Search found 3996 matches

by stlutz
Sun Nov 19, 2017 5:16 pm
Forum: Investing - Theory, News & General
Topic: Morningstar - AQR: The Vanguard of Alternative Investing?
Replies: 41
Views: 2208

Re: Morningstar - AQR: The Vanguard of Alternative Investing?

P2,4 would have same expected return as P1,3
I think that's only the case if the T-bill rate is zero. Otherwise the long-only portfolio has higher returns because it's getting the T-Bill interest.
by stlutz
Sun Nov 19, 2017 2:44 pm
Forum: Personal Consumer Issues
Topic: Can anyone help me with details on Portland Oregon Trip?
Replies: 10
Views: 283

Re: Can anyone help me with details on Portland Oregon Trip?

Where are you from? If you're from a landlocked state, the ocean is more of an attraction than if you live in Florida. If you live in Florida, mountains are more sought after on vacation. A few years back I did a 5 day Oregon trip which involved splitting time between the coast and the Crater Lake a...
by stlutz
Sat Nov 18, 2017 10:20 pm
Forum: Investing - Help with Personal Investments
Topic: Bond funds vs Ladder
Replies: 23
Views: 1312

Re: Bond funds vs Ladder

What are the issues I should think about in order to consider this approach and what risks (if any) are there in this approach that are larger than stuffing my assets into one bond fund? Given that you will soon be transitioning to retirement, it's good to step back and ask what you need/want bonds...
by stlutz
Sat Nov 18, 2017 10:04 pm
Forum: Investing - Theory, News & General
Topic: WSJ commentary about declining # of publicly traded companies
Replies: 28
Views: 2060

Re: WSJ commentary about declining # of publicly traded companies

One could argue that this is an indication that the market is currently too cheap. If stocks were expensive relative to other forms of capital, then many companies would be looking to go public to cash in on those high valuations. The fact that they aren't may be an indication that the public stock ...
by stlutz
Sun Nov 12, 2017 11:55 am
Forum: Personal Consumer Issues
Topic: Frontier Flight Fees
Replies: 17
Views: 1159

Re: Frontier Flight Fees

Let's just say I've never heard anyone report a positive experience flying with them.
by stlutz
Sat Nov 11, 2017 7:45 pm
Forum: Investing - Help with Personal Investments
Topic: AA: Should I List Junk Bond Fund Under Stocks or Bonds?
Replies: 12
Views: 724

Re: AA: Should I List Junk Bond Fund Under Stocks or Bonds?

I'd go with about half and half. Junk bonds are definitely less risky/volatile than stocks. But they are more so than investment grade bonds.
by stlutz
Fri Nov 10, 2017 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: Where to open small taxable brokerage account? (Vanguard vs. Schwab vs. Robo / MF vs. ETF)
Replies: 9
Views: 874

Re: Where to open small taxable brokerage account? (Vanguard vs. Schwab vs. Robo / MF vs. ETF)

ETFs are more portable than mutual funds if you want to change brokers in the future. In a taxable account I prefer ETFs.
by stlutz
Fri Nov 10, 2017 2:04 am
Forum: Investing - Help with Personal Investments
Topic: How to invest my settlement
Replies: 16
Views: 1555

Re: How to invest my settlement

Good advice above on making sure you are clear on whether $400K is before or after attorney's fees and possible taxes. Unfortunately, 400K may not be 400K. The biggest things that stop higher-income people from becoming wealthy in terms of having lots of debt-free assets are spending too much on hou...
by stlutz
Fri Nov 10, 2017 1:24 am
Forum: Personal Consumer Issues
Topic: Bicycle wheels - what's a reasonable budget
Replies: 38
Views: 1763

Re: Bicycle wheels - what's a reasonable budget

Campy Zonda or Eurus purchased from a UK e-tailer. Those wheels will still be true after a nuclear holocaust. Serviceable bearings are a big plus as well. Fulcrum is also a good alternative.
by stlutz
Fri Nov 10, 2017 1:20 am
Forum: Investing - Theory, News & General
Topic: CD to corporate spread
Replies: 2
Views: 477

Re: CD to corporate spread

Spreads of corporate yields to treasury yields are low right now to compared to the historical average. CD Yields move somewhat independently but track Treasury yields more closely than corporate ones, I think. As such, I think the "CD to Corporate Spread" is likely low relative to history right now...
by stlutz
Fri Nov 10, 2017 1:18 am
Forum: Investing - Help with Personal Investments
Topic: Transfer Assets (Fidelity)?
Replies: 7
Views: 1141

Re: Transfer Assets (Fidelity)?

Admiral shares cannot be transferred to Fidelity. So, you'd want to convert that holding to ETF (a non-taxable event) first. You can transfer BRSIX. Given that it's a transaction-fee fund, I'd only do so if you did not want to buy more in the future.
by stlutz
Tue Nov 07, 2017 8:41 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips yield: 1% to 0.83% over last 2 weeks!
Replies: 36
Views: 3445

Re: 30 yr tips yield: 1% to 0.83% over last 2 weeks!

It's always worth remembering that whether to buy now and whether to buy at auction are two different questions. I personally don't see the appeal of buying at auction simply because you don't find out until afterward what the price/yield are. I prefer to buy bonds in the secondary market where I kn...
by stlutz
Sun Nov 05, 2017 10:50 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity Brokerage and/or Cash Management Account?
Replies: 12
Views: 938

Re: Fidelity Brokerage and/or Cash Management Account?

Bottom line is: Use them for what they are named. If you want a brokerage account, open a brokerage account. IF you want a cash management account, open one of those. If you want both, open both. You can deposit your credit card rewards into either type of account.
by stlutz
Sat Nov 04, 2017 7:41 pm
Forum: Investing - Help with Personal Investments
Topic: Final Decision
Replies: 5
Views: 1034

Re: Final Decision

Approximately what percent of your living expenses do Social Security and your civil service retirement cover? Do you have bequest motives with your other assets or is desire to basically use your assets during your lifetime? The answers to those questions plays an important role in what an appropri...
by stlutz
Sat Nov 04, 2017 6:01 pm
Forum: Investing - Help with Personal Investments
Topic: I came up with a Bond plan.....Good or Bad...you decide
Replies: 19
Views: 1737

Re: I came up with a Bond plan.....Good or Bad...you decide

Want to "lock in" or put at minimal risk a portion of the retirement fund accumulated, but at the same time I don't want it to be idle. I guess one could say I want a portion of my retirement fund to continue to gain the most while being at the least risk. You know....the perfect Bond fund. Just us...
by stlutz
Sat Nov 04, 2017 5:51 pm
Forum: Investing - Help with Personal Investments
Topic: Opinions on Blackrock Lifepath Index funds (2035 as example)
Replies: 7
Views: 466

Re: Opinions on Blackrock Lifepath Index funds (2035 as example)

These funds look just fine to me. I take that back. They look quite good to me. Relative to the overall market, these funds are somewhat underweight US smallcaps and overweight REITs. Shrug. Whether that will do better than a standard 3 fund portfolio with the same stock/bond mix is purely a random ...
by stlutz
Sat Nov 04, 2017 4:05 pm
Forum: Investing - Help with Personal Investments
Topic: How to set up a TIPS ladder?
Replies: 3
Views: 307

Re: How to set up a TIPS ladder?

This might help you out That's a nice (and very detailed) article! OP: You can buy existing TIPS issues an any time in the secondary market. So, you an assemble such a ladder with a few hours of work. Secondary TIPS trades can be done free of charge at many brokers, including Vanguard, Fidelity, Sc...
by stlutz
Sat Nov 04, 2017 4:01 pm
Forum: Investing - Help with Personal Investments
Topic: I came up with a Bond plan.....Good or Bad...you decide
Replies: 19
Views: 1737

Re: I came up with a Bond plan.....Good or Bad...you decide

What do you want bonds to accomplish in your portfolio? What are you saving the money for? We can all rattle off our favorite bond funds, but those funds may not help accomplish your goals all that well. Something to keep in mind is that a "total" bond fund is an intermediate fund on average, not ex...
by stlutz
Sat Nov 04, 2017 12:02 pm
Forum: Investing - Theory, News & General
Topic: Leading indicators [published] from the FED
Replies: 17
Views: 1096

Re: Leading indicators [published] from the FED

I was comparing this chart to actual GDP growth and I'm not sure where the "leading" aspect of these indicators is: https://fred.stlouisfed.org/graph/?g=fCzh Perhaps they are leading only in the sense that they get tabulated more quickly than GDP numbers do, so you know you're in a recession or reco...
by stlutz
Sat Nov 04, 2017 11:47 am
Forum: Personal Consumer Issues
Topic: St Louis: from airport to hotel (uber, shuttle or rental)
Replies: 23
Views: 1116

Re: St Louis: from airport to hotel (uber, shuttle or rental)

Not to mention Google again, but you should know that Google Maps has this nifty feature where you can get directions using different means of transport. For example, here are the train/bus directions to the Hampton Inn in Clayton (not sure where you are actually staying). https://www.google.com/map...
by stlutz
Sat Nov 04, 2017 10:17 am
Forum: Personal Consumer Issues
Topic: St Louis: from airport to hotel (uber, shuttle or rental)
Replies: 23
Views: 1116

Re: St Louis: from airport to hotel (uber, shuttle or rental)

Uber has detailed how-to instructions for every airport on their website. Just Google *Uber Lambert Field" or something like that and it should be one of the first links returned.
by stlutz
Sat Nov 04, 2017 9:38 am
Forum: Personal Consumer Issues
Topic: St Louis: from airport to hotel (uber, shuttle or rental)
Replies: 23
Views: 1116

Re: St Louis: from airport to hotel (uber, shuttle or rental)

Unless Hertz is giving away cars, go with Uber.
by stlutz
Fri Nov 03, 2017 7:18 pm
Forum: Investing - Theory, News & General
Topic: Book Recommendation: Adaptive Markets:Financial Evolution At The Speed Of Thought
Replies: 4
Views: 349

Re: Book Recommendation: Adaptive Markets:Financial Evolution At The Speed Of Thought

I recently completed the book. It was a good read. Note that he ultimately goes in a different direction than I was expecting. The book does not contain investment advice or stock selection tips. Instead, he ultimately ends up going in the direction of discussing policies that would better guide fin...
by stlutz
Fri Nov 03, 2017 7:14 pm
Forum: Investing - Theory, News & General
Topic: The Enduring Case for High-Yield Bonds?
Replies: 13
Views: 1990

Re: The Enduring Case for High-Yield Bonds?

There is one other way to approach high-yield bonds. RIght now most "total bond" funds actually only select investment grade bonds. However, iShares does have "Total Bond" ETFs that include high yield bonds as part of the overall bond market. So, it holds a market-weight allocation of "high yield" b...
by stlutz
Fri Nov 03, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Online brokerage account application [Schwab]
Replies: 4
Views: 476

Re: Online brokerage account application [Schwab]

One thing about Schwab in general as compared to FIdelity is that Schwab tends to rely more on humans and Fidelity relies more on technology. When I have to call Schwab, I get the best customer service of any financial firm I've ever dealt with, including Fidelity. However, there are things you have...
by stlutz
Tue Oct 31, 2017 1:06 am
Forum: Investing - Help with Personal Investments
Topic: Should we still be investing in high grade gov bonds considering the amount of public debt?
Replies: 10
Views: 895

Re: Should we still be investing in high grade gov bonds considering the amount of public debt?

The key question is whether the government is issuing bonds in a currency it controls or in someone else's currency. A state government or a Eurozone country (e.g. Greece) is a risk of default. A developed country with a large economy that has a large public debt, not so much. Japan's debt to GDP is...
by stlutz
Tue Oct 31, 2017 12:10 am
Forum: Investing - Theory, News & General
Topic: Taxation of Muni Bonds from out-of-state: Individual vs. Fund
Replies: 2
Views: 389

Re: Taxation of Muni Bonds from out-of-state: Individual vs. Fund

There is the question of how the fund accounts for it and then the question of how this plays out when you buy the fund. Suppose that on 1/3/2017 the stlutz Intermediate Term Tax Exempt fund buys a with a coupon of 4% maturing in 2027 at a price of 110. That bond has a yield of 2.84%. The fund will ...
by stlutz
Sun Oct 29, 2017 10:13 am
Forum: Personal Consumer Issues
Topic: Is it difficult to switch from an iPhone to an Android?
Replies: 97
Views: 7090

Re: Is it difficult to switch from an iPhone to an Android?

for me, moto g5 plus? I'm very happy with mine. I got the one with more memory (more $) but with the Amazon discount for having ads. I find the ads to very non-obtrusive, so it was worth it for me. The best thing about the Moto line of phones is the battery life. Disclosure: I've never had an iPhone.
by stlutz
Sat Oct 28, 2017 7:55 pm
Forum: Personal Finance (Not Investing)
Topic: Bond records at Vanguard
Replies: 4
Views: 603

Re: Bond records at Vanguard

Do you have a CUSIP number for the bonds? That may help with looking into what is going on.
by stlutz
Sat Oct 28, 2017 6:02 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Funds and Diversification
Replies: 9
Views: 778

Re: Bond Funds and Diversification

In this graphic how did you determine the "expected" return?
by stlutz
Sat Oct 28, 2017 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone use individual Bonds instead of Bond Funds in retirement fund?
Replies: 18
Views: 1376

Re: Anyone use individual Bonds instead of Bond Funds in retirement fund?

I am fairly new to Bonds and it appears I don't fully grasp the concept completely as I thought if a 10 year treasury was purchased today yielding 2.42% then regardless of what happens to the interest rate or inflation I will still get the 2.42% yield, but based on your reply that seems to be more ...
by stlutz
Sat Oct 28, 2017 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Which Health Insurance
Replies: 25
Views: 1426

Re: Which Health Insurance

How did you reach that conclusion? I was basing it on the fact that a $3K OOP maximum is a lot less than a $12K one. Medical costs tend to bunch. Have a child or break a bone and need surgery, you're going to hit your max regardless. Suppose you have a family of 3--the math basically assumes that e...
by stlutz
Sat Oct 28, 2017 1:34 pm
Forum: Personal Consumer Issues
Topic: Megabus from New York City to Washington DC
Replies: 23
Views: 1538

Re: Megabus from New York City to Washington DC

Far too trendy for fuddy duddy me.
Whoa, I've missed out on something here. When did taking the bus become trendy? Should I start doing that to meet the future young, attractive and wealthy Mrs. Lutz?
by stlutz
Sat Oct 28, 2017 1:28 pm
Forum: Personal Finance (Not Investing)
Topic: Which Health Insurance
Replies: 25
Views: 1426

Re: Which Health Insurance

With some employer options it is very clear they are trying to steer people one way or the other. That's not the case here. I think the cost to the employer works out to be about the same (averaged across everyone) for both plans. So I don't think one or the other is a "better deal". Personally in y...
by stlutz
Sat Oct 28, 2017 1:21 pm
Forum: Investing - Help with Personal Investments
Topic: Anyone use individual Bonds instead of Bond Funds in retirement fund?
Replies: 18
Views: 1376

Re: Anyone use individual Bonds instead of Bond Funds in retirement fund?

Let's suppose you bought a 10 year treasury today yielding 2.42%. A year from now rates have gone up to 3.42%. The price of your bond would decline by 7.7%. Your total return would be the sum of the yield + price return = -5.3%. Suppose you instead invested in the stlutz Intermediate Term Treasury I...
by stlutz
Sat Oct 28, 2017 12:00 pm
Forum: Investing - Theory, News & General
Topic: Bernstein's bond choice for cowards and ST IG
Replies: 28
Views: 3258

Re: Bernstein's bond choice for cowards and ST IG

Here is a chart showing the historical spread between BBB corporate bonds and Treasuries. Note that we are at the low end of the historical range now (expand the chart out to use "max" history): https://fred.stlouisfed.org/series/BAMLC0A4CBBB Remember that a corporate bond fund will always have loss...
by stlutz
Sat Oct 28, 2017 11:56 am
Forum: Investing - Help with Personal Investments
Topic: Bond Funds and Diversification
Replies: 9
Views: 778

Re: Bond Funds and Diversification

Bond funds accomplish two goals-they stabilize a portfolio because they are less volatile and they provide some return, usually less than stocks. High-quality bonds are wonderful in a 2008-type scenario where stocks go down and bonds go up. Historically there are other years where both bonds and sto...
by stlutz
Sat Oct 28, 2017 11:49 am
Forum: Investing - Help with Personal Investments
Topic: Anyone use individual Bonds instead of Bond Funds in retirement fund?
Replies: 18
Views: 1376

Re: Anyone use individual Bonds instead of Bond Funds in retirement fund?

A bond fund is nothing more than a collection of individual bonds. I own bond funds, bond ETFs and individual bonds. Yesterday interest rates declines and bond prices increased. If I login to my brokerage account you know what I'll see? The prices of of my bond funds and my individual bonds both wen...
by stlutz
Sat Oct 28, 2017 11:35 am
Forum: Investing - Theory, News & General
Topic: Bernstein's bond choice for cowards and ST IG
Replies: 28
Views: 3258

Re: Bernstein's bond choice for cowards and ST IG

Bernstein only likes short-term Treasury bonds and CDs. He is not a fan of corporate bonds. Here is an article by Bernstein summarizing his approach: https://www.wsj.com/articles/the-case-for-minimizing-risk-in-your-bond-holdings-1445220146 Disclosure: I'm not a fan of Bernstein's approach on a stra...
by stlutz
Sat Oct 28, 2017 11:28 am
Forum: Investing - Theory, News & General
Topic: Morningstar responds to Wall Street Journal article
Replies: 23
Views: 3545

Re: Morningstar responds to Wall Street Journal article

I am kind of curious who uses Morningstar ratings in their investing any longer? Individuals seem to be focused on cost. I'm curious for people who used to be with Edward Jones etc.--were funds selected for you there based on M* ranking? My understanding ha been that there are a couple of fund famil...
by stlutz
Sat Oct 28, 2017 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Early-retired 35 year old with $1 million
Replies: 198
Views: 18534

Re: Early-retired 35 year old with $1 million

One thing to watch for is that your income is high enough to qualify for ACA subsidies. Otherwise you will need to go on Medicaid (which can be good or bad depending on what state you live in). If your income is not that high, you'll want to manufacture some income via capital gains or Roth conversi...
by stlutz
Fri Oct 27, 2017 6:31 pm
Forum: Investing - Help with Personal Investments
Topic: 3-fund of SPDRs is better than of Vanguard ETF (lower ER)?
Replies: 24
Views: 2555

Re: 3-fund of SPDRs is better than of Vanguard ETF (lower ER)?

Interesting article comparing the total cost of funds between VG, iShares, and State Street.

http://www.etf.com/sections/features-an ... nopaging=1

My summary of the article: They are all very close to each other.
by stlutz
Thu Oct 26, 2017 12:57 am
Forum: Investing - Theory, News & General
Topic: Should I switch from a muni bond ladder to a bond fund?
Replies: 12
Views: 1761

Re: Should I switch from a muni bond ladder to a bond fund?

The answer is a firm, "it depends". Factors to consider: --when do the bonds mature? I'd be more inclined to hold a 5 year ladder until maturity. A 30 year ladder would be different. --What are the bonds' credit ratings? I'm more inclined to hold onto AA/AAA rated bonds and sell lower-rated ones. --...
by stlutz
Tue Oct 24, 2017 11:07 pm
Forum: Investing - Theory, News & General
Topic: Do Investors really underperform their investments
Replies: 45
Views: 3770

Re: Do Investors really underperform their investments

The mistake that underlies this is the belief that the market going up causes investors to "pile in at the top before the market crashes."

The cause of the market going up is investors piling in, not the result. Same goes with market declines--they happen because investors as a whole are moving out.
by stlutz
Mon Oct 23, 2017 11:24 am
Forum: Investing - Theory, News & General
Topic: After Market Beta’s Long Run Do you Consider Diversifying Into Other Factors?
Replies: 31
Views: 2136

Re: After Market Beta’s Long Run Do you Consider Diversifying Into Other Factors?

If you are long value stocks and short growth stocks the performance of the overall market doesn't matter.
by stlutz
Sun Oct 22, 2017 5:01 pm
Forum: Investing - Help with Personal Investments
Topic: Schwab- which money market fund? (taxable account)
Replies: 23
Views: 1513

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: 482

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: 1025

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: 458
Views: 38405

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...