Search found 4179 matches

by stlutz
Wed Feb 21, 2018 9:36 pm
Forum: Investing - Help with Personal Investments
Topic: Still lose with bonds even at duration
Replies: 13
Views: 1079

Re: Still lose with bonds even at duration

Two notes: 1) I think your tax calculation on your "current" line is incorrect. Don't forget that you can take a capital loss at any time ("tax loss harvesting") and deduct that against regular income. So, the two options should be very close to equal tax-wise. 2) SEC Yield is based on a 30 day aver...
by stlutz
Tue Feb 20, 2018 9:28 pm
Forum: Investing - Theory, News & General
Topic: Vanguard US Multifactor Funds Launch
Replies: 25
Views: 2832

Re: Vanguard US Multifactor Funds Launch

In general, I think most of these factor funds are marketing inappropriately by selling outpeformance. What most of them are doing in reality in managing/limiting risk. Min vol. does that most explicitly, but quality, value and even momentum (if it's netting out volatility as MTUM does) are all find...
by stlutz
Tue Feb 20, 2018 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 20
Views: 1519

Re: Convert to ETF (not at Vanguard)

As an update to the two or so people who are interested, Schwab confirmed that they would not do the conversion on their end.
by stlutz
Mon Feb 19, 2018 11:40 am
Forum: Personal Finance (Not Investing)
Topic: Misc Income [how to report with no 1099]
Replies: 42
Views: 1723

Re: Misc Income [how to report with no 1099]

What tax bracket are you otherwise in? Overall, that sounds about right as you have to pay regular income tax, Social Security self-employment tax (12.4%) and Medicare tax (2.9%) on the money. The money does get added to your Social Security wages which will slightly increase your payout when you re...
by stlutz
Mon Feb 19, 2018 11:32 am
Forum: Personal Finance (Not Investing)
Topic: Is it wise for us to make a one-time lump sum mortgage payment?
Replies: 23
Views: 1195

Re: Is it wise for us to make a one-time lump sum mortgage payment?

A more accurate way to look at the question is, "Should I borrow $X at 4.25% for 25 years to invest in an 85/15 stock/bond portfolio?" That would be what you are doing with any money you are not dedicating to paying down the mortgage. So, do you want a 4.25% guaranteed after tax return with a loss o...
by stlutz
Sun Feb 18, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 20
Views: 1519

Re: Convert to ETF (not at Vanguard)

OP, why are you converting? Are you needing to do this on a regular basis or more than just once? I'm not asking the question because I'm after bonuses. I have accounts at VG, Schwab, and Fidelity. I wouldn't mind scaling back to the later two. Admiral shares outside of VG can be problematic. Hence...
by stlutz
Fri Feb 16, 2018 7:00 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 20
Views: 1519

Re: Convert to ETF (not at Vanguard)

Thanks all. To provide some background, I have a mild interest in reducing the number of custodians I deal with. VG would be the preferred one to eliminate. However, it's generally assumed that to transfer out of VG you need to convert your funds to ETF. I've seen varying reports on this board as to...
by stlutz
Thu Feb 15, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 20
Views: 1519

Re: Convert to ETF (not at Vanguard)

What they say on their website is: "If you own your Vanguard mutual fund shares through another broker, keep in mind that some brokers may not be able to convert fractional shares, which could result in a modest taxable gain for you. Other brokers may also charge a fee for a conversion. Contact your...
by stlutz
Thu Feb 15, 2018 12:10 am
Forum: Investing - Help with Personal Investments
Topic: Convert to ETF (not at Vanguard)
Replies: 20
Views: 1519

Convert to ETF (not at Vanguard)

Has anybody ever converted Vanguard mutual fund shares to ETF, but done so at another broker (Schwab, Fidelity, Merrill etc.)?

Vanguard's website says this is possible--I figured if anybody had ever actually done that it would have been amongst this group. :happy
by stlutz
Wed Feb 14, 2018 10:11 pm
Forum: Investing - Help with Personal Investments
Topic: Is VTI really "total stock market" with only 1478 holdings?
Replies: 12
Views: 1747

Re: Is VTI really "total stock market" with only 1478 holdings?

VTI has 3638 holdings according to Vanguard.com

VXUS is 6283.
by stlutz
Wed Feb 14, 2018 8:31 pm
Forum: Investing - Theory, News & General
Topic: keep trade confirmations?
Replies: 1
Views: 286

Re: keep trade confirmations?

Not all states recognize HSAs, so I keep those on the off chance I end up moving to CA or NJ.

Given the small cost of hard drive space, I just save all of them regardless of account.
by stlutz
Tue Feb 13, 2018 11:21 pm
Forum: Investing - Help with Personal Investments
Topic: Deciding Between Treasuries and Munis in Taxable
Replies: 15
Views: 1169

Re: Deciding Between Treasuries and Munis in Taxable

Plus, if you're talking about the Treasury index fund the ER is only .07% :happy
by stlutz
Sun Feb 11, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: how did you determine your risk tolerance?
Replies: 103
Views: 4862

Re: how did you determine your risk tolerance?

The need, ability, and willingness to take risk is hopefully not primarily about emotions. Emotional investing leads to FOMO (fear of missing out) at the top and panic selling at the bottom. If you're not feeling emotions--great. That just means that you can actually take a mature look at it, not th...
by stlutz
Sun Feb 11, 2018 10:06 pm
Forum: Personal Consumer Issues
Topic: Driving a rental car in Western Europe
Replies: 46
Views: 1545

Re: Driving a rental car in Western Europe

Tolls can be expensive, so don't forget to count that.

If you're doing things in smaller towns, you'll want a car. If you're in cities, you don't want a car. I would probably just rent one for the days you need it.
by stlutz
Sun Feb 11, 2018 6:57 pm
Forum: Investing - Theory, News & General
Topic: Soul searching on interest rates
Replies: 15
Views: 1298

Re: Soul searching on interest rates

I think you're mixing two very different concerns: The finances of the state of New Jersey and those of the US Government. The US government issues borrows in its own currency. If it borrows and spends $100, that money will make it through the economy and eventually ends up in the hands of someone w...
by stlutz
Sat Feb 10, 2018 9:56 pm
Forum: Investing - Help with Personal Investments
Topic: Incorrect cost basis on Fidelity tax statements
Replies: 12
Views: 948

Re: Incorrect cost basis on Fidelity tax statements

Send them a secure message describing the issue and they'll look into it.

I had a problem a couple years back. Here was my experience: viewtopic.php?t=187025
by stlutz
Sat Feb 10, 2018 9:12 pm
Forum: Investing - Help with Personal Investments
Topic: TLH compatibilty between VTI, SCHB and FSTVX
Replies: 9
Views: 594

Re: TLH compatibilty between VTI, SCHB and FSTVX

The intended purpose matters. Outside of TLH threads the purpose is to obtain cheap access to market beta. Inside of TLH threads the purpose is to obtain exposure to a specific index. Now what would rule would be if the IRS said what they cared was about substantially identical exposure in a Fama-F...
by stlutz
Sat Feb 10, 2018 8:35 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Time Series Momentum (aka Trend Following): A Good Time For A Refresh
Replies: 28
Views: 2230

Re: Larry Swedroe: Time Series Momentum (aka Trend Following): A Good Time For A Refresh

Nisi--Some of the concerns about the CTA indexes are also discussed in this article: http://www.etf.com/publications/journalofindexes/joi-articles/11652-managed-futures-strategies.html?nopaging=1 . Their issues are: 1. Returns may be biased upward: The returns for indexes of CTA managers tend to be ...
by stlutz
Sat Feb 10, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: TLH compatibilty between VTI, SCHB and FSTVX
Replies: 9
Views: 594

Re: TLH compatibilty between VTI, SCHB and FSTVX

Outside of threads on tax-loss harvesting, people on this forum pretty universally say that these funds are "substantially" if not almost completely identical to each other.
by stlutz
Sat Feb 10, 2018 8:13 pm
Forum: Investing - Theory, News & General
Topic: QSPIX - thoughts on interesting fund
Replies: 1250
Views: 186366

Re: QSPIX - thoughts on interesting fund

packer: I think you're over-pushing it on your return comparisons to make your point. Swedroe naming a portfolio after himself more recently doesn't mean the portfolio as a concept hasn't been around for a while. I first became aware of the idea back in about 1999. If you backtest from 99-02 the por...
by stlutz
Sat Feb 10, 2018 6:51 pm
Forum: Investing - Theory, News & General
Topic: Just how safe is a short-term corporate bond fund?
Replies: 33
Views: 2941

Re: Just how safe is a short-term corporate bond fund?

- If the 10% drop isn't a hard limit, better to not get fancy and just go with Total Bond. i.e. just increase the bond allocation of my portfolio, decrease what is probably an exorbitant emergency fund, and call it a day.
+1. If your portfolio is, say, 30% fixed income, just do 30% + $X.
by stlutz
Sat Feb 10, 2018 2:50 pm
Forum: Investing - Help with Personal Investments
Topic: Arguments against rising equity glide path?
Replies: 40
Views: 2419

Re: Arguments against rising equity glide path?

The rising equity path makes a lot more sense as a result as opposed to being the plan. Here's what I mean. One can put a retirement plan together by create a base level of income (beyond Social Security) using fixed income and/or annuities. With this money, the plan is to spend it down to zero. The...
by stlutz
Sat Feb 10, 2018 2:41 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 109
Views: 8046

Re: 30 yr tips auction 2/15: 1.0% yield?

Garland/Grok: At the end of the day I'm not seeing where you guys are that much different. Grok laid out having about a 50/50 stock/bond split. Garland argued for using "balanced" portfolio. Seems like at the end of the day that the main differences are a) Whether to rebalance between stocks and bon...
by stlutz
Sat Feb 10, 2018 1:43 pm
Forum: Personal Finance (Not Investing)
Topic: Bank mailed individual 1099-INT and Combined 1099-INT
Replies: 6
Views: 434

Re: Bank mailed individual 1099-INT and Combined 1099-INT

Is your bank Ally? If not, they do the same. I wouldn't worry about it--just file your taxes accurately.
by stlutz
Sat Feb 10, 2018 12:29 pm
Forum: Personal Finance (Not Investing)
Topic: How to prepare for impact of marked inflation, devalue of dollar
Replies: 10
Views: 901

Re: How to prepare for impact of marked inflation, devalue of dollar

With all the dire predictions about the national debt and the new budget that just passed in Congress... Whose dire predictions? Are those the same people who have been making dire predictions about the national debt since the days of the Reagan Administration? Japan's debt/GDP is way, way larger t...
by stlutz
Sat Feb 10, 2018 1:07 am
Forum: Investing - Theory, News & General
Topic: Help me understand the low volatility premium
Replies: 7
Views: 821

Re: Help me understand the low volatility premium

1. Statistically, the low volatility premium should come from improving the geometric mean, as opposed to the average returns. For example, a fund that returns 5% every year will do better than a fund that alternates between 0% and 10% every other year. However, in the real world, if a company or i...
by stlutz
Fri Feb 09, 2018 11:11 pm
Forum: Investing - Theory, News & General
Topic: Question re: Bond Fund Principal
Replies: 5
Views: 352

Re: Question re: Bond Fund Principal

could a bond fund technically go broke and lose all principal ? Yes, if the underlying bonds all go to zero. This could happen if a fund made a massive bet on selected junk bonds and the companies went bankrupt and couldn't pay them back. Same thing that would happen to the individual bond holders....
by stlutz
Fri Feb 09, 2018 10:55 pm
Forum: Investing - Help with Personal Investments
Topic: From EJ to Vanguard to Schwab
Replies: 21
Views: 1975

Re: From EJ to Vanguard to Schwab

what happens the first time that Schwab screws something up?
I had problem at Schwab Bank one time where a check got cashed for the wrong amount. The error was pretty substantial. When I called, the rep. fixed the problem (i.e. credited my account) *while I was on the phone*.
by stlutz
Fri Feb 09, 2018 11:50 am
Forum: Investing - Help with Personal Investments
Topic: Can I assume Chase earns fees when purchasing/selling munis for an advised portfolio, in addition to the AUM fee?
Replies: 17
Views: 525

Re: Can I assume Chase earns fees when purchasing/selling munis for an advised portfolio, in addition to the AUM fee?

Looking at Emma (for the first time), it seems that the bond sold recently by the client had the same price as the trade listed in Emma for the same date. So no markup on the sale? But for the bond BOUGHT on Dec 29, 2016, the highest price listed on Emma is 118.35. While the client was charged 119....
by stlutz
Fri Feb 09, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Can I assume Chase earns fees when purchasing/selling munis for an advised portfolio, in addition to the AUM fee?
Replies: 17
Views: 525

Re: Can I assume Chase earns fees when purchasing/selling munis for an advised portfolio, in addition to the AUM fee?

Do you have a specific bond purchase with Cusip? This can be figured out by looking it up on Emma. I'm sure folks here would be happy to help with looking that up.
by stlutz
Thu Feb 08, 2018 10:29 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 4672

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

For the financially handicapped, I wonder if anyone is up to figuring this out with real funds. I'd like to use the duration matching strategy with the goal of producing $10K real income per year for the next 20 years. I need to determine how much to invest and how to weight the ST and LT TIPs fund...
by stlutz
Thu Feb 08, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 4672

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

Being the skeptical sort, I didn't want to entirely take BobK's word for it that this two fund approach actually would work in terms of creating stable income from year to year. So I've been working on an Excel file to simulate this with with a bond maturing in 3 years and a bond maturing in 20 year...
by stlutz
Thu Feb 08, 2018 2:00 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: 4 Horsemen Of Your Portfolio
Replies: 108
Views: 10325

Re: Larry Swedroe: 4 Horsemen Of Your Portfolio

Being a contrarian, let me offer a bit of a [hedged] defense of Swedroe's article. The whole question of whether his suggested "alternative" investments will beat equities with less risk all depends on what the returns of equities are going to be. If the stock market returns 0-2% annualized for the ...
by stlutz
Thu Feb 08, 2018 1:04 am
Forum: Investing - Theory, News & General
Topic: The yield curve inverted (a tiny bit) on 1/30
Replies: 2
Views: 561

Re: The yield curve inverted (a tiny bit) on 1/30

Worries over whether the debt ceiling would be increased at the beginning of March. Bloomberg had an article on it that you might able to able to search for (I forget the title).
by stlutz
Wed Feb 07, 2018 9:32 pm
Forum: Investing - Theory, News & General
Topic: Standard deviation measure of risk for a bond fund?
Replies: 15
Views: 935

Re: Standard deviation measure of risk for a bond fund?

Do you have a specific source for your statement that Vanguard's Intermediate-Term Tax-Exempt, in particular, holds bonds to maturity? In the case of *this particular fund*, it seems that they actually do hold a lot of bonds to maturity. The average stated maturity of the bonds in the fund is 8.9 y...
by stlutz
Tue Feb 06, 2018 10:22 pm
Forum: Investing - Theory, News & General
Topic: Return of stock market is better overnight than during the day - NYTimes article
Replies: 19
Views: 2551

Re: Return of stock market is better overnight than during the day - NYTimes article

Erik Falkenstein (one of the leading "low volatility" guys) once made the same observation. I think his argument was that the positive market returns happen at the least risky time of the day (when we're all asleep) vs. when the market is more risky (during trading hours). Not sure if I buy that thi...
by stlutz
Tue Feb 06, 2018 8:58 pm
Forum: Investing - Help with Personal Investments
Topic: Why different return of VTIAX and VXUS today (2/6/2018)?
Replies: 12
Views: 1117

Re: Why different return of VTIAX and VXUS today (2/6/2018)?

International markets were closed with the big decline happened yesterday late in the day in the US. They were also closed when prices surged today late in the day. So, you have a situation where an ETF (VXUS) is trading, but the underlying securities are not. So, that raises the question of how to ...
by stlutz
Tue Feb 06, 2018 8:47 pm
Forum: Investing - Theory, News & General
Topic: Matching a TIPS bond ladder with ST and LT TIPS bond funds
Replies: 98
Views: 4672

Re: Matching a TIPS bond ladder with ST and LT TIPS bond funds

Can you explain the calculation of "Duration of spending" or, why is it 20/2"? This is something that took a while to click in my brain. What BobK is saying is based on the very definition of duration. If I look at the Wikipedia article (https://en.wikipedia.org/wiki/Bond_duration), it states, "the...
by stlutz
Tue Feb 06, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: Why GNMAs Shouldn't Be Your Bond Choice
Replies: 70
Views: 4856

Re: Why GNMAs Shouldn't Be Your Bond Choice

I think some people are coming to different conclusions based on the same set of facts mainly because there are a few different ways to look at selecting bonds: ... While I might be persuaded of my own abilities to select the "best" fixed income securities for my portfolio, the historical evidence ...
by stlutz
Tue Feb 06, 2018 7:44 pm
Forum: Investing - Theory, News & General
Topic: Are earnings less volatile today?
Replies: 2
Views: 307

Re: Are earnings less volatile today?

Depends on what you are comparing against. Reported EPS was more stable back in 80s and 90s than it is today because accounting rules have changed that more accurately reflects/exaggerates (depending on your view) the decline in earnings that occurs in downturns.
by stlutz
Mon Feb 05, 2018 9:11 pm
Forum: Investing - Help with Personal Investments
Topic: Rebalance after today's drop?
Replies: 32
Views: 4361

Re: Rebalance after today's drop?

Basically everything is just slightly below where it was on Jan. 1st. If you drew a straight line from then to today would you be asking if you should "do something"?
by stlutz
Mon Feb 05, 2018 9:01 pm
Forum: Investing - Help with Personal Investments
Topic: Just another brokerage transfer question- TD Ameritrade to...
Replies: 13
Views: 757

Re: Just another brokerage transfer question- TD Ameritrade to...

This is one of my favorite LOL posts from livesoft about asking for free trades: viewtopic.php?t=180849#p2740546
by stlutz
Mon Feb 05, 2018 8:53 pm
Forum: Investing - Help with Personal Investments
Topic: Fidelity IRA to Roth IRA wait time?
Replies: 8
Views: 496

Re: Fidelity IRA to Roth IRA wait time?

IME they want 4 business days before the money is "available for withdrawal".
by stlutz
Mon Feb 05, 2018 8:41 pm
Forum: Investing - Theory, News & General
Topic: Why GNMAs Shouldn't Be Your Bond Choice
Replies: 70
Views: 4856

Re: Why GNMAs Shouldn't Be Your Bond Choice

I think some people are coming to different conclusions based on the same set of facts mainly because there are a few different ways to look at selecting bonds: Approach #1) There are experts who spend all day doing nothing but valuing bonds. I'm not one of them. As such, it makes no sense for me to...
by stlutz
Mon Feb 05, 2018 8:11 pm
Forum: Investing - Theory, News & General
Topic: changing from a Vanguard mutual fund account to a Vanguard brokerage account
Replies: 16
Views: 1212

Re: changing from a Vanguard mutual fund account to a Vanguard brokerage account

No adventures when I did mine last year. Anything about your account setup that is unusual?
by stlutz
Mon Feb 05, 2018 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Additional Risks of Margin Accounts
Replies: 9
Views: 483

Re: Additional Risks of Margin Accounts

When you have a margin account the broker may lend your securities to short sellers. In a non margin account after a stock sale you must currently wait the 48 hours before the funds are available once again to trade. This depends on the broker. At Fido/Schwab/Vanguard, this is not the case. You can ...
by stlutz
Mon Feb 05, 2018 6:25 am
Forum: Personal Finance (Not Investing)
Topic: Shorting AGG
Replies: 5
Views: 439

Re: Shorting AGG

Might have been a good trade a couple months ago as opposed to after the market has priced in expectations of higher inflation.
by stlutz
Mon Feb 05, 2018 12:03 am
Forum: Investing - Theory, News & General
Topic: Bonds in taxable for TLH purposes
Replies: 11
Views: 963

Re: Bonds in taxable for TLH purposes

I have a lot of bonds in taxable but they haven't dropped enough to warrant TLH yet in my opinion. Assuming you aren't selling and buying something following the same index (such as VGIT->SCHR or VTEB->MUB), then random return differences between the fund you are selling and the one you are buying w...
by stlutz
Sun Feb 04, 2018 11:54 pm
Forum: Investing - Help with Personal Investments
Topic: Start of Retirement Jan 2018 - Allocation for Volatility?
Replies: 11
Views: 1428

Re: Start of Retirement Jan 2018 - Allocation for Volatility?

Here is one way to think about it: For the next 9 years you need ~$36,000 per year as an income floor. That should be invested in fixed income. If I assume a real annual return of .7% (the current yield on a 10 year TIPS), then $320,000 will cover that. Once you get Social Security, you only need ~$...