Search found 1060 matches

by venkman
Fri Nov 08, 2019 1:15 am
Forum: Personal Investments
Topic: large stake in VNQ [Vanguard Real Estate ETF]
Replies: 17
Views: 1288

Re: large stake in VNQ [Vanguard Real Estate ETF]

So, recently i decided to put a lot of my Roth money in VNQ, since at least if the market crashes it'll pay out a bigger dividend. I know that this is unusual however and that REIT valuations are also sky high. I wish there was a way to invest defensively and still get a decent return. The industry...
by venkman
Fri Nov 08, 2019 12:19 am
Forum: Investing - Theory, News & General
Topic: US Bonds in free fall
Replies: 46
Views: 4612

Re: US Bonds in free fall

Relative to the annual average expected return for the asset class this almost qualifies as a "crash" in my opinion since the drop in just 10 days represents 76% of the SEC yield of the ETF/Fund. What word would you use to describe the fact that BIV is still up 9.38% year-to-date (more than 4.5 tim...
by venkman
Tue Nov 05, 2019 11:07 pm
Forum: Investing - Theory, News & General
Topic: 2020 I Bonds: what's your plan?
Replies: 19
Views: 1603

Re: 2020 I Bonds: what's your plan?

I would at least wait until the end of April and see how Treasuries are looking.
by venkman
Wed Oct 30, 2019 8:59 pm
Forum: Personal Investments
Topic: Purchase Fee on Vanguard Bond Fund
Replies: 11
Views: 1207

Re: Purchase Fee on Vanguard Bond Fund

You don't have to put new money into your IRA. You can sell something currently within the IRA and buy VICSX. Whatever you sold off in the IRA, you can buy back in your taxable account. I know this. But my IRA is already filled with other dividend-rich funds. And it is getting to be a smaller perce...
by venkman
Tue Oct 29, 2019 10:05 pm
Forum: Personal Investments
Topic: Sell CD and invest in bond fund, or stick with CD?
Replies: 20
Views: 2176

Re: Sell CD and invest in bond fund, or stick with CD?

We have a brokered CD at Vanguard in our taxable account that was purchased in October 2018 ($50k principal, 5yrs at 3.35%). Since that time interest rates have declined and the value of the CD has increased, showing on our dashboard currently at $52,755. I'm trying to evaluate (1) whether to sell ...
by venkman
Mon Oct 28, 2019 11:08 pm
Forum: Personal Investments
Topic: Purchase Fee on Vanguard Bond Fund
Replies: 11
Views: 1207

Re: Purchase Fee on Vanguard Bond Fund

I'm looking to add a dedicated corporate bond fund to my taxable account. The obvious one that jumps out is VICSX Intermediate Term Corporate Admiral. Of course I'd rather have it in my IRA account, but not possible to put new $$ there since I'm retired. You don't have to put new money into your IR...
by venkman
Mon Oct 28, 2019 10:56 pm
Forum: Personal Investments
Topic: Am I doing this right? Using a money manager...
Replies: 24
Views: 2305

Re: Am I doing this right? Using a money manager...

I know many here DIY. Which is fantastic! I guess I'd be OK with DIY if it was a small number of index funds. Going beyond that would be too much for me. Sad to say. I've become very lazy in my old age. LOL The default recommended portfolio around here only has 3 funds. You could also do just fine ...
by venkman
Sun Oct 27, 2019 9:20 pm
Forum: Personal Investments
Topic: I’m done with index funds
Replies: 201
Views: 20441

Re: I’m done with index funds

You cannot simply “stop” at the $70k fees if they actually save me $500k of capital gains every single year. Maybe I'm thinking about it wrong, but conceptually, it seems like this strategy will have diminishing returns over time. Assume you replicate the S&P 500 with individual stocks. Some of tho...
by venkman
Sun Oct 27, 2019 8:22 pm
Forum: Personal Investments
Topic: Frontload IRA, then pay off loan or tackle both in parallel?
Replies: 10
Views: 544

Re: Frontload IRA, then pay off loan or tackle both in parallel?

I'd DCA it while paying down the loan. A guaranteed 3.8% return is pretty good.
by venkman
Wed Oct 23, 2019 10:10 pm
Forum: Personal Finance (Not Investing)
Topic: Taxes and landlord
Replies: 6
Views: 804

Re: Taxes and landlord

Note that I have zero landlording experience, but it seems like the monthly rent payment should reflect all of your underlying costs (HOA, property tax, maintenance, etc.) Separating all that out just makes things unnecessarily complicated. I would let the tenant cover the utilities, so they aren't ...
by venkman
Tue Oct 22, 2019 10:12 pm
Forum: Investing - Theory, News & General
Topic: Help me figure out why REITs are not higher % of AA
Replies: 31
Views: 2064

Re: Help me figure out why REITs are not higher % of AA

While I have a hard time describing how total market, international, and bond index funds make money, I have no issue understanding what REITs do. The companies that comprise the total market and international stock indices make money exactly the same way REIT's do--they provide products and/or ser...
by venkman
Sat Oct 19, 2019 12:42 am
Forum: Personal Investments
Topic: Where To Park My Money While Saving Up For New Fund
Replies: 6
Views: 999

Re: Where To Park My Money While Saving Up For New Fund

If your goal is to have an asset allocation of 90% stocks/10% bonds, there's nothing wrong with keeping the 10% in a MM fund until your entire portfolio gets up to $30k, at which point you can put the $3k into VBTLX. Both will be much less volatile than stocks, and the actual dollar difference in re...
by venkman
Sun Oct 13, 2019 11:06 pm
Forum: Personal Investments
Topic: Total Bond or Intermediate-Term Tax-Exempt in taxable?
Replies: 16
Views: 1691

Re: Total Bond or Intermediate-Term Tax-Exempt in taxable?

Thank you for explaining why the distribution yield is higher than the SEC yield and what that means for the NAV. As bond funds continue to buy new bonds as older bonds mature will not the NAV stabilize? The NAV would stabilize, but the distribution yield would go down, because older bonds with an ...
by venkman
Fri Oct 11, 2019 9:40 pm
Forum: Personal Investments
Topic: Bond Allocation Choices at Retirement
Replies: 10
Views: 1711

Re: Bond Allocation Choices at Retirement

Your current allocation is fine. If you start a brokered CD ladder, you can gain some incremental yield over Treasuries (though at the cost of some liquidity). 1-5 year brokered CD's at Vanguard range from 1.8% - 1.95% right now, while the 5-year Treasury is yielding 1.58%. You'd get an extra ~30 bp...
by venkman
Fri Oct 11, 2019 9:12 pm
Forum: Personal Investments
Topic: Total Bond or Intermediate-Term Tax-Exempt in taxable?
Replies: 16
Views: 1691

Re: Total Bond or Intermediate-Term Tax-Exempt in taxable?

The SEC yield for Total Bond is 2.24%. For IT TE, the SEC yield is 1.52%. Those are the best estimates for your total return going forward. If a fund's distribution yield is higher than its SEC yield, it means the fund owns a lot of bonds that have a market price higher than their par value. As thos...
by venkman
Thu Oct 10, 2019 9:28 pm
Forum: Personal Finance (Not Investing)
Topic: Advantages of Vanguard over M1 Finance? + Buffett question
Replies: 25
Views: 1726

Re: Advantages of Vanguard over M1 Finance? + Buffett question

I used to assume that obviously an ordinary person can't pick stocks but Warren Buffett can do it because he has extraordinary skill/experience. So why can't someone just copy his portfolio and get similar gains? If this is not a good idea, I'd like your thoughts on why not? If your investment hori...
by venkman
Sun Oct 06, 2019 8:19 pm
Forum: Personal Investments
Topic: Corp AAA bond vs. secondary market annuity
Replies: 7
Views: 396

Re: Corp AAA bond vs. secondary market annuity

The bond returns your principal at the end of the term. The annuity just ends. It looks like the specific SMA you're looking at costs ~$95k and pays out $142.5k over 23.75 years. A $95k bond yielding 2.75% would pay out ~$62k over 23.75 years, at the end of which you'd get your $95k back, for a tota...
by venkman
Tue Oct 01, 2019 10:24 pm
Forum: Investing - Theory, News & General
Topic: S&P indexes may never hold some unicorns. Thoughts?
Replies: 39
Views: 3492

Re: S&P indexes may never hold some unicorns. Thoughts?

VTSMX would look pretty lame this last decade without the FANG+Microsoft names. I think you greatly underestimate the power of a handful of amazing firms to drive your returns. Assuming there is no correlation between returns and share class structure, then a broad index that excludes all companies...
by venkman
Mon Sep 30, 2019 10:10 pm
Forum: Investing - Theory, News & General
Topic: S&P indexes may never hold some unicorns. Thoughts?
Replies: 39
Views: 3492

Re: S&P indexes may never hold some unicorns. Thoughts?

The reality is that many individual stocks DO have a significant impact on index portfolios. Microsoft and Apple make up close to 10% of the SP500 all to themselves. 2 companies out of 500 drive nearly 10% of the returns for the most-tracked investing index. If you don’t want any single company to ...
by venkman
Sun Sep 29, 2019 10:22 pm
Forum: Investing - Theory, News & General
Topic: S&P indexes may never hold some unicorns. Thoughts?
Replies: 39
Views: 3492

Re: S&P indexes may never hold some unicorns. Thoughts?

If I remember correctly, Berkshire was excluded from the S&P 500 when they only had A shares, because liquidity was too low. The index managed to do okay without them. Cargill and Koch Industries are huge companies that aren't in any index. Do index investors even notice their absence? The whole poi...
by venkman
Fri Sep 27, 2019 9:35 pm
Forum: Investing - Theory, News & General
Topic: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"
Replies: 35
Views: 4423

Re: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"

His point is that DCA in more volatile asset classes can produce greater returns than DCA in less volatile asset classes even if the returns of the asset classes over a longer period aren't that different. Okay, but what is he suggesting people DO with this information? Invest exclusively in volati...
by venkman
Thu Sep 26, 2019 10:20 pm
Forum: Investing - Theory, News & General
Topic: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"
Replies: 35
Views: 4423

Re: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"

michaeljc70 wrote:
Thu Sep 26, 2019 10:05 pm
The money was from paychecks. They didn't have the money to invest upfront. That obviously ignores the TMV of money.
So, his premise is that DCA'ing is the best choice, when there are no other choices? I mean, I'm not going to disagree, but...
by venkman
Thu Sep 26, 2019 9:54 pm
Forum: Investing - Theory, News & General
Topic: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"
Replies: 35
Views: 4423

Re: Article - "How Great Is Dollar Cost Averaging? You (Still) Don't Know The Half Of It!"

Basically, from 1/2000 to 8/2019 the total stock market returned 5.9% annually while total bond returned 4.9%. Not a huge difference. However, take a person that started DCA and added $1k per month. If they put it into total stock they would have $631k while someone that did the same in total bond ...
by venkman
Fri Sep 20, 2019 9:32 pm
Forum: Investing - Theory, News & General
Topic: How do you maximize an IPO purchase?
Replies: 14
Views: 1210

Re: How do you maximize an IPO purchase?

Bern wrote:
Fri Sep 20, 2019 8:10 pm
I believe in their product and would like to invest but have never had any luck with IPOs.
Do you believe in the product, or in the company? A good product is certainly important, but it's no guarantee that the company management will be competent at managing production, marketing, sales, etc.
by venkman
Thu Sep 19, 2019 8:58 pm
Forum: Personal Investments
Topic: Where to Move Money From Taxable Account For Potential Use in ~5 Years
Replies: 14
Views: 2405

Re: Where to Move Money From Taxable Account For Potential Use in ~5 Years

With interest rates leveling out and potentially decreasing, would buying IBonds, which lock in a minimum rate make sense? With current interest rates, it seems something like a Money Market account would work, but I worry those rates will drop soon. The problem with I bonds is that you can only bu...
by venkman
Tue Sep 17, 2019 11:00 pm
Forum: Personal Investments
Topic: Where to Move Money From Taxable Account For Potential Use in ~5 Years
Replies: 14
Views: 2405

Re: Where to Move Money From Taxable Account For Potential Use in ~5 Years

I am thinking that a downpayment for a house may be in the foreseeable future (~5 years hopefully). I currently have a taxable account where I've been saving for such an expense, but now that time horizon is relatively close where should I be holding that money? I was thinking of moving it to somet...
by venkman
Mon Sep 16, 2019 9:28 pm
Forum: Personal Investments
Topic: Annuity question
Replies: 19
Views: 1822

Re: Annuity question

Generally speaking, the only "good" type of annuity is a single premium immediate annuity (SPIA), in which you pay a lump sum up front to an insurance company, and in exchange they guarantee to provide you with a set income for the rest of your life. It's not an investment; it's insurance against ou...
by venkman
Tue Sep 10, 2019 10:54 pm
Forum: Personal Investments
Topic: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%
Replies: 32
Views: 3606

Re: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%

The SEC yield ignores the currency hedging; you expect a higher return from the fund than the SEC yield indicates. For example, if a euro bond has a 0% yield and a dollar bond has a 2% yield, and a contract to sell euros for $1020 next year costs $1000 in today's euros, then holding the euro bond a...
by venkman
Tue Sep 10, 2019 10:20 pm
Forum: Personal Investments
Topic: Using separate funds instead of Total Bond.
Replies: 6
Views: 900

Re: Using separate funds instead of Total Bond.

To truly approximate VBTLX, you'd need to invest separately in short, intermediate, and long maturities. VBTLX has an average intermediate duration, but it doesn't necessarily track the same as an all-intermediate fund, since different parts of the yield curve can move independently of one another. ...
by venkman
Fri Sep 06, 2019 9:21 pm
Forum: Personal Investments
Topic: Vanguard: time restriction on changing dividend elections
Replies: 6
Views: 944

Re: Vanguard: time restriction on changing dividend elections

indexfundfan wrote:
Thu Sep 05, 2019 9:45 pm
Ermm... I don't really know the cause. I only jest about the energy saving part.
Okay, but I still stand by my righteous indignance. :happy
by venkman
Fri Sep 06, 2019 9:14 pm
Forum: Personal Investments
Topic: How much did changing my portfolio cost me?
Replies: 17
Views: 1702

Re: How much did changing my portfolio cost me?

"Don't confuse strategy with outcome."
by venkman
Thu Sep 05, 2019 8:48 pm
Forum: Personal Investments
Topic: Vanguard: time restriction on changing dividend elections
Replies: 6
Views: 944

Re: Vanguard: time restriction on changing dividend elections

Vanguard is trying to be green. It shuts down certain computers at night to save energy, and costs. This is a good example of why I get frustrated with Vanguard's computer setup. I'm not a programmer, but how hard would it really be to let someone enter a change like this at any time, with the cave...
by venkman
Wed Sep 04, 2019 10:04 pm
Forum: Personal Investments
Topic: Purchase fee on VBLAX
Replies: 19
Views: 2056

Re: Purchase fee on VBLAX

When you pay the fee, it sure feels like a load. Maybe they use it to offset expenses. That is fine. What that means is that then their stated ER is not correct. How would you suggest they calculate the "correct" ER for a fund with a one-time purchase fee that will be amortized over an unknowable t...
by venkman
Sun Sep 01, 2019 8:42 pm
Forum: Personal Investments
Topic: Large taxable account with three funds... does reinvestment matter?
Replies: 8
Views: 1197

Re: Large taxable account with three funds... does reinvestment matter?

You'll pay taxes on the dividends whether you reinvest them or not. A common strategy with taxable accounts is to have all dividends sent to cash, then use the cash to rebalance once a year (or however often you choose to rebalance). This also helps avoid numerous small tax lots. Even if the only be...
by venkman
Sun Sep 01, 2019 8:26 pm
Forum: Investing - Theory, News & General
Topic: Bond question- sec yield and distrib. Yield
Replies: 15
Views: 880

Re: Bond question- sec yield and distrib. Yield

I know sec yield is forward looking and distribution yield is what you get. My understanding is that the distribution yield will converge towards the sec yield assuming rates go unchanged. Does the timing of convergence depend on duration or some other factor? If the distribution yield is higher th...
by venkman
Fri Aug 30, 2019 9:44 pm
Forum: Personal Investments
Topic: Bond fund in taxable account
Replies: 28
Views: 4268

Re: Bond fund in taxable account

Is this the right fund for me? Vanguard California Intermediate-Term Tax-Exempt Fund Investor Shares (VCAIX). I see there is an admiral fund with lower expense ratio but the minimum is 50k. Will VG consider my other funds in taxable to make me eligible for the admiral muni fund? Is my calculation f...
by venkman
Wed Aug 28, 2019 9:55 pm
Forum: Personal Investments
Topic: Individual municipal bonds vs municipal bond funds
Replies: 17
Views: 1080

Re: Individual municipal bonds vs municipal bond funds

2) why are counties issuing bonds at that high of a coupon ? I think the main purpose of issuing premium muni bonds is to make it less likely that investors will end up with capital gains. Presumably, most muni bond buyers are in a high tax bracket, and want to avoid any kind of unnecessary taxable...
by venkman
Wed Aug 28, 2019 9:42 pm
Forum: Personal Investments
Topic: Bond ETFs verses CDs-6 year horizon
Replies: 4
Views: 534

Re: Bond ETFs verses CDs-6 year horizon

Hi I’m new here, but not new to investing although since the crash, I’ve done nothing more than ladder CDs, which isn’t really investing is it :). I’m single, no dependents, a saver, minimalist, debt-free artist. I could live off the CDs, if I had no other income, until I’m 65. But from what I’ve r...
by venkman
Tue Aug 20, 2019 11:11 pm
Forum: Personal Investments
Topic: Question about a particular individual bond
Replies: 6
Views: 444

Re: Question about a particular individual bond

By the way, does yield to worse change on individual bonds? I thought it was not supposed to change but I would swear mine keep going down. Yield to Worst is based on the current price of the bond and will change as the market price of the bond changes. If you plan to hold the bond to maturity, tha...
by venkman
Tue Aug 20, 2019 11:00 pm
Forum: Personal Investments
Topic: New on Bogleheads and Seeking Portfolio Advice
Replies: 6
Views: 1507

Re: New on Bogleheads and Seeking Portfolio Advice

Desired Asset allocation: 60% stocks / 40% bonds Desired International allocation: 40% of stocks Questions: 1. What funds should we hold in each account to add up to the desired asset allocation and to minimize? 2. How to use accounts to minimize tax exposure from gains? Your desired asset allocati...
by venkman
Sat Aug 17, 2019 8:32 pm
Forum: Investing - Theory, News & General
Topic: Past Performance
Replies: 74
Views: 4126

Re: Past Performance

Sadly, small cap funds have underperformed simple and cheap total U.S. stock market index fund for the past 10 years. Morningstar reports that during the last 5-years, total market index funds returned more than three times U.S. small-cap value funds. This line of reasoning could've been used 10 ye...
by venkman
Fri Aug 16, 2019 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Helping with mother's finances after father's passing
Replies: 14
Views: 997

Re: Helping with mother's finances after father's passing

She also receives a lifetime pension (covers about a third of expenses), but without getting into too many specifics about budget, she needs her retirement accounts (650K) to produce $1,800 a month ($21,600 annual). Running this through the fire calc and using basic calculators I feel pretty comfor...
by venkman
Sun Aug 04, 2019 11:11 pm
Forum: Investing - Theory, News & General
Topic: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"
Replies: 247
Views: 18935

Re: Is this right? "if you live off dividends, a crash in stocks prices doesn't matter"

I did some limited backtesting on this question a year or so ago. Assuming the SEC yield on the S&P 500 at the beginning of the year would result in your portfolio throwing off dividends that exactly matched your spending needs, and that your spending needs increased by the amount of inflation each ...
by venkman
Sun Aug 04, 2019 10:42 pm
Forum: Investing - Theory, News & General
Topic: Balanced funds with rebalance bands
Replies: 5
Views: 525

Re: Balanced funds with rebalance bands

You're not wrong; but the whole point of rebalancing is not to increase returns. The point of rebalancing is to manage risk. Investors in a balanced fund presumably chose that fund because it fits their risk tolerance. People who are interested in squeezing extra return from higher rebalancing bands...
by venkman
Fri Aug 02, 2019 10:46 pm
Forum: Personal Investments
Topic: Muni SEC Yield vs Distribution Yield
Replies: 3
Views: 919

Re: Muni SEC Yield vs Distribution Yield

Use the SEC yield to make comparisons between funds. A lot of muni bond funds will buy premium bonds with higher-than-market coupon rates, as a way of ensuring they won't incur capital gains. If the distribution yield is significantly higher than the SEC yield, you should expect the NAV of the fund ...
by venkman
Wed Jul 31, 2019 11:01 pm
Forum: Personal Investments
Topic: Man with flawed approach seeks alteration
Replies: 18
Views: 2258

Re: Man with flawed approach seeks alteration

Independent George wrote:
Wed Jul 31, 2019 1:06 pm
I can't give a quote, but I have to imagine that an SPIA for a 41 year-old is probably not going to pay a very good rate.
OP was disabled 22 years ago, at the age of 41.
by venkman
Tue Jul 30, 2019 10:04 pm
Forum: Personal Investments
Topic: Man with flawed approach seeks alteration
Replies: 18
Views: 2258

Re: Man with flawed approach seeks alteration

I don't know how this would work with RMD's from an inherited IRA, but you might consider putting the $75k into a SPIA (single premium immediate annuity). It would give you guaranteed income for life (a bit under $400/month for a 63-year-old male), which will probably be more than what you're drawin...
by venkman
Tue Jul 30, 2019 9:27 pm
Forum: Personal Investments
Topic: Inda etf has an ER of .68- should this be a deal breaker
Replies: 8
Views: 637

Re: Inda etf has an ER of .68- should this be a deal breaker

I'm not saying you SHOULD invest in single-country ETF'S, but... If you really want to invest in India, and .68 is the lowest ER you can find for an India ETF, I don't think it's necessarily a deal breaker. Some of the highly-touted (if not highly-outperforming :D) DFA factor funds have ER's above ....
by venkman
Tue Jul 30, 2019 9:07 pm
Forum: Investing - Theory, News & General
Topic: Goal-Basis Portfolio Construction
Replies: 9
Views: 654

Re: Goal-Basis Portfolio Construction

Search this site (and elsewhere) for "Liability Matching Portfolio."
by venkman
Mon Jul 29, 2019 9:32 pm
Forum: Investing - Theory, News & General
Topic: Why not aim for a HIGH YIELDING portfolio?
Replies: 60
Views: 5078

Re: Why not aim for a HIGH YIELDING portfolio?

"The declaration of a dividend naturally encourages investors to purchase stock. Because investors know that they will receive a dividend if they purchase the stock before the ex-dividend date, they are willing to pay a premium. This causes the price of a stock to increase in the days leading up to...