Search found 177 matches

by joeschmo
Wed Mar 18, 2020 3:30 pm
Forum: Investing - Theory, News & General
Topic: FDIC Coverage Limits - Trying to understand max coverage in a single savings account
Replies: 8
Views: 313

Re: FDIC Coverage Limits - Trying to understand max coverage in a single savings account

You can use this tool from FDIC to have the authoritative answer to these questions:

https://edie.fdic.gov/

Hope this helps!
by joeschmo
Wed Mar 18, 2020 6:13 am
Forum: Personal Investments
Topic: Cash Management Strategy
Replies: 37
Views: 2832

Re: Cash Management Strategy

FDIC insurance is $250k per depositor, so you can add those people as POD. I have separate banks with $1mm at each place. $250k under my name. $750k under my name with 3 POD names. So it's fully insured at each place. From there, I just have to manage 4-5 bank accounts, which is annoying. I can at ...
by joeschmo
Wed Mar 18, 2020 6:04 am
Forum: Investing - Theory, News & General
Topic: Rebalancing -- IPS Clarification Needed
Replies: 32
Views: 1663

Re: Rebalancing -- IPS Clarification Needed

The Vanguard study linked above shows that rebalancing provides only small benefits in terms of increased returns. The real goal of rebalancing is to maintain allocation within your risk tolerance. If each daily market gyration changes your risk tolerance that much then you should rebalance, but the...
by joeschmo
Wed Mar 18, 2020 5:57 am
Forum: Personal Investments
Topic: Cash Management Strategy
Replies: 37
Views: 2832

Re: Cash Management Strategy

FDIC insurance is $250k per depositor, so you can add those people as POD. I have separate banks with $1mm at each place. $250k under my name. $750k under my name with 3 POD names. So it's fully insured at each place. From there, I just have to manage 4-5 bank accounts, which is annoying. I can at l...
by joeschmo
Wed Mar 18, 2020 3:48 am
Forum: Personal Investments
Topic: Cash Management Strategy
Replies: 37
Views: 2832

Re: Cash Management Strategy

gjlynch17 wrote:
Tue Mar 17, 2020 6:20 am
joeschmo wrote:
Tue Mar 17, 2020 4:21 am
Why would someone use Flourish instead of a "professional" solution like CDARS?

https://www.cdars.com/
What is the yield for a CDARS solution?
You can view yields here: https://www.cdars.com/home/find/find-cdars
by joeschmo
Tue Mar 17, 2020 4:21 am
Forum: Personal Investments
Topic: Cash Management Strategy
Replies: 37
Views: 2832

Re: Cash Management Strategy

Why would someone use Flourish instead of a "professional" solution like CDARS?

https://www.cdars.com/
by joeschmo
Mon Mar 16, 2020 2:10 am
Forum: Personal Investments
Topic: Cash Management Strategy
Replies: 37
Views: 2832

Re: Cash Management Strategy

I’m currently using several bank accounts with POD to up the FDIC insurance and viewing balances with Mint. It’s super annoying to keep up to date but at least I don’t have a single point of failure from an information security perspective. I looked into CDARS but rates were considerably lower than ...
by joeschmo
Sat Mar 07, 2020 4:36 am
Forum: Personal Finance (Not Investing)
Topic: Choosing a university/college for my son a future Computer Science Major
Replies: 102
Views: 7137

Re: Choosing a university/college for my son a future Computer Science Major

I attended a school not on your list, majored in CS while taking things like philosophy and art, interned at FAANG after sophomore year, graduated, started my own company, and sold it for millions of dollars. That’s atypical, but I hope you’ll hear my thoughts anyway. At age 16-17 I loved CS but als...
by joeschmo
Tue Mar 03, 2020 9:02 am
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

Sometimes there are long Bogleheads threads debating how to handle xyz problem in investing, sometimes throwing around misinformation (including from myself - not saying I know better!), when the questions and doubts could be resolved with a single table from the CFA materials. I don't see why anyon...
by joeschmo
Tue Mar 03, 2020 8:02 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

In case it helps others, page 250 of CFA Institute's excellent 963-page guide, Managing Investment Portfolios, offers the following helpful info:

Image
by joeschmo
Tue Mar 03, 2020 7:58 am
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

Hi all, I found a fantastic 963-page guide to investment management for CFA - this seems to be the real deal, free PDF for download from here: https://www.academia.edu/31148356/Managing_investment_portfolios_CFA_textbook_ This site also has many interesting PDFs to download, including the riveting 8...
by joeschmo
Mon Mar 02, 2020 10:10 am
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

Basically I'd like to learn portfolio construction - i.e., learn how people engineer diversified portfolios to hold for the long term and accomplish given goals. I'd like to learn this not by reading books written for a popular audience, but by reading books written for people who will do this profe...
by joeschmo
Sun Mar 01, 2020 3:06 am
Forum: Investing - Theory, News & General
Topic: Suppose you founded a company like Microsoft or Amazon & have accumulated tremendous wealth. How would you invest?
Replies: 52
Views: 3675

Re: Suppose you founded a company like Microsoft or Amazon & have accumulated tremendous wealth. How would you invest?

I thankfullyhave 3-4 orders of magnitude smaller problems than the multibillionaires but you can see my thinking here:

viewtopic.php?t=302098

The real answer is likely that, like an asset allocation for someone with “merely” $100k, it entirely depends on the person.
by joeschmo
Thu Feb 27, 2020 12:47 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

All right, thanks. So given high tax bracket and 35% bond allocation and long time horizon, seems I should be fine splitting 50/50 short-term TIPS and interm-term munis. Long-term bonds would be better against deflation risk but the interest rate risk seems a bad tradeoff. And I'll use funds for al...
by joeschmo
Wed Feb 26, 2020 2:26 am
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

Would you too recommend BKM Investments book or is there another? I personally find that wisdom comes from experience and theory. Sometimes I am a bit disappointed with Bogleheads. I understand that simplification is necessary fir they lay audiences. However, I would never confuse simplification an...
by joeschmo
Tue Feb 25, 2020 4:13 pm
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

Does the CFA not go beyond “indexing is better” to discuss portfolio construction? I imagine some of my questions about TIPS that I have asked here could be answered by knowing what CFAs study? Level 3 is about ethics (20%) and portfolio construction (80%). However this builds heavily on level 1&2....
by joeschmo
Tue Feb 25, 2020 11:05 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

All right, thanks. So given high tax bracket and 35% bond allocation and long time horizon, seems I should be fine splitting 50/50 short-term TIPS and interm-term munis. Long-term bonds would be better against deflation risk but the interest rate risk seems a bad tradeoff. And I'll use funds for all...
by joeschmo
Tue Feb 25, 2020 10:43 am
Forum: Personal Investments
Topic: Large taxable portfolio - how to maximize charitable giving and minimize loss over long time horizon?
Replies: 25
Views: 2364

Re: Large taxable portfolio - how to maximize charitable giving and minimize loss over long time horizon?

Thanks @marky2kk for your feedback and help! I am indeed targeting 55/45 (market balance) of U.S./ex-U.S. equities, so it sounds like I'm as set as I could be for that. Re insurnace, it's through Chubb. I have: $500k personal liability coverage $120k renters insurance -------------------------------...
by joeschmo
Tue Feb 25, 2020 10:31 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Sorry yes, nominal Treasurys. I've heard that nominal Treasurys in particular are good against deflation and was anyone can point to any sources about how munis perform in deflationary times?
by joeschmo
Tue Feb 25, 2020 8:15 am
Forum: Personal Investments
Topic: Study CFA just for personal investment and portfolio management knowledge
Replies: 55
Views: 4138

Re: Study CFA just for personal investment and portfolio management knowledge

I too have been wanting to study CFA materials, in order to give my personal investor that overkill “institutional strength” approach, even if that just means writing an IPS that fills in every blank. Since my portfolio is large, I feel it would be the responsible thing to do. Does the CFA not go be...
by joeschmo
Tue Feb 25, 2020 2:41 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks all - this is really getting clearer! In this case there is just one remaining question for my IPS: Swensen considers nominal Treasurys a separate core asset class from TIPS and recommends equal allocation to both in his standard portfolio (which, of course, he spends pages telling folks to a...
by joeschmo
Mon Feb 24, 2020 6:55 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

So is it fair to say that nominal Treasurys* are adjusted for expected inflation only, whereas real Treasurys (TIPS) are adjusted for both expected and unexpected inflation? Is there a source someone could point me to that says this, so I can refer to it in my IPS? Thanks for all the conversation ab...
by joeschmo
Mon Feb 24, 2020 3:23 pm
Forum: Personal Investments
Topic: thoughts on my AA and proposed portfolio after windfall
Replies: 5
Views: 708

Re: thoughts on my AA and proposed portfolio after windfall

Congrats! I have a similar size of investable assets but lower expenses and longer time horizon and for bonds am leaning toward 50/50 short-term TIPS and interm-term munis. I want to stay as conservative as possible on the bond side but it seems nice to diversify issuers and thus not use Treasurys i...
by joeschmo
Sun Feb 23, 2020 2:58 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks all! Do treasuries protect against (≤ expected) inflation in a way that munis do not? That would indicate that I should own some mix of munis, nominal treasuries, and real treasuries - but I'm not sure how to figure out that mix. Right now I imagined 50% short-term TIPS and 50% interm-term mu...
by joeschmo
Sat Feb 22, 2020 1:43 pm
Forum: Investing - Theory, News & General
Topic: Why does VTEAX have a purchase fee?
Replies: 32
Views: 2113

Re: Why does VTEAX have a purchase fee?

Note that the credit quality distribution is worse on VTEAX/VTEB than eg VWIUX, which is basically all AA+. Even Vanguard PAS doesn’t recommend VTEAX/VTEB but rather 30/40/30 mix of short/interm/long munis. Doesn't seem so different to me: VTEAX VWIUX AAA 22.1% 21.5% AA 55.0% 49.7% A 16.0% 20.1% BB...
by joeschmo
Sat Feb 22, 2020 12:19 pm
Forum: Investing - Theory, News & General
Topic: Why does VTEAX have a purchase fee?
Replies: 32
Views: 2113

Re: Why does VTEAX have a purchase fee?

Note that the credit quality distribution is worse on VTEAX/VTEB than eg VWIUX, which is basically all AA+. Even Vanguard PAS doesn’t recommend VTEAX/VTEB but rather 30/40/30 mix of short/interm/long munis.
by joeschmo
Fri Feb 21, 2020 2:40 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

What's the practical recommendation based on this? Don't buy anything except individual short-term TIPS? In my fortunate and rare case, I have a couple million dollars planned allocation to VTIP and it seems a little insane to manage individual TIPS....
by joeschmo
Fri Feb 21, 2020 10:11 am
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

Very hard to objectively assess risk level and translate that into an allocation. Guesses on top of guesses. One former Boglehead suggested taking the percentage of loss you could tolerate e.g. 30% and then doubling that as your equity allocation so --that would be 60/40. Many equity "corrections" ...
by joeschmo
Fri Feb 21, 2020 9:29 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

If the TIPS bring held to maturity did not nature around mid-2015, the same market valuations of the TIPS held by the fund would apply to individual TIPS. The return of the TIPS you are holding up to a point in time is based on their market value at that point in time, just like for a TIPS fund. TI...
by joeschmo
Thu Feb 20, 2020 12:25 am
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

It would be great to see a study on what risk tolerance questionnaire aspects best predict actual risk tolerance, since even the most objective stock/bond allocation is only objective if the user will stick to it. Has anyone done academic studies on risk tolerance and what people will actually stic...
by joeschmo
Wed Feb 19, 2020 4:08 pm
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

It's very personal, really. There's no objectivity. +1 2008/09 turned my 401K into a 201k. :shock: I realized I couldn't handle my asset allocation. I dialed it back so I can sleep at night what ever the market decides to do. I’m sorry for your loss! This is why I made my posts above though. It IS ...
by joeschmo
Wed Feb 19, 2020 3:44 pm
Forum: Personal Investments
Topic: Canceling the Vanguard PAS
Replies: 12
Views: 1951

Re: Canceling the Vanguard PAS

Would you be willing to share the asset allocation % that he had for you, as well as time horizon and approximate total investable assets? I don’t care about your personal situation of course but am very interested to learn from what they do. Any TIPS or tips? Anything you can share would be grand!
by joeschmo
Wed Feb 19, 2020 3:35 pm
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

It would be great to see a study on what risk tolerance questionnaire aspects best predict actual risk tolerance, since even the most objective stock/bond allocation is only objective if the user will stick to it. Has anyone done academic studies on risk tolerance and what people will actually stic...
by joeschmo
Wed Feb 19, 2020 8:38 am
Forum: Investing - Theory, News & General
Topic: How do you objectively set Stock vs Bond Allocation
Replies: 81
Views: 5830

Re: How do you objectively set Stock vs Bond Allocation

It would be great to see a study on what risk tolerance questionnaire aspects best predict actual risk tolerance, since even the most objective stock/bond allocation is only objective if the user will stick to it. Has anyone done academic studies on risk tolerance and what people will actually stick...
by joeschmo
Sun Feb 16, 2020 11:21 pm
Forum: Investing - Theory, News & General
Topic: Why does Swensen use both nominal and real treasuries?
Replies: 2
Views: 426

Re: Why does Swensen use both nominal and real treasuries?

Thanks! I’d like to do this as well but believe munis won’t be as bad as he says. Could munis play the role that Treasurys do or do I need 1 part each of nominal Treasurys, real Treasurys, and munis?
by joeschmo
Sun Feb 16, 2020 2:39 pm
Forum: Investing - Theory, News & General
Topic: Why does Swensen use both nominal and real treasuries?
Replies: 2
Views: 426

Why does Swensen use both nominal and real treasuries?

Hi, I’m interested to learn more about Swensen’s sample starting-point portfolio, which includes equal parts TIPS and nominal US Treasuries. What is the advantage of nominals if you believe reals are necessary? (His diversification policy requires 2-30% in each core asset class so is this just about...
by joeschmo
Sun Feb 16, 2020 11:22 am
Forum: Personal Investments
Topic: Best Site/Software for Portfolio Management?
Replies: 32
Views: 2542

Re: Best Site/Software for Portfolio Management?

Does Quicken Windows you experiment with different rebalancing amounts and see tax consequences? Also does it all allocation to sub asset classes (like stocks divided 55/45) or does one have to do that manually? Would love a tool that did all that for me. Excel works but the workbook gets complicate...
by joeschmo
Sat Feb 15, 2020 1:48 pm
Forum: Personal Investments
Topic: Best Site/Software for Portfolio Management?
Replies: 32
Views: 2542

Re: Best Site/Software for Portfolio Management?

My problem with the Vanguard tools is that I have to manually enter the data from the external sources rather than being able to export a csv from the other brokerage. There are tools that direct connect to other brokerages, like Fidelity's I think, but that seems risky to have them store your passw...
by joeschmo
Sat Feb 15, 2020 3:05 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks, PJW! Sounds like I should be well served by 50/50 short TIPS / interm munis. I was wondering if nominal treasurys shouldn't be missing from this picture but it sounds like I'll be fine with just TIPS and munis for my goals of long-time-horizon investing and being OK in a high tax bracket.
by joeschmo
Fri Feb 14, 2020 9:18 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks for the clarifications! Wow, TIPS get complicated so fast. [*] It does seem prudent to have some protection against unexpected inflation. [*] For the non-TIPS bonds, munis make the most sense for my tax bracket. [*] 50/50 TIPS/munis split means overall I'm ~15% TIPS and ~15% munis. [*] Swedro...
by joeschmo
Fri Feb 14, 2020 3:29 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

To be specific, I was wanting to go with TIPS for inflation protection, but it seems like short-term nominal treasuries have actually been more stable in the past decade? What am I missing?

Image
by joeschmo
Fri Feb 14, 2020 1:57 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Just wanted to bump this - does anyone smarter than I understand why short-term TIPS performed so badly in the time period above?
by joeschmo
Thu Feb 13, 2020 11:09 pm
Forum: Personal Investments
Topic: Investing money for the next 6 years
Replies: 34
Views: 4233

Re: Investing money for the next 6 years

Munis are lower yield but tax exempt, whereas other funds are higher yield but taxable; so to compare yields apples to apples, one must look at after-tax yields of bond funds.

What about short-term TIPS to ensure that inflation in those 6 years doesn’t chip away at the money?
by joeschmo
Thu Feb 13, 2020 10:21 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks Northern! My detailed story is here. The short story is that I'm 50/50 equities/bonds-and-cash, living off the portfolio and using it for charitable donations. Of the non-cash bonds portion, I'm half TIPS and half munis. The objective for the TIPS portion is to meet or beat zero real return.
by joeschmo
Thu Feb 13, 2020 2:00 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks so much for setting me straight on that - your Morningstar chart link really helped. Now that I have the right data, it's hard to understand why someone would go with short-term TIPS...in theory I want the inflation protection, since I may be investing over a 70-year time horizon. Am I missin...
by joeschmo
Wed Feb 12, 2020 3:02 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

... iShares seems to be underperforming the index quite a bit. How do you conclude this, joeschmo? According to their websites both ETFs have grown about the same as the index over the five years ending 1/31/2020: 1.66% : STIP 1.65% : VTIP 1.71% : 0-5 Year TIPS Index Thanks for thinking about this ...
by joeschmo
Wed Feb 12, 2020 12:54 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Paranoia? I can all too easily imagine the news articles someday describing people who lost their entire retirement savings because everyone said it was impossible for Vanguard to fail. Just reminds me a bit of the Titanic....sorry to be irrational...
by joeschmo
Wed Feb 12, 2020 12:46 am
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Re: Difference between short-term TIPS funds?

Thanks for the reply and good catch re the ERs! It seems that VTIP has consistently outperformed STIP: https://i.postimg.cc/5tJrrSLx/Screen-Shot-2020-02-11-at-21-42-04.png red = VTIP. Of course, past performance is just the past. Which index is the theoretically "better" one to track? Basically if I...
by joeschmo
Tue Feb 11, 2020 11:59 pm
Forum: Investing - Theory, News & General
Topic: Difference between short-term TIPS funds?
Replies: 71
Views: 4286

Difference between short-term TIPS funds?

Hi, I'm trying to pick a short-term TIPS fund for half of my fixed-income allocation (to complement VWIUX Vanguard Interm-Term Munis) and am looking at these: STIP iShares 0-5 Year TIPS ETF / 0.06% ER VTIP Vanguard Short-Term TIPS ETF / 0.05% ER They seem like equivalent funds but iShares seems to b...
by joeschmo
Tue Feb 11, 2020 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Lower-cost donor-advised funds?
Replies: 34
Views: 1994

Re: Lower-cost donor-advised funds?

Hi, I talked to both Vanguard and Fidelity Charitable today and have updates on their fees: Vanguard - "Select" fees for the underlying funds kick in at $500k+ of assets - "Premiere" program at $1mm+ doesn't affect fees but you get access to their team (6 people total!) of people. Besides intl grant...