Search found 932 matches

by venkman
Sat May 18, 2019 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: High net worth, elite private or “good” public
Replies: 127
Views: 7231

Re: High net worth, elite private or “good” public

I generally agree with this, but paying $30k per year for 13 years (K-12) seems like a steep cost to recover, if you can get basically the same thing for free (not really free but you are already paying for it.) That’s $390k. Probably more like $600k by the time they are 18, and $3,000,000 thirty y...
by venkman
Fri May 17, 2019 9:41 pm
Forum: Personal Investments
Topic: Am I being ripped off?
Replies: 42
Views: 4658

Re: Am I being ripped off?

I don't understand why you're paying professionals to manage your money, then telling them how to manage it.
by venkman
Fri May 17, 2019 9:03 pm
Forum: Investing - Theory, News & General
Topic: How to avoid 1 week of not investing when buying treasury bills
Replies: 21
Views: 1882

Re: How to avoid 1 week of not investing when buying treasury bills

The difference in yield between 1-month T-bills and Vanguard's settlement MM fund is about 5 bps. That's an almost negligible opportunity cost. Sure, but that doesn't help if you want to hold 3 or 6 month Treasuries. Rereading my post, I see how it could come across as suggesting the OP should use ...
by venkman
Thu May 16, 2019 10:40 pm
Forum: Investing - Theory, News & General
Topic: How much is the 401K and retirement savings propping up the market?
Replies: 26
Views: 3189

Re: How much is the 401K and retirement savings propping up the market?

If anything is propping up the stock market, it's

1. People chasing return in an era of low bond yields.
2. The richest 10% of the population, who collectively own 80%+ of the stock market and likely will never have a need to sell.
by venkman
Thu May 16, 2019 10:11 pm
Forum: Investing - Theory, News & General
Topic: How to avoid 1 week of not investing when buying treasury bills
Replies: 21
Views: 1882

Re: How to avoid 1 week of not investing when buying treasury bills

The difference in yield between 1-month T-bills and Vanguard's settlement MM fund is about 5 bps. That's an almost negligible opportunity cost.
by venkman
Wed May 15, 2019 10:07 pm
Forum: Investing - Theory, News & General
Topic: How to interpret price of BND?
Replies: 5
Views: 892

Re: How to interpret price of BND?

If BND is $81.19 what does it mean? Does it mean I earn 1% less when compared to BND bought for $80.38? The best measure of what you will earn going forward if you invest in a bond fund is the current SEC yield. While fund prices change with movements in interest rates, they can also change as the ...
by venkman
Sat May 11, 2019 8:51 pm
Forum: Investing - Theory, News & General
Topic: Value investing got too popular for its own good?
Replies: 14
Views: 1592

Re: Value investing got too popular for its own good?

Value tends to do better in periods of higher interest rates (growth stock future earnings don't look as good compared to a higher risk-free rate) and higher inflation (value stocks tend to be more highly leveraged, and inflation reduces the real value of that debt). Both conditions have been conspi...
by venkman
Fri May 10, 2019 9:42 pm
Forum: Personal Investments
Topic: Brokered CDs - how to pick
Replies: 21
Views: 1755

Re: Brokered CDs - how to pick

How do you pick which CD to buy? Do you all just pick the CD with the highest interest rate? Do you pay attention to the specific bank and do some research on the likelihood that bank will fail? Are there other considerations? Thanks. Some people have a preference about frequency of payment. I thin...
by venkman
Thu May 09, 2019 11:51 pm
Forum: Personal Investments
Topic: Best/Automated way for 3 ETF portfolio in Taxable account
Replies: 13
Views: 1012

Re: Best/Automated way for 3 ETF portfolio in Taxable account

VG mutual funds are just as tax efficient as the ETFs. Really? I mean that solves most of my problems if that is true. Why do I keep reading that ETFs are much more tax efficient than mutual funds? Vanguard has a patented system where the ETF is considered a share class of the corresponding mutual ...
by venkman
Thu May 09, 2019 11:41 pm
Forum: Personal Investments
Topic: Does a 3 Year CD Substitute For Bonds in your AA?
Replies: 10
Views: 886

Re: Does a 3 Year CD Substitute For Bonds in your AA?

A perpetual CD ladder is essentially a simple bond fund. Personally, I'd extend it out to 5 years, because you can get a significant premium over Treasuries, and your average maturity is still only going to be 2.5 years. I would still keep a portion of my bond allocation in a liquid bond fund, to us...
by venkman
Thu May 09, 2019 11:28 pm
Forum: Personal Investments
Topic: Am I living within my means, and opinions on AA
Replies: 11
Views: 2208

Re: Am I living within my means, and opinions on AA

It sounds like you already know what changes you could make to be able to increase your savings rate; and, at least for the time being, you've elected not to make them. I'm not saying you made the wrong choice--I think you should be fine at your current savings rate, especially if you plan to dial b...
by venkman
Thu May 09, 2019 11:06 pm
Forum: Personal Investments
Topic: Target Funds VS Three Funds with OPERS
Replies: 9
Views: 794

Re: Target Funds VS Three Funds with OPERS

I would like to have some control but don’t know if it’s necessary. I actually did select a target fund when started the job. As many people are using three funds portfolio here, i am wondering if I should switch. Thank you for your feedback The whole point of the 3-fund portfolio is to achieve a h...
by venkman
Thu May 09, 2019 10:48 pm
Forum: Personal Investments
Topic: Best/Automated way for 3 ETF portfolio in Taxable account
Replies: 13
Views: 1012

Re: Best/Automated way for 3 ETF portfolio in Taxable account

This is what I would do: Set up an account at Vanguard, using funds instead of ETF's. (VG's index mutual funds are just as tax-efficient as ETF's). Set up automatic investing into each of the three funds, according to your AA. Once a year, evaluate how far off your AA is from where you want it to be...
by venkman
Tue May 07, 2019 11:26 pm
Forum: Personal Investments
Topic: What do bogleheads think of the DLP fund?
Replies: 5
Views: 487

Re: What do bogleheads think of the DLP fund?

The fact that their website advertises a "FREE Investor Information Dinner," is a strong signal that you should turn and run in the opposite direction.
by venkman
Tue May 07, 2019 10:34 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity funds for super seniors
Replies: 11
Views: 1278

Re: Fidelity funds for super seniors

Does anyone have favorite Fidelity funds to recommend for a person in their 90s? She would have a generally conservative outlook, but would like to make a bit more than a 2% savings account or CD and is investing under $10k. "A bit more" on under $10k will amount to less than $50/year. Risk-free on...
by venkman
Mon May 06, 2019 9:19 pm
Forum: Personal Investments
Topic: Noob question about CDs
Replies: 6
Views: 650

Re: Noob question about CDs

Was it a bank CD? Is it possible it was set up to automatically roll over?

What do you mean by "coupon expiration date"?
by venkman
Sun May 05, 2019 10:26 pm
Forum: Personal Investments
Topic: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gains
Replies: 8
Views: 858

Re: Transitioning actively-managed brokerage (previous windfall) to buy-and-hold index funds, but unrealized capital gai

1. (For quick calculation purposes, I'm going to estimate you have $200k in taxable active funds, with an average ER of .80%.) If you sold off all your active funds and realized $21k in long term gains and $1k in short term gains, you would owe about $3400 in taxes. If you hold them, your gains coul...
by venkman
Sun May 05, 2019 9:45 pm
Forum: Personal Investments
Topic: Recent Retiree - Your thoughts on my mix
Replies: 11
Views: 1603

Re: Recent Retiree - Your thoughts on my mix

Progman wrote:
Sun May 05, 2019 8:11 pm
VGT I got to get a bigger impact from 5G technology over the next 5 years.
What do you know about 5G that the rest of the market does not know?

i.e. Why are you assuming that the expected impact of 5G has not already been priced into technology stocks?
by venkman
Sun May 05, 2019 9:23 pm
Forum: Investing - Theory, News & General
Topic: High Yield Corp Fund
Replies: 20
Views: 2003

Re: High Yield Corp Fund

One of the main drawbacks of high-yield bonds is that you take equity risk, without the favorable tax treatment that stocks get. So, you definitely shouldn't hold high-yield bonds in a taxable account. If it's within a retirement account (or you have a very low tax rate), it's not an unreasonable ch...
by venkman
Sat May 04, 2019 10:13 pm
Forum: Personal Investments
Topic: Funding a MM or investing for future condo purchase
Replies: 2
Views: 353

Re: Funding a MM or investing for future condo purchase

It's hard to answer your question, because no one knows what mortgage rates will be in 6 years. If you're reasonably sure that you want to buy a condo in 6 years, I would direct enough at least money to the MM fund to be able to cover a 20% condo down payment in 6 years, then invest the rest accordi...
by venkman
Sat May 04, 2019 9:41 pm
Forum: Personal Investments
Topic: What's wrong with my proposed portfolio?
Replies: 11
Views: 1777

Re: What's wrong with my proposed portfolio?

If you want low-maintenance, you need to minimize the number of funds you have. For rebalancing purposes, you can consider yourself to have a 3-fund portfolio (count the 2 US stock funds together and the 2 bond funds together). I would definitely go with Vanguard for the taxable account; their mutua...
by venkman
Sat May 04, 2019 9:19 pm
Forum: Investing - Theory, News & General
Topic: What Explains Corporate Bond Returns?
Replies: 6
Views: 687

Re: What Explains Corporate Bond Returns?

I remember reading that about a third of the excess return of corporate bonds over Treasuries was due to the less favorable tax treatment. In a no-income-tax state, or within a tax-advantaged account, that extra return is a bit of a free lunch (a free stop at the dessert tray, as Larry Swedroe might...
by venkman
Sat May 04, 2019 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Should I sell stock and trigger capital gains or spend my emergency fund?
Replies: 15
Views: 1727

Re: Should I sell stock and trigger capital gains or spend my emergency fund?

A third option would be to get a new credit card with a 0% introductory rate for 12 months. Charge $18k on that, pay it all back over 9 months, then cancel the card. No interest, no realized cap gains.
by venkman
Wed May 01, 2019 10:24 pm
Forum: Personal Investments
Topic: Bonds
Replies: 6
Views: 1075

Re: Bonds

In addition to that, is there an advantage to buying individual bonds, compared to a bond fund ? The primary difference between individual bonds and a bond fund is that the duration (and thus interest rate risk) of individual bonds is constantly dropping as time passes, whereas a bond fund tends to...
by venkman
Wed May 01, 2019 10:09 pm
Forum: Personal Investments
Topic: VTI vs. VTSAX in taxable account
Replies: 11
Views: 898

Re: VTI vs. VTSAX in taxable account

Both are fine if you want to do tax-loss harvesting. VTI is better if you want to do tax-GAIN harvesting; because you can sell it, then immediately buy it back. If you sell VTSAX, Vanguard will probably make you wait 30 days before you can buy more.
by venkman
Tue Apr 30, 2019 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: Random piling on of a financial advisor
Replies: 14
Views: 2056

Re: Random piling on of a financial advisor

mchampse wrote:
Tue Apr 30, 2019 1:00 pm
Anyway, he was bragging about how he had doubled my dads money in the past 10 years yielding a 6.1% annual return.
With an average 6.1% return, it will take closer to 12 years to double your money. You need a 7% return to double your money in 10 years.
by venkman
Sun Apr 28, 2019 11:20 pm
Forum: Investing - Theory, News & General
Topic: Bond yields based on historical prices
Replies: 3
Views: 527

Re: Bond yields based on historical prices

"Current yield" is the term for a bond's coupon payment divided by its current market price. It is NOT the same thing as "Yield to maturity," which is the number generally quoted for (non-callable) bonds. Regardless of the NAV price, a bond fund will pay out a consistent amount in absolute dollars p...
by venkman
Sun Apr 28, 2019 10:25 pm
Forum: Investing - Theory, News & General
Topic: Barron's writes--Vanguard Keeps Some of Its Cheapest Funds Out of Reach for Fidelity Customers
Replies: 10
Views: 2056

Re: Barron's writes--Vanguard Keeps Some of Its Cheapest Funds Out of Reach for Fidelity Customers

As a longtime Fidelity customer (and former writer for its web site), I’ve long appreciated the company’s customer service and wide array of investment choices. But when I tried to buy the Admiral class shares of a Vanguard mutual fund recently, I was politely told that it wasn’t available—no matte...
by venkman
Sun Apr 28, 2019 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Financial Advice
Replies: 10
Views: 1124

Re: Financial Advice

Look at https://garrettplanningnetwork.com/ or http://www.feeonlynetwork.com/. You can often find financial advisors that work on an hourly or project basis depending on what you need. Definitely interview folks on your shortlist. Most people will not charge for the first hour-long meeting that cov...
by venkman
Sun Apr 28, 2019 9:46 pm
Forum: Personal Finance (Not Investing)
Topic: Looking for Very High Travel Accident Insurance
Replies: 35
Views: 2977

Re: Looking for Very High Travel Accident Insurance

Cost is $300 for one year. I'm satisfied. Statistically, it was a sub-optimal choice. On the other hand, if it was a significant help to you psychologically, $300 for a full year sounds like a bargain. I'd rule that this falls under the "sleep better" clause of the BH bylaws, and grant retroactive ...
by venkman
Sat Apr 27, 2019 10:04 pm
Forum: Personal Investments
Topic: Protection in the event of a bad ETF transaction
Replies: 3
Views: 384

Re: Protection in the event of a bad ETF transaction

There are rules that orders have to be filled at the current market price, even limit orders with a price that differs greatly from the market price. I believe that Vanguard will give you a little pop-up warning if your sell limit price is below market, but it will still let you submit the trade. If...
by venkman
Sat Apr 27, 2019 9:37 pm
Forum: Personal Investments
Topic: Advice on wife's 401k fund selection
Replies: 9
Views: 562

Re: Advice on wife's 401k fund selection

I don't see any reason not to use the low-ER Fidelity options.
by venkman
Fri Apr 26, 2019 9:50 pm
Forum: Personal Finance (Not Investing)
Topic: Inflation assumption for planning
Replies: 24
Views: 1267

Re: Inflation assumption for planning

...When I asked why their assumption was so low, I was told that they use forward looking projections based on research rather than the historical averages that most other methodologies utilize. They are basing it on the difference between the yield on 20 year T bills vs. TIPS. Does this make sense...
by venkman
Mon Apr 22, 2019 10:19 pm
Forum: Personal Investments
Topic: 81 year old Mother In Law - Investment plan
Replies: 15
Views: 1406

Re: 81 year old Mother In Law - Investment plan

jpc763 wrote:
Mon Apr 22, 2019 5:05 pm
50% in Vanguard International Bond Index Fund (VBTLX) - She wanted this fund as her brother recommended it
VBTLX is the Total Bond Market Index Fund. The International Bond Index is VTABX. Which one did you mean?
by venkman
Mon Apr 22, 2019 10:12 pm
Forum: Investing - Theory, News & General
Topic: Avoid taxable transactions by not using automatic dividend reinvestment?
Replies: 13
Views: 1705

Re: Avoid taxable transactions by not using automatic dividend reinvestment?

Found the original quote here: https://www.mymoneyblog.com/portfolio-asset-allocation-2017-year-end.html As I suspected, he said it in the context of rebalancing. He uses new money and reinvests held dividends to maintain his target AA (thereby avoiding the taxable event that would occur if he neede...
by venkman
Mon Apr 22, 2019 9:53 pm
Forum: Personal Finance (Not Investing)
Topic: Suddenly, even lower opinion of financial planners/money managers
Replies: 67
Views: 5841

Re: Suddenly, even lower opinion of financial planners/money managers

After taking the Series 65, I feel very confident in asserting that anybody that only passes this one test is NOT competent to offer financial advice. I took the 65 a couple years ago, as a way to convince my mother to let me manage her portfolio instead of her 1.5% AUM advisor. I studied about an ...
by venkman
Sun Apr 21, 2019 9:47 pm
Forum: Personal Investments
Topic: Portfolio Question...
Replies: 14
Views: 1181

Re: Portfolio Question...

Questions: 3. Do I have too many funds? Should I simplify? Yes and yes. Your Roth 2 account has both growth and value funds, which can be combined into a single blended fund like VTI. And the sector tilts will be such a small part of your overall portfolio that they won't make a significant differe...
by venkman
Sat Apr 20, 2019 10:00 pm
Forum: Investing - Theory, News & General
Topic: a percentage decline is MORE than that decline OF YOUR GAINS??
Replies: 29
Views: 2315

Re: a percentage decline is MORE than that decline OF YOUR GAINS??

Just use the Dave Ramsey SystemTM, where volatility drag doesn't exist, and your CAGR always equals the arithmetic average of your annual gains! :twisted:
by venkman
Fri Apr 19, 2019 9:54 pm
Forum: Personal Investments
Topic: Muni Bond Fund Help (FHIGX)
Replies: 17
Views: 1475

Re: Muni Bond Fund Help (FHIGX)

FHIGX doesn't look awful, but that .46% ER is hard to get past. The managers will likely take on more risk to make the yield look competitive. Vanguard's Long-term Muni Fund (VWLTX) has slightly higher yield, with higher credit quality. But if you're with Fidelity, I'm guessing you don't have easy a...
by venkman
Thu Apr 18, 2019 9:38 pm
Forum: Personal Investments
Topic: Need more interest, non qualified dividends, or STCG!
Replies: 8
Views: 775

Re: Need more interest, non qualified dividends, or STCG!

Certain government bonds pay a low yield because of their tax efficiency. Is there an opposite product that pays a higher than typical yield due to it's tax inefficiency for most people? Junk bonds? The biggest issue with your situation is that there isn't anything that will get you significant sho...
by venkman
Thu Apr 18, 2019 8:46 pm
Forum: Investing - Theory, News & General
Topic: American Funds vs Vanguard
Replies: 69
Views: 4232

Re: American Funds vs Vanguard

Hmm.. American funds introduced F1 share class a few years ago that are no load/no transaction fee on most broker platforms including Vanguard, Fidelity, Schwab, Merrill and others.. Class F-1, F-2, F-3 and 529-F-1 shares are designed for investors who choose to compensate their financial professio...
by venkman
Wed Apr 17, 2019 9:59 pm
Forum: Personal Investments
Topic: Investing for Inflation, Disinflation or Deflation...What to do?
Replies: 9
Views: 888

Re: Investing for Inflation, Disinflation or Deflation...What to do?

If you really were risk averse, you wouldn’t use a total bond fund. What would you recommend I replace a Total Bond Fund with? Unless you're risk-allergic and might die from anaphylactic risk shock, a total bond fund is fine. Vanguard's Total Bond fund has had 4 negative calendar years since 1987, ...
by venkman
Tue Apr 16, 2019 10:40 pm
Forum: Personal Investments
Topic: Short Term Bond Index vs. Prime Money Market
Replies: 30
Views: 3410

Re: Short Term Bond Index vs. Prime Money Market

Why would someone invest in the Short Term Bond Index Fund and assume any risk for .05% above the (essentially) risk free money market? Am I missing something? You're missing the fact that interest rate risk is not the only type of risk associated with bonds... I didn't miss that fact, which makes ...
by venkman
Mon Apr 15, 2019 11:55 pm
Forum: Personal Investments
Topic: Short Term Bond Index vs. Prime Money Market
Replies: 30
Views: 3410

Re: Short Term Bond Index vs. Prime Money Market

Eric76 wrote:
Mon Apr 15, 2019 10:30 pm
Why would someone invest in the Short Term Bond Index Fund and assume any risk for .05% above the (essentially) risk free money market?
Am I missing something?
You're missing the fact that interest rate risk is not the only type of risk associated with bonds...
by venkman
Mon Apr 15, 2019 11:45 pm
Forum: Investing - Theory, News & General
Topic: Career Advice: Is active management really dying?
Replies: 28
Views: 3201

Re: Career Advice: Is active management really dying?

I have no dobut that I would be an ethical, hardworking and knowledgeable advisor, but that doesn't change the fact that fewer and fewer people want to pay for Financial Advice, and I do believe in passive index funds for the typical investor (although not for everyone). What level of AUM fees are ...
by venkman
Sun Apr 14, 2019 10:38 pm
Forum: Personal Investments
Topic: My pet peeve with Vanguard Personal Advisory Service
Replies: 14
Views: 2696

Re: My pet peeve with Vanguard Personal Advisory Service

Doesn't Vanguard offee free access to a financial planner to clients with accounts more than $1 million?

I don't know how much free advice you're able to get, but it seems like they should at least be able to set up your portfolio the same way PAS does, and provide the occasional check-in.
by venkman
Sun Apr 14, 2019 10:30 pm
Forum: Personal Investments
Topic: Would it be better to invest my cash in VMFXX or VMSXX ?
Replies: 6
Views: 1331

Re: Would it be better to invest my cash in VMFXX or VMSXX ?

Would it be better to invest my cash in VMFXX or VMSXX ? VMFXX 7-day SEC yield as of 04/12/2019 is 2.35% VMSXX 7-day SEC yield as of 04/12/2019 is 1.47% The SEC yield of VMSXX tends to fluctuate throughout the year, independent of changes in the Fed rate. While VMFXX's yield has remained stable sin...
by venkman
Sun Apr 14, 2019 10:05 pm
Forum: Personal Investments
Topic: Best Order Type to sell individual stocks
Replies: 5
Views: 551

Re: Best Order Type to sell individual stocks

Use a limit order, and set the limit price a bit below whatever the current market price is. The order should still execute at the current market price, but you've got insurance, just in case a glitch happens at the wrong time.
by venkman
Tue Apr 09, 2019 10:21 pm
Forum: Personal Investments
Topic: Need to hire a financial advisor
Replies: 12
Views: 1547

Re: Need to hire a financial advisor

I think it more likely Vanguard will use low cost index funds. This is what the Schwab website says about the investments they use. Do ETFs end up costing more? Schwab Intelligent Portfolios uses an advanced algorithm and the professional insight of the Charles Schwab Investment Advisory, Inc. (CSI...
by venkman
Sun Apr 07, 2019 11:43 pm
Forum: Personal Investments
Topic: Portfolio Review Request for New Boglehead: Thank You Very Much!
Replies: 7
Views: 737

Re: Portfolio Review Request for New Boglehead: Thank You Very Much!

Thank you Venkman for your feedback. We’re hoping to more like triple the portfolio rather than double it over the next 15 years, which is why I’m considering upping the stock allocation. I’m also curious about my bigger question of why have any bonds at all if 100% equities is highly likely to out...