Search found 390 matches

by Dominic
Wed Aug 12, 2020 8:38 am
Forum: Personal Investments
Topic: Short Term Treasury vs. Short Term Federal
Replies: 14
Views: 885

Re: Short Term Treasury vs. Short Term Federal

How risky are MBS in a bond fund? I see this mentioned a lot...I'm wondering how risk it really is to have them in the fund? Nobody knows because we don't know the likelihood of them blowing up in the future. Presumably there is a reason ST Federal yields more than ST Treasury. I am confused. Are y...
by Dominic
Fri Aug 07, 2020 12:02 am
Forum: Investing - Theory, News & General
Topic: Broad commodity investing with iShares CMDY ETF
Replies: 45
Views: 1533

Re: Broad commodity investing with iShares CMDY ETF

Are you an industrial producer or consumer of commodities? If not, you don't need to invest in commodity futures. It would be like buying crop insurance if you're not a farmer. Although we aren't industrial consumers, we all consume commodities downstream, so there's logic to using commodities as a...
by Dominic
Thu Aug 06, 2020 9:44 pm
Forum: Investing - Theory, News & General
Topic: Broad commodity investing with iShares CMDY ETF
Replies: 45
Views: 1533

Re: Broad commodity investing with iShares CMDY ETF

Are you an industrial producer or consumer of commodities? If not, you don't need to invest in commodity futures. It would be like buying crop insurance if you're not a farmer. Although we aren't industrial consumers, we all consume commodities downstream, so there's logic to using commodities as a...
by Dominic
Wed Aug 05, 2020 8:12 pm
Forum: Personal Investments
Topic: VEA instead of VXUS? [Vanguard Developed instead of Total international]
Replies: 44
Views: 2508

Re: VEA instead of VXUS? [Vanguard Developed instead of Total international]

1) Do you think it’s ridiculous to want to avoid China given trade war and other issues affecting trade? No. I don't do it, but I'm sympathetic to the idea. If you're not comfortable with those risks, take them off the table. 2) Can I sell vxus within my ira and buy Vea without realizing a tax or a...
by Dominic
Wed Aug 05, 2020 9:08 am
Forum: Personal Investments
Topic: High yield Savings account yields falling, where to park emergency funds?
Replies: 16
Views: 1836

Re: High yield Savings account yields falling, where to park emergency funds?

One option that gets discussion around here is using a conservative all-in-one fund such as Vanguard's retirement income fund. These don't lose much in downturns (historically, at least) and provide better returns than savings. Do you mean Vanguard's LifeStrategy Income Fund (VASIX) or Vanguard's T...
by Dominic
Wed Aug 05, 2020 1:01 am
Forum: Personal Investments
Topic: High yield Savings account yields falling, where to park emergency funds?
Replies: 16
Views: 1836

Re: High yield Savings account yields falling, where to park emergency funds?

IAmJustAnAverageDude wrote:
Wed Aug 05, 2020 12:50 am
What are some strategies to invest conservatively on my own? Is the Vanguard retirement income fund = a target date fund?
One option would be to invest 10-20% in stock market index funds and the remainder in CDs or Treasury funds.

The retirement income fund is a target date fund.
by Dominic
Wed Aug 05, 2020 12:47 am
Forum: Personal Investments
Topic: High yield Savings account yields falling, where to park emergency funds?
Replies: 16
Views: 1836

Re: High yield Savings account yields falling, where to park emergency funds?

If it's an emergency fund, be careful about shrinking it or putting it in risky investments. You saved this money for a reason, and you don't want to lose it right before you need it. One option that gets discussion around here is using a conservative all-in-one fund such as Vanguard's retirement in...
by Dominic
Wed Aug 05, 2020 12:38 am
Forum: Personal Investments
Topic: bond diversification
Replies: 11
Views: 1025

Re: bond diversification

short term treasuries short term corporate long term treasuries long term corporate GNMA All of these are included in a total bond fund. You can also choose a total world bond fund to get international bonds as well. I would pick 1-3 asset classes that you want (maybe a long term Treasuries and TIP...
by Dominic
Wed Aug 05, 2020 12:28 am
Forum: Investing - Theory, News & General
Topic: Is the Stock Market "too big to fail"?
Replies: 27
Views: 2834

Re: Is the Stock Market "too big to fail"?

According to this strategist, it is: https://markets.businessinsider.com/news/stocks/stock-market-outlook-prices-too-big-to-fail-stimulus-strategist-2020-8-1029468815# "Several commentators have knocked bullish investors and called the market's latest leg-up a repeat of the 1990s tech bubble. Kantr...
by Dominic
Mon Aug 03, 2020 6:36 pm
Forum: Personal Investments
Topic: Savings rate for sibling starting out
Replies: 30
Views: 1840

Re: Savings rate for sibling starting out

A couple things I haven't seen covered: Definitely take the 401k up to the match before anything else, but if your sibling has a mediocre 401k, then maxing out their IRA comes before maxing out their 401k. I don't see much benefit to opening a 529. If your sibling goes to grad school soon, they are...
by Dominic
Thu Jul 30, 2020 4:19 pm
Forum: Investing - Theory, News & General
Topic: How to monitor the Fed's actions & invest to protect against future possible inflation?
Replies: 56
Views: 3778

Re: How to monitor the Fed's actions & invest to protect against future possible inflation?

If you need a reliable inflation hedge, stick to TIPS or Series I Savings Bonds. Cash isn't terrible either. Any other asset class (stocks, real estate, gold, value stocks) has way too much other risk piled on top of their real value. In the long run, those should have non-negative real returns, but...
by Dominic
Thu Jul 30, 2020 12:11 am
Forum: Investing - Theory, News & General
Topic: Are you adjusting your REIT Allocation?
Replies: 69
Views: 5561

Re: Are you adjusting your REIT Allocation?

Here's an interesting perspective on Vanguard's domestic REIT index... https://moneyandmarkets.com/reits-not-your-grandfathers-real-estate/ The author is Charles Sizemore, CFA, who runs an investment advisory firm in Dallas. Here's an excerpt from the article... Here’s a breakdown of VNQ’s portfoli...
by Dominic
Tue Jul 28, 2020 1:12 am
Forum: Personal Investments
Topic: TIPS
Replies: 20
Views: 1881

Re: TIPS

I assume not true for TIPS funds, though, correct? The deflation protection works if you hold the TIPS from auction to maturity. If a short-term TIPS fund buys an aging TIPS that was auctioned off 25 years ago (so it has plenty of inflation built-in already), deflation is going to decrease the payo...
by Dominic
Tue Jul 28, 2020 12:45 am
Forum: Personal Investments
Topic: Savings rate for sibling starting out
Replies: 30
Views: 1840

Re: Savings rate for sibling starting out

A couple things I haven't seen covered: Definitely take the 401k up to the match before anything else, but if your sibling has a mediocre 401k, then maxing out their IRA comes before maxing out their 401k. I don't see much benefit to opening a 529. If your sibling goes to grad school soon, they aren...
by Dominic
Sun Jul 26, 2020 10:43 pm
Forum: Personal Consumer Issues
Topic: TV antenna
Replies: 48
Views: 2296

Re: TV antenna

One thing to note is that VHF is lower frequency (longer wavelength) than UHF so a lot of indoor antennas have poor VHF reception. You need an antenna with larger elements to get them. At least in my area, CBS is a VHF station and I couldn't get it with a normal indoor antenna. Same issue with ABC. ...
by Dominic
Fri Jul 17, 2020 11:19 pm
Forum: Personal Investments
Topic: Jack and Vanguard Faithful Considering Fidelity Index Funds for Zero Minimum Investment
Replies: 82
Views: 5774

Re: Jack and Vanguard Faithful Considering Fidelity Index Funds for Zero Minimum Investment

You can choose any low-cost, broad-based index fund from any provider, and you'll wind up with the same results (or close enough). I generally prefer Vanguard because of the mutual ownership model and because they return 100% of lending revenues to their funds. Still, if I had to switch to Fidelity,...
by Dominic
Mon Jul 13, 2020 2:07 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: "How ESG Makes Companies Better" (but lowers expected returns)
Replies: 67
Views: 3181

Re: Larry Swedroe: "How ESG Makes Companies Better" (but lowers expected returns)

A whole bunch of questions follow: - Does ESG explain anything that existing factor models don't? - If ESG companies are more profitable, shouldn't they benefit from the profitability/quality risk premium? - Are ESG companies inherently less risky (less vulnerable to political risks, etc.) or is thi...
by Dominic
Sun Jul 12, 2020 8:08 pm
Forum: Personal Consumer Issues
Topic: Visiting dentist during pandemic (still under stay home orders)
Replies: 30
Views: 2466

Re: Visiting dentist during pandemic (still under stay home orders)

Personal opinion, of course: You are generally safe from the dentist/hygienist/receptionist as they will wear a surgical mask at minimum. These generally keep droplets in. I would also expect dentists and hygenists to monitor themselves for symptoms at minimum. No one wants to be the dentist who Rec...
by Dominic
Sat Jun 27, 2020 11:38 pm
Forum: Investing - Theory, News & General
Topic: How do you avoid being lazy with 3-fund portfolio?
Replies: 36
Views: 3716

Re: How do you avoid being lazy with 3-fund portfolio?

I would argue that laziness is one of the biggest benefits of this portfolio. The less often you look at market movements, the less tempted you will be to deviate from your IPS.
by Dominic
Thu Jun 04, 2020 11:31 pm
Forum: Personal Finance (Not Investing)
Topic: Life Insurance for a 23 year old
Replies: 35
Views: 1802

Re: Life Insurance for a 23 year old

I'm also 23 and don't carry life insurance. I am in the process of buying disability insurance, which I see you're doing as well. Good to see that we came to the same conclusion. I'd say get term policies when you have your kids. To my knowledge, the rates shouldn't increase by too much, at least fo...
by Dominic
Mon Jun 01, 2020 5:23 pm
Forum: Personal Investments
Topic: TSP G-Fund: cash or bond
Replies: 5
Views: 653

Re: TSP G-Fund: cash or bond

I consider it to be high-yield cash. You could consider cash to be a special case of bonds where the bond is highly liquid and the duration is very short. It's not quite a money market fund, as there is zero credit risk (money markets technically can lose money, as rare as it may be). You're also ge...
by Dominic
Sun May 31, 2020 11:23 pm
Forum: Personal Finance (Not Investing)
Topic: Chase reducing credit card limits
Replies: 141
Views: 15376

Re: Chase reducing credit card limits

tibbitts wrote:
Sun May 31, 2020 10:32 am
I haven't been notified but most of my limits are in the low four-figure range already.
Same here.

I keep a cash emergency fund. Cash stinks, but I'd much rather avoid the risk of paying credit card interest, or worse, having my limits cut right when I need credit.
by Dominic
Sun May 31, 2020 8:24 pm
Forum: Investing - Theory, News & General
Topic: Best Diversification Portfolio For Different Asset Allocations
Replies: 11
Views: 868

Re: Best Diversification Portfolio For Different Asset Allocations

The best diversifier for stocks is long-term Treasury bonds, and I don't think anything comes close. Going a step further, I think the next best addition is an inflation hedge: REITs, value stocks, mining stocks, TIPS, or gold. All of those have flaws (either because they are equities or bonds, or b...
by Dominic
Thu May 28, 2020 9:56 pm
Forum: Personal Investments
Topic: How to invest lots of maturing CDs in this investment climate
Replies: 55
Views: 20726

Re: How to invest lots of maturing CDs in this investment climate

If all you need is to hold up against inflation, then a high-yield savings account should be acceptable. You'll might lose a little real value after taxes, but not much. (If current interest rates and inflation rates hold, you'll beat inflation.) If you can find a CD with low or no penalty that beat...
by Dominic
Wed May 27, 2020 7:31 pm
Forum: Personal Investments
Topic: If not 3 fund, whats your strategy ?
Replies: 66
Views: 4442

Re: If not 3 fund, whats your strategy ?

I replace Total Bond with Extended-Duration Treasuries for additional duration and quality. I replace Total International with Total Developed and Total Emerging to tilt gently towards emerging markets and gain exposure to A-shares. I add S&P 600 Value to gain modest exposure to the small and value ...
by Dominic
Tue May 26, 2020 10:44 pm
Forum: Personal Consumer Issues
Topic: HBO Max
Replies: 38
Views: 3012

Re: HBO Max

It's getting to a point where I'm going to start subscribing to these services for a month or two and then cancelling until they build up enough content I haven't seen yet. That said, the HBO Max library looks good. I don't know if it's $15/mo good (at least relative to Disney+ and Netflix pricing),...
by Dominic
Tue May 26, 2020 5:31 pm
Forum: Investing - Theory, News & General
Topic: Owning Top Stocks in Each Sector?
Replies: 26
Views: 1511

Re: Owning Top Stocks in Each Sector?

It's basically a self-operated index fund. The problem is that the index is too small. I think the minimum number of stocks to roughly replicate the market these days is a bit over 50, but I might be wrong. For the fun of it, I have been thinking about using a small portion of my equity allocation t...
by Dominic
Tue May 26, 2020 5:23 pm
Forum: Personal Consumer Issues
Topic: Best cheapest internet provider
Replies: 9
Views: 822

Re: Best cheapest internet provider

Unfortunately, this is very location-specific. I have only one wired cable/fiber ISP (DSL is a nonstarter). If there's another ISP that serves your home, either switch to them and take the sign-up promotion for a year or two, or call your ISP and say you're going to cancel. They'll put you on the li...
by Dominic
Tue May 26, 2020 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Help understanding Credit Utilization (new to credit cards)
Replies: 15
Views: 757

Re: Help understanding Credit Utilization (new to credit cards)

Credit utilization is calculated when they send you the bill. Not necessarily, I have a credit card that reports on the last calendar day of each month (which is not the same as the statement date). Thanks, all! So, is there any reason not to pay off any charges the moment they show on my balance? ...
by Dominic
Tue May 26, 2020 1:51 pm
Forum: Personal Consumer Issues
Topic: What will you NOT buy online?
Replies: 94
Views: 6344

Re: What will you NOT buy online?

Real estate. That's too much commitment to not see it in person. And I'm also very picky about shopping online for SD Cards and the like. Counterfeiters are all over that industry. I've bought them, but you have to make sure you're buying from someone reputable, and check to make sure it's legit onc...
by Dominic
Mon May 25, 2020 8:51 am
Forum: Investing - Theory, News & General
Topic: Thoughts & Questions on the Vanguard Extended Duration Treasury ETF
Replies: 16
Views: 1080

Re: Thoughts & Questions on the Vanguard Extended Duration Treasury ETF

I hold it, but I do not expect those returns going forward. I look at it as a crisis hedge. If stocks tank, yields will probably come down too. Since EDV has a very long duration (~25 years), it stands to benefit from falling yields more than most bond funds. EDV should be the best (cheap) equity di...
by Dominic
Sun May 24, 2020 11:58 pm
Forum: Personal Consumer Issues
Topic: Update current laptop or buy new one?
Replies: 58
Views: 3985

Re: Update current laptop or buy new one?

Laptop improvements have been surprisingly small over the past decade. SSDs are excellent, of course, and only became affordable fairly recently. CPUs haven't advanced much; most of the upgrades to laptop CPUs have been focused on power consumption and integrated graphics. RAM is a little faster and...
by Dominic
Sun May 24, 2020 6:48 pm
Forum: Personal Consumer Issues
Topic: Personal spending out of control after Covid-19
Replies: 124
Views: 10885

Re: Personal spending out of control after Covid-19

My overall consumption is down by a lot. We get restaurant delivery a couple times a month instead of going to a restaurant every week or so. I didn't drink much before, but I haven't had any alcohol in months (pickup and delivery in my area seems limited, and I won't go to a store unless absolutely...
by Dominic
Sat May 23, 2020 9:59 pm
Forum: Investing - Theory, News & General
Topic: Do you hold commodities?
Replies: 26
Views: 1754

Re: Do you hold commodities?

There's benefit of diversification that commodities can provide. I don't dispute that. QBut is it unreasonable to say that the return on commodities is "sapaeaaaaecawaaulative" return? Aren't lottery tirckets also in the category of speculative return? :confused Under normal circumstances, there sh...
by Dominic
Thu May 21, 2020 9:27 pm
Forum: Investing - Theory, News & General
Topic: Portfolios: 1 Fund, 2 Fund, 3 Fund or 4 Fund?
Replies: 59
Views: 3061

Re: Portfolios: 1 Fund, 2 Fund, 3 Fund or 4 Fund?

The one-fund portfolio is as simple as it gets, and owns almost every publicly traded asset on Earth. For tax-advantaged investors, it should be the default. The two-fund portfolio is a little cheaper and gives you finer-grained control over the stock/bond allocation, better tax-efficiency, flexibil...
by Dominic
Thu May 21, 2020 3:40 pm
Forum: Personal Investments
Topic: Assuming we start paying banks to hold our money (in the US)
Replies: 49
Views: 4226

Re: Assuming we start paying banks to hold our money (in the US)

To my knowledge, most everyday people aren't paying negative interest rates in those countries. Government bonds are negative, and banks might charge large accounts, but unless you have a massive cash stockpile, you probably won't lose nominal dollars in your checking and savings accounts.
by Dominic
Tue May 19, 2020 10:09 pm
Forum: Personal Investments
Topic: 80/20, 90/10, 100/0 for a low net worth accumulator?
Replies: 36
Views: 2150

Re: 80/20, 90/10, 100/0 for a low net worth accumulator?

I'm a young accumulator and I use a 90/10 portfolio. The 10% in bonds is entirely in extended duration Treasuries (EDV). This gives me an uncorrelated, highly volatile asset to smooth out my portfolio a little. I might lose some returns this way, but it should make it easier to stay the course.
by Dominic
Tue May 19, 2020 7:18 pm
Forum: Personal Investments
Topic: Why no love for REITs?
Replies: 108
Views: 10373

Re: Why no love for REITs?

I'm very on the fence about them. I like the idea that REITs might have relatively low correlations to the general stock market, and I like that they should provide inflation protection. However, I have read that REITs don't provide anything that can't be explained by the Fama-French equity model p...
by Dominic
Tue May 19, 2020 6:48 pm
Forum: Investing - Theory, News & General
Topic: My idea for a 3-fund portfolio
Replies: 13
Views: 895

Re: My idea for a 3-fund portfolio

I'd be very wary of an investment strategy that excluded the US completely. I'm also not crazy about using a country-specific fund (unless it's to include China A-shares or Canada or something). A tilt towards international is okay, and tilts towards emerging markets and small-cap value are widely a...
by Dominic
Tue May 19, 2020 5:35 pm
Forum: Personal Finance (Not Investing)
Topic: investmenting books
Replies: 28
Views: 1624

Re: investmenting books

Bill Bernstein's "If You Can" is a free pamphlet that covers the essentials for young investors. It's what I suggest.
by Dominic
Tue May 19, 2020 12:01 am
Forum: Personal Investments
Topic: Why no love for REITs?
Replies: 108
Views: 10373

Re: Why no love for REITs?

I'm very on the fence about them. I like the idea that REITs might have relatively low correlations to the general stock market, and I like that they should provide inflation protection. However, I have read that REITs don't provide anything that can't be explained by the Fama-French equity model pl...
by Dominic
Mon May 18, 2020 3:24 pm
Forum: Investing - Theory, News & General
Topic: Which one is better EM bonds or EM equities or both?
Replies: 41
Views: 1802

Re: Which one is better EM bonds or EM equities or both?

EM bonds have essentially the same yield as high yield bonds, and the two asset classes have moved in lockstep for years. I don't think the default risk of EM government bonds is as high as it is on junk corporates, but I still don't see a need to have them in my portfolio.
by Dominic
Sun May 17, 2020 10:37 pm
Forum: Personal Investments
Topic: Anything wrong if you [tilted] large cap towards growth
Replies: 17
Views: 1168

Re: Anything wrong if you titled large cap towards growth

If the Fama-French risk premiums are genuine, then growth should be less risky (but offer lower returns) than value, and large cap stocks should be less risky (but offer lower returns) than small cap stocks. If you're looking to de-risk, then I don't see a problem with a large-cap growth tilt. It's ...
by Dominic
Sun May 17, 2020 10:16 pm
Forum: Personal Investments
Topic: Which ETF should i choose from the big list of Vanguard ETF's?
Replies: 19
Views: 1400

Re: Which ETF should i choose from the big list of Vanguard ETF's?

If you're choosing by a sort, sort by lowest expense ratio and choose a few different asset classes. You get what you don't pay for with investments. Chasing past performance is unlikely to help you going forward, and might even hurt you. You'd likely arrive at something like VTI (Total US Stock), V...
by Dominic
Wed May 13, 2020 2:23 pm
Forum: Personal Investments
Topic: Vanguard 2-3 fund portfolio - Which versions of funds are the cheapest/best?
Replies: 30
Views: 2256

Re: Vanguard 2-3 fund portfolio - Which versions of funds are the cheapest/best?

...What are the pros and cons of using the mutual fund vs the ETF funds? If the ETF is the same but cheaper, why would anyone use the one that costs more? I feel like I'm not grasping something. As dru808 noted, there will be on-going arguments about mutual funds versus ETFs. See https://www.bogleh...
by Dominic
Wed May 13, 2020 12:16 am
Forum: Personal Consumer Issues
Topic: New Laptop Recommendations
Replies: 49
Views: 3183

Re: New Laptop Recommendations

Lenovo is introducing their new ThinkPad T series lineup soon , originally told it was May but I think it might be June now - the T14s might be a nice option for you ; I've had a very good experience with Lenovo , will be buying that model for my DW soon hopefully . A new T series is going to run h...
by Dominic
Tue May 12, 2020 9:31 pm
Forum: Investing - Theory, News & General
Topic: Paul Tudor: Compelling case for bitcoin ?
Replies: 305
Views: 16598

Re: Paul Tudor: Compelling case for bitcoin ?

The value of a fiat currency comes mostly from the issuing government's mandate that taxes be paid in that currency, its requirement that that currency be accepted by businesses. The value of Bitcoin comes solely from sentiment. Any day, another crypto currency with faster transaction processing or ...
by Dominic
Tue May 12, 2020 9:17 pm
Forum: Investing - Theory, News & General
Topic: Anyone considering Commodity futures?
Replies: 16
Views: 732

Re: Anyone considering Commodity futures?

I would very much like more diversification. I have global total market equities, extended duration treasuries, and US small cap value stocks. Commodities are definitely uncorrelated, but their return has been abysmal, and I genuinely believe there are systematic reasons for it. Technological advanc...
by Dominic
Sun May 10, 2020 2:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Technology Fund
Replies: 82
Views: 3505

Re: Vanguard Technology Fund

I'm not opposed to sector funds. I don't own any, but I can see the merit of REITs and natural resources (mining, energy, etc.) funds as inflation hedges, and I can see consumer staples and utilities funds as nice low volatility options. I don't see a compelling reason to tilt to the tech sector, pe...
by Dominic
Sat May 09, 2020 8:03 pm
Forum: Personal Investments
Topic: Any love for DFA?
Replies: 38
Views: 3293

Re: Any love for DFA?

DFA targets exposure to risk factors such as value (stocks with low prices compared to book value/earnings) and small capitalization. Academic research has found that these factors have historically provided additional returns to a portfolio. DFA was really the first to implement passive factor inve...