Search found 1836 matches

by GoneOnTilt
Thu Oct 14, 2021 5:59 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Oicuryy wrote: Thu Oct 14, 2021 5:18 pm
GoneOnTilt wrote: Thu Oct 14, 2021 12:23 pm There's nothing wrong with having a liking for the dividends portion of the total return.
If you say so. But please don't get hung up on a gimmicky high-dividend fund like this guy did.
viewtopic.php?t=3648

ADVDX was a popular fund among dividend investors back then. Three years after that was posted a share of that fund had lost two-thirds of its value and has never recovered.

Ron
I think we all just got punched by a straw man and hit in the head with a red herring. Feels like a Monty Python skit! In this discussion on dividends I don't recall anyone claiming a fund like the above is worthwhile.

:sharebeer
by GoneOnTilt
Thu Oct 14, 2021 5:55 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Oicuryy wrote: Thu Oct 14, 2021 5:18 pm
GoneOnTilt wrote: Thu Oct 14, 2021 12:23 pm There's nothing wrong with having a liking for the dividends portion of the total return.
If you say so. But please don't get hung up on a gimmicky high-dividend fund like this guy did.
viewtopic.php?t=3648

ADVDX was a popular fund among dividend investors back then. Three years after that was posted a share of that fund had lost two-thirds of its value and has never recovered.

Ron
Oy! :shock: Never. I don't even own a "high dividend" fund. I do own Wellesley Income Fund. And another managed large value fund. The other 75 percent of my portfolio is indexed.
by GoneOnTilt
Thu Oct 14, 2021 12:52 pm
Forum: Investing - Theory, News & General
Topic: Can somebody convince me to feel comfortable investing in international funds?
Replies: 98
Views: 11398

Re: Can somebody convince me to feel comfortable invesing in international funds?

secondopinion wrote: Thu Oct 14, 2021 10:26 am The global stock market is the true baseline.
There is no "global stock market."
by GoneOnTilt
Thu Oct 14, 2021 12:23 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

I've never seen any of the "dividends are not spending down the principal" investors on this forum at all. Can you provide specific threads, quotes and references from the forum where people claim that "dividends are not spending down the principal"? Here is one. https://www.bogleheads.org/forum/viewtopic.php?t=276554 Ron Yes. There's one. Definitely a misunderstanding. Dividends are an important part of total return, which also includes earnings growth and what Jack Bogle liked to call "speculative return" (what investors are willing to pay for each dollar of earnings). There's nothing wrong with having a liking for the dividends portion of the total return. I'm always happy the day dividends hit. And when I ...
by GoneOnTilt
Thu Oct 14, 2021 10:47 am
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

burritoLover wrote: Thu Oct 14, 2021 10:26 am I've never seen any of the "dividends are not spending down the principal" investors on this forum change their position to agree that a dividend is the equivalent to selling shares.
I've never seen any of the "dividends are not spending down the principal" investors on this forum at all.

Can you provide specific threads, quotes and references from the forum where people claim that "dividends are not spending down the principal"?

Thanks.

Dividends are part of the total return. Some people prefer them. John Bogle preferred them for his charity (he used the Vanguard High Dividend Yield Fund for the dividends).
by GoneOnTilt
Thu Oct 14, 2021 10:12 am
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

burritoLover wrote: Thu Oct 14, 2021 10:00 am I've come to realize that Bogle was a master at recognizing the behavioral mistakes of common investors and coming up with solutions to help them stay the course, even though those solutions weren't optimal in the strictest sense. That dividend check "coming in the mail" for the retiree can have a huge psychological influence even though it is the functional equivalent of selling shares in the portfolio.
^^This. As I wrote above, we all aren't Buffett-like investing machines. Emotions are a huge part of investing for most people (I heard Mr. Buffett say he never got frightened when it came to money and investing).
by GoneOnTilt
Thu Oct 14, 2021 6:46 am
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

deleted.
by GoneOnTilt
Wed Oct 13, 2021 9:29 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Da5id wrote: Wed Oct 13, 2021 9:12 pm A number of people who advocate for dividend focused investing seem to think dividends provide the special sauce. This is the source of most back and forth arguments in threads about dividend, do you actually not think that to be the case?
Please:

1. Define "special sauce."

2. Provide specific quotes and references from threads supporting your argument that "people (in threads here) who advocate for dividend focused investing seem to think dividends provide the special sauce."
by GoneOnTilt
Wed Oct 13, 2021 9:26 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

I feel like invoking Bogle as a trump card in an argument *against* owning just index funds seems like a bridge too far. A bridge too far? It was an excerpt. A quote from Jack Bogle. Hardly overreaching. Argument against owning just index funds? Can you point that out? I missed it. Dividend investing is a choice among many. I didn't see in Jack's comments, nor did I make, an argument against owning just index funds. You can quote Bogle on many things in many contexts. But if you take the totality of what he says, I'd say a better summary really is "all you need are simple index funds" than "you should think about owning dividend funds, they are great". Let me ask again. Can you give support to your assertion, and point ...
by GoneOnTilt
Wed Oct 13, 2021 8:33 pm
Forum: Investing - Theory, News & General
Topic: What drives these late session swoons ?
Replies: 58
Views: 6669

Re: What drives these late session swoons ?

All you experts out there -- We've seen this a few times here of late. Market (Dow for example) is pretty steady all day and in the last few minutes it takes a noticeable dump, accelerating in last 1-5 minutes. Anecdotally at least, I haven't seemed to notice the opposite trend but maybe I miss those days. Today was a good example of the "swoon." What's up ? There are news stories about "the market fell sharply at the close today on news of XYZ". But honestly those feel like rationalization rather than cast iron cause and effect most of the time. News doesn't move markets much usually, it is unexpected news or new information IMO. But heck, it can also be automated trading responding to some signal that is obscure to th...
by GoneOnTilt
Wed Oct 13, 2021 8:09 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Da5id wrote: Wed Oct 13, 2021 6:41 pm I feel like invoking Bogle as a trump card in an argument *against* owning just index funds seems like a bridge too far.
A bridge too far? It was an excerpt. A quote from Jack Bogle. Hardly overreaching.

Argument against owning just index funds? Can you point that out? I missed it. Dividend investing is a choice among many. I didn't see in Jack's comments, nor did I make, an argument against owning just index funds.
by GoneOnTilt
Wed Oct 13, 2021 6:33 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

With this kind of sound reasoning, I wonder why there is so much opposition to dividend investing on this forum? We see that there are many kinds of tilters, as well as non-tilters, on this forum (SCV, TIPS, etc.). It's not a problem. The fact is, there's nothing wrong with a dividend tilt. And there's nothing wrong with an anti-dividend tilt. And there's nothing wrong with sticking with the broad-market index. So the answer to your question is, some people are obsessed with telling other people that they're wrong. And I suppose that behavior isn't wrong either... freedom of speech and all... and everyone needs a hobby. It's all good. I like your attitude. Many roads go to Dublin and all that. Also, I think people are discounting the psych...
by GoneOnTilt
Wed Oct 13, 2021 3:40 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Also, this forum is not opposed to "dividend investing." The forum is opposed to the idea that dividend investing involves a special sauce that evades the principles of investing. The most extreme form of that is the illusion that dividends are free money but there are plenty of other illusions. None of this is opposed to someone who knows what they are doing selecting stocks by dividend or setting spending equal to dividends if they want to. :annoyed Maybe it would easier to say you're opposed to dividend investing instead of repeating the free money angle and other illusions. In my opinion, the issue is the word "Index" is missing. Yeah, this "illusion that dividends are free money" trope -- I've never seen ...
by GoneOnTilt
Wed Oct 13, 2021 2:55 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

I wonder why there is so much opposition to dividend investing on this forum? I think sometimes dividend investing could cause you to be taxed more Scenario: Both investors A and B are retired and their funds are in a taxable account. Investor A is living off individual stock dividends and Investor B is living off a total market fund (assume no dividends for simplicity). They both sell shares to pay for an upcoming expense Result: Investor A is taxed on the full amount of his dividend income. Investor B is taxed only on the gains. Investor B comes out ahead Obviously in a tax deferred account it doesn't matter In the situation you describe above, both should come out pretty close to even, since most stock dividends are qualified dividends ...
by GoneOnTilt
Wed Oct 13, 2021 1:19 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

Getting dividends in a certain amount today does not ensure that your portfolio will survive to meet your needs over time. Agreed, but either does relying on the market price, the future of which is unpredictable. I was simply pointing out that I find it nice to have the dividend portion of the total return in my hot little hands at the time I receive them. Again, this is not to say I would ever invest anything close to a majority of my portfolio in a high-dividend fund or some such thing. No thank you. But the closer I get to retirement, the more attractive dividends seem. As Bogle said, "Bet on the dividends, and not on the market price." To a point, I don't think it's unreasonable or unwise. And neither did he. The other aspec...
by GoneOnTilt
Wed Oct 13, 2021 12:34 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

I hold six percent of my portfolio in SCHD, a Schwab high dividend index fund, in a taxable account. I use the dividends to help pay bills. It's not a tax drag if you need and use the income. I see no reason for alarm. I think it's a reasonable approach. Agreed. I like dividends. I don't overly reach for them. But I like them. I like when they hit my account. They're part of the total return. I like knowing they'll cover a good chunk of what I'll need when I retire in a few years. The other reason I like them is that they're a bird in the hand, so to speak. I have no idea what the stock price will do tomorrow or the next day. At least I have the dividends in my account. I don't thin there's anything wrong with that thinking. As you said, n...
by GoneOnTilt
Wed Oct 13, 2021 12:24 pm
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

arcticpineapplecorp. wrote: Wed Oct 13, 2021 12:06 pm full context, oh and this interview was from 2015 if that helps:
Yes.

Correct.

Six years ago.

Or, 72 months, if you will.
by GoneOnTilt
Wed Oct 13, 2021 11:55 am
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

Re: John Bogle on Dividends

skierincolorado wrote: Wed Oct 13, 2021 11:36 am So you'll do exactly what Bogle advised not to do - deviate from the market.
He didn't say don't deviate from the market. He said don't stray too far. He thought it was okay for retirees to tilt toward Blue-Chip, higher-dividend paying stocks:

"If you really need the dividend income, I see nothing wrong with overweighting high-dividend stocks, knowing you’re taking a small risk of falling significantly behind the total market. But you can own blue chip stocks, and you’re going to get a higher dividend, a situation I think would be attractive to an awful lot of investors. But once you depart from the market portfolio, you’re taking on extra risk."
by GoneOnTilt
Wed Oct 13, 2021 10:44 am
Forum: Investing - Theory, News & General
Topic: John Bogle on Dividends
Replies: 233
Views: 21683

John Bogle on Dividends

Just to add to the dividend debate on here, I thought this article was revealing. John Bogle believed in dividend investing for retirees: https://www.etf.com/publications/journalofindexes/joi-articles/24198-legends-of-indexing-john-bogle.html?nopaging=1 Some quotes: "Oversimplifying, what you want to do when you retire is walk out to the mailbox on Social Security day and on dividend payment day for the funds—assuming they’re the same day—and make sure you have two envelopes out there. One is your fund dividend and the other is your Social Security check." and "Bet on the dividends, and not on the market price. You’ve got those two envelopes and that’s your retirement. If you have a pension plan (one that is not likely to go ...
by GoneOnTilt
Tue Oct 12, 2021 8:04 pm
Forum: Investing - Theory, News & General
Topic: VBTLX (BND) - Yield to maturity -> 1.4%
Replies: 53
Views: 4556

Re: VBTLX (BND) - Yield to maturity -> 1.4%

skierincolorado wrote: Tue Oct 12, 2021 7:23 pm You're sort of falling prey to mind games regarding dividends. Own diversified stocks. If that's too much risk, mix in some bonds.
As I said, I'm not a "dividend investor." I just don't mind receiving them. In fact I kinda like it. It's part of the return. That's just reality. Dividends + earnings growth + speculative return. Bogle 101.
by GoneOnTilt
Tue Oct 12, 2021 7:59 pm
Forum: Investing - Theory, News & General
Topic: VBTLX (BND) - Yield to maturity -> 1.4%
Replies: 53
Views: 4556

Re: VBTLX (BND) - Yield to maturity -> 1.4%

I hear you. But, with the dividend, capturing that part of the gain is assured. There's no guarantee that the price of the stock will continue to go up. It could fall below what I paid for it. That's one reason I like dividends (although I don't consider myself a "dividend investor"). Dividends guarantee me a part of the company's earnings. I know it's not the most tax efficient way to receive it. But that's okay with me. Because as I said, there are no guarantees I'll be able to partake of those earnings at a later date. That part of the gain is not guaranteed at all. The day the company issues the dividend, the stock price falls proportionally. There is no gain from the dividend. The only gain in investing in a company comes fr...
by GoneOnTilt
Tue Oct 12, 2021 6:32 pm
Forum: Investing - Theory, News & General
Topic: VBTLX (BND) - Yield to maturity -> 1.4%
Replies: 53
Views: 4556

Re: VBTLX (BND) - Yield to maturity -> 1.4%

I have yet to understand what concretely defines "income" from an investment. Income puts food on the table. in·come /ˈinˌkəm/ noun money received, especially on a regular basis, for work or through investments. So for investments, think dividends or interest. Simple. But does that apply to investment that returns your principal? I can have a high coupon bond, but it could yield nothing; it just returns principal back to you. It is not money received. Similarly, a stock paying a higher dividend than its earnings (besides being not overly wise) is going to pay some of its value. Taxwise is one thing, but I think paying from principal is not income in the sense of the word as presented. I see what you mean. It's more complicated th...
by GoneOnTilt
Tue Oct 12, 2021 5:42 pm
Forum: Investing - Theory, News & General
Topic: VBTLX (BND) - Yield to maturity -> 1.4%
Replies: 53
Views: 4556

Re: VBTLX (BND) - Yield to maturity -> 1.4%

Yes, as a source of income, bonds are uninvestable! The only purpose of bonds at this time is portfolio stability. I have yet to understand what concretely defines "income" from an investment. Income puts food on the table. in·come /ˈinˌkəm/ noun money received, especially on a regular basis, for work or through investments. So for investments, think dividends or interest. Simple. But does that apply to investment that returns your principal? I can have a high coupon bond, but it could yield nothing; it just returns principal back to you. It is not money received. Similarly, a stock paying a higher dividend than its earnings (besides being not overly wise) is going to pay some of its value. Taxwise is one thing, but I think payin...
by GoneOnTilt
Tue Oct 12, 2021 4:43 pm
Forum: Investing - Theory, News & General
Topic: VBTLX (BND) - Yield to maturity -> 1.4%
Replies: 53
Views: 4556

Re: VBTLX (BND) - Yield to maturity -> 1.4%

secondopinion wrote: Tue Oct 12, 2021 3:47 pm
Always passive wrote: Tue Oct 12, 2021 2:38 pm Yes, as a source of income, bonds are uninvestable! The only purpose of bonds at this time is portfolio stability.
I have yet to understand what concretely defines "income" from an investment.
Income puts food on the table.

in·come
/ˈinˌkəm/
noun
money received, especially on a regular basis, for work or through investments.

So for investments, think dividends or interest. Simple.
by GoneOnTilt
Tue Oct 12, 2021 1:35 pm
Forum: Investing - Theory, News & General
Topic: [ETF] balanced fund
Replies: 15
Views: 1929

Re: EFT balanced fund

eonny wrote: Tue Oct 12, 2021 9:07 am Could two (or more) EFTs be combined to create a fund like a balanced fund, that is, 60% stocks, 40% bonds?
iShares AOR is 60/40.
by GoneOnTilt
Mon Oct 11, 2021 7:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 716
Views: 177085

Re: Vanguard's Wellesley Income fund is incredible

Here's the transcript of a 2020 interview with Wellesley's new equity portfolio manager: https://www.morningstar.com/articles/1002211/michael-reckmeyer-and-matthew-hand-how-to-protect-downside-amid-lofty-valuations-and-paltry-yields Thanks, interesting to get insight from the fund managers. You're very welcome. I thought it was a really interesting interview. As an aside, according to an October 5, 2021 SEC filing:  Effective immediately, Matthew C. Hand has been added as a co-portfolio manager of Wellington Management Company LLP’s (Wellington Management) portion of Vanguard Equity Income Fund (the Fund). Additionally, W. Michael Reckmeyer, III will retire from Wellington Management on June 30, 2022, and will no longer serve as a co-portf...
by GoneOnTilt
Sun Oct 10, 2021 5:14 pm
Forum: Investing - Theory, News & General
Topic: You retired with only 5x - 10x. Now what?
Replies: 304
Views: 38813

Re: You retired with only 5x - 10x. Now what?

The standard recommendation is to retire with something like 25x in investments. I'm wondering what the recommended strategy is for someone who falls way short of that. Perhaps one can start withdrawing from their portfolio in order to delay claiming Social Security benefits past age 62 (by however many years your portfolio can last you). Or you can start claiming your Social Security at 62 and keep the "accumulation" phase going on market growth alone (without contributing), but I'm not sure why one would do that. How old is this person? What are their expenses? How soon can they collect Social Security? As has already been said, if SS at 62 covers the overwhelming majority of expenses, retirement might be easily possible if 62 ...
by GoneOnTilt
Sun Oct 10, 2021 2:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard's Wellesley Income fund is incredible
Replies: 716
Views: 177085

Re: Vanguard's Wellesley Income fund is incredible

Here's the transcript of a 2020 interview with Wellesley's new equity portfolio manager:

https://www.morningstar.com/articles/10 ... try-yields
by GoneOnTilt
Sun Oct 10, 2021 2:10 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 5577
Views: 618935

Re: Larry Swedroe Portfolio

...Can someone point to me where I said anything other than what Larry is doing for himself? Lots of straw men getting beat to hell out here... I'd like to let this go. You misspoke, or you were careless. But for the record, you did post Larry Swederoe recommends 100% SCV for equities Paul Merriman 100% SCV Ben Felix (how is this dude considered a leader? He just reposts others works, no unique insights…) anyway, he also blessed 100% SCV I’m sure there are others as well so please don't say it was a straw man. Just say you misspoke. If you like, you can edit the posting to read "Larry Swedroe himself uses 100% SCV" instead of "recommends." I don't think Larry Swedroe has ever recommended that anybody else use the "...
by GoneOnTilt
Sun Oct 10, 2021 11:08 am
Forum: Investing - Theory, News & General
Topic: 2020 Interview with New Wellesley Equity Manager
Replies: 2
Views: 956

Re: 2020 Interview with New Wellesley Equity Manager

Thanks! ...Wellington and Vanguard were one firm at one point. In 1975, Jack Bogle, we split the firm, and he started the Vanguard organization. That's a euphemistic way to describe it. A Bloomberg writer said Vanguard was not so much founded in late 1974 as wrested from the grasp of Wellington Management Co., the Philadelphia mutual fund company that Bogle had joined out of college in 1951, had been leading as president since 1967 — and been fired from in January 1974.... In 1928, Wellington had started the first “balanced” mutual fund that held both bonds and stocks. That conservative approach helped it survive the 1929 crash and long bear market that followed, but as the stock market boomed in the 1950s and 1960s, it began to seem awful...
by GoneOnTilt
Sun Oct 10, 2021 10:07 am
Forum: Investing - Theory, News & General
Topic: "Retire with the Wellington Fund" by Josh Scandlen?
Replies: 51
Views: 17354

Re: "Retire with the Wellington Fund" by Josh Scandlen?

nisiprius wrote: Wed Oct 06, 2021 7:46 pm
tj wrote: Wed Oct 06, 2021 9:37 am...Wellington shifted its strategy into the tech stocks in the last couple years...
Did the change happen to coincide with the beginning of the tenure of the new managers?
Management

Loren L. Moran, CFA, Senior Managing Director
Portfolio manager.
Advised the fund since 2017.

Daniel J. Pozen, Senior Managing Director
Advised the fund since 2019.
Loren Moran is a fixed income portfolio manager, so not likely, at least as far as she is concerned.
by GoneOnTilt
Sun Oct 10, 2021 5:15 am
Forum: Investing - Theory, News & General
Topic: 2020 Interview with New Wellesley Equity Manager
Replies: 2
Views: 956

2020 Interview with New Wellesley Equity Manager

As of October 5, Matthew Hand is co-manager for equities with Michael Reckmeyer for the Wellesley Income Fund at Wellington Management, and is taking over the full role when Reckmeyer retires in June. The link below is to a transcript of a 2020 interview with Reckmeyer and Hand about how they manage risk for the Wellesley fund, among other topics. The transcript page also has a link to the podcast.

I thought some might find it of interest.

https://www.morningstar.com/articles/10 ... try-yields
by GoneOnTilt
Sat Oct 09, 2021 9:19 am
Forum: Investing - Theory, News & General
Topic: Move Bond Index Dividends to Wellesley?
Replies: 7
Views: 1402

Re: Move Bond Index Dividends to Wellesley?

Following up on another thread I started. Is it a dumb idea to move the dividends and capital gains from my bond index fund into my Wellesley Income Fund as they come in? This depends on what you are trying to do. If you invest dividends from a bond fund into a balanced fund such as Wellesley, you will be slightly increasing your stock allocation; do you want to do that? If not, then you should be moving money in the other direction. Also, is this a taxable account or an iRA? Wellesley is a fine fund in an IRA, but it isn't good in a taxable account, because the capital gains on stocks increase the tax cost of holding stocks in that fund. If you want to use dividends to increase your stock allocation in a taxable account, you can invest al...
by GoneOnTilt
Fri Oct 08, 2021 5:31 pm
Forum: Investing - Theory, News & General
Topic: Move Bond Index Dividends to Wellesley?
Replies: 7
Views: 1402

Move Bond Index Dividends to Wellesley?

Following up on another thread I started. Is it a dumb idea to move the dividends and capital gains from my bond index fund into my Wellesley Income Fund as they come in?
by GoneOnTilt
Fri Oct 08, 2021 2:21 pm
Forum: Investing - Theory, News & General
Topic: Bonds are keeping up in 2021: why the fear
Replies: 56
Views: 12254

Re: Bonds are keeping up in 2021: why the fear

smectym wrote: Wed Sep 01, 2021 12:05 am
theorist wrote: Tue Aug 31, 2021 7:59 pm Am rebalancing into bonds as required to maintain my 70/30. I’ve worried about it, but as you say, not seen real evidence of a disaster yet (though indeed they are likely going to be a bit < 0 real this year).
My thesis, though, is that the challenging environment for bonds argues for paying the premium for active management of the bond portfolio. So we’re leaning toward, say, active Wellington management, still at a respectably low ER. Let’s see what happens.
Agreed re: active management. The yield on Wellesley Income Fund Investor shares just rose to 1.84%. I’ll take it. I have more than 50k but spread across different accounts :( Admiral is at 1.92% I believe.
by GoneOnTilt
Wed Oct 06, 2021 4:20 pm
Forum: Investing - Theory, News & General
Topic: Does active management reduce risk?
Replies: 27
Views: 2377

Re: Does active management reduce risk?

Northern Flicker wrote: Wed Oct 06, 2021 2:34 pm If the active management is trying to overperform the market it will increase risk.
And I wonder if this is an important distinction. What about owning an actively managed fund that you know will not outperform the market, but that has provided downside protection in every S&P 500 downturn of 15% or more over the last 70 years? What if that helps you sleep at night?

Is that decreasing risk?

I'm thinking of American Funds' American Mutual Fund (F-1 shares AMFFX). A large value fund which I happen to like. PS I am 80% indexed. My other active fund is Wellesley.
by GoneOnTilt
Tue Oct 05, 2021 7:47 pm
Forum: Investing - Theory, News & General
Topic: How much cash/bond is too much?
Replies: 30
Views: 4893

Re: How much cash/bond is too much?

great point! but what happens if 10 years of expenses is less than 30% in bonds? Increase equity exposure and limit fixed to 10 years spending instead of a percentage? What happens if a portion of the 10 or 12 or 15 years of expenses in bonds is in a balanced or target date fund? Do those bonds count? Yes, those bonds count. But how does that work if I'm withdrawing both bonds and stocks at the same time? I can never get my head around this. Drives me crazy. Why? All you need is a spreadsheet. If your portfolio was 1.5 million and you need to withdraw 60K, you new number is 1.44 million. Your spreadsheet can calculate which fund is over-allocated by how much. Then, you just sell the excess. KlangFool Thank you KlangFool.
by GoneOnTilt
Tue Oct 05, 2021 5:26 pm
Forum: Investing - Theory, News & General
Topic: How much cash/bond is too much?
Replies: 30
Views: 4893

Re: How much cash/bond is too much?

UpperNwGuy wrote: Mon Oct 04, 2021 9:46 pm
GoneOnTilt wrote: Mon Oct 04, 2021 6:20 pm
chrisdds98 wrote: Sun Oct 03, 2021 11:54 pm
KlangFool wrote: Sun Oct 03, 2021 9:34 pm
etfan wrote: Sun Oct 03, 2021 9:26 pm

What happens if 10 years of expenses is more than 70% in bonds, which would contradict rule (1)?
In that case, you do not have enough to retire. So, rule (2) does not apply.

KlangFool
great point! but what happens if 10 years of expenses is less than 30% in bonds? Increase equity exposure and limit fixed to 10 years spending instead of a percentage?
What happens if a portion of the 10 or 12 or 15 years of expenses in bonds is in a balanced or target date fund? Do those bonds count?
Yes, those bonds count.
But how does that work if I'm withdrawing both bonds and stocks at the same time? I can never get my head around this. Drives me crazy.
by GoneOnTilt
Tue Oct 05, 2021 5:58 am
Forum: Investing - Theory, News & General
Topic: Fidelity US Bond Index Fund SEC Yield is TRAILING
Replies: 4
Views: 911

Re: Fidelity US Bond Index Fund SEC Yield is TRAILING

Does anyone have any idea why the SEC yield of FXNAX (Fidelity US Bond Index Fund) is five basis points lower than Vanguard's Total Bond Market Fund and four basis points lower than iShares Total Bond Market ETF. They all follow the same index (Vanguard follow's float adjusted so maybe not). Is this some kind of tracking error. Does this actually matter? No. No. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relat...
by GoneOnTilt
Mon Oct 04, 2021 6:40 pm
Forum: Investing - Theory, News & General
Topic: Fidelity US Bond Index Fund SEC Yield is TRAILING
Replies: 4
Views: 911

Re: Fidelity US Bond Index Fund SEC Yield is TRAILING

Does anyone have any idea why the SEC yield of FXNAX (Fidelity US Bond Index Fund) is five basis points lower than Vanguard's Total Bond Market Fund and four basis points lower than iShares Total Bond Market ETF. They all follow the same index (Vanguard follow's float adjusted so maybe not). Is this some kind of tracking error. Does this actually matter? No. No. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2021&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relat...
by GoneOnTilt
Mon Oct 04, 2021 6:24 pm
Forum: Investing - Theory, News & General
Topic: Fidelity US Bond Index Fund SEC Yield is TRAILING
Replies: 4
Views: 911

Fidelity US Bond Index Fund SEC Yield is TRAILING

Does anyone have any idea why the SEC yield of FXNAX (Fidelity US Bond Index Fund) is five basis points lower than Vanguard's Total Bond Market Fund and four basis points lower than iShares Total Bond Market ETF. They all follow the same index (Vanguard follow's float adjusted so maybe not).

Is this some kind of tracking error. Does this actually matter?
by GoneOnTilt
Mon Oct 04, 2021 6:20 pm
Forum: Investing - Theory, News & General
Topic: How much cash/bond is too much?
Replies: 30
Views: 4893

Re: How much cash/bond is too much?

chrisdds98 wrote: Sun Oct 03, 2021 11:54 pm
KlangFool wrote: Sun Oct 03, 2021 9:34 pm
etfan wrote: Sun Oct 03, 2021 9:26 pm
KlangFool wrote: Sun Oct 03, 2021 4:19 pm OP,

1) Any AA between 70/30 to 30/70 is reasonable.

2) If you are retired, you should have at least 10 years of expense in fixed income. You can choose to have more but not less.

KlangFool
What happens if 10 years of expenses is more than 70% in bonds, which would contradict rule (1)?
In that case, you do not have enough to retire. So, rule (2) does not apply.

KlangFool
great point! but what happens if 10 years of expenses is less than 30% in bonds? Increase equity exposure and limit fixed to 10 years spending instead of a percentage?
What happens if a portion of the 10 or 12 or 15 years of expenses in bonds is in a balanced or target date fund? Do those bonds count?
by GoneOnTilt
Sun Oct 03, 2021 6:34 am
Forum: Investing - Theory, News & General
Topic: Vanguard Lowers Expense Ratio for Target Retirement Funds - Adds Income and Growth Trust Fund
Replies: 104
Views: 22443

Re: Vanguard lowers expense ratios for Target Retirement Funds

h82goslw wrote: Sun Oct 03, 2021 5:13 am
GoneOnTilt wrote: Sat Oct 02, 2021 8:01 pm
Cheez-It Guy wrote: Sat Oct 02, 2021 7:48 pm
SquawkIdent wrote: Sat Oct 02, 2021 1:41 pm
Cheez-It Guy wrote: Wed Sep 29, 2021 12:27 pm

True, but you have poutine, maple syrup, and RUSH.
Out of those 3 what’s the most important? Let me answer that…RUSH! :sharebeer
Why not listen to RUSH while eating poutine, eh?
Yes, in Lakeside Park, on Bastille Day.
While looking at The Trees.
RIP Neil
Indeed friend. RIP Neil.
by GoneOnTilt
Sat Oct 02, 2021 8:01 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Lowers Expense Ratio for Target Retirement Funds - Adds Income and Growth Trust Fund
Replies: 104
Views: 22443

Re: Vanguard lowers expense ratios for Target Retirement Funds

Cheez-It Guy wrote: Sat Oct 02, 2021 7:48 pm
SquawkIdent wrote: Sat Oct 02, 2021 1:41 pm
Cheez-It Guy wrote: Wed Sep 29, 2021 12:27 pm
Bylo Selhi wrote: Wed Sep 29, 2021 12:25 pm You guys are so fortunate. Up here Vanguard Canada charges 25bp to 32bp for their all-in-one ETFs.
True, but you have poutine, maple syrup, and RUSH.
Out of those 3 what’s the most important? Let me answer that…RUSH! :sharebeer
Why not listen to RUSH while eating poutine, eh?
Yes, in Lakeside Park, on Bastille Day.
by GoneOnTilt
Sat Oct 02, 2021 12:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Lowers Expense Ratio for Target Retirement Funds - Adds Income and Growth Trust Fund
Replies: 104
Views: 22443

Re: Vanguard lowers expense ratios for Target Retirement Funds

If I were a new investor I'd be a little concerned and want to know more about Vanguard's possible intent to put a large percentage of their target date funds in private equity. Can you please elaborate? Here's a link in which Vanguard refers to it: https://institutional.vanguard.com/offers/target-date-funds.page Also, it's discussed in the most recent episode of Bogleheads on Investing. Rick Ferri has a great interview with Ted Aronson. Really worth a listen, even with the private equity thing aside. Very interesting. I said "large percentage" because I thought there was a reference to up to 30% in the podcast. I was driving. I could be mistaken. I would just want to know a lot more before I invested. But maybe that's just becau...
by GoneOnTilt
Sat Oct 02, 2021 10:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard Lowers Expense Ratio for Target Retirement Funds - Adds Income and Growth Trust Fund
Replies: 104
Views: 22443

Re: Vanguard lowers expense ratios for Target Retirement Funds

If I were a new investor I'd be a little concerned and want to know more about Vanguard's possible intent to put a large percentage of their target date funds in private equity.
by GoneOnTilt
Fri Oct 01, 2021 7:05 pm
Forum: Investing - Theory, News & General
Topic: Does it matter WHERE you reinvest your dividends?
Replies: 15
Views: 1496

Does it matter WHERE you reinvest your dividends?

Simple question (that I don't know the answer to):

Does it matter where you reinvest your dividends?

Does the magic of compounding still happen just as effectively if I take my dividends from fund A and reinvest in fund B instead?

This is probably not being asked in correct fashion.

What do people do with their dividends?
by GoneOnTilt
Fri Oct 01, 2021 3:55 pm
Forum: Investing - Theory, News & General
Topic: How Many Times In a Year Do You check Your Portfolio Balance?
Replies: 178
Views: 16293

Re: How Many Times In a Year Do You check Your Portfolio Balance?

What's 365 x 2?

Ummm... 730 times.

So probably about 726 times too many.