Search found 162 matches

by S_Track
Thu Jul 26, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Best source for simple market news?
Replies: 26
Views: 2134

Re: Best source for simple market news?

I’m basically looking for any sources that can consistently answer the question of Why is the market doing so good/bad today. I’m very busy but always glance at my stocks app and when I see decent size changes (like today) I’m always curious, is it earning reporting day? Did Trump day something? Wh...
by S_Track
Thu Jul 26, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: Equal weight S&P ETF vs a market cap weighted ETF
Replies: 17
Views: 889

Re: Equal weight S&P ETF vs a market cap weighted ETF

I thought the S&P 500 is mostly composed of large cap companies? If true, I would surmise equal waiting of the S&P 500 companies would be less risky than an index that equally waited all the companies in Total Stock? Am I understanding that correctly?
by S_Track
Thu Jul 26, 2018 2:37 pm
Forum: Personal Consumer Issues
Topic: Home Theater vs. Soundbar
Replies: 67
Views: 5517

Re: Home Theater vs. Soundbar

OP, I went through a similar situation. Had very good components but wanted to integrate the system just as you've described. My solution was with Sonos. Here's the linchpin, they have an item (Connect/Amp) that will use your existing speakers including sub-woofer. I think the lack of sub-woofer wi...
by S_Track
Sat Jul 21, 2018 9:25 am
Forum: Investing - Theory, News & General
Topic: COMING SOON: BOGLEHEADS PODCASTS
Replies: 359
Views: 15071

Re: COMING SOON: BOGLEHEADS PODCASTS

Suggestion for the podcast to have a small segment devoted to larger discussions that have recently bubbled up on the forum.
by S_Track
Fri Jul 20, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: How does the Fed purchase bonds
Replies: 12
Views: 926

How does the Fed purchase bonds

I was reading a post on Investopedia about the tools available to Fed to manipulate the economy. I was confused by the statement below when they talk about the Fed purchasing bonds. Although it makes sense this would expand the money supply in the economy but how do they physically do that? Can bond...
by S_Track
Tue Jul 10, 2018 10:19 pm
Forum: Investing - Help with Personal Investments
Topic: SEC yield vs YTD bond fund
Replies: 4
Views: 412

Re: SEC yield vs YTD bond fund

If the interest rates and market expectation of future interest rates stay constant, then yes, the SEC yield will be comparable to a savings account offering the same rate. A major reason the SEC yield might overstate bond fund return is that the NAV will fall as interest rates go up, or market exp...
by S_Track
Tue Jul 10, 2018 9:58 pm
Forum: Investing - Help with Personal Investments
Topic: SEC yield vs YTD bond fund
Replies: 4
Views: 412

SEC yield vs YTD bond fund

Hi All, Having trouble understanding Sec yield vs YTD when looking at bond funds on VG’s site. I understand how the NAV drops when Dividends are paid and reinvesting the dividends compensates for the loss with more shares. Where I get confused is when reading posts where members ask about investing ...
by S_Track
Fri Apr 13, 2018 6:41 am
Forum: Investing - Help with Personal Investments
Topic: Why am I even holding BND? It has only been losing me money.
Replies: 62
Views: 9502

Re: Why am I even holding BND? It has only been losing me money.

BND has a duration of approximately 6 years; if your time horizon is longer than 6 years, there's no reason to be concerned. I read that frequently up and may not understand why. I am guessing a good majority of us here are in the accumulation phase and contributing regular to our retirement accoun...
by S_Track
Wed Mar 21, 2018 9:57 am
Forum: Personal Consumer Issues
Topic: Outdoor Blower
Replies: 24
Views: 1554

Re: Outdoor Blower

I typically use it for 3 to 5 minutes at a time. My typical jobs are to blow off porches, a walkway, a carport and a half basketball court. Once in awhile, I do the driveway. So more "light" duties than heavy. I charge mine usually once in the winter and every few weeks in the summer. Perfect for t...
by S_Track
Wed Mar 21, 2018 8:41 am
Forum: Personal Consumer Issues
Topic: Outdoor Blower
Replies: 24
Views: 1554

Re: Outdoor Blower

Please recommend a battery powered outdoor blower a 58 year old couple can manage. Principal uses will be cleaning garage, driveway, and deck. I have the Ego LB5302 blower along with their Trimmer and Chainsaw. I have no complaints, so much easier than the gas equivalents. The LB502 scored #1 in th...
by S_Track
Mon Mar 19, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

It sounds like credit unions do the accounting differently than a commercial bank. If I understand, at the credit union, the $50,000 loan reduces one asset by $50,000 and adds a $50,000 Loan Receivable asset. The balance sheet does not expand. According to Khan, at the bank, a $50,000 loan adds a $...
by S_Track
Sat Mar 17, 2018 4:17 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

You bring in a check for $100,000 and I/we know it will not bounce. Being small, we would have a checking account at a local bank. After receiving the deposit: ASSETS XYZ Bank Checking Acct - $100,000.00 LIABILITIES Savings Account(s) $100,000.00 Reserves/capital $0.00 Total Liabilities and capital...
by S_Track
Sat Mar 17, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

You bring in a check for $100,000 and I/we know it will not bounce. Being small, we would have a checking account at a local bank. After receiving the deposit: ASSETS XYZ Bank Checking Acct - $100,000.00 LIABILITIES Savings Account(s) $100,000.00 Reserves/capital $0.00 Total Liabilities and capital...
by S_Track
Sat Mar 17, 2018 3:02 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

Speaking from "credit union" accounting - no, 'cash' is not reserves. It means (in this case of writing a check for $10k) a reduction of assets as the $10k leaves the institution. When the check is written and posted, the asset side is reduced by $10k and the liabilities side is also reduced by $10...
by S_Track
Sat Mar 17, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

BTW, I have been watching more Khan Academy videos on Banking and Money. Khan works through examples by drawing balance sheets: Assets on the left and Liabilities+Equity on the right. That is the best way to understand what is going on. I watched them probably about 6 or 8 years ago, so I didn't re...
by S_Track
Sat Mar 17, 2018 10:40 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

If I've got that right, then yes, once the loan is spent, if the recipient banks elsewhere, the bank has 10K less reserves than it had before the loan was made. But the 10K less reserves is not a direct and inevitable consequence of the loan, it's merely a consequence of the loan being spent with s...
by S_Track
Fri Mar 16, 2018 11:53 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

The lesson of this thread is that 10K of money has just been created, and it did not come from anywhere. The 10K of "deposits" you have just added to the economy did not come from other customers deposits, either directly, or indirectly as a result of you borrowing from elsewhere. It did not come f...
by S_Track
Fri Mar 16, 2018 11:30 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

I decided to go back and listen to the podcast which started me thinking about this. The author like some of the folks here are perplexed to learn how the theories have changed over time. https://moneyfortherestofus.com/mny094-money-created-destroyed-2/ In the podcast he gives a simple example of ho...
by S_Track
Thu Mar 15, 2018 7:46 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

Imagine you start a new bank with a million dollars capital. You sell 800,000 dollars (held in government bonds) to the central bank, who credit your account with them with 800,000 dollars of "reserves", created at a push of a button. The 800,000 did not come from anywhere, the central bank compute...
by S_Track
Thu Mar 15, 2018 6:17 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

Yes I saw that and still confused. Is capital cash on hand outside of the reserves? I found this article online which seemed to have a good explanation. Capital comes from the banks profits for doing business, e.g. interest on a previous loan or investor purchasing shares. "How does a bank increase...
by S_Track
Wed Mar 14, 2018 8:53 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

I wondered what google had to say about that. I don't know if this page I found helps. https://bizfluent.com/facts-5723394-reserve-requirements-vs--capital-requirements.html Reserve Requirements Depository institutions, such as banks and credit unions, must hold reserves in the form of cash in thei...
by S_Track
Wed Mar 14, 2018 3:51 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

This is close, and is the way things used to operate. But it's not 100% acurate any more in many countries. In some cases, banks don't need reserves or deposits to make a loan. They can just decide to make one if they think it makes business sense for them. Capital levels come into play here, but r...
by S_Track
Mon Mar 12, 2018 8:23 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

It seems the credit creation theory of banking is true, but is it really all the different from the earlier theories? What is the difference if the Bank creates the credit or if the central banks creates the money and passes it down. If banks can create credit, then why is the interest rate the fed...
by S_Track
Mon Mar 12, 2018 6:08 pm
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

It seems the credit creation theory of banking is true, but is it really all the different from the earlier theories? What is the difference if the Bank creates the credit or if the central banks creates the money and passes it down. If banks can create credit, then why is the interest rate the fed ...
by S_Track
Sun Mar 11, 2018 9:09 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

If the credit creation theory of banking is true, what are the banks doing with all the deposited money they receive? In addition to capital requirements, banks also have reserve requirements. They are required to hold a certain amount of deposits as 'vault cash' and/or on deposit with the Federal ...
by S_Track
Sun Mar 11, 2018 7:49 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

If the credit creation theory of banking is true, what are the banks doing with all the deposited money they receive?
by S_Track
Sun Mar 11, 2018 7:44 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

That paper seems to be both a serious academic publication, and (to me at least) rather funny. (Did we, in 2014, really not know how money was created? And did we have to conduct a physical experiment inside a bank to find out?) Agreed, hard to beleive its such a mystery. Perhaps the process has ev...
by S_Track
Sat Mar 10, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

Yes, they have lost money if a loan is not paid. The money is destroyed in a default, or even if the loan is paid back. The difference when a borrower defaults is that the bank's profits have declined by the amount of the loss, which eventually shows up in the balance sheet as a capital loss. They ...
by S_Track
Sat Mar 10, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

Re: How banks create money, not from deposits

Yes, deposits at banks are essentially IOUs written by banks. When a bank makes a mortgage loan it trades an IOU that it writes for an IOU that the mortgage borrower writes. The bank still has to honor its IOU even if the borrower fails to honor his IOU. So the bank does lose if a borrower defaults...
by S_Track
Sat Mar 10, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: How banks create money, not from deposits
Replies: 132
Views: 11975

How banks create money, not from deposits

Hi All, I found the article linked below where the author explained how money is created by commercial banks. It seems there has been a misconception for many years as to the process: “While many people may think that banks take in savers’ money and then lend it out, this is a misconception. So too ...
by S_Track
Sat Mar 10, 2018 8:21 am
Forum: Personal Consumer Issues
Topic: Whole House Natural Gas Generator
Replies: 110
Views: 7283

Re: Whole House Natural Gas Generator

I would think in 10 to 15 years the most common backup would be batteries. No fuel needed and more can be added as needed. I would bet in 10years they will be cheap enough to get 50 or 100 kWh or more. Agreed, I have a manual transfer switch with a portable generator for running the essentials incl...
by S_Track
Tue Mar 06, 2018 1:48 am
Forum: Investing - Theory, News & General
Topic: YTD calculation
Replies: 5
Views: 788

Re: YTD calculation

sport wrote:
Mon Mar 05, 2018 11:17 pm
The YTD is calculated starting with the closing price on December 31. Try 12/31 instead of 01/02.
Same price on Friday 12/29. Maybe there is a distibution we are not seeing yet on the web site or just another decimal point in the prices. I can get it to match if I do this.
by S_Track
Mon Mar 05, 2018 11:00 pm
Forum: Investing - Theory, News & General
Topic: YTD calculation
Replies: 5
Views: 788

YTD calculation

How do I calculate YTD on a mutual fund? If we take Wellesley Income Fund Inv (VWINX) it has a start and end price as follows: 01/02/2018 $26.95 03/05/2018 $26.36 I was thinking this would do it, since I don't see any distributions yet this year YTD = (26.36 - 26.95) / 26.95 = -2.19% The web site is...
by S_Track
Wed Feb 28, 2018 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Should I Stay or Should I Go?
Replies: 30
Views: 3443

Re: Should I Stay or Should I Go?

You're comparing a large-cap growth fund (it is not 90/10: it has hardly any bonds, just 1%, but is sitting on 7% cash, which is a lot of money hanging around doing ... not much) with a target retirement fund that is invested in the broad stock and bond markets. Apples and oranges. You should only ...
by S_Track
Tue Feb 27, 2018 10:34 pm
Forum: Investing - Help with Personal Investments
Topic: Should I Stay or Should I Go?
Replies: 30
Views: 3443

Re: Should I Stay or Should I Go?

I also got my investing start with Edward Jones (also thanks to Dad). Thankfully I didn't pay much in loads before I figured things out and left EJ. As if the load weren't bad enough, the fund they sold you has been a consistently crappy performer. Why do you say American Funds Growth Portfolio (GW...
by S_Track
Thu Feb 22, 2018 11:23 am
Forum: Investing - Theory, News & General
Topic: why Vanguard short-term bond instead of CD
Replies: 31
Views: 4244

Re: why Vanguard short-term bond instead of CD

Ok just wanted to clarify it is only concerned with income generated by the fund. Thus it does not include capital appreciation which could be much larger with a Stock Fund? You are correct. Remember, we are talking about future gains. It is harder to predict future capital gains then it is for fut...
by S_Track
Thu Feb 22, 2018 11:12 am
Forum: Investing - Theory, News & General
Topic: why Vanguard short-term bond instead of CD
Replies: 31
Views: 4244

Re: why Vanguard short-term bond instead of CD

What the SEC yield does is assumes the current price and projects income (both coupon and amortized) of the current holdings, divides the 2, and gets the yield. Then it subtracts out the expense ratio. A little more complicated than that but that is the gist of it. Is the same for a stock fund, tak...
by S_Track
Wed Feb 21, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: why Vanguard short-term bond instead of CD
Replies: 31
Views: 4244

Re: why Vanguard short-term bond instead of CD

What the SEC yield does is assumes the current price and projects income (both coupon and amortized) of the current holdings, divides the 2, and gets the yield. Then it subtracts out the expense ratio. A little more complicated than that but that is the gist of it. Is the same for a stock fund, tak...
by S_Track
Mon Feb 05, 2018 7:45 am
Forum: Investing - Help with Personal Investments
Topic: Why bother with separate and Growth and Value index funds?
Replies: 17
Views: 2487

Re: Why bother with separate and Growth and Value index funds?

jalbert wrote:
Mon Feb 05, 2018 3:00 am
It’s a bad idea because it increases transaction cost due to stocks moving between the two funds.
If you have an IRA with VG, is there a transaction cost for moving between funds? I know some have a purchasing fee but I thought most were free from any trading fees?
by S_Track
Sun Feb 04, 2018 7:18 pm
Forum: Personal Finance (Not Investing)
Topic: Report roth contribution
Replies: 2
Views: 352

Re: Report roth contribution

VG will not send you paperwork on IRAs in January/February like they do for taxable accounts (e.g., 1099-DIV). There is a form that comes out after the tax filing deadline (mid-May?) so don't wait on a form to file taxes. However there are some "gotchas" regarding the saver's credit, so make sure s...
by S_Track
Sun Feb 04, 2018 6:19 pm
Forum: Personal Finance (Not Investing)
Topic: Report roth contribution
Replies: 2
Views: 352

Report roth contribution

Hi All, My daughter opened up a Roth account this year. Moving through Turbo Tax we found she was eligible for a Saver’s Credit, basically 10% of her contribution. Just wanted to check if that is normal, seems like it is from our research. In addition, do we need to wait for any paper work from VG c...
by S_Track
Sat Feb 03, 2018 10:42 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Yields?
Replies: 14
Views: 1964

Re: Bond Yields?

Question, is it possible for a bond fund's nav to have a large change in price or does the distrubution of dividends/interest keep it in check? If interest rates change, the NAV of a bond fund will change. If a fund has a 5-year duration, and yields on the bonds in that fund rise by 1%, the fund pr...
by S_Track
Sat Feb 03, 2018 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: Bonds - Am I missing something
Replies: 89
Views: 8375

Re: Bonds - Am I missing something

The fund yield is a 30 day average, for rather arcane reasons. After 30 days of stability, the yield will look very much like what you expect. It's pretty mathematical stuff, though the average can obscure things for a while. If you want to verify the math using the SEC yield number, it's best to d...
by S_Track
Sat Feb 03, 2018 11:23 am
Forum: Investing - Help with Personal Investments
Topic: Bond Yields?
Replies: 14
Views: 1964

Re: Bond Yields?

With stocks, something like a third of their expected return comes from dividend payments, which are loosely related to business earnings. However, about two-thirds come from capital appreciation--the rise in price per share, reflecting the idea that they represent shares in the total value of a gr...
by S_Track
Sun Jan 14, 2018 3:19 pm
Forum: Investing - Theory, News & General
Topic: change in balanced fund, taxable event?
Replies: 4
Views: 410

Re: change in balanced fund, taxable event?

This happens all the time in the target-date funds, which change their allocation to be more conservative over time. You don't usually see capital gains until after the target date, because the funds add new money, and can direct that new money to the bond funds. (More often, the funds distribute c...
by S_Track
Sun Jan 14, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: change in balanced fund, taxable event?
Replies: 4
Views: 410

change in balanced fund, taxable event?

If a balanced fund, such as one of VG's life strategy funds, decides to change one of its underlying funds, is that a taxable event? For example say they wanted to swap the total bond for core bound, how would they do that? All at once or would it be a gradual change?
by S_Track
Wed Dec 20, 2017 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Please Post Tax Bill Questions Here [was Tax Bill Omnibus Thread]
Replies: 886
Views: 60794

Re: Tax Bill Omnibus Thread

It might be too early for this question but I would guess that many of us will be moving from the 28 to the new 24% bracket. If using a three-fund in taxable, would the general recommendation be to use total bond instead of Muni's for the 24% bracket and below?
by S_Track
Tue Dec 19, 2017 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: How to find annual taxable distributions on Vanguard?
Replies: 5
Views: 614

Re: How to find annual taxable distributions on Vanguard?

The term you are looking for is tax efficiency, and is of course dependent on your tax situation. Fortunately there is a way to make those calculations looking backwards into the recent past, using a spreadsheet. The future is more difficult, but for broad market funds like VTSAX should look simila...
by S_Track
Mon Dec 04, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: 10-Year Treasury Note Index (TNX) (what does it mean)
Replies: 11
Views: 1786

Re: 10-Year Treasury Note Index (TNX) (what does it mean)

It's the yield with the decimal point shifted one place to the right. So, the 10 year yields 2.362. You're setting 23.62 as the quote. Ok and this yield changes daily because of trades? Does this yield set the bench mark or starting point when the Treasurey holds an auction? Thanks Unlike the marke...