other. Do either of you have any disagreement with what's posted on the wiki? The recommendation there is to either: 1. invest in a lump sum today 2. dollar cost average in over 6 months 3. invest 50% today and to DCA in the ot...
by VaR
Tue Oct 03, 2017 12:59 am
Forum: Investing - Help with Personal Investments
Topic: when current 401K options suck
Replies: 17
Views: 1107

Re: when current 401K options suck

I've seen a lot of examples here on the forums where people find one low cost S&P 500 index fund in their 401k. The conventional wisdom is to put all your 401k money in it and then use other accounts to balance out to your desired asset allocation. The request from the poster mega317 is correct. If ...
by VaR
Mon Oct 02, 2017 11:18 pm
Forum: Investing - Help with Personal Investments
Topic: VWEHX High-Yield Corporate bond
Replies: 26
Views: 1580

Re: VWEHX High-Yield Corporate bond

OP, can we get the parameters again? You're "willing" to accept a 1-2% loss, but what do you think is an acceptable probability of a 5% loss? With a 10/90 allocation between equities and fixed income, you'll have an expected return of about 2%, an 84% chance of not losing anything and a 97.5% chance...
by VaR
Mon Oct 02, 2017 6:00 pm
Forum: Personal Finance (Not Investing)
Topic: Would you take a pay cut to work from home?
Replies: 67
Views: 5296

Re: Would you take a pay cut to work from home?

However, for most of my career Ive really despised waking up and having to get dressed and go to an office everyday. Im sort of an introvert and dont enjoy dealing with meddling coworkers, having to play office politics, forcing small talk with coworkers etc. I prefer going into work, putting my he...
by VaR
Mon Oct 02, 2017 5:40 pm
Forum: Investing - Theory, News & General
Topic: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?
Replies: 34
Views: 3180

Re: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?

Another implication: I suggested to my father, who is elederly and doesn't like volatility, to currency hedge his (small) investment in the S&P500: was that rational for me to do? Conventional wisdom is to not currency-hedge your foreign equity investments, assuming you aren't invested internationa...
by VaR
Mon Oct 02, 2017 5:32 pm
Forum: Investing - Theory, News & General
Topic: Glide up or glide down before retirement?
Replies: 7
Views: 1326

Re: Glide up or glide down before retirement?

I've been intrigued by this article ever since the link to it was posted here a few weeks ago. It is from 2013: https://www.kitces.com/blog/should-equity-exposure-decrease-in-retirement-or-is-a-rising-equity-glidepath-actually-better/ Intriguingly, you would start at 30/70 now and rise to a 70/30 al...
by VaR
Mon Oct 02, 2017 5:08 pm
Forum: Investing - Theory, News & General
Topic: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?
Replies: 34
Views: 3180

Re: Why do 10-yrs US Treasuries have a higher yield than European Junk Bonds?

Am I right in deducing that this implies that the market is actually predicting that the Euro will appreaciate against the Dollar (since I understand that what you are saying is that a EU investing in USD has to pay to secure today's exchange rates in the future) - please also see the post I've jus...
by VaR
Mon Oct 02, 2017 4:54 pm
Forum: Investing - Theory, News & General
Topic: $10 million+ - Still Working and LBYM
Replies: 162
Views: 16251

Re: $10 million+ - Still Working and LBYM

Hypothetically speaking if someone was part of the 3 comma club would you still recommend index funds? At that point you'd be paying 400k per year just to have your funds indexed. Might as well just buy stock at that point. Why? So you can pay someone $1,000,000 a year to collect dividends from hun...
by VaR
Mon Oct 02, 2017 4:26 pm
Forum: Investing - Theory, News & General
Topic: How do you avoid bad market timing for lump sum investments?
Replies: 67
Views: 6744

Re: How do you avoid bad market timing for lump sum investments?

The wiki article section on DCA vs Lump Sum is good: https://www.bogleheads.org/wiki/Dollar_cost_averaging#Dollar_cost_averaging_versus_lump_sum A lot of previous articles have covered the ground well: https://www.google.com/search?q=site%3Abogleheads.org+dollar+cost+averaging+vs+lump+sum&oq=site%3A...
by VaR
Mon Oct 02, 2017 2:15 am
Forum: Investing - Theory, News & General
Topic: Why Long-Term Corporate Bonds (e.g. VBLTX) so Unpopular?
Replies: 15
Views: 2199

Re: Why Long-Term Corporate Bonds (e.g. VBLTX) so Unpopular?

1. I think there are simply not that many long-term corporate bond funds. 2. Actively managed funds probably don't want a mandate to always invest in long-term corporate bonds. They probably want the flexibility to manage term and credit. 3. It's easier for managers to think (and convince you) that ...
by VaR
Sun Sep 24, 2017 1:51 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalancing into U.S.Stocks
Replies: 31
Views: 2726

Re: Rebalancing into U.S.Stocks

My investment plan says to buy value. And change asset allocation when your assets are expensive relative to others. In that case rebalancing is irrelevant to your plan and you should not be concerned with what is generally said here about it. I agree, the OP is not rebalancing by the Boglehead def...
by VaR
Sun Sep 24, 2017 1:10 pm
Forum: Investing - Theory, News & General
Topic: Bond Duration education
Replies: 5
Views: 834

Re: Bond Duration education

However, bond funds change their holdings over time, and thus the timing of interest-rate moves affects the return. If you hold a bond fund which keeps a constant 5-year duration, with a 3% yield, and the yield rises to 5% tomorrow, the fund will lose 10%, but it will then earn 5% over the two foll...
by VaR
Sat Sep 23, 2017 6:59 pm
Forum: Investing - Theory, News & General
Topic: Bond Duration education
Replies: 5
Views: 834

Re: Bond Duration education

Duration is an instantaneous measure of first order sensitivity to a parallel shift in the yield curve, so there are probably four effects that you will want to learn about: 1. As time passes, the duration of a bond goes down. So a bond with a duration of 5 years will have a duration of 4 years afte...
by VaR
Sun Sep 17, 2017 8:55 pm
Forum: Personal Consumer Issues
Topic: Recommend a DIY home improvement forum?
Replies: 3
Views: 673

Re: Recommend a DIY home improvement forum?

I find the information and advice on gardenweb to be helpful. I also find the walk-throughs on youtube to be particularly prescriptively useful. For example, I used to scoff at "unboxing" videos, but after watching an unboxing of the inverter generator that I am looking at, I laugh no longer! Not su...
by VaR
Wed Sep 13, 2017 12:25 am
Forum: Personal Finance (Not Investing)
Topic: Electric car in evacuation situation
Replies: 61
Views: 4240

Re: Electric car in evacuation situation

I would have thought that the boglehead way would be to evacuate well in advance, before the highways became clogged. Also, strictly speaking, only those in evacuation zones are supposed to evacuate. FWIW, I think the lines at the Tesla superchargers in Florida were less than the lines at the gas st...
by VaR
Fri Sep 01, 2017 6:07 pm
Forum: Personal Finance (Not Investing)
Topic: Should we let MIL pay off our mortgage?
Replies: 69
Views: 8803

Re: Should we let MIL pay off our mortgage?

What about selling the house to the MIL with a transfer-on-death deed? You get the best basis treatment that way - your gains are probably exempted from taxation as your current primary residence and you'll get step-up basis when you inherit the house. You can then manage the property for her for an...
by VaR
Wed Aug 30, 2017 1:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 41
Views: 6312

Re: Vanguard Announces Plans To Launch Total Corporate Bond ETF

It works the other way around. If you sell a bond before maturity it usually sells at a premium over par. Think of a ten year note with a 2% coupon with three years left to maturity. The going rate for a three may be say 1% yield. So the old note sells at a premium of approximately the 1% differenc...
by VaR
Mon Aug 28, 2017 10:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 41
Views: 6312

Re: Vanguard Announces Plans To Launch Total Corporate Bond ETF

As a generality, given the ideas you presented the index fund is at a disadvantage. A 5-10 index fund for example, has to buy that 20 with 10 years left to maturity even though it's obvious that it is going to be called soon. The active manager can just skip that one and buy a new 10 instead this e...
by VaR
Sun Aug 27, 2017 3:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 41
Views: 6312

Re: Vanguard Announces Plans To Launch Total Corporate Bond ETF

If any bond is bought at issue and sold before maturity it will have a capital gain or loss depending on whether interest rates have gone down or up in the interim. I think the call provision is a factor but the timing of the call and the funds maturity range mandate complicates the analysis. This ...
by VaR
Sat Aug 26, 2017 6:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans To Launch Total Corporate Bond ETF
Replies: 41
Views: 6312

Re: Vanguard Announces Plans To Launch Total Corporate Bond ETF

My initial thought when seeing the thread title was: Nice! More diversification with probably not too far off average duration if I was otherwise going with VCIT (Vanguard Intermediate-Term Corporate Bond ETF). However, after seeing that it is a fund of funds, or ETF of ETFs, I have the feeling tha...
by VaR
Wed Aug 23, 2017 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: My girlfriend and her 401K, need to give her advice
Replies: 61
Views: 5100

Re: My girlfriend and her 401K, need to give her advice

OP, has your girlfriend looked at the (real) Social Security website and found out what percentage of her expenses would be replaced by Social Security at full-retirement age of 66 or, even better, at 70? Using a ballpark current income of $35,000 (from the upper end of her 15% federal bracket), at ...
by VaR
Sun Aug 20, 2017 8:38 pm
Forum: Investing - Theory, News & General
Topic: Bond fund SEC yield
Replies: 14
Views: 1841

Re: Bond fund SEC yield

It is called Core Plus Bond Fund and the description says it attempts to outperform the Barclay's Capital U.S. Aggregate Bond passive index (which it has done over all time periods shown). The expense ratio is 0.23%. Total return for July, 2017 is 0.59% and for the year through July is 3.44%. I wou...
by VaR
Sat Aug 19, 2017 6:28 pm
Forum: Investing - Theory, News & General
Topic: Bond fund SEC yield
Replies: 14
Views: 1841

Re: Bond fund SEC yield

I thought the SEC requires the disclosure of the SEC Yield, and also a prospectus before an investor is allowed to buy a fund. https://www.bogleheads.org/wiki/Collective_Investment_Trusts Collective investment trusts are not registered investments with the SEC and thus aren't covered by SEC mandato...
by VaR
Fri Aug 18, 2017 9:48 pm
Forum: Investing - Theory, News & General
Topic: Bond fund SEC yield
Replies: 14
Views: 1841

Re: Bond fund SEC yield

The investment objective should be available. Other attributes might not be releasable because if they don't have to produce auditable portfolio statistics, they might not want to release internally calculated values to avoid liability. Wait, are these actual funds or are they unit investment trusts...
by VaR
Mon Aug 14, 2017 12:56 am
Forum: Investing - Theory, News & General
Topic: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)
Replies: 56
Views: 5781

Re: Vanguard Government Bond Index Funds changing names and indices (dropping agency bonds)

GSE mortgage pools do not have a US guarantee. Because GSEs are in receivership their actual notes have an implied US guarantee. The mortgages underlying Agency MBS have principal and interest guaranteed by the GSE, so to the extent that you believe that the GSE has implied government backing, the ...
by VaR
Wed Aug 02, 2017 9:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Global Wellesley Income and Global Wellington Funds in registration [now available]
Replies: 86
Views: 14495

Re: Vanguard's Global Wellesley Income and Global Wellington Funds in registration

I didn't see any statement on whether the U.S. vs international allocation was going to be fixed by mandate or whether it would be adjusted as part of the active management based on some determination of value. Any thoughts on this?
by VaR
Wed Aug 02, 2017 1:10 am
Forum: Personal Finance (Not Investing)
Topic: The age old debate 30 vs 15 [year mortgage rate]
Replies: 41
Views: 4974

Re: The age old debate 30 vs 15 [year mortgage rate]

ARM rates have been going up for a while. According to a quick look at Bankrate.com and some other sites, 15 year fixed rates are considerably lower than most ARMs, and you might even find some 30 year fixed rates that are lower than some 5-7 year ARMs. Doesn't look worth the gamble to me. OP shoul...
by VaR
Mon Jul 31, 2017 7:33 pm
Forum: Personal Finance (Not Investing)
Topic: The age old debate 30 vs 15 [year mortgage rate]
Replies: 41
Views: 4974

Re: The age old debate 30 vs 15 [year mortgage rate]

I'll second the idea of the 5-7 year ARM. What is the reason you think you'll only be in the house 3-5 years? Are you going to trade up or move to a different area? I'm really asking what you think the probability is that you'll stay in the house longer than 7 years. At some level of emergency fund ...
by VaR
Mon Jul 24, 2017 8:34 pm
Forum: Personal Consumer Issues
Topic: Cutting the cable - Internet speed requirements
Replies: 12
Views: 942

Re: Cutting the cable - Internet speed requirements

Thank you everyone ...a follow up ... I assume I'll need more speed than i have now when streaming tv over the internet on 2-3 tvs (as opposed to now using standard cable) ... correct? Probably not. What speed do you have now? Comcast as Xfinity in my area seems to sell 10 mbps as the rock bottom t...
by VaR
Sat Jul 22, 2017 4:55 pm
Forum: Personal Consumer Issues
Topic: Sears appliances from Amazon
Replies: 11
Views: 1309

Re: Sears appliances from Amazon

Sure, but at least at Sears the pseudo-fake Kenmore appliances you could get were the genuine article. I fear Amazon could raise things to a whole new level of fakery, knock-offs and counterfeits> :happy At least for the moment, Sears is providing fulfillment for Kenmore appliances from Amazon, so ...
by VaR
Wed Jul 19, 2017 9:29 pm
Forum: Personal Consumer Issues
Topic: Would you let your teenager spend all his savings on a gaming computer?
Replies: 123
Views: 7264

Re: Would you let your teenager spend all his savings on a gaming computer?

Maybe he'd like to save 10%-20% of it for later? It might also be a good lesson in budgeting the project. Let's say he saves 10% in a rainy day fund. I think he needs to budget 10%-20% of it for cost overruns on the project - also for potential repairs. He might also want to save for cool bargains f...
by VaR
Mon Jul 17, 2017 1:12 am
Forum: Personal Consumer Issues
Topic: Scan negatives or the photos?
Replies: 16
Views: 1732

Re: Scan negatives or the photos?

How were the negative and the print photo each scanned? You said about the negatives "first roll back (as a test) yesterday from the lab" - which lab did you have do the scan? Did you have the option to specify things like dust removal or color correction? What format were the 18MB files that you re...
by VaR
Fri Jul 14, 2017 11:23 pm
Forum: Personal Consumer Issues
Topic: Upcoming Marriott Stay
Replies: 13
Views: 1792

Re: Upcoming Marriott Stay

Marriott and Starwood are merging and so SPG points are convertible to Marriott points. This also means that anything you can convert to SPG points can transitively be converted to Marriott points. So AMEX membership rewards points can be converted to SPG and then converted to Marriott points. Chase...
by VaR
Fri Jul 14, 2017 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: Personal loan to a family member
Replies: 114
Views: 7494

Re: Personal loan to a family member

I have a 100% loss rate for personal loans to relatives. I'm convinced that the advice you always hear is not just about the need for emotional preparedness, but rather it is a hidden correlation between "needing to ask a relative for a loan" and "fiscal irresponsibility". The correlation must cause...
by VaR
Thu Jul 13, 2017 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Corporate Bond Website?
Replies: 35
Views: 2301

Re: Corporate Bond Website?

I'm not specifically addressing the OP but I feel the need to make sure that some misconceptions don't get archived as factual in this thread. 1. Given that risk free interest rates have generally declined over the past 10 years and credit spreads have narrowed, you will find the majority of older i...
by VaR
Sun Jul 09, 2017 6:17 pm
Forum: Personal Consumer Issues
Topic: any way to eat healthier at Subway (or any other quick lunch ideas)
Replies: 102
Views: 5571

Re: any way to eat healthier at Subway (or any other quick lunch ideas)

and the claim that their chicken is allegedly only about 50% real. http://www.cbsnews.com/news/subway-no-more-yoga-mat-chemical-in-our-bread/ http://www.torontosun.com/2017/03/17/subway-seeking-210-million-in-lawsuit-against-cbc-after-factually-incorrect-chicken-report I like that you're citing the...
by VaR
Sat Jul 08, 2017 10:01 pm
Forum: Investing - Help with Personal Investments
Topic: What Vanguard International Index Fund?
Replies: 10
Views: 1133

Re: What Vanguard International Index Fund?

OP, in answering your question for myself I found it useful to read the following article from the wiki: https://www.bogleheads.org/wiki/Approximating_total_international_stock_market If you have the option I would recommend using Vanguard Total International Stock Index Fund as others have recommen...
by VaR
Sat Jul 08, 2017 9:28 pm
Forum: Personal Consumer Issues
Topic: Cheap TV Set-up for Limited Daily Use
Replies: 71
Views: 5220

Re: Cheap TV Set-up for Limited Daily Use

1. Does she have internet and wifi? She has internet and a wi-fi capable router. As Doom&Gloom said, you can always get her a Roku Streaming Stick or Roku Express for $40 if her old TV has a working HDMI port. If not, is a new 32" TCL with Roku for $170 in the budget? I was thinking of getting one ...
by VaR
Sat Jul 08, 2017 9:12 pm
Forum: Personal Consumer Issues
Topic: Multi-page scanner?
Replies: 26
Views: 1983

Re: Multi-page scanner?

I bought a HP Laserjet Pro M477fnw color laser printer with automatic document document feeder (ADF). It will do 2-sided scans through the ADF and either email you the PDF or save it to a network drive. If you want automatic 2-sided printing you'll have to pony up for the M477fdw model (apparently t...