Search found 550 matches

by vineviz
Sat Jul 21, 2018 7:32 pm
Forum: Investing - Help with Personal Investments
Topic: Why should tax deferred investments differ from taxable?
Replies: 5
Views: 322

Re: Why should tax deferred investments differ from taxable?

Different types of income are taxed differently, and so putting the most tax-efficient investments in the taxable account will save you some money.

Read more here: http://www.morningstar.com/articles/840 ... e-acc.html
by vineviz
Sat Jul 21, 2018 2:11 pm
Forum: Investing - Theory, News & General
Topic: Is SEC yield of any value?
Replies: 18
Views: 2024

Re: Is SEC yield of any value?

restingonmylaurels wrote:
Sat Jul 21, 2018 1:47 pm
With a bond fund, it seems unreasonable to assume any other source of return like capital gains.
I'm curious to learn why you think that seems unreasonable?

With bond funds, just as with stock funds, dividends and capital gains are just two components of total return.
by vineviz
Sat Jul 21, 2018 12:26 pm
Forum: Investing - Help with Personal Investments
Topic: 401K Choices
Replies: 6
Views: 254

Re: 401K Choices

35% U.S. Large Cap Equity Index Fund
30% International Index Fund
20% Bond Index Fund
15% Small Cap Equity Index Fund
by vineviz
Sat Jul 21, 2018 10:57 am
Forum: Personal Consumer Issues
Topic: House foundation repair with Helical Piers - urgent request
Replies: 22
Views: 1271

Re: House foundation repair with Helical Piers - urgent request

I would never buy a house with foundation issues Okay, but this house doesn't have any "foundation issues". It HAD them, but they were fixed by the previous owner. Obviously the buyer should verify that those issues were resolved (via independent inspection by a qualified engineer) if they haven't ...
by vineviz
Sat Jul 21, 2018 10:53 am
Forum: Investing - Help with Personal Investments
Topic: Pension Lump Sum: Short-term bonds?
Replies: 32
Views: 1263

Re: Pension Lump Sum: Short-term bonds?

Diver4242 wrote:
Sat Jul 21, 2018 10:25 am
But these times seem a bit different.
These are some of the most dangerous words an investor can believe.
by vineviz
Fri Jul 20, 2018 9:15 pm
Forum: Investing - Theory, News & General
Topic: Is SEC yield of any value?
Replies: 18
Views: 2024

Re: Is SEC yield of any value?

For those BHs living off of their bond fund distributions, what predictive indicator do you use to be able to plan as best possible for future income distributions from a VG bond fund? To what others have said I add that mutual funds, including (and maybe especially) short term bond funds are gener...
by vineviz
Fri Jul 20, 2018 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Creation
Replies: 12
Views: 1319

Re: 3 Fund Portfolio Creation

I’d stick with option 1, at least for now. Once you take commissions and administrative fees into account, options 2 and 3 won’t be much cheaper, if at all. A target fund may not be as ‘pure’ as a 3-fund portfolio, but options 2 and 3 still have you using a target fund for half of the account so no...
by vineviz
Fri Jul 20, 2018 12:46 pm
Forum: Investing - Help with Personal Investments
Topic: 3 Fund Portfolio Creation
Replies: 12
Views: 1319

Re: 3 Fund Portfolio Creation

I always wondered what the point of 10% bonds are for? I can see the reason for a more significant amount like 20% and more, but it seems like the benefit of 10% vs all equities seems so minimal that it would make more sense to just go all equities (plus separate emergency cash fund), and only star...
by vineviz
Fri Jul 20, 2018 6:28 am
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 102
Views: 7803

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

Unless, of course, your net worth is $10 million from before. In that case, you can keep it. Well, at $10 MM the $1 million position would be 10% of assets and likely more than 10% of investable assets and so it would still be a concentrated position. As a result any advisor would recommend that yo...
by vineviz
Thu Jul 19, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard 401k - VFIFX vs VFINX - How to evaluate expense ratios?
Replies: 5
Views: 413

Re: Vanguard 401k - VFIFX vs VFINX - How to evaluate expense ratios?

So in terms of a wealth building focus and being fully cognizant of the risk involved: Is an acceptable strategy to move funds to the latest possible target date fund in order to keep my stock allocation high and retain the lower 0.08% expense ratio? Or is the better choice to put my 401k into VFIN...
by vineviz
Thu Jul 19, 2018 9:11 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

Investor A chooses Portfolio 1: 25.00% iShares Core S&P 500 ETF (IVV) 25.00% iShares Core S&P Small-Cap ETF (IJR) 25.00% iShares MSCI EAFE ETF (EFA) 25.00% iShares 20+ Year Treasury Bond ETF (TLT) Investor B chooses Portfolio 2: 25.00% ProShares Ultra S&P500 (SSO) 25.00% ProShares Ultra SmallCap600...
by vineviz
Thu Jul 19, 2018 6:58 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 102
Views: 7803

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

Heck, I even worry sometimes that my holdings in VTSAX are not diversified enough. I mean it sounds great that it is invested in over 3,000 companies. But 18% is invested in just 10 companies (at least half of which I loathe, but that's a different story). Yeah, technically I am invested in the "en...
by vineviz
Thu Jul 19, 2018 6:48 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 102
Views: 7803

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

How do you determine an extremely concentrated position? Assumption? The influence a potential asset has on a portfolio is determined by its mean expected return, its expected variance, and its correlation with the other assets (or, alternately, with the portfolio itself). The mathematics are rathe...
by vineviz
Thu Jul 19, 2018 5:47 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 47
Views: 5078

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

It should go without saying that if substantial return is attributable to quality and you don’t include quality factors in the regression, a fully correct regression model would attribute that part of the return to alpha when you eliminate the quality variables without changing the portfolio or tim...
by vineviz
Thu Jul 19, 2018 4:14 pm
Forum: Investing - Help with Personal Investments
Topic: I'm about to inherit a single stock with a worth of just over 7 figures....
Replies: 102
Views: 7803

Re: I'm about to inherit a single stock with a worth of just over 7 figures....

I see giving up the $35,000 annually as a potential mistake. Almost any index fund will just as likely allow you to withdraw $35,000 a year on a $1M portfolio, its only a 3.5% withdrawal rate. He wouldn't be giving up $35,000 annually. If they wanted that amount of income they could still have it. ...
by vineviz
Thu Jul 19, 2018 3:48 pm
Forum: Investing - Theory, News & General
Topic: Why Take Risk on Equity Side?
Replies: 78
Views: 4910

Re: Why Take Risk on Equity Side?

I have been an advocate of "taking your risk on the equity side." However, I noticed that from 1979-2018 (the maximum time period that Portfolio Visualizer has data) the risk-adjusted return for high-yield corporate bonds in actually slightly higher than the risk-adjusted return for the US stock ma...
by vineviz
Thu Jul 19, 2018 11:59 am
Forum: Personal Consumer Issues
Topic: Fence question
Replies: 18
Views: 1513

Re: Fence question

Unless you're planning on putting any plants in the mulched area, I would not mulch. I also would not put landscape fabric down. It does nothing. Weeds grow right through it or on top of it, especially if you mulch the area. I'd put a 2-3" layer of river rock for the least maintenance. If you DO wa...
by vineviz
Thu Jul 19, 2018 11:51 am
Forum: Personal Consumer Issues
Topic: Watch Collection Reasonable or Unreasonable or Irresponsible?
Replies: 100
Views: 3872

Re: Watch Collection Reasonable or Unreasonable or Irresponsible?

Retirement accounts total $184,000. This is my first year of Roth IRA :( Looking for opinions on if this is out of balance or workable? Just found this forum, love it! My take is that hobbies are healthy until they aren't. By that I mean, any behavior that is causing problems should be curtailed. I...
by vineviz
Thu Jul 19, 2018 11:37 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

If only I had a dollar for every time someone dismissed leveraged ETFs as being unsuitable based on nothing more than reading the footnotes on a website. To actually understand the potential value of a product like this, you need to be willing to dig beneath the boilerplate and really see what's go...
by vineviz
Thu Jul 19, 2018 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Selling mom's house
Replies: 50
Views: 3731

Re: Selling mom's house

I suppose one other approach would be for the three non-resident siblings to consolidate their holdings so that the person who is most interested in pursuing a solution is the sole owner of 75%. Let's say "A" is the sister living in the house and that "B", "C", and "D" are the other three siblings. ...
by vineviz
Thu Jul 19, 2018 10:52 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

It's not the legal disclaimer, it's the way they are constructed and managed and the resulting, actual long-term results, as demonstrated above. If only I had a dollar for every time someone dismissed leveraged ETFs as being unsuitable based on nothing more than reading the footnotes on a website. ...
by vineviz
Thu Jul 19, 2018 8:22 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

These products though are about trading volatility daily? That's the target market for which they were designed, but they are just a tool to be used IMO. Wouldn't a better strategy be S&P 500 call options, a la Zvi Bodie? Maybe. Call options or futures contracts have some advantages over using an l...
by vineviz
Thu Jul 19, 2018 7:34 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

ULPIX and similar leveraged ETFs are very misunderstood in general. They are only intended for day trading. ULPIX is not expected to even approximately double the return of the S&P 500 over any period longer than one trading day because it is "reset" each day. I agree that these products are genera...
by vineviz
Thu Jul 19, 2018 12:38 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

ULPIX and similar leveraged ETFs are very misunderstood in general. They are only intended for day trading. ULPIX is not expected to even approximately double the return of the S&P 500 over any period longer than one trading day because it is "reset" each day. I agree that these products are genera...
by vineviz
Thu Jul 19, 2018 12:35 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

... The behavior of these leveraged ETFs is slightly more complicated than an unleveraged fund (or possibly than other means of achieving the same leverage), but not by much... Many leveraged ETFs don't go back to very far. UPRO, for example, began in 2009 and thus has only been available during a ...
by vineviz
Wed Jul 18, 2018 4:45 pm
Forum: Investing - Theory, News & General
Topic: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]
Replies: 562
Views: 65379

Re: Fellow TDA bogleheads [TDA dropping Vanguard ETFs from commission-free list]

What are the other characteristics to look for (eg Liquidity, Spread etc)? Liquidity and spread are not important, so pay no attention to those. Assuming you are looking at index ETFs, low ER is certainly the main evaluation you can make. If the account is a taxable account, then historical tax-eff...
by vineviz
Tue Jul 17, 2018 7:44 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 47
Views: 5078

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

I assume these were both at market close today. Should look during the day. That said I looked at the trading of VIOV during the day a week or two ago and there were periods of time of over ten minutes with no trades. If I were to try to buy/sell that security I would get ulcers. I can't help you w...
by vineviz
Tue Jul 17, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 47
Views: 5078

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

Small cap stocks in general tend to have a positive loading on value, so even a "small blend" fund (like VTMSX or IJR) will have a value tilt relative to a large cap blend fund, It appears the profitable screen for the SP600 is a significant driver of this effect. I don't think so: the core Russell...
by vineviz
Tue Jul 17, 2018 4:13 pm
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 47
Views: 5078

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

I hold the S&P600 Value through VIOV, but my 401k only has Vanguard Small-Value (CRSP index) and this Tax-Managed fund. For now I am using the SCV VG fund in 401k (will be putting 100% of Roth into VIOV to reduce the holding) but I have considered using this fund instead. Something feels wrong thou...
by vineviz
Tue Jul 17, 2018 2:22 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

The last line is the problem. Leveraged ETFs aren't actually recreating a simple long term leveraged portfolio of borrowing at 3% and investing in stocks for 30 years. They behave differently than people might expect. The behavior of these leveraged ETFs is slightly more complicated than an unlever...
by vineviz
Tue Jul 17, 2018 2:04 pm
Forum: Investing - Help with Personal Investments
Topic: Short versus Intermediate Term Bond
Replies: 22
Views: 2393

Re: Short versus Intermediate Term Bond

Vanguard shows that the Short Term Bond ETF (BSV) has an estimated YTM of 2.8 years and a duration of 2.7 years, while the Intermediate Term Bond ETF (BIV) has an estimated YTM of 3.4% but a duration of 6.4 years. Given thyat it is a given that the Fed will continue increasing short term rates, why...
by vineviz
Tue Jul 17, 2018 10:11 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

But in practice, there are some roadblocks that make the move from 100% to 105% more problematic than the move from 80% to 85%: (1) Retirement accounts, where a lot of our savings lie, don't allow margin loans. 100% is the most you can go. (2) As mentioned by the OP and others, leveraging through m...
by vineviz
Tue Jul 17, 2018 7:52 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

Here is data going back to the 60s and it shows no such NATIONAL drop in 1987 or 1970 on an annual basis: https://fred.stlouisfed.org/series/ASPUS That data series reflects only new constructions (i.e. "New Residential Sales"). The chart is labelled "Average Sales Price of Houses Sold for the Unite...
by vineviz
Tue Jul 17, 2018 7:12 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

michaeljc70 wrote:
Tue Jul 17, 2018 5:55 am
Here is data going back to the 60s and it shows no such NATIONAL drop in 1987 or 1970 on an annual basis: https://fred.stlouisfed.org/series/ASPUS
That data series reflects only new constructions (i.e. "New Residential Sales").
by vineviz
Tue Jul 17, 2018 6:36 am
Forum: Investing - Theory, News & General
Topic: Is Tax-Managed Small Cap (VTMSX) an underrated fund?
Replies: 47
Views: 5078

Re: Is Tax-Managed Small Cap (VTMSX) an underrated fund?

A factor regression analysis shows an annualized alpha of 1%. It also, amazingly, has a 0.39 HML Value load, which is as valuey as most value funds This more shows the lack of statistical significance and generalizability of factor regressions run on non-random, biased samples than it illuminates m...
by vineviz
Tue Jul 17, 2018 5:39 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

At least with regard to margin loans, 2x to 4x leverage is pretty much the regulatory maximum amount of leverage brokers are allowed to provide under Regulation T with initial margin requirements of 50% and maintenance margin requirements of 25%.[/quote[ I can borrow 5.1x margin from my broker (equ...
by vineviz
Mon Jul 16, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Moving taxable to Vanguard with capital gains?
Replies: 11
Views: 512

Re: Moving taxable to Vanguard with capital gains?

Hello, We currently have $100k in taxable account with T. Rowe Price in the Blue Chip Growth Fund(TRBCX, expense ratio .7%) I think I want to move it to Vanguard and put it in the Vanguard Total Stock Market Index Admiral Shares (VTSAX, expense .04%) to lessen the expense($700 vs $40 right now). Th...
by vineviz
Mon Jul 16, 2018 11:00 am
Forum: Investing - Theory, News & General
Topic: Brokers sell ETF order flow used to trade against clients
Replies: 24
Views: 1608

Re: Brokers sell ETF order flow used to trade against clients

...isn't my broker required to get the best asking price? No . That's the point. I think you are confusing several different aspects of trading systems. Brokers ARE, indeed, required to execute customer trades at NBBO prices and quantities. The only way they can legally deviate is if the NBBO quant...
by vineviz
Mon Jul 16, 2018 9:53 am
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

What is niggling at the back of my head is why even the proponents of leveraging a stock portfolio would only recommend 2x or 3x leverage (where 3x leverage is actually 2x after-tax) and 5x leverage is irresponsible. At least with regard to margin loans, 2x to 4x leverage is pretty much the regulat...
by vineviz
Mon Jul 16, 2018 7:35 am
Forum: Investing - Help with Personal Investments
Topic: BlackRock Lifepath Fund?
Replies: 10
Views: 857

Re: BlackRock Lifepath Fund?

Ok, that sounds like a good plan to just change the target date to get more bonds. Just as suprised that the standard date funds were so agressive and was wondering if that should alarm me to anything else in the fund. For someone more than 30 years from retirement, target date funds are typically ...
by vineviz
Sat Jul 14, 2018 10:06 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

They argue that margin is probably the cheapest way to accomplish it but in tax-advantaged accounts you could use an ETF like ProShares UltraPro S&P500 as part of a portfolio to achieve 1.5x or 2x leverage for extended periods of time. I strongly disagree with using ultra funds for leverage. You ar...
by vineviz
Sat Jul 14, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 174
Views: 11211

Re: Why is leveraging property good but leveraging stocks bad?

I think using reasonable leverage in equity investing is good as a long-term strategy. Link was posted yesterday to an interesting video with Jack Bogle discussing this briefly: https://youtu.be/k6ra5POdsYg?t=623 Investing is to a large degree about managing risk. I agree. In Lifecycle Investing, I...
by vineviz
Sat Jul 14, 2018 7:58 am
Forum: Investing - Help with Personal Investments
Topic: many differences in small cap indexes
Replies: 26
Views: 1495

Re: many differences in small cap indexes

The russell 2000 index seems to trail the S&P 600 index by a healthy margin. And I don't think there is any recency bias her because some of the links do a 15 year study. Even the volatility of S&P 600 is less than russell. Fund Information (Jun 2000 - Jun 2018) Russell 2000 ETF CAGR= 8.48% iShares...
by vineviz
Fri Jul 13, 2018 6:12 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Portfolio
Replies: 11
Views: 1202

Re: Bond Portfolio

The Floating Rate High Income Fund is risky in terms of credit quality, but offers decent yield and low duration. In 2008, it fell by 16.47%, which is bad, but better than other bank loan funds, and much better than equities. Is it a bad tide to allocate a portion of one's portfolio to this type of...
by vineviz
Fri Jul 13, 2018 11:52 am
Forum: Investing - Help with Personal Investments
Topic: Bond Portfolio
Replies: 11
Views: 1202

Re: Bond Portfolio

For taxable bonds, I'm thinking the following (equal weight to each) 1) Short Term T-bills or CDs (3 months). 2) Short Term Treasury ETF. Maybe iShares SHY 3) VCIT (Vanguard Intermediate Tm Cpte) 4) FFRHX (Fidelity® Floating Rate High Income Fund) -- low quality, but only 90 day duration. This look...
by vineviz
Fri Jul 13, 2018 11:40 am
Forum: Investing - Help with Personal Investments
Topic: Bond Portfolio
Replies: 11
Views: 1202

Re: Bond Portfolio

For taxable bonds, I'm thinking the following (equal weight to each) 1) Short Term T-bills or CDs (3 months). 2) Short Term Treasury ETF. Maybe iShares SHY 3) VCIT (Vanguard Intermediate Tm Cpte) 4) FFRHX (Fidelity® Floating Rate High Income Fund) -- low quality, but only 90 day duration. This look...
by vineviz
Fri Jul 13, 2018 10:35 am
Forum: Investing - Help with Personal Investments
Topic: Investing for my homeowner's association
Replies: 31
Views: 1552

Re: Investing for my homeowner's association

I will add that this sort of thing is one of the reasons why so many people here gripe about homeowners' associations. Maybe, but my guess is that the 50% of HOAs that don't have an investment policy statement AT ALL would take the time to draft and approve one that there'd be a lot less basis for ...
by vineviz
Fri Jul 13, 2018 10:28 am
Forum: Investing - Help with Personal Investments
Topic: Investing for my homeowner's association
Replies: 31
Views: 1552

Re: Investing for my homeowner's association

15% broad stock market index fund [e.g. Vanguard Total Stock Market Index Fund Investor Shares (VTSMX)] I disagree that this would be appropriate. Reserve funds are basically emergency funds plus money held for major capital projects and they should be held in cash or near-cash equivalents. Corpora...
by vineviz
Fri Jul 13, 2018 10:06 am
Forum: Investing - Help with Personal Investments
Topic: Investing for my homeowner's association
Replies: 31
Views: 1552

Re: Investing for my homeowner's association

I'd say the first priority would be to draft, if you don't have one, an Investment Policy Statement that is formally adopted by your board. Do this BEFORE making any changes to your actual investments. Your actual investment policy will depend a LOT on your HOA's particulars, but managing the reserv...