Search found 3951 matches

by stlutz
Sun Oct 22, 2017 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab- which money market fund? (taxable account)
Replies: 21
Views: 1000

Re: Schwab- which money market fund? (taxable account)

With free commissions, SHV is worth considering at ME. Not a 1.00 NAV, but still T Bills under 1 year maturity.
by stlutz
Sat Oct 21, 2017 8:45 am
Forum: Investing - Theory, News & General
Topic: QLAC - Should I, or shouldn't I buy one?
Replies: 4
Views: 446

Re: QLAC - Should I, or shouldn't I buy one?

Steeping aside from the question of whether a QLAC is a good tax-shelter strategy, if one was going to buy a deferred annuity of some sort, what type of account is it generally better to buy that in? (Taxable, Roth, Traditional)?
by stlutz
Thu Oct 19, 2017 8:19 pm
Forum: Personal Finance (Not Investing)
Topic: Changing State Residency - how to handle health care?
Replies: 11
Views: 939

Re: Changing State Residency - how to handle health care?

Is the doctor in network with any of the ACA plans in FL? If so, wouldn't the best plan be to switch to a Gold (i.e. low-or-no deductible) plan in FL ASAP and then go and see your doctor? Moving is a qualifying life event which allows you to switch plans mid-year. In short, you'd be signing up twice...
by stlutz
Wed Oct 18, 2017 11:56 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

You might want to do a bit of research. What I can find is they are at 85% to the fund. This is where I was looking (click on the "Efficiency" Tab): http://www.etf.com/SPTM However, the annual report disagrees with etf.com: "Proceeds collected by State Street on investment of cash collateral or any...
by stlutz
Wed Oct 18, 2017 10:29 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

If Vanguard is offering the ETFs "at cost", it makes me wonder if Vanguard is not as efficient as State Street or if State Street has a different system of cost accounting. One thing with Vanguard is that their costs include the costs of running a brokerage, administering accounts, answering the ph...
by stlutz
Wed Oct 18, 2017 6:56 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

I'm guessing the SPDR core funds are loss leaders
According to State Street, "Each one of these ETFs is profitable at the current prices. "

http://www.etf.com/sections/features-an ... fee-revamp
by stlutz
Tue Oct 17, 2017 8:10 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

Because of Tax-loss harvesting and rebalancing, a Boglehead with a simple portfolio of no more than 6-7 funds can easily make about 20 trades a year which comes out to like $140. I don't want to pick on this post in particular, but at some point trades are cheap enough to being close to free. At Fi...
by stlutz
Tue Oct 17, 2017 7:59 pm
Forum: Investing - Theory, News & General
Topic: Alternatives to selling TSM from a taxable account
Replies: 5
Views: 661

Re: Alternatives to selling TSM from a taxable account

--Donate shares to charity. --Buy SPY put options in your IRA The problem with long bonds is that it's more accurate to say that T-bonds have zero equity correlation as opposed to negative. If inflation unexpectedly went up to 4%, long bonds and stocks would probably not react well. On the other han...
by stlutz
Mon Oct 16, 2017 11:03 am
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads

Watch the trading spreads on some of these SPDR ETFs. For example, THRK (the total market ETF) currently trades with a spread of .15%. VTI is .01%; ITOT and SCHB are at .03%.

High spreads and capital gain distributions have been an issues with State Street ETFs in the past.
by stlutz
Sun Oct 15, 2017 11:17 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 333
Views: 17865

Re: Fellow TDA bogleheads

The iShares/Fidelity relationship seems to be pretty tight and maybe even exclusive. For example, iShares is not a part of Schwab's pay-to-play plan. I'm not sure that I'd expect to see them on TDA. My bet is that you'll see a large number of State Street ones.
by stlutz
Sun Oct 15, 2017 11:13 pm
Forum: Personal Consumer Issues
Topic: Opinions on bicycle disc brakes?
Replies: 26
Views: 1533

Re: Opinions on bicycle disc brakes?

What type of bike are you riding? (I'm trying to get a what type of brakes you have). Are they standard road brakes? Cantilevers? V-brakes? On my road bikes, I much prefer rim brakes as they are set and forget until I need new pads. If a wheel being slightly out of true causes brake rub, your brakes...
by stlutz
Sat Oct 14, 2017 12:06 pm
Forum: Personal Consumer Issues
Topic: Earplugs that work on low frequency noise?
Replies: 35
Views: 1805

Re: Earplugs that work on low frequency noise?

Another alternative is to do nothing--just let your mind get used to the noise. When I visit NYC for work I have trouble sleeping because of all the racket all night. But people who live there manage to sleep just fine.
by stlutz
Sat Oct 14, 2017 11:56 am
Forum: Investing - Theory, News & General
Topic: Does market timing matter for long term investing?
Replies: 11
Views: 1084

Re: Does market timing matter for long term investing?

Why not invest some money in stocks and some money in bonds/CDs?

If stocks are lower a year from now, move some of the money from the bonds over into CDs. If stocks go up 20%, then move some of the stock money into bonds.
by stlutz
Sat Oct 14, 2017 10:38 am
Forum: Personal Finance (Not Investing)
Topic: Help me understand what happens with the new law and ACA subsidies
Replies: 80
Views: 5648

Re: Help me understand what happen with the new law and ACA subsidies

Thanks for the link, 2015! That is a very interesting article. Since people on BH generally actually like to read, it's worth adding a link to the CBO analysis of the move: https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53009-costsharingreductions.pdf I think the actionable part f...
by stlutz
Sat Oct 14, 2017 10:07 am
Forum: Investing - Help with Personal Investments
Topic: Voluntary Corporate Action Tendered Offer Wal-Mart questions
Replies: 8
Views: 603

Re: Voluntary Corporate Action Tendered Offer Wal-Mart questions

So this bond has a yield to maturity of 3.33%. A comparable Treasury yields 2.47%. So, you are getting .86%/yr. of extra yield for holding this bond. That is comparable to other AA and above corporates of this maturity. The trading spread on this bond is .5%, so it's not that costly to sell if you w...
by stlutz
Fri Oct 13, 2017 7:17 pm
Forum: Investing - Help with Personal Investments
Topic: “Going Long Volatility”
Replies: 16
Views: 874

Re: “Going Long Volatility”

Other ways to go long volatility are to buy call and put options. If you want to short volatility you should sell such options.
by stlutz
Fri Oct 13, 2017 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why would anyone buy long term bonds Now?
Replies: 33
Views: 2867

Re: Why would anyone buy long term bonds?

Those who own a Total Bond market fund like BND hold 17% of their portfolio in long-term bonds...
by stlutz
Thu Oct 12, 2017 12:11 am
Forum: Investing - Theory, News & General
Topic: Why no stable value accounts for "retail" investors?
Replies: 11
Views: 1299

Re: Why no stable value accounts for "retail" investors?

Aren't direct CDs a better solution to the problem? Stable asset funds aren't guaranteed by the government unlike CDs.
by stlutz
Tue Oct 10, 2017 6:39 pm
Forum: Investing - Theory, News & General
Topic: Simba's backtesting spreadsheet [a Bogleheads community project]
Replies: 1032
Views: 573616

Re: Simba's backtesting spreadsheet [a Bogleheads community project]

Could I get more feedback about this possible change?
Your approach makes complete sense to me...
by stlutz
Tue Oct 10, 2017 6:36 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity Security
Replies: 66
Views: 6412

Re: Fidelity Security

Fidelity now has voice-recognition-based security over the phone.
Thanks for the heads up that Fido has this. I knew Schwab and VG did. Will have to add that to my account.
by stlutz
Tue Oct 10, 2017 6:30 pm
Forum: Investing - Theory, News & General
Topic: Factor investing: should financial firms be excluded when screening for value?
Replies: 31
Views: 1476

Re: Factor investing: should financial firms be excluded when screening for value?

The underlying reason for the exclusion is not something nefarious but simply because the financial statements of banks, other financial firms, utilities, and "industrial" (i.e. everyone else) companies simply look different from one another. And key for the academic researchers using Compustat is t...
by stlutz
Mon Oct 09, 2017 11:33 pm
Forum: Investing - Help with Personal Investments
Topic: Does Anyone Here Buy Callable Munis?
Replies: 6
Views: 530

Re: Does Anyone Here Buy Callable Munis?

Not really--as long as you understand the call risk and have an idea of how much you think you should be compensated for taking that risk before clicking "buy", there isn't anything else that makes a 10 year non-callable AA bond more risk than an otherwise equivalent 10 year AA bond that is callable...
by stlutz
Sun Oct 08, 2017 10:20 am
Forum: Investing - Theory, News & General
Topic: Vanguard's long-term outlook for TIPS
Replies: 92
Views: 7024

Re: Vanguard's long-term outlook for TIPS

It would be quite unexpected if inflation suddenly shot up to 4% in the next year or two. If that occurred, what do you think would happen with: a) Nominal bonds? b) Stocks? c) TIPS? The answers are: a) They would perform poorly. b) Mostly likely stocks would not like this c) TIPS would do just fine...
by stlutz
Sun Oct 08, 2017 10:09 am
Forum: Investing - Help with Personal Investments
Topic: Tips versus basket of corporate bonds ETF for retiree
Replies: 12
Views: 349

Re: Tips versus basket of corporate bonds ETF for retiree

No, they return inflation plus a modest yield (0.1 to 0.35%), but if I assume that the inflation stays around the Fed’s goal of 2%, I can lock over 1% more using the ibond (corporate bond) ETFs The actual return on corporate bonds is less than their yield because some default. Default rates have be...
by stlutz
Sun Oct 08, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: Tips versus basket of corporate bonds ETF for retiree
Replies: 12
Views: 349

Re: Tips versus basket of corporate bonds ETF for retiree

...for sure I am losing about 1%+ annually...
Can you explain what you mean here? Do your TIPS have negative yields?
by stlutz
Sun Oct 08, 2017 9:50 am
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3231

Re: What is a “bond bubble”?

I don't know why we're speculating over whether there can be a bond bubble. We've all seen one in our lifetime: Mortgage-backed securities circa 2006. Investors wildly mis-priced the risk they were taking and brought down the global financial system by doing so. Obviously if you didn't own the bonds...
by stlutz
Fri Oct 06, 2017 10:30 pm
Forum: Investing - Theory, News & General
Topic: Gold ETF
Replies: 32
Views: 3010

Re: Gold ETF

Here is a good writeup of the the various ETF/ETNs work:

http://www.etf.com/commodities_precious_metals_gold
by stlutz
Fri Oct 06, 2017 5:52 pm
Forum: Investing - Theory, News & General
Topic: Bogle himself is saying we will expect like 3% for the next decades
Replies: 141
Views: 15536

Re: Bogle himself is saying we will expect like 3% for the next decades

I think it's worth understanding the scenarios whereby you end up at 3% for a decade. For example, if you average an 8% return for 9 of those years and have one year where the market is down by 1/3, you end up with a 3% CAGR. That's not really a depressing combination of events--that's more like wha...
by stlutz
Fri Oct 06, 2017 2:15 am
Forum: Investing - Help with Personal Investments
Topic: Sell individual stocks now after transfer to Vanguard?
Replies: 14
Views: 1009

Re: Sell individual stocks now after transfer to Vanguard?

I do not believe an investment strategy should be subordinate to a tax strategy. +1. However, since we are close to the end of the year, you could consider taking some gains this year and some gains in January of next year. You would consider doing this if either a) you could take gains at a 0% rat...
by stlutz
Thu Oct 05, 2017 8:01 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone go 100% Ally or another online bank for all banking needs?
Replies: 61
Views: 5002

Re: Anyone go 100% Ally or another online bank for all banking needs?

Yes I'm 100% online and no I haven't encountered any issues.
by stlutz
Thu Oct 05, 2017 6:46 pm
Forum: Investing - Theory, News & General
Topic: Are stocks going up only because all the alternatives are lousy?
Replies: 45
Views: 4708

Re: Are stocks going up only because all the alternatives are lousy?

I would say we have expanded the money supply greatly... I don't see that the money supply has been increasing particularly quickly: https://fred.stlouisfed.org/graph/?g=fjCv Household debt to GDP has been trending downard: https://fred.stlouisfed.org/graph/?g=eDaK As has household debt service as ...
by stlutz
Thu Oct 05, 2017 6:31 pm
Forum: Investing - Theory, News & General
Topic: Simba's Backtesting Spreadsheet: how useful is it?
Replies: 11
Views: 785

Re: Simba's Backtesting Spreadsheet: how useful is it?

Wherever an actual Vanguard index fund existed, that is the data that is used in this spreadsheet.
by stlutz
Thu Oct 05, 2017 1:34 am
Forum: Personal Finance (Not Investing)
Topic: Switching from High Deductible Plan when planning children
Replies: 15
Views: 1500

Re: Switching from High Deductible Plan when planning children

Knowing what percent is covered after the deductible and what the OOP maximum are is what you need to find out.
by stlutz
Tue Oct 03, 2017 12:12 am
Forum: Investing - Help with Personal Investments
Topic: VWEHX High-Yield Corporate bond
Replies: 26
Views: 1592

Re: VWEHX High-Yield Corporate bond

I would take a look at this chart: https://fred.stlouisfed.org/series/BAMLH0A1HYBB What is shows is that compared to historical time periods, you are getting very little additional yield for taking the extra risk right now. So, lots of extra risk without much additional potential return. Not a good ...
by stlutz
Sun Oct 01, 2017 7:34 pm
Forum: Personal Consumer Issues
Topic: Consumer Cellular lowers prices or increases benefits
Replies: 14
Views: 1210

Re: Consumer Cellular lowers prices or increases benefits

Very nice. I had just started to look into other options because I thought they weren't staying competitive.
by stlutz
Sat Sep 30, 2017 3:30 pm
Forum: Personal Consumer Issues
Topic: Hardwood/Laminate floors ?
Replies: 17
Views: 1517

Re: Hardwood/Laminate floors ?

I really like my Quick Step laminate floors. They make nice stuff.
by stlutz
Sat Sep 30, 2017 1:02 pm
Forum: Personal Consumer Issues
Topic: I bought a car without thinking too much about value
Replies: 45
Views: 3992

Re: I bought a car without thinking too much about value

I got sold the warranty by the guy using a bit of a scare tactic telling me the average prius repair they see in the shop is $2200
I had my '05 Prius for 10 years and 150K and never had a repair. But, it is fair to point out that the things that could go wrong with one are expensive to fix.
by stlutz
Sat Sep 30, 2017 11:47 am
Forum: Personal Finance (Not Investing)
Topic: How long did it take for Equifax to email you a security sign up?
Replies: 69
Views: 5429

Re: How long did it take for Equifax to email you a security sign up?

Took a week and a half to get the original e-mail for me, then a day to get the password reset, then two days to "activate" the product, then another two days for the credit lock to take effect.
by stlutz
Sat Sep 30, 2017 11:43 am
Forum: Investing - Theory, News & General
Topic: REITs as "pseudo diversification"
Replies: 44
Views: 3711

Re: REITs as "pseudo diversification"

I think individual property ownership should be thought of as starting and running your own business as opposed to being like passive equity investment. How profitable such a business will be depends a lot on how much time and effort you put into it--first in selecting good properties and second in ...
by stlutz
Sat Sep 30, 2017 11:39 am
Forum: Investing - Theory, News & General
Topic: REITs as "pseudo diversification"
Replies: 44
Views: 3711

Re: REITs as "pseudo diversification"

REITs were popular in a bunch of investing books that were published about 15 years ago because over the 30 years prior to then, they had outperformed the market and were not all that correlated to the market. Thus by including them you would have had higher return and lower realized risk. Of course...
by stlutz
Sat Sep 30, 2017 11:20 am
Forum: Personal Consumer Issues
Topic: I bought a car without thinking too much about value
Replies: 45
Views: 3992

Re: I bought a car without thinking too much about value

Buying a Prius is only the wrong answer if you said you were looking for a vehicle to do a bunch of 4-wheeling with.

I bought a new one back in January (replacing my '05 Prius) and am really happy. Am only putting miles on at the rate of about 8K for the year.
by stlutz
Sat Sep 30, 2017 11:15 am
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Accounts
Replies: 41
Views: 2865

Re: Vanguard Brokerage Accounts

Main difference I have noticed is that now when a dividend is transferred to my bank account I get an e-mail notifying me of a "brokerage transaction." Kind of scared me the first time since I hadn't made any transactions. Like Livesoft I currently do not transact at Vanguard--I just collect dividen...
by stlutz
Thu Sep 28, 2017 12:41 am
Forum: Investing - Help with Personal Investments
Topic: We need help! Individual stock portfolio getting out of hand.
Replies: 23
Views: 1892

Re: We need help! Individual stock portfolio getting out of hand.

This has led to a portfolio that is a melange of disparate investment philosophies. That's not really a bad thing. Another word for it is "diversification". :) There are a big variety of sensible stock-selection strategies out there and there is no reason to focus only on one. Owning high momentum ...
by stlutz
Sun Sep 24, 2017 10:51 pm
Forum: Personal Finance (Not Investing)
Topic: Schwab.com login trouble?
Replies: 15
Views: 1583

Re: Schwab.com login trouble?

Please let us know how the call to Schwab support goes. That will be a good "real life" customer support datapoint for how a firm actually handles a problem one is having.
by stlutz
Sun Sep 24, 2017 3:46 pm
Forum: Investing - Help with Personal Investments
Topic: Cash + LT Munis = IT Munis?
Replies: 7
Views: 858

Re: Cash + LT Munis = IT Munis?

It depends on how you want to play the mental arithmetic game. And I use the word "mental arithmetic" in a non-pejorative way. The fact is that we all have assets and we can generally access a good number of them at any time we need them, although there may be taxes and penalties involved. Vanguard'...
by stlutz
Thu Sep 21, 2017 10:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard: Please Offer a Gold ETF
Replies: 95
Views: 5136

Re: Vanguard: Please Offer a Gold ETF

I agree with the OP. I want Vanguard to create ultra low cost competition where it doesn't currently exist. Gold is one. High yield bonds are another.

I say that as somebody who is neither looking for gold or high yield bonds.
by stlutz
Sat Sep 16, 2017 12:45 pm
Forum: Investing - Theory, News & General
Topic: Basic questions on credit ratings
Replies: 5
Views: 678

Re: Basic questions on credit ratings

Here is a chart showing the spread between BBB corporates and Treasuries over the past 20 years: https://fred.stlouisfed.org/series/BAMLC0A4CBBB My conclusion is that the spread is not unusually low for good economic times, but the spread definitely assumes good economic times... The ratings do not ...
by stlutz
Sat Sep 16, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Inherited IRA has 16 Corp Bonds in it
Replies: 16
Views: 1109

Re: Inherited IRA has 16 Corp Bonds in it

For the longer term bonds, there is a fairly reasonable chance that those companies will go through bankruptcy before they mature. Personally I would hold the 2018/19 ones until they mature and sell the rest. The corporate bond market is pretty liquid and unloading them should not be all that diffic...