Search found 493 matches

by venkman
Tue Apr 24, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: Small premium
Replies: 7
Views: 586

Re: Small premium

According to Portfolio Visualizer, VIMSX does indeed beat DFSCX to date (9.99% to 9.63%) if you start in June 1998.

However, if you start in January 1999, DFSCX wins handily (10.77% to VIMSX's 9.70%).
by venkman
Tue Apr 24, 2018 9:32 pm
Forum: Personal Finance (Not Investing)
Topic: Treasury yields climbing...tap the brakes on paying low interest student loans?
Replies: 5
Views: 679

Re: Treasury yields climbing...tap the brakes on paying low interest student loans?

If you're able to pay off 85k in less than a year, any extra money you might be able to get by investing in bonds instead of paying off the loan will be a drop in the bucket for you.
by venkman
Mon Apr 23, 2018 9:43 pm
Forum: Investing - Theory, News & General
Topic: "Making decisions based on past performance works (except when it doesn’t)"
Replies: 17
Views: 1970

Re: "Making decisions based on past performance works (except when it doesn’t)"

To be honest, I'm not exactly sure if rising "safe" rates will affect stock prices that much. I think the major force behind the decline of the equity risk premium has been that "stocks for the long run" has become a near universal belief. If all or most dips will be reversed, only to march upwards...
by venkman
Sun Apr 22, 2018 11:28 pm
Forum: Investing - Help with Personal Investments
Topic: Dividend fund in taxable account during retirement, yea or nay?
Replies: 33
Views: 2524

Re: Dividend fund in taxable account during retirement, yea or nay?

If you were in retirement, had a lump sum to invest in a taxable account (in the US portion of a three fund portfolio) and would only need income equal to the amount of dividends that VHYDX happens to provide, would you invest in VHYDX, invest in VTSMX, invest in both or do something different? Mos...
by venkman
Sun Apr 22, 2018 11:06 pm
Forum: Investing - Theory, News & General
Topic: The Limits of Modern Portfolio Theory - Do Investors Understand What They Own?
Replies: 16
Views: 1885

Re: The Limits of Modern Portfolio Theory - Do Investors Understand What They Own?

What’s more, the use of indexing has had unintended consequences on the behavior of asset owners and asset managers; it changes the focus of both away from “which businesses are good businesses worth owning?” to “how do we look relative to the index" Now, as a passive investor, I'm not going to go ...
by venkman
Sun Apr 22, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: "Making decisions based on past performance works (except when it doesn’t)"
Replies: 17
Views: 1970

Re: "Making decisions based on past performance works (except when it doesn’t)"

...I would also add that I don't think it's unreasonable to expect riskier asset classes to outperform less-risky asset classes over the long term. That expectation is based on market efficiency; and while it has been borne out by past performance, it does not rely on past performance. I'm not so s...
by venkman
Sat Apr 21, 2018 9:08 pm
Forum: Investing - Help with Personal Investments
Topic: How much does tinkering hurt returns?
Replies: 16
Views: 1452

Re: How much does tinkering hurt returns?

There are warnings about tinkering with a portoflio too much, and how the frequent changes will result in lower returns. However, if I keep my asset allocation the same, stick with low cost funds, and don't try to time the market does this tinkering really matter? How exactly would you tinker with ...
by venkman
Sat Apr 21, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: "Making decisions based on past performance works (except when it doesn’t)"
Replies: 17
Views: 1970

Re: "Making decisions based on past performance works (except when it doesn’t)"

1) I expect Vanguard and other low-cost total market index funds to beat the average active fund because before costs, the average of all actively managed funds must match the market, and thus match index funds, while Vanguard's funds have lower costs. That expectation is based on the arithmetic of...
by venkman
Thu Apr 19, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Brokered CD Interest Compounding
Replies: 13
Views: 1427

Re: Brokered CD Interest Compounding

Vanguard has 2 year CDs at 2.65% that pay interest semiannually and 2.60% that pay interest monthly. Assuming the interest payments go into the sweep account that pays 1.55%, which CD yields the most considering the compounding of the interest in the sweep account? On a $10,000 investment, the annu...
by venkman
Thu Apr 19, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: How good are Vanguard bond funds?
Replies: 52
Views: 4863

Re: How good are Vanguard bond funds?

I've never understood the fondness for VBTLX and own PIMIX instead for our core holding. PIMIX 1, 3, 5 and 10 year returns beat VBTLX in every single period by 4-5%. According to Morningstar, PIMIX's assets are about 300% long and 200% short. The only way it's comparable to VBTLX is that both funds...
by venkman
Tue Apr 17, 2018 9:20 pm
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 39
Views: 3681

Re: Why is the SEC yield the one that Vanguard displays?

Let's say a Treasury note is issued today with a 2% coupon. Tomorrow, the interest rate on Treasuries of that maturity jumps to 4%. You could then buy the 2%-coupon note at a discount from its face value. The total return you would get on that discounted note, including all interest payments and ret...
by venkman
Mon Apr 16, 2018 9:20 pm
Forum: Personal Finance (Not Investing)
Topic: For those that re-invest dividends automatically...
Replies: 15
Views: 2296

Re: For those that re-invest dividends automatically...

Whenever you get a dividend, the share price of your investment drops by the amount of the dividend. The result of reinvesting a dividend is that your overall balance stays the same. Any money you put into your retirement account(s) counts as saving/investing. Any money you take out counts as a with...
by venkman
Thu Apr 12, 2018 10:35 pm
Forum: Investing - Help with Personal Investments
Topic: Top 3?
Replies: 10
Views: 1577

Re: Top 3?

But I would like to know the top aggressive etf by vanguard. Thanks. Most of Vanguard's ETF's are just share classes of their mutual funds. Of the ones that are exclusively ETF's, you can take your pick of the various sector funds. But if you REALLY want to gamble, look into EDV, the Long-term Zero...
by venkman
Thu Apr 12, 2018 10:16 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 1895

Re: Shorting the actively managed mutual fund market

If you REALLY want to bet against active management....

Find a hedge fund manager. Let them pick a basket of hedge funds. Bet them a million dollars that the return on the S&P will beat the return on the hedge funds over the next 10 years.

To date, this strategy has a 100% success rate. :happy
by venkman
Thu Apr 12, 2018 10:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard dominating first quarter
Replies: 16
Views: 2524

Re: Vanguard dominating first quarter

I have some stuff T.Rowe and at Fidelity that has to be there because our employers 401Ks are there. I feel like I am getting ripped off every time I look at their fees and costs compared to what we get at Vanguard. Why has it taken this long for everyone else to figure this out? Most people know l...
by venkman
Wed Apr 11, 2018 9:54 pm
Forum: Investing - Theory, News & General
Topic: Shorting the actively managed mutual fund market
Replies: 26
Views: 1895

Re: Shorting the actively managed mutual fund market

Actively managed funds fail to beat the market AFTER COSTS. It's not that active managers are idiots--it's that they all have to compete against each other; and in the aggregate, they can't add enough value to overcome their extra trading costs and expense ratios. The performance of the underlying s...
by venkman
Tue Apr 03, 2018 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: Should I bother with bonds or stick to CDs? Would love YOUR advice
Replies: 11
Views: 1554

Re: Should I bother with bonds or stick to CDs? Would love YOUR advice

I was recently reading David Swensen's book (which is one of the best investing books I've ever read). In it, he recommends a portfolio which has a 30% allocation to bonds (15% US TIPS and 15% US Treasury bonds). In the current interest rate environment, Should I even bother with bonds or just stic...
by venkman
Fri Mar 30, 2018 9:31 pm
Forum: Investing - Help with Personal Investments
Topic: These 3 Admiral Shares Funds?
Replies: 11
Views: 1410

Re: These 3 Admiral Shares Funds?

VBIAX - Balanced Index Admiral Shares (60% stock 40% bond) .07% ER VTABX - Total International Bond Index Admiral Shares .11% ER VTIAX - Total International Stock Index Admiral Shares .11% ER I would suggest splitting the VBIAX into VTSAX and VBTLX (Total Stock Market & Total Bond Market), so you h...
by venkman
Fri Mar 30, 2018 9:23 pm
Forum: Investing - Help with Personal Investments
Topic: Continue investing?
Replies: 11
Views: 2136

Re: Continue investing?

Assuming you won't take too much of a capital gains hit, definitely sell the stock and move it to the index fund. Just to clarify, $5500 is the combined maximum you can contribute per year to all of your IRA's. If you had two separate IRA's (or two separate funds within one IRA), you couldn't contri...
by venkman
Fri Mar 30, 2018 9:05 pm
Forum: Investing - Theory, News & General
Topic: % Portfolio Wieght Concerns?
Replies: 23
Views: 1251

Re: % Portfolio Wieght Concerns?

With regards to SPY and VTSAX (and others similar), is anyone concerned that despite their large holdings, roughly 10% of either of these is with only 5 companies? What if one of these companies plummet? Thanks! If one of those companies plummeted for business reasons, it would probably be because ...
by venkman
Sat Mar 24, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Why is SEC Yield dropping for GNMA fund?
Replies: 10
Views: 1247

Re: Why is SEC Yield dropping for GNMA fund?

lack_ey wrote:
Sat Mar 24, 2018 8:01 pm
...I have some bad news for you.
Is it bad news about the SEC yield of certain funds, which I can analyze in detail, using the shiny SEC yield website that totally exists? :happy
by venkman
Sat Mar 24, 2018 7:59 pm
Forum: Investing - Theory, News & General
Topic: Why is SEC Yield dropping for GNMA fund?
Replies: 10
Views: 1247

Re: Why is SEC Yield dropping for GNMA fund?

What I want to know is what's going on here: http://hostimg.co/images/2018/03/24/secyield11d8c.png Please tell me there's a publicly-available, PV-style website with SEC yield histories that was used to make that graph, and that you didn't have to make it manually by importing date/yield figures fr...
by venkman
Thu Mar 15, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Stock partial sale and rebuy - how does avg. cost basis work?
Replies: 4
Views: 330

Re: Stock partial sale and rebuy - how does avg. cost basis work?

After Buy3, you have 20 shares, with a total cost basis of $2250 ($112.50 per share).

Vanguard should be able to keep track of average cost basis for you. They'll send you a form at the end of every year that details all your dividends, capital gains, etc. for the year.
by venkman
Thu Mar 15, 2018 10:38 pm
Forum: Investing - Help with Personal Investments
Topic: Newbie Question about 3-Fund Portfolio and Roth
Replies: 2
Views: 390

Re: Newbie Question about 3-Fund Portfolio and Roth

It looked to me like the Vanguard investments recommended for the 3-fund are $10k minimum, which is above the annual allowable limit for the IRA contributions. Maybe there are similar funds that can be used for the 3-fund with these smaller amounts we'll invest? There is a $10k minimum for Admiral ...
by venkman
Fri Mar 09, 2018 12:04 am
Forum: Investing - Help with Personal Investments
Topic: Tracking Portfolio
Replies: 3
Views: 465

Re: Tracking Portfolio

You might try this: https://www.bogleheads.org/wiki/Calculating_personal_returns If you're comfortable making spreadsheets, it's not too complicated to make one to track what you're taking about. The key concept is that the amount of every transaction (in or out) is multiplied by the length of time ...
by venkman
Thu Mar 08, 2018 11:42 pm
Forum: Investing - Help with Personal Investments
Topic: Time for Bond Funds
Replies: 5
Views: 825

Re: Time for Bond Funds

Vanguard's Total Bond fund (VBTLX) currently has an SEC yield of 2.98%. Assuming that Debt Index Account has a reasonable ER, it sounds like a good choice. The ER for the Voya fund actually doesn't look too bad, but active bond fund managers generally aren't any better at beating the market than act...
by venkman
Thu Mar 08, 2018 11:30 pm
Forum: Investing - Help with Personal Investments
Topic: Should I wait until the end of March to sell VBILX?
Replies: 18
Views: 1487

Re: Should I wait until the end of March to sell VBILX?

Why do I want to replace? Roth accounts are for heirs so have very aggressive AA based on their current ages (85/15) in those accounts only. With so few bonds in the Roth, I want the best ballast for my buck. Tot Bnd Indx has a shorter maturity than VBILX and increased 5% in 2008 vs. VBILX remainin...
by venkman
Thu Mar 08, 2018 11:01 pm
Forum: Investing - Theory, News & General
Topic: To sell or not to sell
Replies: 39
Views: 2694

Re: To sell or not to sell

That is the question. I have in my holding a few individual stock winners in my personal account that I have not sold yet. These are about 50% of my total investment assets (not counting house). Knowing how you guys preach about "diversification", I wonder which course of action I should take with ...
by venkman
Wed Mar 07, 2018 9:47 pm
Forum: Investing - Help with Personal Investments
Topic: How many shares of VT can I buy without affecting the price?
Replies: 20
Views: 2527

Re: How many shares of VT can I buy without affecting the price?

Thanks, it sounds like both TomCat96 and the WSJ article are saying that rather than looking at the size of the buy order relative to the number of ETF shares traded, one should look at the number of shares traded that ETF buy order generates of the underlying securities. Using TomCat96's example, ...
by venkman
Tue Mar 06, 2018 11:23 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans
Replies: 127
Views: 12348

Re: Larry Swedroe’s New Book Available: Reducing Risk Of Black Swans

My point was that current data alone can be used to make investment decisions. Would you rather look at the current Dodgers roster or the one from 1910 to make your World series prediction? Would you rather know a team's current seed in the NCAA tournament or how many wins the school has historical...
by venkman
Tue Mar 06, 2018 11:07 pm
Forum: Investing - Theory, News & General
Topic: "Do the CFP Board and SEC Really Support Fiduciaries?"
Replies: 4
Views: 550

Re: "Do the CFP Board and SEC Really Support Fiduciaries?"

Based on the investments my mom's financial advisor chooses for her, I can't imagine how he's not in breach of his fiduciary duty. I think a good first step would be to absolutely forbid any investment advisor who gets paid on an AUM basis from taking any compensation for putting clients into any pa...
by venkman
Mon Mar 05, 2018 11:54 pm
Forum: Investing - Theory, News & General
Topic: YTD calculation
Replies: 5
Views: 757

Re: YTD calculation

Don't put too much faith in the YTD numbers on VG's website. The prices get updated well before the YTD numbers do. I'm looking at the site right now (almost midnight Eastern time), and the YTD is still listed as of 3/2/18.
by venkman
Sat Mar 03, 2018 11:20 pm
Forum: Investing - Help with Personal Investments
Topic: Pay off car loan or keep money in bond fund?
Replies: 11
Views: 878

Re: Pay off car loan or keep money in bond fund?

Financially, it would probably be better to liquidate the bond fund and pay off the car loan. But if having that liquidity helps you sleep better at night, it only costs you the difference between 3.09% and the yield on the bond fund (currently 1.74%), which works out to a few hundred dollars a year...
by venkman
Fri Mar 02, 2018 9:16 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard High Dividend Yield Index Funds vs ETF
Replies: 12
Views: 1336

Re: Vanguard High Dividend Yield Index Funds vs ETF

If VYM were a mutual fund instead of an ETF, and you put in an order to buy it today, you would've paid $84.37 per share, the closing NAV price. If you bought the actual ETF version today, you would've paid as little as $83.15 or as much as $84.54 per share, depending on exactly when during the day ...
by venkman
Wed Feb 28, 2018 11:47 pm
Forum: Investing - Help with Personal Investments
Topic: Leaving EJ- can i pull this off?
Replies: 38
Views: 2946

Re: Leaving EJ- can i pull this off?

1. If you plan on selling off all your current EJ funds, I would just sell them now while they're still at EJ. It's much easier to transfer cash. You can also check each individual fund on VG's website; that should tell you if VG charges a fee for selling it. Thanks for the advice. Just so I am cle...
by venkman
Wed Feb 28, 2018 11:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???
Replies: 27
Views: 2084

Re: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???

This all seems a bit suspect, but we're looking at it out of context. The context being is VFSUX the only fund of its kind doing this sort of thing, or do all the other short-term investment-grade funds do the same thing? I tend to trust the fund managers to determine the appropriateness of what the...
by venkman
Wed Feb 28, 2018 10:27 pm
Forum: Investing - Theory, News & General
Topic: The power of bonds
Replies: 8
Views: 1182

Re: The power of bonds

livesoft wrote:
Wed Feb 28, 2018 9:28 pm
YTD returns
1.41 VTSAX
0.16 VTIAX
-2.10 VBTLX
Yeah, but that's old news.

Based on the new trend that started as of today, VBTLX should return about 25% per annum going forward; whereas by this time next year, VTSAX will have lost about 94% of its value. :happy
by venkman
Wed Feb 28, 2018 2:42 am
Forum: Investing - Theory, News & General
Topic: Boglehead contradiction, constant asset allocation is market timing
Replies: 100
Views: 8724

Re: Boglehead contradiction, constant asset allocation is market timing

If we ignore bonds and just look at equities - you could totally avoid market timing by having constant purchase allocation instead of asset allocation. I could say that every year I will buy $10,000 of US stocks, $10,000 of International stocks, $1000 of REIT, and $1000 of small cap. That would be...
by venkman
Wed Feb 28, 2018 1:25 am
Forum: Investing - Help with Personal Investments
Topic: Leaving EJ- can i pull this off?
Replies: 38
Views: 2946

Re: Leaving EJ- can i pull this off?

Questions 1) Leaving EJ- it seems VG will transfer almost all of EJ funds “in-kind”. We are aware that we need to liquidate 2 funds prior to the transfer since VG will not take them. Should I inquire about EJ selling off all funds in IRAs prior to leaving? Or is VG likely to be the more cost friend...
by venkman
Wed Feb 28, 2018 12:52 am
Forum: Investing - Help with Personal Investments
Topic: Guidance with Moving a Roth IRA from EJ
Replies: 9
Views: 755

Re: Guidance with Moving a Roth IRA from EJ

Questions: 1. When I go to switch my Roth from EJ, should I switch to Vanguard, Fidelity, Schwab, or Ameritrade? I know Boglehead’s tend to favor Vanguard, but it seems most of the research rates the other companies higher. With that decision made, how would you invest a Roth as a 27 year old inves...
by venkman
Sun Feb 25, 2018 9:49 pm
Forum: Investing - Theory, News & General
Topic: Goldman Sachs says...
Replies: 13
Views: 1922

Re: Goldman Sachs says...

The statement is a prediction of what would happen were interest rates to rise to a certain level. The important point not about a 4.5% rate but that under certain conditions bonds and stocks can go down together. This means that under certain conditions, bonds and stocks may not provide diversific...
by venkman
Sun Feb 25, 2018 9:01 pm
Forum: Personal Finance (Not Investing)
Topic: Side Hustle: Hourly financial planning
Replies: 44
Views: 4746

Re: Side Hustle: Hourly financial planning

One thing you have to overcome is this, "Why should I listen to you rather than the Edward Jones advisor?" So it is establishing enough credibility so that people will want to buy your services. I think you will find that you will need to charge at least $150 an hour for your services to make this ...
by venkman
Sat Feb 24, 2018 11:16 pm
Forum: Investing - Help with Personal Investments
Topic: Novice Investor looking for advice
Replies: 12
Views: 638

Re: Novice Investor looking for advice

In your reply you mention what to do with the Roth's, so should I make the same allocations for the two Traditional IRAs that are not being added to? I did not even think about using the Target Retirement Funds with these accounts, but that makes sense. You don't need the same allocation across all...
by venkman
Sat Feb 24, 2018 9:27 pm
Forum: Investing - Theory, News & General
Topic: New reduced rate on REIT Dividends
Replies: 19
Views: 3485

Re: New reduced rate on REIT Dividends

I've seen several sources recently that say that REIT dividends are eligible for the 20% tax break, but dividends from REIT-based mutual funds are NOT eligible--even if the mutual fund is 100% invested in REIT's. Can anyone confirm or deny?
by venkman
Fri Feb 23, 2018 11:50 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on AA with Tech Tilt
Replies: 3
Views: 373

Re: Thoughts on AA with Tech Tilt

VTSAX already has a de facto tech tilt. 4 of the top 5 holdings in VGT are also among the top 5 holdings of VTSAX.

That in itself suggests that tech stocks already have very high expectations priced in.
by venkman
Fri Feb 23, 2018 11:27 pm
Forum: Investing - Help with Personal Investments
Topic: Financial proposal from Adviser
Replies: 37
Views: 3525

Re: Financial proposal from Adviser

If you're going to go with American Funds, use the ones recommended by Dave Ramsey. They return 12% a year.

Over the course of two decades, your $200k would grow to almost $2 MILLION! :happy
by venkman
Fri Feb 23, 2018 1:06 am
Forum: Investing - Help with Personal Investments
Topic: Novice Investor looking for advice
Replies: 12
Views: 638

Re: Novice Investor looking for advice

Definitely dump that giant mess of funds Edward Jones has you in and move your Roth to Vanguard. The default investment strategy here is the 3-fund portfolio , which you may already have read about in the BH guide. It's important to look at all your retirement accounts as part of one overall portfol...
by venkman
Thu Feb 22, 2018 11:49 pm
Forum: Investing - Theory, News & General
Topic: Removed
Replies: 6
Views: 691

Re: Best book/study course for Series 65 Exam?

I did the same thing last year. I used Pass the 65 by Robert Walker, which I think I picked because it was the cheapest one on Amazon. The book itself is readable and covers pretty much everything you need to know. The particular edition that I got had some glaring editing mistakes (one part actuall...
by venkman
Thu Feb 22, 2018 11:21 pm
Forum: Investing - Theory, News & General
Topic: Is 0.46% more after-tax yield enough to justify muni risk?
Replies: 9
Views: 1102

Re: Is 0.46% more after-tax yield enough to justify muni risk?

There's one other issue to consider with Vanguard's muni bond funds (which I'm still not 100% clear on, but this is what I think is the case): VWITX has a current SEC yield of 2.20%, but its distribution yield (as of 1/31) is 2.74%. My understanding is that it's a standard practice for muni bonds to...
by venkman
Thu Feb 22, 2018 10:47 pm
Forum: Investing - Theory, News & General
Topic: How accurate is Portfolio Visualizer? Vanguard Equity Income vs Total Stock Market
Replies: 3
Views: 604

Re: How accurate is Portfolio Visualizer? Vanguard Equity Income vs Total Stock Market

According to PV, 1,000,000 in VEIRX would have an income of 21,933 in 2002, but by 2006 it would have risen up to 121,000 vs 23,000 for VTSAX. I feel like these numbers can't be accurate, or they're just flawed possibly due to PV not taking taxes into account for the dividends from VEIRX. PV's numb...