Search found 106 matches

by Mountain Doc
Thu Nov 07, 2019 10:38 am
Forum: Investing - Theory, News & General
Topic: The hidden cost of Fidelity’s ZERO funds
Replies: 66
Views: 5892

Re: The hidden cost of Fidelity’s ZERO funds

greg24 wrote:
Thu Nov 07, 2019 10:27 am
If the dividend just lowers the NAV, why do index funds pay dividends?

They could just retain all dividends and be more tax-efficient.
That would be great for investors, bad for the tax man. The law requires mutual funds to distribute the underlying dividends.
by Mountain Doc
Tue Oct 29, 2019 11:28 am
Forum: Personal Investments
Topic: Holding bonds vs 100% equities
Replies: 367
Views: 22741

Re: Holding bonds vs 100% equities

I think it is worth holding some bonds, because many people are less risk-tolerant than they believe.
by Mountain Doc
Tue Oct 29, 2019 11:13 am
Forum: Personal Investments
Topic: [Employer Retirement Plan Change]
Replies: 49
Views: 4773

Re: No more Vanguard... wow

Vanguard charges for index funds. Fidelity offers zero cost index funds. Vanguard charges for stock trades. Fidelity offers zero cost stock trades. Need any more clarification? From what I'm seeing Vanguard Target Retirement 2050 Fund has an expense ratio of 0.15%: https://investor.vanguard.com/mut...
by Mountain Doc
Tue Oct 29, 2019 10:43 am
Forum: Personal Investments
Topic: [Employer Retirement Plan Change]
Replies: 49
Views: 4773

Re: No more Vanguard... wow

Vanguard charges for index funds. Fidelity offers zero cost index funds. Vanguard charges for stock trades. Fidelity offers zero cost stock trades. Need any more clarification? From what I'm seeing Vanguard Target Retirement 2050 Fund has an expense ratio of 0.15%: https://investor.vanguard.com/mut...
by Mountain Doc
Mon Oct 07, 2019 7:42 pm
Forum: Personal Consumer Issues
Topic: Is Utah the most convenient "Out West" destination for East Coast skiers?
Replies: 42
Views: 4722

Re: Is Utah the most convenient "Out West" destination for East Coast skiers?

Bob Sacamano wrote:
Mon Oct 07, 2019 7:25 pm
re: PowMo - what's the best way to get there assuming we stay in PC? i presume renting a car?
If you are staying in Park City, don't mess with Powder Mountain. Ski Park City or Deer Valley.
by Mountain Doc
Sun Oct 06, 2019 8:41 am
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8533

Re: Bond Investing when Yield Curve is Flat

What you are missing is that you get that the compensation for those remaining coupons now, not spread over the next three years. It is not that you get more money that counts, you just get that money sooner. Moreover depending on your tax situation that money may be LTCG not ordinary income. Also ...
by Mountain Doc
Sun Oct 06, 2019 7:53 am
Forum: Investing - Theory, News & General
Topic: Bond Investing when Yield Curve is Flat
Replies: 91
Views: 8533

Re: Bond Investing when Yield Curve is Flat

The rolling ladder (notes not held maturity) is a well accepted procedure under normal yield curve conditions. I probably don't fully understand a rolling ladder, but it doesn't seem like there is any free lunch there even under normal yield curve conditions. Yes, after four years your 7-year bonds...
by Mountain Doc
Wed Oct 02, 2019 1:22 pm
Forum: Investing - Theory, News & General
Topic: Know when to hold them and when to fold them......
Replies: 148
Views: 14208

Re: Know when to hold them and when to fold them......

Let's suppose, just suppose... your 40% or equities is near $400K and you look at M* (Morningstar) and see the last 5 years performance of Total International is 3.16% averaged as of yesterday, and Total US is 10.42% Have you changed or rethought your international exposure lately and what did you ...
by Mountain Doc
Wed Oct 02, 2019 10:51 am
Forum: Investing - Theory, News & General
Topic: Know when to hold them and when to fold them......
Replies: 148
Views: 14208

Re: Know when to hold them and when to fold them......

Let's suppose, just suppose... your 40% or equities is near $400K and you look at M* (Morningstar) and see the last 5 years performance of Total International is 3.16% averaged as of yesterday, and Total US is 10.42% Have you changed or rethought your international exposure lately and what did you ...
by Mountain Doc
Sat Sep 28, 2019 10:45 pm
Forum: Personal Consumer Issues
Topic: Is Utah the most convenient "Out West" destination for East Coast skiers?
Replies: 42
Views: 4722

Re: Is Utah the most convenient "Out West" destination for East Coast skiers?

i have been a couple times. it is incredibly convenient. been to Colorado as well. not nearly as convenient. at any rate, just want confirmation as well as recommendations of mountains. been to Park City/The Canyons, Snowbird and Brighton. would love to hit Powder Mountain but that seems far (about...
by Mountain Doc
Tue Sep 10, 2019 7:09 am
Forum: Personal Finance (Not Investing)
Topic: In retirement, a $100 monthly expense needs $30,000 in your portfolio
Replies: 68
Views: 7376

Re: In retirement, a $100 monthly expense needs $30,000 in your portfolio

If $12000 in your portfolio earns 1 percent doesn't that cover your phone bill. I may be the lone ranger but I think people overstate what they need to retire. Check you math... the $12000 would have to earn 10% annually to pay the phone bill, and that doesn't take into account sequence of returns ...
by Mountain Doc
Sun Sep 08, 2019 9:15 am
Forum: Personal Investments
Topic: VTIAX International fund - should I give up on it?
Replies: 297
Views: 27713

Re: VTIAX International fund - should I give up on it?

Eyeballing your chart there's something of a shared low point I've identified as approximately 9/30/2002. Using Morningstar's growth charting, from that date to the present, growth of $10,000 in VTSAX would have exceeded VTIAX by $19,162 (VTSAX $53,532 vs. VTIAX $34,370). This dramatically contradi...
by Mountain Doc
Fri Sep 06, 2019 5:32 pm
Forum: Investing - Theory, News & General
Topic: Episode 013: Bogleheads on Investing - guest Dr. Bill Bernstein, host Rick Ferri
Replies: 36
Views: 5391

Re: Episode 013: Bogleheads on Investing - guest Dr. Bill Bernstein, host Rick Ferri

9-5 Suited wrote:
Thu Aug 29, 2019 9:35 pm
The free space on the bingo card is if he mentions he “quickly realized he lives in a country without a functioning social welfare system” in the first five minutes of the podcast :)
4:02... Bingo! :D
by Mountain Doc
Mon Sep 02, 2019 3:05 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 290
Views: 20868

Re: First 20% of bonds in long-term Treasuries

The first 20% of a portfolio allocated to bonds should be allocated to long-term US Treasury bonds. Out of curiosity, do you view EE bonds (held for the 20 year doubling period) as preferable to long-term treasuries given the significantly higher yield, or less favorably because they don't benefit ...
by Mountain Doc
Thu Aug 29, 2019 8:29 pm
Forum: Personal Investments
Topic: What should I know about high interest loans to family?
Replies: 20
Views: 1216

Re: What should I know about high interest loans to family?

EthanAllen wrote:
Thu Aug 29, 2019 8:15 pm
How should I treat a 25% loan...
As a very, very risky investment.

Yes, the interest is taxable. Document the loan terms well if you proceed.
by Mountain Doc
Sun Aug 18, 2019 9:18 am
Forum: Investing - Theory, News & General
Topic: Why is VFIUX (intermediate treasurys) lagging behind its benchmark index?
Replies: 3
Views: 361

Re: Why is VFIUX (intermediate treasurys) lagging behind its benchmark index?

It's an active fund, so underperforming the benchmark is definitely a risk of investing in that fund.

You might consider VSIGX (intermediate-term treasury index fund), which has lower fees and has done a very nice job tracking its index.
by Mountain Doc
Wed Aug 14, 2019 12:28 am
Forum: Personal Investments
Topic: Bond Fund question..
Replies: 3
Views: 497

Re: Bond Fund question..

The comparable bond fund is the Fidelity US Bond Index Fund.

Fidelity Total Bond is an active fund with a much higher ER.
by Mountain Doc
Wed Jul 17, 2019 11:22 am
Forum: Personal Consumer Issues
Topic: replacing mulch bed recommendations
Replies: 35
Views: 2769

Re: replacing mulch bed recommendations

I just finished converting all of our mulch beds to 2" crushed rock. I laid paper to reduce weeds. The rocks look great and I am happy with the result. The beds will be much easier to clean now, because I can just use a blower. The rocks should last a very long time. I moved about 5 cubic yards in t...
by Mountain Doc
Sun Jul 14, 2019 7:38 pm
Forum: Investing - Theory, News & General
Topic: Will you buy Total Bond with a negative yield?
Replies: 112
Views: 13288

Re: Will you buy Total Bond with a negative yield?

It would depend on what other options existed at the time. If banks were offering 0% or higher while Total Bond was negative, I would likely leave my entire bond position in savings accounts or CDs.
by Mountain Doc
Sun Jul 07, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 21016

Re: Larry Swedroe: The Historical Imperative For International Diversification

It is not impossible that China will move eventually from its current system of state capitalism/private equity to a free-market system relying on a properly-regulated public stock market, but do you have the time to wait for something like that to happen (if it ever does), and manifest itself in e...
by Mountain Doc
Sun Jul 07, 2019 3:09 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 21016

Re: Larry Swedroe: The Historical Imperative For International Diversification

Well, actually, it's wasn't an argument of any type (straw man or otherwise). It was 2 questions. No? Fair enough. The argument is often made on this forum (perhaps you were not making it) that it is inconsistent to hold stocks at market cap weighting and yet not market cap weight every other asset...
by Mountain Doc
Sun Jul 07, 2019 2:11 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 21016

Re: Larry Swedroe: The Historical Imperative For International Diversification

For those in the "diversification is my nirvana" camp, are you global market cap weighted in bitcoin, gold, Venezuela bonds, commodities, etc.? If not, why not? This is a straw man argument, but I'll answer it anyway. Bitcoin, gold, and other commodities do not pay interest or dividends. There is n...
by Mountain Doc
Sun Jul 07, 2019 1:24 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 21016

Re: Larry Swedroe: The Historical Imperative For International Diversification

Knowing that stocks in Greece, Colombia, etc. are not included in my portfolio is a comforting thought. Diversification at all costs is silly. Sometimes common sense is needed. Greece and Colombia each represent 0.04% of the FTSE Global All Cap index (tracked by Vanguard's Total World Fund). I don'...
by Mountain Doc
Sat Jul 06, 2019 10:09 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: The Historical Imperative For International Diversification
Replies: 347
Views: 21016

Re: Larry Swedroe: The Historical Imperative For International Diversification

McGilicutty wrote:
Sat Jul 06, 2019 9:38 pm
You might want to tone down the arrogance a little. You might learn something.
Ditto.
by Mountain Doc
Thu Jun 27, 2019 8:10 am
Forum: Investing - Theory, News & General
Topic: Zero Interest Rates Forever...if true, is it actionable?
Replies: 25
Views: 3273

Re: Zero Interest Rates Forever...if true, is it actionable?

Frank2012 wrote:
Thu Jun 27, 2019 8:01 am
So if you know that U.S. interest rates would go to zero forever, how would this affect your investment mix?
If I knew interest rates would go to zero forever, I would be shifting all of my bonds to 30-year treasuries to lock in today's 2.57% yield.

But I don't know that, so it's not actionable.
by Mountain Doc
Mon Jun 24, 2019 9:00 pm
Forum: Personal Investments
Topic: Is VGT ETF pointless if you hold Vanguard Total stock Index?
Replies: 27
Views: 3169

Re: Is VGT ETF pointless if you hold Vanguard Total stock Index?

You are blowing my mind, in a very good way! Can you please explain this like I’m 5? Does the fact that their is an existing market premium mean it is currently not a good investment? The fundamental point is that the expected earnings growth of a company is already built into the price of the stoc...
by Mountain Doc
Sun Jun 23, 2019 11:43 pm
Forum: Personal Investments
Topic: Is VGT ETF pointless if you hold Vanguard Total stock Index?
Replies: 27
Views: 3169

Re: Is VGT ETF pointless if you hold Vanguard Total stock Index?

I suspect technology companies will experience greater growth and profitability than the general market as time goes on. So does the market, which is why tech stocks are priced at a premium. According to Vanguard, VGT has a P/E of 21x and P/B of 6.1x, whereas the total stock market has a P/E of 18....
by Mountain Doc
Sat Jun 08, 2019 7:30 pm
Forum: Investing - Theory, News & General
Topic: The logical fallacy behind "Bonds Are For Safety"
Replies: 248
Views: 17357

Re: The logical fallacy behind "Bonds Are For Safety"

I have little doubt that a portfolio of stocks and long-term bonds has been the most efficient. Honestly, it has been a thing of beauty to see MPT at work. However, I have little confidence that our historical record includes all possible crises. It is entirely possible that a future crisis might b...
by Mountain Doc
Fri Jun 07, 2019 3:20 pm
Forum: Investing - Theory, News & General
Topic: The logical fallacy behind "Bonds Are For Safety"
Replies: 248
Views: 17357

Re: The logical fallacy behind "Bonds Are For Safety"

Don't focus on long-term bonds. That's a distraction. Focus instead on the important takeaway (which I think you probably get correctly, by the way): the portfolio matters, not the pieces. If you are genuinely worried about a scenario I which both long-term bonds and stocks get crushed, you want a ...
by Mountain Doc
Fri Jun 07, 2019 2:35 pm
Forum: Investing - Theory, News & General
Topic: The logical fallacy behind "Bonds Are For Safety"
Replies: 248
Views: 17357

Re: The logical fallacy behind "Bonds Are For Safety"

So here's the thing: the optimal response to a realization that you don't have perfect foresight is not to discard all the good information you do have. Right? You can't be 100% sure that wearing your seatbelt will protect you in a car crash, but it would be clearly irrational to use that as a just...
by Mountain Doc
Fri Jun 07, 2019 1:20 pm
Forum: Investing - Theory, News & General
Topic: The logical fallacy behind "Bonds Are For Safety"
Replies: 248
Views: 17357

Re: The logical fallacy behind "Bonds Are For Safety"

I have little doubt that a portfolio of stocks and long-term bonds has been the most efficient. Honestly, it has been a thing of beauty to see MPT at work. However, I have little confidence that our historical record includes all possible crises. It is entirely possible that a future crisis might be...
by Mountain Doc
Wed Jun 05, 2019 3:36 pm
Forum: Investing - Theory, News & General
Topic: Dividends: The Basics
Replies: 6
Views: 974

Re: DIVIDENDS: THE BASICS

-Why do some mutual funds pay dividends monthly vs quarterly vs annually? It is basically arbitrary. Each fund picks a frequency, and distributes all of the dividends that it has received from its underlying investments during that time. -A dividend seems to be written as a $ amount, what does this...
by Mountain Doc
Sun May 12, 2019 4:11 pm
Forum: Investing - Theory, News & General
Topic: Another Warren Buffett S&P 500 Recommendation
Replies: 109
Views: 17645

Re: Another Warren Buffett S&P 500 Recommendation

One thing that bothers me with S&P 500 performance numbers is what would the performance actually be if it did not drop out bankruptcies and other poor performing companies and replace them with more recent companies. Anyone know of a reputable website that does the performance calculations that is...
by Mountain Doc
Fri May 03, 2019 11:41 pm
Forum: Personal Investments
Topic: Vanguard Free/Zero Funds
Replies: 43
Views: 4720

Re: Vanguard Free/Zero Funds

I don't think Vanguard will ever offer zero expense funds. They run their funds at cost. I also don't think Fidelity is running a bait-and-switch scheme. They are free to run a loss-leader forever. I think they will. I mean 0.03% is basically the same thing. If you can make up the rest lending secu...
by Mountain Doc
Thu May 02, 2019 12:06 am
Forum: Personal Investments
Topic: Vanguard Free/Zero Funds
Replies: 43
Views: 4720

Re: Vanguard Free/Zero Funds

I don't think Vanguard will ever offer zero expense funds. They run their funds at cost.

I also don't think Fidelity is running a bait-and-switch scheme. They are free to run a loss-leader forever.
by Mountain Doc
Fri Apr 26, 2019 3:29 pm
Forum: Personal Investments
Topic: Theory: NOW is the Best Time for Total World Stock
Replies: 145
Views: 19665

Re: Theory: NOW is the Best Time for Total World Stock

I've spent a lot of time on these boards over the past couple of weeks, having recently found this site. It's been so educational. So many smart people sharing tons of great advice. I'd already been doing something similar with my investing, but this site has helped clarify a number of things. And ...
by Mountain Doc
Fri Apr 26, 2019 9:44 am
Forum: Personal Investments
Topic: 2/3 VTSAX and 1/3 VTIAX OR simply VTWAX?
Replies: 15
Views: 2985

Re: 2/3 VTSAX and 1/3 VTIAX OR simply VTWAX?

I like Total World for the reasons you stated. If this is in a taxable account, the benefit of splitting into two funds is you can independently tax-loss harvest the different asset classes. The same could be said for further splitting the two funds into their components (developed/emerging, large/m...
by Mountain Doc
Mon Apr 22, 2019 11:03 am
Forum: Personal Investments
Topic: Getting through a 2008-like crash during retirement
Replies: 38
Views: 5351

Re: Getting through a 2008-like crash during retirement

I am looking at https://investor.vanguard.com/mutual-funds/profile/overview/vwiux and under average annual returns the chart shows return of 5.15% in the last year. Am I reading this wrong? Past returns are not a good predictor of future returns in bonds because of changes in interest rates general...
by Mountain Doc
Mon Apr 22, 2019 10:47 am
Forum: Personal Investments
Topic: Getting through a 2008-like crash during retirement
Replies: 38
Views: 5351

Re: Getting through a 2008-like crash during retirement

The yield on VWIUX is 2.11% right now. You will have to take a lot of risk in bonds (junk bonds) to get 5-6% interest right now. Read about the Trinity Study and 4% safe withdrawal rate. This will give you a better understanding of how to plan for retirement while accounting for the possibility of a...
by Mountain Doc
Sat Apr 20, 2019 2:35 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 223
Views: 17288

Re: Market timers thread

Unfortunately there is no free lunch. You really do have to do your own homework. And the best way to start is to create a forum of people open to the possibility that it’s possible. Now, if this makes your head hurt, that’s fine. As pointed out above, a positive trait of the Boglehead method is th...
by Mountain Doc
Sat Apr 20, 2019 1:58 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 223
Views: 17288

Re: Market timers thread

I am all for entertaining different perspectives. I agree with you that alternative ideas get shouted down by some. Having said that, I am curious what you mean by "all the glaring evidence to the contrary". I would be sincerely interested to see such evidence that is backed up by real analysis and...
by Mountain Doc
Fri Apr 19, 2019 11:46 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 223
Views: 17288

Re: Market timers thread

Why does it make you angry for someone to simply confirm that yes, market timing is not only possible, but is happening successfully every day? People also win at blackjack every day, but that doesn't make it a wise strategy. Market timing can be successful, but the data suggest the odds are agains...
by Mountain Doc
Sun Mar 24, 2019 3:15 pm
Forum: Personal Investments
Topic: What would be your perfect personal bond allocation
Replies: 15
Views: 1283

Re: What would be your perfect personal bond allocation

I have settled on Total Bond as “good enough” because I don’t know which direction to tilt away from it. If I was going to do something else, it would probably be 100% I-bonds (especially those early 3%+ real I-bonds 🙂)
by Mountain Doc
Sun Mar 17, 2019 11:07 am
Forum: Investing - Theory, News & General
Topic: That's enough for me in 2019
Replies: 849
Views: 108861

Re: That's enough for me in 2019

This is strange graph. I assume it correct. It seems to suggest that 100% bonds is better than 50/50. More gain, less loss. I can't put my finger on the problem. I assume it means nothing since we can not predict the future. Or we might live for more than one year. The problem is it only shows the ...
by Mountain Doc
Tue Mar 12, 2019 5:06 am
Forum: Investing - Theory, News & General
Topic: Are Vanguard Mutual Funds dying?
Replies: 152
Views: 17647

Re: Are Vanguard Mutual Funds dying?

Trillions of dollars are invested in Vanguard mutual funds. That money is not going to jump ship to ETFs for a few basis points in expense ratio. The mutual funds aren't going anywhere.
by Mountain Doc
Sat Mar 09, 2019 12:40 pm
Forum: Investing - Theory, News & General
Topic: Year's worth of earnings in two months?
Replies: 69
Views: 7589

Re: Year's worth of earnings in two months?

You're right. Even when in the market, my AA is low enough so that I would not need to worry. Nevertheless, I would not at all be surprised to see the market give back a huge percentage of the gains we've seen in the last 10 years. I don't want to be around to watch the impact that that would take ...
by Mountain Doc
Wed Mar 06, 2019 11:27 am
Forum: Personal Consumer Issues
Topic: Objective news source?
Replies: 69
Views: 2074

Re: Objective news source?

livesoft wrote:
Wed Mar 06, 2019 11:19 am
That chart is ridiculous.
I love the above comment! :beer

However, I think such comments say something more about the commenters than the chart.
Agreed.
by Mountain Doc
Wed Mar 06, 2019 11:26 am
Forum: Personal Consumer Issues
Topic: Objective news source?
Replies: 69
Views: 2074

Re: Objective news source?

That chart is ridiculous. Care to elaborate? I would quibble with some of the precise positioning, but overall I think charts like this are reasonably accurate and effective in getting people to consider the quality of their news. It shows most of the MSM as neutral which is ridiculous. It also inc...
by Mountain Doc
Wed Mar 06, 2019 10:49 am
Forum: Personal Consumer Issues
Topic: Objective news source?
Replies: 69
Views: 2074

Re: Objective news source?

slayed wrote:
Wed Mar 06, 2019 10:35 am
That chart is ridiculous.
Care to elaborate? I would quibble with some of the precise positioning, but overall I think charts like this are reasonably accurate and effective in getting people to consider the quality of their news.
by Mountain Doc
Wed Mar 06, 2019 10:21 am
Forum: Personal Consumer Issues
Topic: Objective news source?
Replies: 69
Views: 2074

Re: Objective news source?

livesoft wrote:
Wed Mar 06, 2019 9:57 am
I think I read a 1 and I also read a 10, so that gives me 5 on average.
I tried this, and it made me want to pluck my own eyes out. I find it much more tolerable to read a 4 and 6. I do have to pay for both of them.