Search found 32 matches

by Nittany_Lion
Sat Mar 14, 2020 2:52 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

I bailed on Traditional awhile back because of these types of concerns, which have seemingly moved to the forefront quicker than I would have imagined when I started this thread. If there really is a bubble in corporate bonds, as some commentators are suggesting, I can’t see how TIAA Traditional sur...
by Nittany_Lion
Mon Dec 02, 2019 4:58 pm
Forum: Investing - Theory, News & General
Topic: Erosion of credit quality in Total Bond
Replies: 32
Views: 2863

Re: Erosion of credit quality in Total Bond

I appreciate all of the replies and insights.

NL
by Nittany_Lion
Mon Dec 02, 2019 4:47 pm
Forum: Personal Consumer Issues
Topic: Credit freezes
Replies: 35
Views: 2437

Re: Credit freezes

As many on here suggested, it was much easier online. The questions were simple things about current and past employers, states I've had a drivers' license in, institutions I've had loans from, and ranges for the dollar amount of my current auto loan. There were also a lot of "none of the above" que...
by Nittany_Lion
Fri Nov 29, 2019 10:40 am
Forum: Investing - Theory, News & General
Topic: Erosion of credit quality in Total Bond
Replies: 32
Views: 2863

Re: Erosion of credit quality in Total Bond

I appreciate all of the replies. The growing fraction of MBS in the index wasn't something I was aware of. I would still be interested if anyone has any insights on how the credit quality of TB's corporate bonds has changed over time. I'm not a bond expert and am not sure if I have access to some of...
by Nittany_Lion
Fri Nov 29, 2019 10:32 am
Forum: Personal Consumer Issues
Topic: Credit freezes
Replies: 35
Views: 2437

Credit freezes

Hi Folks, Some free credit-monitoring from a prior breach, which allowed me to lock my credit reports, is coming to an end in a few days (Experian alerted me to this with an 11:50 PM email on Thanksgiving night, perhaps hoping that it would be lost in the rush of Black Friday advertisements). Once t...
by Nittany_Lion
Thu Nov 14, 2019 9:27 am
Forum: Investing - Theory, News & General
Topic: Erosion of credit quality in Total Bond
Replies: 32
Views: 2863

Erosion of credit quality in Total Bond

I have seen references in other threads regarding the issuance of substantial amounts of barely investment grade corporate bonds over the past decade which, it is claimed, has non-trivially reduced quality on the corporate side of Total Bond. Is there a way to see what Total Bond's portfolio looked ...
by Nittany_Lion
Tue Oct 29, 2019 2:46 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

I will definitely check them out. Thanks, Gabriel.
by Nittany_Lion
Fri Oct 25, 2019 2:20 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

Just to be clear, I was only ruminating on my own personal situation; not suggesting a plan for similarly situated investors (although my wording may have made it sound that way). I computed the current SEC yield on Gabriel's 4mt portfolio, which I believe was the best overall match to Traditional i...
by Nittany_Lion
Thu Oct 24, 2019 10:08 am
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

Thank you for taking the time to lay all this out, Gabriel. FWIW, I wasn't disputing your conclusions regarding Traditional's performance over the past 30 years. It accords well with my priors and I really appreciated seeing a detailed analysis documenting that. I believe one can construct a scenari...
by Nittany_Lion
Tue Oct 22, 2019 1:20 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

Hello Gabriel, OP here. Thanks for posting this very interesting paper. My thinking on TIAA Traditional is that it might be something of a free lunch if yields continue to drop and one is invested through a liquid GSRA account. Suppose yields continue to fall such that the yield on the weighted comb...
by Nittany_Lion
Wed Sep 04, 2019 7:49 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 349
Views: 27919

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

Thanks for your reply, vineviz, and for your many interesting posts on the forum. That's what I suspected and, regrettably, neither the Pimco ETF nor the DFA fund are available through my brokerage window at work. Since I don't have enough accumulated for a meaningful TIPS ladder in my Roth, I will ...
by Nittany_Lion
Tue Sep 03, 2019 5:19 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 349
Views: 27919

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

A quick question for vineviz, or anyone else who might know the answer. What is the cheapest mutual fund for investing in LT TIPS? I would like a mutual fund, rather than an ETF, because I will be investing monthly. I am currently using both the Vanguard TIPS fund and a Schwab TIPS fund that have lo...
by Nittany_Lion
Fri Jul 19, 2019 10:04 am
Forum: Investing - Theory, News & General
Topic: Performance of TIPS during recessions
Replies: 3
Views: 482

Re: Performance of TIPS during recessions

Yes, I was referring to a mutual fund, not holding TIPS to maturity. The latter isn't an option open to me. The information I collected from PF seems to be roughly consistent with the performance of TIPS mutual funds during those periods though.
by Nittany_Lion
Fri Jul 19, 2019 9:37 am
Forum: Investing - Theory, News & General
Topic: Performance of TIPS during recessions
Replies: 3
Views: 482

Performance of TIPS during recessions

Hi Folks, I am interested in any educated guesswork on this topic. Portfolio Visualizer indicates that TIPS were up 8% or 9% during 2001 (the first year it displays returns for TIPS) and down about 3% in 2008. I can see why in a severe recession -- one with a plausible deflation scenario -- TIPS mig...
by Nittany_Lion
Fri Jun 21, 2019 5:01 pm
Forum: Personal Finance (Not Investing)
Topic: Amended returns - overpaid LT cap gains
Replies: 5
Views: 404

Amended returns - overpaid LT cap gains

Hi Folks, A couple of quick tax questions that hopefully someone can answer... I believe my parents may have overpaid their long-term capital gains taxes. They are retired, in the 10% or 12% bracket for ordinary income, and weren't aware of the 0% bracket for LT cap gains. I don't know for sure, but...
by Nittany_Lion
Tue Jun 18, 2019 12:01 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 364615

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

FWIW, I have found this thread to be extremely useful and don't understand all of the acrimony it has created. I have learned a lot about the extent of negative correlation between the S&P 500 and long treasuries and believe such stylized facts are useful even to investors who aren't using leverage....
by Nittany_Lion
Sat Jun 15, 2019 5:57 pm
Forum: Investing - Theory, News & General
Topic: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]
Replies: 3353
Views: 364615

Re: HEDGEFUNDIE's excellent adventure [risk parity strategy using 3x leveraged ETFs]

Could someone refresh my memory on the downside of doing this through Vanguard's brokerage account rather than the one Hedgefundie used? I'm guessing the answer exists somewhere on this thread, but it has grown so large that I am hoping someone will spare me the trouble of searching through it. Than...
by Nittany_Lion
Mon May 13, 2019 1:32 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditional annuity

Thanks everyone, especially Oldzey and Talzara, for all of the helpful links and information. I will stew on this some more, but it sounds as though much of the yield advantage of TIAA Traditional may be going away. Although my "vintage" is still at 3.25%, that is only guaranteed through February or...
by Nittany_Lion
Sat May 11, 2019 2:15 pm
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Re: Composition and safety of TIAA traditiona annuity

I guess the key issue is whether this is a unique investing opportunity whereby TIAA, as they claim, has been able to lever into some relatively safe, albeit less liquid, investments, with the excess yield being compensation for the lower liquidity. Or, instead, are they reaching for yield without e...
by Nittany_Lion
Sat May 11, 2019 11:13 am
Forum: Investing - Theory, News & General
Topic: Composition and safety of TIAA traditional annuity
Replies: 130
Views: 13171

Composition and safety of TIAA traditional annuity

Hello Folks, After much searching, I discovered the following document, which displays the investment portfolio for TIAA's general account. I believe this is the pool of money that supports the traditional annuity, currently yielding 3.25% for those who invest in a supplemental retirement annuity, a...
by Nittany_Lion
Fri Aug 03, 2018 3:26 pm
Forum: Personal Investments
Topic: Looking for a value index fund (low-cost) that spans all market caps
Replies: 16
Views: 2077

Looking for a value index fund (low-cost) that spans all market caps

In looking over Vanguard's offerings, I am finding cap-specific funds (large, mid, and small-cap) value funds, as well as actively managed value funds, but cannot locate a value index that spans all caps -- something like the TSMI, but for value stocks.
by Nittany_Lion
Sat Jul 28, 2018 12:47 pm
Forum: Personal Investments
Topic: VG Prime MM on online account
Replies: 10
Views: 1637

Re: VG Prime MM on online account

I was interested in how often the account balance would be updated. I suspected it might be a month based on the timing involved. Thanks for the quick feedback.
by Nittany_Lion
Sat Jul 28, 2018 7:11 am
Forum: Personal Investments
Topic: VG Prime MM on online account
Replies: 10
Views: 1637

VG Prime MM on online account

Quick question for anyone who holds the Prime Money Market and checks their account online: How often does the balance update? I moved money into this fund in a taxable brokerage account about a month ago and the balance hasn't risen (I know the NAV is fixed at $1.00, but presume the balance rises a...
by Nittany_Lion
Thu Jul 26, 2018 10:45 am
Forum: Personal Consumer Issues
Topic: Pet burial
Replies: 26
Views: 2494

Re: Pet burial

Thanks to everyone for sharing their insights and ideas. On the off chance that anyone else would find themselves in a similar situation (we realize most people don't bury their pets), here's what we found out through calling various government offices. This pertains to the state of Pennsylvania. Th...
by Nittany_Lion
Wed Jul 25, 2018 2:49 pm
Forum: Personal Consumer Issues
Topic: Pet burial
Replies: 26
Views: 2494

Re: Pet burial

Just looking for some legal insights on how things would play out if the cemetery were sold. Your concerns are not unfounded. For example: https://www.nbcnewyork.com/news/local/Pet-Owners-Worry-Future-Cemetery-Animals-Buried-NY-476294523.html What would happen would depend on your state and possibl...
by Nittany_Lion
Wed Jul 25, 2018 2:27 pm
Forum: Personal Consumer Issues
Topic: Pet burial
Replies: 26
Views: 2494

Re: Pet burial

Burying him is a personal preference. Not interested in debating that aspect of it. Just looking for some legal insights on how things would play out if the cemetery were sold. FWIW, we are not worried about being limited to 50 years. The issue would be a sale of the property sometime in the near fu...
by Nittany_Lion
Wed Jul 25, 2018 2:04 pm
Forum: Personal Consumer Issues
Topic: Pet burial
Replies: 26
Views: 2494

Pet burial

This may be the weirdest question ever, but I hope you will bear with me and, ideally, someone will just happen to know something about this... We are in the process of burying our pet and our local cemetery, which buries both people and animals, has really jacked up the prices. We found another cem...
by Nittany_Lion
Tue Jul 24, 2018 11:09 am
Forum: Investing - Theory, News & General
Topic: Vanguard Paper on Roth Conversion Analysis
Replies: 123
Views: 11198

Re: Vanguard Paper on Roth Conversion Analysis

A quick question on how this works for folks who are already retired and thinking about a traditional-to-Roth conversion in an estate planning context. Assuming the marginal tax rate of the heirs will be higher than that of their retiree parents -- and given all of the additional advantages outlined...
by Nittany_Lion
Sat Jul 21, 2018 1:14 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 19873

Re: Direct Real Estate Returns

The issue here is that when comparing to un-leveraged equity returns folks are not pricing in the additional risk associated with 5X leverage on their real estate investments. What matters in the end is risk-adjusted returns; hence my earlier comment about leveraging the S&P 500 5X. FWIW, it is cer...
by Nittany_Lion
Fri Jul 20, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 19873

Re: Direct Real Estate Returns

The issue here is that when comparing to un-leveraged equity returns folks are not pricing in the additional risk associated with 5X leverage on their real estate investments. What matters in the end is risk-adjusted returns; hence my earlier comment about leveraging the S&P 500 5X. FWIW, it is cer...
by Nittany_Lion
Fri Jul 20, 2018 3:05 pm
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 19873

Re: Direct Real Estate Returns

The issue here is that when comparing to un-leveraged equity returns folks are not pricing in the additional risk associated with 5X leverage on their real estate investments. What matters in the end is risk-adjusted returns; hence my earlier comment about leveraging the S&P 500 5X. FWIW, it is cert...
by Nittany_Lion
Fri Jul 20, 2018 11:02 am
Forum: Investing - Theory, News & General
Topic: Direct Real Estate Returns
Replies: 361
Views: 19873

Re: Direct Real Estate Returns

The error in this thread is comparing leveraged real estate returns to un-leveraged equity returns. The 38% figure cited earlier is for real estate that is 5X leveraged. If you leverage the S&P 500 5X, you would get an average return of something like 55%. Thus, the 38% figure is real, as a leverage...