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.Oicuryy wrote: ↑Thu Oct 14, 2021 5:18 pmIf you say so. But please don't get hung up on a gimmicky high-dividend fund like this guy did.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.
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
Search found 1836 matches
- 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
- 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
Oy! 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.Oicuryy wrote: ↑Thu Oct 14, 2021 5:18 pmIf you say so. But please don't get hung up on a gimmicky high-dividend fund like this guy did.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.
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
- 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?
There is no "global stock market."
- Thu Oct 14, 2021 12:48 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?
No. Avoid them when possible.
- 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 ...
- 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
I've never seen any of the "dividends are not spending down the principal" investors on this forum at all.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.
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).
- 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
^^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).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.
- 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.
- 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
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."
- 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 ...
- 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...
- 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
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.
- 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...
- 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 ...
- 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 ...
- 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...
- 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...
- 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
Yes.arcticpineapplecorp. wrote: ↑Wed Oct 13, 2021 12:06 pm full context, oh and this interview was from 2015 if that helps:
Correct.
Six years ago.
Or, 72 months, if you will.
- 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
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:skierincolorado wrote: ↑Wed Oct 13, 2021 11:36 am So you'll do exactly what Bogle advised not to do - deviate from the market.
"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."
- 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 ...
- 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%
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.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.
- 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...
- 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...
- 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...
- 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%
Income puts food on the table.secondopinion wrote: ↑Tue Oct 12, 2021 3:47 pmI have yet to understand what concretely defines "income" from an investment.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.
in·come
/ˈinˌkəm/
noun
money received, especially on a regular basis, for work or through investments.
So for investments, think dividends or interest. Simple.
- Tue Oct 12, 2021 1:35 pm
- Forum: Investing - Theory, News & General
- Topic: [ETF] balanced fund
- Replies: 15
- Views: 1929
- 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...
- 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 ...
- 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
https://www.morningstar.com/articles/10 ... try-yields
- 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 "...
- 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...
- 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?
Loren Moran is a fixed income portfolio manager, so not likely, at least as far as she is concerned.nisiprius wrote: ↑Wed Oct 06, 2021 7:46 pmDid 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.
- 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
I thought some might find it of interest.
https://www.morningstar.com/articles/10 ... try-yields
- 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...
- 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?
- 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
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.
- Wed Oct 06, 2021 5:03 pm
- Forum: Investing - Theory, News & General
- Topic: What is Jim Dahle in "White Coat Investor" article saying about the 3 Fund Portfolio?
- Replies: 60
- Views: 8228
- 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?
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?Northern Flicker wrote: ↑Wed Oct 06, 2021 2:34 pm If the active management is trying to overperform the market it will increase risk.
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.
- 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.
- 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?
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.UpperNwGuy wrote: ↑Mon Oct 04, 2021 9:46 pmYes, those bonds count.GoneOnTilt wrote: ↑Mon Oct 04, 2021 6:20 pmWhat 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?chrisdds98 wrote: ↑Sun Oct 03, 2021 11:54 pmgreat 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?
- 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...
- 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...
- 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?
Is this some kind of tracking error. Does this actually matter?
- 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?
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?chrisdds98 wrote: ↑Sun Oct 03, 2021 11:54 pmgreat 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?
- 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
Indeed friend. RIP Neil.h82goslw wrote: ↑Sun Oct 03, 2021 5:13 amWhile looking at The Trees.GoneOnTilt wrote: ↑Sat Oct 02, 2021 8:01 pmYes, in Lakeside Park, on Bastille Day.Cheez-It Guy wrote: ↑Sat Oct 02, 2021 7:48 pmWhy not listen to RUSH while eating poutine, eh?SquawkIdent wrote: ↑Sat Oct 02, 2021 1:41 pmOut of those 3 what’s the most important? Let me answer that…RUSH!
RIP Neil
- 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
Yes, in Lakeside Park, on Bastille Day.Cheez-It Guy wrote: ↑Sat Oct 02, 2021 7:48 pmWhy not listen to RUSH while eating poutine, eh?SquawkIdent wrote: ↑Sat Oct 02, 2021 1:41 pmOut of those 3 what’s the most important? Let me answer that…RUSH!Cheez-It Guy wrote: ↑Wed Sep 29, 2021 12:27 pmTrue, but you have poutine, maple syrup, and RUSH.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.
- 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...
- 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.
- 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?
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?
- 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.
Ummm... 730 times.
So probably about 726 times too many.