Search found 182 matches

by S_Track
Thu Oct 18, 2018 4:56 am
Forum: Investing - Help with Personal Investments
Topic: Bad time to invest in govt bonds?
Replies: 20
Views: 2569

Re: Bad time to invest in govt bonds?

I think I'm understanding this better now. Basically, interest rate hikes can negatively impact the bond value but the higher interest paid makes up for it over the duration of the bond (to maturity)? It's a bond fund, so there are many bonds, not just one. At the moment that rates go up, the NAV (...
by S_Track
Thu Oct 18, 2018 4:20 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10269

Re: Short Term Bond yield over 3%

Correlation with equities is related to credit risk, which tends to show up in a financial crisis when stocks tank, as happened in late 2008. Usually but not always. TIPs vs Nominals in late 2008: https://i.postimg.cc/bwYtFWRg/TIPS-vs-Nominals-Capture.gif Good point! Perhaps we also should include ...
by S_Track
Fri Oct 12, 2018 7:17 am
Forum: Investing - Help with Personal Investments
Topic: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)
Replies: 23
Views: 1095

Re: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)

Keep in mind that things like total bond market and the actively managed "core plus" funds like your Met. West Total Return contain bonds of all terms - short - intermediate - and long. They "average" out to intermediate and that is why mixed funds like that are called intermediate. Glad you said t...
by S_Track
Thu Oct 11, 2018 5:10 pm
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10269

Re: Short Term Bond yield over 3%

I was in my accounts today and noticed that the SEC yield on the Vanguard Short Term Bond Fund (Admiral: VBIRX) is 3.01% :happy Correct me if I'm wrong. But the only way the yield goes up on a bond fund in one day is if the price of the fund has dropped. It is not like the fund manager just purchas...
by S_Track
Wed Oct 10, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: 5 ways target-date funds let investors down
Replies: 38
Views: 3438

Re: 5 ways target-date funds let investors down

I will be curious what two funds Mr. Merriman selects for his two fund portfolio. Question, Doesn't VG's Total Stock contain some small and Med sized companies?
by S_Track
Wed Oct 03, 2018 8:40 am
Forum: Personal Finance (Not Investing)
Topic: Reinstating a Freeze
Replies: 1
Views: 231

Reinstating a Freeze

Hi I did a temporary lift of my credit with the three agencies. My work is complete and rather than waiting to my scheduled end date for the lift I tried to reinstate the freeze. I was successful with Equifax (Took a phone call) and TransUnion(very easy after you log in on their site) but can't seem...
by S_Track
Wed Oct 03, 2018 6:44 am
Forum: Personal Finance (Not Investing)
Topic: credit card apps (real time notification)
Replies: 9
Views: 602

Re: credit card apps (real time notification)

HI all, A friend of mine has an american express card. He told me how the mobile app notifies him almost instantly when a new charge occurs. I am in the market for a new card and thought that was a nice feature for self monitoring. Curious if anyone else has this type of feature with their card? Th...
by S_Track
Wed Oct 03, 2018 5:48 am
Forum: Personal Finance (Not Investing)
Topic: credit card apps (real time notification)
Replies: 9
Views: 602

credit card apps (real time notification)

HI all, A friend of mine has an american express card. He told me how the mobile app notifies him almost instantly when a new charge occurs. I am in the market for a new card and thought that was a nice feature for self monitoring. Curious if anyone else has this type of feature with their card? Tha...
by S_Track
Tue Oct 02, 2018 5:09 pm
Forum: Personal Consumer Issues
Topic: Asphalt driveway replacement
Replies: 21
Views: 2004

Re: Asphalt driveway replacement

I poured my own pad 24x26' in front of the garage about 12 years ago now. I had the concrete tinted dark gray in the truck, still looks good. The rest of the driveway is gravel out to the road. Works for us but we are in a rural setting.
by S_Track
Tue Oct 02, 2018 1:12 pm
Forum: Personal Finance (Not Investing)
Topic: Credit Karma worth it
Replies: 16
Views: 1217

Re: Credit Karma worth it

farnsy wrote:
Tue Oct 02, 2018 1:05 pm
Credit Karma is absolutely worth it. For one thing, it doesn't cost anything. So if it provides any benefit, it's worth it.
I guess my worry was just another agency with all my detailed information. thanks all for the input
by S_Track
Tue Oct 02, 2018 10:24 am
Forum: Personal Finance (Not Investing)
Topic: Credit Karma worth it
Replies: 16
Views: 1217

Credit Karma worth it

Hi Folks,

Is Credit Karma worth it for folks who are debt free and have their accounts frozen with the agencies. Is there any downside to using Credit Karma?

Thanks
by S_Track
Thu Sep 27, 2018 5:48 pm
Forum: Personal Finance (Not Investing)
Topic: Freeze with new Credit card
Replies: 4
Views: 521

Re: Freeze with new Credit card

If you mean an actual joint credit card account, then both of you would need to unfreeze. But not many banks offer those. Most only allow "authorized users" where you are the primary account holder, your wife has a card with her name on it, but the credit check is only run on you. That is what I me...
by S_Track
Thu Sep 27, 2018 11:55 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 2924
Views: 576634

Re: What's Your Credit Card Rewards Strategy?

Are the rewards given on the individual items or is it classified by the store? For example, say you have a card that gives 2% back at grocery stores and you purchase a kitchen utensil along with your weekly groceries? Is the 2% calculated on the total bill or is the kitchen utensil subtracted off? ...
by S_Track
Thu Sep 27, 2018 6:29 am
Forum: Personal Finance (Not Investing)
Topic: Freeze with new Credit card
Replies: 4
Views: 521

Freeze with new Credit card

Hi All,

My wife and I froze our credit years ago but would like to apply for a new credit card. Do we both need to thaw if the card will be in both of our names? thanks
by S_Track
Sat Sep 22, 2018 5:34 am
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 77
Views: 8748

Re: Why do we expect TSM to keep growing?

No, as I detailed in my response you quoted, in the bond market in general, on top of which bond funds rest, interest is accounted for daily, but not in the quoted prices of the bonds. Should a bond change hands between interest payments the buyer pays the seller the accrued daily interest, in addi...
by S_Track
Wed Sep 19, 2018 5:51 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 77
Views: 8748

Re: Why do we expect TSM to keep growing?

... Stock dividends do not increase one's wealth. They don't work at all like bond interest, or like a savings account. Curious about this, why does bond interest differ from a dividend? Tax aside, don't both types of distrubutions reduce the NAV ? Hi S_Track, happy to help. Let's compare a share o...
by S_Track
Wed Sep 19, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 77
Views: 8748

Re: Why do we expect TSM to keep growing?

Get a dollar in dividend, lose a dollar in share price. It's a wash, except if it causes you to owe income tax you otherwise wouldn't. It can be hard to see because of course stock prices are are still subject to all the other elements that affect them day to day. If you own one share that's worth ...
by S_Track
Mon Sep 17, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: Podcast Now Available - Bogleheads On Investing: Episode #1 with John C. Bogle
Replies: 66
Views: 7501

Re: Podcast Now Available - Bogleheads On Investing: Episode #1 with John C. Bogle

Just founds it using Apple's Podcast App on my iPhone. I searched on "bogleheads".
by S_Track
Fri Aug 24, 2018 5:39 am
Forum: Personal Finance (Not Investing)
Topic: IRA Taxes with non deductible contributions
Replies: 4
Views: 468

Re: IRA Taxes with non deductible contributions

Ace1 wrote:
Thu Aug 23, 2018 11:12 pm
Since you have non deductible contributions, you should be familiar with form 8606.
The answer to your question is found on lines 10 thru 15c.
The non taxable amount is a percentage of the distribution.
Thanks for the clarification.
by S_Track
Thu Aug 23, 2018 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: IRA Taxes with non deductible contributions
Replies: 4
Views: 468

IRA Taxes with non deductible contributions

Curious how taxes work when withdrawing from an IRA which includes a portion of non deductible contributions. Is this done as an amount or a percentage. For example, suppose you have 50K in and IRA with 10K of non deductible contributions. Can the first 10K of withdrawals be taken tax free or only a...
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: 2258

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: 1019

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: 5924

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: 362
Views: 18468

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: 976

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: 473

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: 473

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: 9946

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: 1653

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: 1653

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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: 12377

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 ...