Search found 38 matches

by Paul K
Sat Sep 04, 2021 7:29 pm
Forum: Investing - Theory, News & General
Topic: Must listen interview with VTSAX/VTI manager Gerry O'Reilly, and Vanguard Head of ETFs and Index ProdMgt. Rich Powers!
Replies: 67
Views: 19250

Re: Must listen interview with VTSAX/VTI manager Gerry O'Reilly, and Vanguard Head of ETFs and Index ProdMgt. Rich Power

Loved the level of detail Gerry and Rich were willing to get into. It's not every day we get to hear about the internals of a trillion dollar fund.

It'd be great if the podcast could have more of these hyper technical deep dives. Give the nerds what they want!
by Paul K
Fri May 22, 2020 11:35 pm
Forum: Investing - Theory, News & General
Topic: Taxable Account - a Swiss Army Knife for Savers
Replies: 71
Views: 12088

Re: Taxable Account - a Swiss Army Knife for Savers

I think OP is discovering that having money makes life easier. I fully agree.
by Paul K
Fri May 01, 2020 12:26 am
Forum: Investing - Theory, News & General
Topic: Money market mutual fund assets broke the $​5.​0 trillion level for the first time ever on Tuesday, April 27
Replies: 19
Views: 3084

Re: Money market mutual fund assets broke the $​5.​0 trillion level for the first time ever on Tuesday, April 27

Independent George wrote: Thu Apr 30, 2020 10:26 am What do the low interest rates do to Schwab's business model of paying out less than they earn on money market funds?
It hurts it, for sure. If real MM yield is 1%, Schwab clients are cool with getting 0.7%. If MM yield is 0.2%, they're not going to be cool with getting minus 0.1%. Numbers made up, just for illustration.

I wouldn't be surprised if Schwab started pushing their other products like Pledged Asset Line.
by Paul K
Tue Apr 14, 2020 11:05 pm
Forum: Investing - Theory, News & General
Topic: Did any Bogleheads blink?
Replies: 42
Views: 4270

Re: Did any Bogleheads blink?

Portfolio7 wrote: Tue Apr 14, 2020 10:16 pm
Paul K wrote: Tue Apr 14, 2020 9:44 pm I procrastinated and waited way too long to rebalance. By some miracle the day I finally remembered to do it ended up being the lowest day (so far).

But now that we swung way back up I'm supposed to rebalance again... urgh.
I had made an adjustment in mid Feb, so my rules say I have to wait 4 weeks. So the first weekend after the 4 weeks was up, I rebalanced about half of my gap to my target AA. Got lucky and hit it on the evening of the 23rd. I'll be looking at rebalancing again in 2 weeks. I doubt I'll be as lucky this time, but there also may be no point in rebalancing further.
How did you decide on a 4-week "cool off period"?

I am learning that I need more precise rules...
by Paul K
Tue Apr 14, 2020 9:44 pm
Forum: Investing - Theory, News & General
Topic: Did any Bogleheads blink?
Replies: 42
Views: 4270

Re: Did any Bogleheads blink?

I procrastinated and waited way too long to rebalance. By some miracle the day I finally remembered to do it ended up being the lowest day (so far).

But now that we swung way back up I'm supposed to rebalance again... urgh.
by Paul K
Mon Nov 18, 2019 8:55 pm
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 117
Views: 17979

Re: Long Term Bonds getting killed today

Here is a good summary what is has been going on with Corporate (and other types of) bonds, from the Dallas Fed https://www.dallasfed.org/research/economics/2019/0305.aspx The financial press has been writing for the past two years about the poor quality of covenants and the growing percentage of corporate bonds that are rated at the lowest tier of investment (as opposed to Junk Bond) status. The point I keep seeing made is that such is the hunger for yield that investors (and by this we mean not just retailers like us, but institutions) are snapping up iffy stuff, like bonds from JC Penney or Ford. More to the point, as the Fed research points out, the money borrowed with these corporate bonds is being used much of the time not to fund ne...
by Paul K
Sat Nov 16, 2019 10:49 pm
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 117
Views: 17979

Re: Long Term Bonds getting killed today

Scooter57 wrote: Fri Nov 08, 2019 12:16 pm Because of the hunger for yield, a ton of very poor quality corporate debt has been issued over the last few years, with very weak protections for bondholders (covenants.) This is something that knowledgeable people have been flagging as a serious risk that is being overlooked by investors.
Isn't that baked in the rating? Curious to read sources on this if you have them.
by Paul K
Mon Oct 21, 2019 11:25 pm
Forum: Investing - Theory, News & General
Topic: Help me think about Pakistani bond
Replies: 55
Views: 6231

Re: Help me think about Pakistani bond

fennewaldaj wrote: Mon Oct 21, 2019 9:35 pm There is an argument that EM currencies should appreciate towards purchasing power parity. Take Turkey for example. The currency is pretty week due to political uncertain, high inflation,ect. But Turkeys GDP per capita is ~10k in USD dollar terms vs ~30k in PPP terms. So in a sense the currency is undervalued.
I don't follow the argument. Is there a built-in expectation that countries will ultimately converge to a standardized development level? If so, there is no guarantee that it will happen during our lifetimes...
by Paul K
Mon Jun 24, 2019 12:27 pm
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 34
Views: 6772

Re: Attention retirement savers: college 529 plans aren't just for kids

Being able to pay for housing is by far the biggest perk. Just need to take enough classes to be considered part-time. Hadn’t considered that. We intend to buy a retirement home in a major college town. Can you pay yourself rent? I don't think you even need to go that far. Here is the IRS explanation: https://www.irs.gov/publications/p970#en_US_2018_publink100077339 Basically the institution has a number they publish for living expenses, and as far as I can tell you can just claim it against the 529, no questions asked. Doesn't matter if you live in a paid-off 10M mansion or in a tent in the woods nearby. Here are the numbers for my local state U: https://www.washington.edu/financialaid/getting-started/student-budgets/ The advertised cost ...
by Paul K
Sun Jun 23, 2019 2:42 pm
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 34
Views: 6772

Re: Attention retirement savers: college 529 plans aren't just for kids

Being able to pay for housing is by far the biggest perk. Just need to take enough classes to be considered part-time.
by Paul K
Mon May 27, 2019 4:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard leaves competitors in the dust for 2019, quadrupling the nearest competitor for new money
Replies: 4
Views: 1862

Re: Vanguard leaves competitors in the dust for 2019, quadrupling the nearest competitor for new money

Dead Man Walking wrote: Mon May 27, 2019 4:04 pm JP Morgan was in a distant third place for the January-April 2019 period. I wonder if this is due to their YouInvest accounts. I have a YouInvest account; however, my investment in the account is in a Vanguard mutual fund. Is my account calculated as an influx of funds for JP Morgan or Vanguard? Perhaps both?

DMW
YouInvest has a generous signup bonus. Bet it helped, will be curious if the money stays put.
by Paul K
Mon Nov 26, 2018 8:59 pm
Forum: Investing - Theory, News & General
Topic: Fidelity’s zero-fee campaign spurs $6.6bn of inflows Boston manager outsells Vanguard by more than 40% in October after
Replies: 57
Views: 6610

Re: Fidelity’s zero-fee campaign spurs $6.6bn of inflows Boston manager outsells Vanguard by more than 40% in October a

Vanguard's lowering of minimum investment amount on 38 index funds Admiral shares to $3,000 is seen as a response to Fidelity move. Fidelity's zero campaign has drawn enormous coverage from financial news outlets. I heard about Vanguard's response when people on this message board accidentally noticed it. There seems to have been very little coverage by the financial press. Vanguard doesn’t advertise. Fidelity is splashing commercials for its Zero funds all over nationally televised football games. I realize the two have completely different advertising philosophies. But it still shows how good Fidelity is at PR, and how poor Vanguard is. Vanguard went from nothing to 5 trillions in assets under management with virtually no advertising bud...
by Paul K
Thu Apr 12, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: I Bond’s Variable Rate Will Fall To 2.22% On May 1
Replies: 36
Views: 6414

Re: I Bond’s Variable Rate Will Fall To 2.22% On May 1

Amphian wrote: Wed Apr 11, 2018 11:09 pm
Paul K wrote: Wed Apr 11, 2018 9:50 pm Why would the Treasury ever want to raise the fixed rate? Are they hoping to attract more investors and borrow at a lower rate than they could using traditional bonds?
Why did they raise the fixed rate in November? (Granted, it was a tiny amount.)
I don't have a good answer, just speculation. Hoping someone here can shed some light.
by Paul K
Wed Apr 11, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: I Bond’s Variable Rate Will Fall To 2.22% On May 1
Replies: 36
Views: 6414

Re: I Bond’s Variable Rate Will Fall To 2.22% On May 1

Why would the Treasury ever want to raise the fixed rate? Are they hoping to attract more investors and borrow at a lower rate than they could using traditional bonds?
by Paul K
Fri Feb 02, 2018 8:15 am
Forum: Personal Consumer Issues
Topic: "I Volunteered for the Hospital Board and was Sued for Millions."
Replies: 44
Views: 13238

Re: "I Volunteered for the Hospital Board and was Sued for Millions."

smackboy1, thank you for the explanation. Very helpful.
by Paul K
Tue Jan 30, 2018 9:27 pm
Forum: Personal Consumer Issues
Topic: "I Volunteered for the Hospital Board and was Sued for Millions."
Replies: 44
Views: 13238

Re: "I Volunteered for the Hospital Board and was Sued for Millions."

Is there a good titling strategy resource? It's mentioned a few times in the article and comments, but few specifics are offered.
by Paul K
Fri Nov 10, 2017 10:08 pm
Forum: Investing - Theory, News & General
Topic: Initial Vanguard capital gains distribution announcement
Replies: 14
Views: 2595

Re: Initial Vanguard capital gains distribution announcement

There are no intermediate term tax-exempt funds in the list, but many long term tax-exempt. Why is that?
by Paul K
Thu Oct 05, 2017 10:55 am
Forum: Investing - Theory, News & General
Topic: Muni Bond Funds With Regard to Puerto Rico
Replies: 14
Views: 1691

Re: Muni Bond Funds With Regard to Puerto Rico

Does Vanguard contract insurance on the bonds held in their funds? How do they decide whether the premium is a good deal and which bonds to insure?
by Paul K
Sun Oct 01, 2017 5:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's new security key option
Replies: 120
Views: 43184

Re: Vanguard's new security key option

Good news for Firefox users: native support for U2F is coming in Firefox 57, which is currently in beta. Once that version hits the shelves, it should only be a matter of time until Vanguard supports it.
by Paul K
Sun Sep 10, 2017 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: At what point would you considering Umbrella Insurance
Replies: 37
Views: 6571

Re: At what point would you considering Umbrella Insurance

danaht wrote: Sat Sep 09, 2017 2:12 pm I think everyone should have some Umbrella insurance once they have $250,000 (or more) of assets that are not in a protected account (like a 401k).
How did you come up with that number?
by Paul K
Fri Sep 01, 2017 12:01 pm
Forum: Personal Investments
Topic: Necessary time horizon to consider investing in municipal bonds
Replies: 7
Views: 1068

Re: Necessary time horizon to consider investing in municipal bonds

Also one's tax bracket is not the effective tax rate. If you are at the 33% bracket, all the monies you are taxed before that is at a lower rate, so your effective rate is lower than your highest bracket. This is true, but our wage income dwarfs would still dwarf any interest coming from taxable bond holdings. For our purposes, our marginal tax bracket is the rate at which our bonds will be taxed. @financeidiot: I'm curious why you chose long-term VTEAX for illustrations, when it's the only tax-exempt fund at Vanguard that has a purchase fee (of 0.25%). I was thinking of going with intermediate-term VWIUX, which seems to be the recommended choice around here. There may also be a tax hit if we were to sell munis for total bond upon retireme...
by Paul K
Fri Sep 01, 2017 9:31 am
Forum: Personal Investments
Topic: Necessary time horizon to consider investing in municipal bonds
Replies: 7
Views: 1068

Necessary time horizon to consider investing in municipal bonds

Young married couple, living in Washington. We are currently roughly in the middle of the 28% federal tax bracket, no state income tax. We are shooting for early retirement in the next 5-10 years. There is a strong chance we will be bumped to the 33% bracket in the 1-3 years, but our income is unlikely to ever rise much beyond that. In retirement, we expect a much lower tax burden, most likely within the 15% bracket. Our asset allocation calls for 80% stocks and 20% bonds, and we are running out of space for bonds in our traditional 401(k)s. It is my understanding that the question of munis vs total bond is a wash in the 25% bracket (ignoring things like differences in risk profile). Is it worth it to invest in municipal bonds if we only ex...
by Paul K
Fri Aug 18, 2017 9:03 am
Forum: Investing - Theory, News & General
Topic: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."
Replies: 89
Views: 32679

Re: "Vanguard fund shareholders encouraged to vote as proxy campaign gets under way."

Each trustee is compensated roughly $250,000 per year when adding the payments from every fund. Does anybody know how much work this job entails?
by Paul K
Mon Aug 14, 2017 10:56 am
Forum: Personal Consumer Issues
Topic: Long Distance Auto Transport
Replies: 7
Views: 1191

Re: Long Distance Auto Transport

An employer hired Montway to ship my car across the country. I cannot speak to the price, but they were quick and efficient. The car was delivered with dirt on it, but that's too be expected when you haul something for 3,000 miles.

My only complaint is with their dispatch operators. They kept calling me after I repeatedly told them that my wife would be doing the hand-off and to call her instead.
by Paul K
Sun Aug 13, 2017 5:45 am
Forum: Forum Issues and Administration
Topic: Software Updated to phpBB 3.2.1
Replies: 38
Views: 7060

Re: Forum software upgrade bug reports and change requests

IowaFarmBoy wrote: Sun Aug 13, 2017 5:32 am
longinvest wrote: Sat Aug 12, 2017 10:27 am Yay! Quotes now have a link to the original post, like they've had on FWF, our sister site, for a few months already. This is really awesome.
What is FWF? I looked a little but couldn't figure it out....
A forum for Canadian Bogleheads:
http://www.financialwisdomforum.org/forum/
by Paul K
Sat Jun 24, 2017 11:06 am
Forum: Investing - Theory, News & General
Topic: Losing admiration for Warren Buffett
Replies: 9
Views: 2536

Re: Losing admiration for Warren Buffett

johnriley wrote:Try watching "Becoming Warren Buffett" and see what you think. I lost all respect after watching that, and it served as a good reminder for me that investing should just serve as a mechanism to provide income in retirement, and not as an "end all be all".
Which part of the documentary did you find shocking?
by Paul K
Thu Jun 01, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: Synchrony Bank raised HY Savings to 1.15%
Replies: 19
Views: 3608

Re: Synchrony Bank raised HY Savings to 1.15%

Barclays also raised theirs to 1.05% recently. Good to see some improvement, even if slow.
by Paul K
Fri May 19, 2017 10:48 pm
Forum: Investing - Theory, News & General
Topic: Finding historical bond data
Replies: 0
Views: 1119

Finding historical bond data

I am trying to do some archeology in the corporate bond market.

Is there a tool to find historical issues that have already matured? Something like "find me all the bonds issued by IBM between 1990 and 2000". I found the link below, but it seems to only have issues that are still being traded.

http://finra-markets.morningstar.com/Bo ... jsp?part=3
by Paul K
Mon May 08, 2017 11:36 am
Forum: US Chapters
Topic: Seattle Area Chapter Meetings - Master Thread
Replies: 259
Views: 114001

Re: Seattle Area Chapter Meetings - Master Thread

I'd be interested in meeting in downtown Seattle too. As a compromise, what about alternating between the Eastside and downtown?
by Paul K
Tue Apr 11, 2017 7:52 pm
Forum: Investing - Theory, News & General
Topic: The $90 Billion Investor Who’s Out to Fire Wall Street
Replies: 4
Views: 2160

Re: The $90 Billion Investor Who’s Out to Fire Wall Street

I took the mechanical exchange to be light-hearted small talk.

This is great news for the state.
by Paul K
Mon Feb 27, 2017 12:14 am
Forum: Investing - Theory, News & General
Topic: Buffett interview Monday 2/27
Replies: 38
Views: 6606

Re: Buffett interview Monday 2/27

Are these interviews usually posted somewhere afterwards? Preferably the whole thing, not just the highlight reel.
by Paul K
Thu Jan 12, 2017 11:51 pm
Forum: Personal Consumer Issues
Topic: downhill skiing
Replies: 32
Views: 3644

Re: downhill skiing

Here, 70+ patrons get fantastic rates. $15 instead of $75 for a day pass. Season passes practically given away.

I have about 4 decades to go but I sure hope to take advantage of that.
by Paul K
Tue Nov 01, 2016 11:30 am
Forum: US Chapters
Topic: Seattle Area Chapter Meetings - Master Thread
Replies: 259
Views: 114001

Re: Seattle Area Chapter Meetings - Master Thread

rockonhumblepie wrote:Let's see a show of hands... Sat 5th meeting...who can make it?
Aye.
by Paul K
Mon Oct 03, 2016 4:31 pm
Forum: Investing - Theory, News & General
Topic: BOGLEHEADS 15 VIDEOS
Replies: 12
Views: 3956

Re: BOGLEHEADS 15 VIDEOS

Thank you so much for posting. It really is a treat to those of us who chose to stay home.

The audio is much more pleasant to listen to than in previous years- eagerly waiting for the rest.
by Paul K
Sun Sep 18, 2016 4:04 pm
Forum: Investing - Theory, News & General
Topic: "Uncle Sam Pays Almost Twice The Yield On Treasurys--If You Know Where To Look
Replies: 85
Views: 16757

Re: "Uncle Sam Pays Almost Twice The Yield On Treasurys--If You Know Where To Look

Kevin M wrote:I just bought a 7-year CD with an APY of 3%. [...]
That's a very good rate. Where did you find it?
by Paul K
Wed May 18, 2016 5:27 pm
Forum: Personal Investments
Topic: Mega backdoor Roth IRA across multiple jobs?
Replies: 3
Views: 1106

Re: Mega backdoor Roth IRA across multiple jobs?

1) It all depends on the plan. My employer lets me contribute only after tax money if I so desire, so long as the combined percentage of pre-tax, after-tax, and Roth contributions do not exceed X% of my pay. I have done all after-tax so far this year (front loading the mega backdoor Roth as I plan to leave mid-year). YMMV.

2) Correct, gross salary.

3) Limits are per person per year. How this is divided between jobs shoudn't be a concern.