Search found 8698 matches

by Kevin M
Wed Nov 15, 2017 2:48 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 16
Views: 1576

Re: Brokered CDs - often better return secondary market

Today's example - New issue 5 year Vanguard brokered CDs 2.40% rate (several issuers) A five year (maturing 11/8/22) secondary market CD at the same 2.40% at .99385 or 2.532 (before brokerage charge). If I buy 30,000 - I would pay 29,815.50 +60 or 29865.50 for $30,000 face value. I believe that act...
by Kevin M
Wed Nov 15, 2017 2:25 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 16
Views: 1576

Re: Brokered CDs - often better return secondary market

I would guess that it is due to illiquidity. In the past few years, I've purchased a number of secondary market CDs for my Mother's account. The deals were quite good at the time. Oddly enough, with rising interest rates, the deals aren't as good of late, for reasons I can't explain. 5-year CD rate...
by Kevin M
Tue Nov 14, 2017 9:02 pm
Forum: Investing - Theory, News & General
Topic: The World's Negative Interest Rate Experiment
Replies: 34
Views: 3138

Re: The World's Negative Interest Rate Experiment

Thanks for taking the time to put in the chart for my simple brain to understand. You're welcome! If TIPS are supposed to adjust to inflation, I still don't quite get how it goes negative. . .or does the means it follows deflation as well? The TIPS yield is a real yield, which means the nominal yie...
by Kevin M
Tue Nov 14, 2017 8:54 pm
Forum: Personal Consumer Issues
Topic: Chromebook vs Windows 10?
Replies: 56
Views: 3324

Re: Chromebook vs Windows 10?

Ditto. Do you have any recommendations for CBs as of today? Haven't used a windows laptop in a while.......all my work tools (citrix etc) are available on other platforms and they work well. Like I said, it really depends on the features that are important to you. The last Chromebook I participated...
by Kevin M
Tue Nov 14, 2017 8:33 pm
Forum: Investing - Help with Personal Investments
Topic: Opinion of Total Stock Market Index
Replies: 21
Views: 2241

Re: Opinion of Total Stock Market Index

As others have said, I would first figure out the asset allocation that made sense for me, then select the fund(s) to construct the portfolio. If I decided that a 100% allocation to the total US stock market (basically US large blend) made sense for me, then the fund you have chosen would be the one...
by Kevin M
Tue Nov 14, 2017 8:21 pm
Forum: Personal Consumer Issues
Topic: Chromebook vs Windows 10?
Replies: 56
Views: 3324

Re: Chromebook vs Windows 10?

Used mostly Chromebooks for years, only using a Windows machine for tax software. My experience is that a low-end Chromebook outperforms a low-end Windows laptop, even for web browsing. I couldn't believe how slow my low-end Windows laptops have been for web browsing--almost unusable. A year or so a...
by Kevin M
Tue Nov 14, 2017 7:00 pm
Forum: Investing - Theory, News & General
Topic: The World's Negative Interest Rate Experiment
Replies: 34
Views: 3138

Re: The World's Negative Interest Rate Experiment

What happens to TIPS in this scenario? The real yield on TIPS will be even more negative than the nominal yield on a Treasury of same maturity, assuming a positive inflation expectation. Although we haven't seen negative nominal yields in the US, we have seen negative TIPS yields. The 5-year TIPS y...
by Kevin M
Tue Nov 14, 2017 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 16
Views: 1576

Re: Brokered CDs - often better return secondary market

At Vanguard, at least, you have to be careful using the stated APY (that takes the discount or premium into account). You must (and I do) take into account the (I believe) $60 brokerage fee to adjust the APY before making the purchase. Just looked at the brokerage fees recently, and for less than V...
by Kevin M
Tue Nov 14, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: What is all the recent talk about a bond bubble?
Replies: 22
Views: 2256

Re: What is all the recent talk about a bond bubble?

I have about $400K in bonds in my Schwab Solo 401k. I have no restrictions on what I can buy (any fund, any individual stock, etc.). Are you allowed to buy CDs in a retirement account like that? Is there a reason not to? Based on what you've said, I see no reason you could not buy brokered CDs. How...
by Kevin M
Tue Nov 14, 2017 1:30 pm
Forum: Personal Finance (Not Investing)
Topic: Borrowing from parents - what interest rate?
Replies: 52
Views: 3416

Re: Borrowing from parents - what interest rate?

I thought it might be reasonable to look for the highest term deposit rate available, and the lowest mortgage rate available, and split the difference. This seems reasonable. Until recently, I thought I would be making an intra-family mortgage loan to my daughter and her husband to buy a fractional...
by Kevin M
Tue Nov 14, 2017 12:38 pm
Forum: Investing - Theory, News & General
Topic: What is all the recent talk about a bond bubble?
Replies: 22
Views: 2256

Re: What is all the recent talk about a bond bubble?

What seems crazy is that I can earn more on a 5-year CD, with FDIC insurance no risk of loss of principal. It leaves me scratching my head a bit as to why I would want to buy a bond at all and not just buy CDs. For one thing, I've never heard of a "CD fund". So people might not want to spend the pe...
by Kevin M
Tue Nov 14, 2017 12:06 pm
Forum: Investing - Theory, News & General
Topic: What is all the recent talk about a bond bubble?
Replies: 22
Views: 2256

Re: What is all the recent talk about a bond bubble?

As of today the yield is 2.08%. What seems crazy is that I can earn more on a 5-year CD, with FDIC insurance no risk of loss of principal. It leaves me scratching my head a bit as to why I would want to buy a bond at all and not just buy CDs. Yes, which is why I've been favoring CDs over bond funds...
by Kevin M
Tue Nov 14, 2017 11:54 am
Forum: Personal Consumer Issues
Topic: places to live near Stanford University
Replies: 35
Views: 2616

Re: places to live near Stanford University

Another thing that's common in the bay are bidding wars. Look at listing vs selling price - often times selling is significantly higher. So you don't just go in offer full asking and congrats you get a house... you're prob 5th in line :/ Yeah, listing prices now are a joke around here. I recently o...
by Kevin M
Mon Nov 13, 2017 9:03 pm
Forum: Personal Consumer Issues
Topic: places to live near Stanford University
Replies: 35
Views: 2616

Re: places to live near Stanford University

As a comparison, my current home value is 250K. Is there anywhere I could live with that price range or is that completely unrealistic? What neighborhoods do you suggest? You can do a quick Zillow or Redfin search to see for yourself, but I don't think you'll find anything in that price range anywh...
by Kevin M
Mon Nov 13, 2017 8:29 pm
Forum: Investing - Theory, News & General
Topic: What is all the recent talk about a bond bubble?
Replies: 22
Views: 2256

Re: What is all the recent talk about a bond bubble?

did a search on google under the search bar for "bond bubble" and here's what I came up with: <snip> looks like the oldest one that came up on the first page questioning a "bond bubble" goes back to March 22, 2009. Yeah, bond yields are not particularly low now compared to the years since 2009. On ...
by Kevin M
Mon Nov 13, 2017 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for 5% return
Replies: 62
Views: 4184

Re: Asset allocation for 5% return

Kevin, Thanks for your reply . One strategy is to go with broad index funds . If I want to go with bond funds only or treasuries or cds (no stock funds ) , does anybody have Any input what combination of these conservative investments might come close to 3-4% return ( I know 5% would be difficult )...
by Kevin M
Mon Nov 13, 2017 1:05 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for 5% return
Replies: 62
Views: 4184

Re: Asset allocation for 5% return

If I get 0% return for a year , I have to contribute total 10000 for the following year from my business ( to make up for 5000 from previous year) . This will mean more tax deductible contribution for company. If I make 10% return , then following year , I contribute 5000 less to account from Compa...
by Kevin M
Mon Nov 13, 2017 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for 5% return
Replies: 62
Views: 4184

Re: Asset allocation for 5% return

I just am looking to be close to 5% return per year(total return). I think even 3-4% would be reasonable for my purposes . You might find it useful to look at something like this: Find CDs and bonds (Vanguard) . Just sticking with fixed-income, you can see what kind of credit risk and term risk you...
by Kevin M
Mon Nov 13, 2017 12:18 pm
Forum: Personal Consumer Issues
Topic: Investing HOA reserve money?
Replies: 24
Views: 1054

Re: Investing HOA reserve money?

Thanks all for the replies! Looks like investing in equities is a pretty poor choice especially when it comes to dealing with a common pool of money. I did a few research and found a FDIC insured CD paying 1.85% for a 24 months period : https://www.firstib.com/business-banking-overview/cds . Good f...
by Kevin M
Sun Nov 12, 2017 3:27 pm
Forum: Investing - Help with Personal Investments
Topic: Asset allocation for 5% return
Replies: 62
Views: 4184

Re: Asset allocation for 5% return

There's no investment currently available that can guarantee a 5% annual return. To have a chance at the return, you must take some risk. This means that you might have an expected return in the ballpark of 5%, but this comes with a wide dispersion of possible returns, meaning that you could end up ...
by Kevin M
Sun Nov 12, 2017 3:10 pm
Forum: Personal Consumer Issues
Topic: Investing HOA reserve money?
Replies: 24
Views: 1054

Re: Investing HOA reserve money?

This Google search turned up a few other Bogleheads posts discussing this topic: hoa savings account . If you want to just search Bogleheads, use the Google search box at the top right, which generates this Google search: hoa savings account site:bogleheads.org . With a quick scan of some of the pos...
by Kevin M
Wed Nov 08, 2017 12:54 pm
Forum: Investing - Theory, News & General
Topic: "I took all my money out of the stock market and it feels amazing"
Replies: 69
Views: 8673

Re: "I took all my money out of the stock market and it feels amazing"

If she chooses a 4% withdrawal rate with an increase of 2% per year in withdrawals to cover inflation her portfolio may not last 30 years even with TIPs. I believe this is correct. With the 10-year TIPS at 0.44% and the 20-year at 0.69%, I'll conservatively guesstimate the average real return of a ...
by Kevin M
Tue Nov 07, 2017 8:38 pm
Forum: Investing - Theory, News & General
Topic: Google sheets help importing Vanguard 529 Expense Ratio
Replies: 8
Views: 427

Re: Google sheets help importing Vanguard 529 Expense Ratio

Kevin, Thank you for the suggestion. And as an aside, your name came up during dinner at the Bogleheads meeting this year. You helped one of my tablemates immensely and he spoke very highly of you and the assistance you provided him. Very kind of you to mention this! The formula you gave me in the ...
by Kevin M
Mon Nov 06, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: Google sheets help importing Vanguard 529 Expense Ratio
Replies: 8
Views: 427

Re: Google sheets help importing Vanguard 529 Expense Ratio

With a couple more minutes work, it appears that you just need to use the INDEX function to access the row and column of the expense ratio in the returned table: =INDEX(IMPORTHTML(B1,"table",7),3,2) This returns the index ratio as a decimal (0.0016); you can multiply by 100 (as in the formula you're...
by Kevin M
Mon Nov 06, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Google sheets help importing Vanguard 529 Expense Ratio
Replies: 8
Views: 427

Re: Google sheets help importing Vanguard 529 Expense Ratio

You are using two import functions: IMPORTHTML and IMPORTXML. Using the former is much easier than the latter, since you don't have to know XML syntax to use it. IMPORTHTML can work if the data you are looking for is in an HTML table or list. In your case, it's in a table. So the only trick is figur...
by Kevin M
Mon Nov 06, 2017 1:25 pm
Forum: Investing - Theory, News & General
Topic: Google sheets help importing Vanguard 529 Expense Ratio
Replies: 8
Views: 427

Re: Google sheets help importing Vanguard 529 Expense Ratio

This will get you started:

=IMPORTHTML(B1,"table",7)

where the URL you provided is in cell B1.

Kevin
by Kevin M
Mon Oct 16, 2017 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Well Done Ally Bank - CD purchase
Replies: 61
Views: 12220

Re: Well Done Ally Bank - CD purchase

Okay, I get it now. Thanks, HueyLD. Ally in fact apparently treats CDs as separate accounts. That is what was throwing me. I've bought CDs before at Fidelity, you just fund them from wherever and they show up as holdings in your account rather than as separate accounts. I was able to set up the CD ...
by Kevin M
Mon Oct 09, 2017 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: admiral shares or investor shares?
Replies: 24
Views: 3016

Re: admiral shares or investor shares?

hello bogleheads, I'm currently in a vanguard target 2040 fund (vforx) (.16% ER) that is about to cross the $10,000 threshold, which qualifies me for an admiral share. i am torn between investor shares & admiral shares...also, vanguard is prompting me to transition to a brokerage account, any advic...
by Kevin M
Mon Oct 09, 2017 1:44 pm
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3319

Re: What is a “bond bubble”?

What would a “deflating” be like to those of us holding broad index funds including investment grade corporate bonds? The 7-year yield on 2/27/1987 was 7.00%, and on 9/30/1987 it was 9.50%: https://fred.stlouisfed.org/graph/?g=flfS. That would have resulted in a capital return of about -11.8% and a...
by Kevin M
Mon Oct 09, 2017 1:32 pm
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3319

Re: What is a “bond bubble”?

in discussing a bond fund ...if something shakes investors psychology and they decide to all get out of VBTLX, can't we have share prices decoupled from the value of the underlying bonds? I don't see how, since the share price is the per share NAV, which is based on the prices of the bonds. Of cour...
by Kevin M
Sun Oct 08, 2017 5:38 pm
Forum: Investing - Help with Personal Investments
Topic: Risk of Long Term Government Bond Index Fund (VLGSX)
Replies: 12
Views: 897

Re: Risk of Long Term Government Bond Index Fund (VLGSX)

If you go to the VLGSX page and then the "portfolio and management" bar, you will see that the fund has "duration" of 17.6. This is a purely mathematical quantity that is very informative; it says that if the interest rate on this fund goes UP by 1% (say from 3% to 4%), then the value of your posit...
by Kevin M
Sun Oct 08, 2017 2:35 pm
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3319

Re: What is a “bond bubble”?

What would a “deflating” be like to those of us holding broad index funds including investment grade corporate bonds? One way to get a sense of this is to look at the worst drawdowns for the bond fund of interest. We can do this with Portfolio Visualizer for monthly returns. The worst drawdown for ...
by Kevin M
Sun Oct 08, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3319

Re: What is a “bond bubble”?

In posting the above, I had missed the "if over the next year" part of the "Great American Bond Bubble" quote. So changing the remaining maturity from 10 years to 9 years in the calculation gives a loss of 2.71% for the 2.8%->3.15% scenario (0.97 times the initial yield), and a loss of 8.92% for the...
by Kevin M
Sun Oct 08, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: What is a “bond bubble”?
Replies: 35
Views: 3319

Re: What is a “bond bubble”?

<snip> 2) In August 2010, Jeremy Schwartz and Jeremy Siegel warned of a "Great American Bond Bubble" in Treasuries, and said that bad things would happen if "if over the next year, 10-year interest rates, which are now 2.8%, rise to 3.15%, bondholders will suffer a capital loss equal to the current...
by Kevin M
Sat Oct 07, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: Simba's Backtesting Spreadsheet: how useful is it?
Replies: 11
Views: 850

Re: Simba's Backtesting Spreadsheet: how useful is it?

I noticed that for SCV the Vanguard return data, when available, is for the Investor class. Maybe you should consider using the Admiral class? Yes, this is a historical thing, the Simba spreadsheet has always used Investor class funds (and ER). I am not fully enthused about that, but I am not too e...
by Kevin M
Mon Oct 02, 2017 11:21 am
Forum: Investing - Help with Personal Investments
Topic: Backdoor Roth logistics question re: existing TIRA
Replies: 1
Views: 166

Re: Backdoor Roth logistics question re: existing TIRA

My daughter was in a similar situation. Since it's so easy to open a new traditional IRA at Vanguard, I had her open a new traditional IRA for the new contributions to be converted to Roth. This just keeps things clean, and clearly distinguishes the different purposes of the money in each IRA. I don...
by Kevin M
Sun Oct 01, 2017 2:47 pm
Forum: Investing - Theory, News & General
Topic: Buffett's idea of risk vs risk as in the formula: 'willingness, ability and need'
Replies: 50
Views: 2708

Re: Buffett's idea of risk vs risk as in the formula: 'willingness, ability and need'

I think Buffet conflates the low expected return of safe fixed income with risk. Safe fixed income is not risky in the long run, it is low return in the long run. Investment risk is the uncertainty that you'll earn the expected return of the investment. Buffet, and many on this forum, seem to have 1...
by Kevin M
Sun Oct 01, 2017 11:59 am
Forum: Personal Finance (Not Investing)
Topic: time to transfer money to Vanguard, grumble, grumble
Replies: 28
Views: 3795

Re: time to transfer money to Vanguard, grumble, grumble

I've done many IRA transfers, including many out of and into Vanguard. The transfers usually take 2-3 weeks from the time I mail the form to the receiving custodian (who then mails it to the sending custodian, who then mails a check to receiving custodian). I recently had my first really bad IRA tra...
by Kevin M
Sun Oct 01, 2017 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Question on Bond Portion of AA
Replies: 16
Views: 1031

Re: Question on Bond Portion of AA

I would go 100% with the SV fund. For fixed income, Treasuries are the gold standard, so I start my comparisons there, then consider the additional credit risk and the difference in term risk. Yield on the 5-year Treasury is 1.92% and yield on the 10-year is 2.33%. Even the 30-year yield is only 2.8...
by Kevin M
Sun Oct 01, 2017 11:29 am
Forum: Investing - Help with Personal Investments
Topic: IRA contribution issue
Replies: 6
Views: 340

Re: IRA contribution issue

Recharacterize the contribution. You have until the extension due date to recharacterize, and the custodian should be able to handle the earnings appropriately.

IRA recharacterization - Bogleheads
by Kevin M
Sun Sep 24, 2017 2:08 pm
Forum: Personal Finance (Not Investing)
Topic: Transfering 250K online from one bank to another
Replies: 15
Views: 1818

Re: Transfering 250K online from one bank to another

OP here - Thank you all for your responses. I will likely break up the transfer into a few <100k ones. Why bother? The limit at Ally is $250K, so why not just do it in one shot? I very recently transferred >$100K into Ally from a credit union (proceeds from a recently matured CD), and I didn't thin...
by Kevin M
Sun Sep 24, 2017 12:34 pm
Forum: Personal Finance (Not Investing)
Topic: What's the purpose of having a child's name on a deed?
Replies: 43
Views: 3600

Re: What's the purpose of having a child's name on a deed?

Well, from what I understand you'll basically be gaining a tax bill since you won't have a stepped up basis upon their death. I'm just a dumb ol' country boy, though, so might want to check with an accountant. That is incorrect. There would still be a stepped up basis, although there are many other...
by Kevin M
Sat Sep 23, 2017 8:16 pm
Forum: Investing - Help with Personal Investments
Topic: REBALNCE: TLH partner, BONDs
Replies: 7
Views: 344

Re: REBALNCE: TLH partner, BONDs

Your stable value fund is up less than 1% YTD, so I think it is a loser of a stable value fund. I would take the risk and use a bond fund. The YTD of the bond fund that you reported looks suspiciously low, so it is probably not really YTD, so what is it? First 6-months? Funny. YTD of the stable val...
by Kevin M
Sat Sep 23, 2017 8:13 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone own a home and drop insurance coverage after mortgage paid off?
Replies: 61
Views: 4992

Re: Anyone own a home and drop insurance coverage after mortgage paid off?

I dropped flood insurance when I paid off my mortgage, but not homeowners. The liability portion is important. Mine actually paid off to the tune of about $50K plus court costs for an incident involving my son. I was with a different insurance company when the incident ended up in court, but the pre...
by Kevin M
Sat Sep 23, 2017 8:06 pm
Forum: Investing - Help with Personal Investments
Topic: REBALNCE: TLH partner, BONDs
Replies: 7
Views: 344

Re: REBALNCE: TLH partner, BONDs

For a stable value fund, the ER isn't that important. What is important is the yield, which is net of ER. Given that the 1-year return is 1.83%, I'd guess that the yield is in that ballpark, but this is something that should be published somewhere. I think having all of your 25% fixed-income allocat...
by Kevin M
Fri Sep 22, 2017 12:08 pm
Forum: Personal Finance (Not Investing)
Topic: Tax on joint brokerage accounts?
Replies: 13
Views: 1043

Re: Tax on joint brokerage accounts?

I'd rather manage one account than three. As already pointed out, at Vanguard, for example, your siblings could grant you agent authorization for their accounts, and you would then have online access to their accounts with your login. It's still three accounts, but with your single login, it wouldn...
by Kevin M
Thu Sep 21, 2017 1:47 pm
Forum: Investing - Help with Personal Investments
Topic: Merging inheritance with different asset allocation
Replies: 17
Views: 1436

Re: Merging inheritance with different asset allocation

- Immediately rebalance because there is no logical reason to not just have all my money at whatever AA I decided on previously. In this case, I would probably do 75/25, or maybe 70/30 since my need to take risk has probably declined a bit. The first and second sentences here are in conflict (assum...
by Kevin M
Wed Sep 20, 2017 12:35 pm
Forum: Investing - Help with Personal Investments
Topic: Paying off primary mortgage
Replies: 24
Views: 2052

Re: Paying off primary mortgage

Franklin Templeton has a sales charge of 3.5% when investing 100K-249K addition money. 100K is about the chunk of change at a time that we can invest...so we have to figure we've lost 3.5%initially before we see the investment profit...hopefully... Yikes! I would place a much higher priority on lea...
by Kevin M
Wed Sep 20, 2017 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Paying off primary mortgage
Replies: 24
Views: 2052

Re: Paying off primary mortgage

Suzyq1952 wrote:
Wed Sep 20, 2017 11:14 am
Costs 3% to buy into stock again.
What does this mean?
by Kevin M
Tue Sep 19, 2017 6:28 pm
Forum: Investing - Theory, News & General
Topic: The Difference Between Risk and Uncertainty
Replies: 41
Views: 3019

Re: The Difference Between Risk and Uncertainty

BobK and Kevin, and any other who wish to comment... in the light of the two groups of definitions BobK has marshaled, what would you say about the fairly frequently echoed phrase, "volatility is not risk?" Answer 1. Because people usually are speaking about short-term uncertainty of returns when t...