Search found 7268 matches

by Call_Me_Op
Sat Aug 17, 2019 9:28 am
Forum: Non-US Investing
Topic: Why should I buy anything outside of the US market?
Replies: 21
Views: 1263

Re: Why should I buy anything outside of the US market?

Look at the 30,000 foot view. There are some 47 or so countries in which you can invest. Does it really sound prudent to invest all of your risk assets in just one of these? There is a concept called diversification that needs to be considered. I think it is incorrect to begin the argument with why ...
by Call_Me_Op
Sat Aug 17, 2019 9:22 am
Forum: Personal Investments
Topic: Paging Taylor Larimore one last time!
Replies: 10
Views: 3125

Re: Paging Taylor Larimore one last time!

* Vanguard has a very useful Asset-Allocation Tool. This is the link: Investor Questionnaire Best wishes. Taylor Jack Bogle's Words of Wisdom: "Asset allocation is critically important; but cost is critically important, too -- All other factors pale into insignificance." Jack Bogle Taylor, Thanks f...
by Call_Me_Op
Fri Aug 16, 2019 4:29 pm
Forum: Personal Investments
Topic: No Risk Tolerance - What Can I do ?
Replies: 29
Views: 1282

Re: No Risk Tolerance - What Can I do ?

I am no expert in this area, but I would look into a single-payout immediate annuity. Perhaps someone here is aware of the current rate for a 63 year-old man.
by Call_Me_Op
Fri Aug 16, 2019 4:23 pm
Forum: Personal Investments
Topic: Purchasing CDs from lower rated banks
Replies: 5
Views: 389

Re: Purchasing CDs from lower rated banks

I've always invested into CDs with banks rated B+ or above. A friend of mine has bought cds from several banks with C ratings. My question is what is the biggest risk or worst scenerio of dealing with banks with a rating as low as C? He states as long as it's an FDIC insured bank, you're insured up...
by Call_Me_Op
Fri Aug 16, 2019 4:19 pm
Forum: Investing - Theory, News & General
Topic: Any retired person have stocks and cash I was thinking about a 70/30
Replies: 57
Views: 3467

Re: Any retired person have stocks and cash I was thinking about a 70/30

chem6022 wrote:
Fri Aug 16, 2019 1:39 pm
Honest question, wouldn't TIPS be even more conservative than cash for this purpose?
Not necessarily - especially at real rates close to zero. The TIPS may well be under water when you want cash.
by Call_Me_Op
Fri Aug 16, 2019 7:25 am
Forum: Investing - Theory, News & General
Topic: Muni bond advice - high yield
Replies: 24
Views: 1699

Re: Muni bond advice - high yield

To pay those rates after that high expense, those bonds would need to be at the extreme low end of the credit scale (extreme junk bonds). Is that where you want to place short-term reserves?
by Call_Me_Op
Fri Aug 16, 2019 7:19 am
Forum: Investing - Theory, News & General
Topic: Any retired person have stocks and cash I was thinking about a 70/30
Replies: 57
Views: 3467

Re: Any retired person have stocks and cash I was thinking about a 70/30

If you notice, your post was about cash versus bonds, but most of us are focusing on your equities. That's because cash versus bonds is a relatively minor question - especially at today's rates. The higher-level and arguably more important question is safe versus risky (risk defined in terms of vola...
by Call_Me_Op
Fri Aug 16, 2019 7:11 am
Forum: Investing - Theory, News & General
Topic: 30 year treasury yield drops below 2% for the first time in history
Replies: 41
Views: 5253

Re: 30 year treasury yield drops below 2% for the first time in history

In his latest episode of the Money for the Rest of Us podcast, David Stein argues that there is likely a global savings glut right now that is driving down yields on bonds and driving up stock prices, reducing expected future returns. I don't really know if that's true, but it sounds plausible to m...
by Call_Me_Op
Fri Aug 16, 2019 7:04 am
Forum: Investing - Theory, News & General
Topic: 30 year treasury yield drops below 2% for the first time in history
Replies: 41
Views: 5253

Re: 30 year treasury yield drops below 2% for the first time in history

I wonder what is driving these and especially 10 year rates so low? Is it lack of demand for credit? The credit union where I have my cash stash just dropped their CD rates the other day,at least I have much of my cash in higher rate CDs that will last for a few months before expiring. No where nea...
by Call_Me_Op
Fri Aug 16, 2019 7:01 am
Forum: Investing - Theory, News & General
Topic: 30 year treasury yield drops below 2% for the first time in history
Replies: 41
Views: 5253

Re: 30 year treasury yield drops below 2% for the first time in history

I wonder what is driving these and especially 10 year rates so low? Is it lack of demand for credit? The credit union where I have my cash stash just dropped their CD rates the other day,at least I have much of my cash in higher rate CDs that will last for a few months before expiring. No where nea...
by Call_Me_Op
Fri Aug 16, 2019 6:56 am
Forum: Investing - Theory, News & General
Topic: Any retired person have stocks and cash I was thinking about a 70/30
Replies: 57
Views: 3467

Re: Any retired person have stocks and cash I was thinking about a 70/30

70% i9n equities is considered high when in retirement. Do you need to take that much risk and can you stomach a sharp downturn (-50%)? I should be able to wait it out with the cash. At 3% withdrawal, you are very likely to be OK. I would also argue that at 3% withdrawal, you do not need to take th...
by Call_Me_Op
Fri Aug 16, 2019 6:29 am
Forum: Investing - Theory, News & General
Topic: Any retired person have stocks and cash I was thinking about a 70/30
Replies: 57
Views: 3467

Re: Any retired person have stocks and cash I was thinking about a 70/30

70% i9n equities is considered high when in retirement. Do you need to take that much risk and can you stomach a sharp downturn (-50%)?
by Call_Me_Op
Thu Aug 15, 2019 7:58 am
Forum: Investing - Theory, News & General
Topic: Confused, bummed, and concerned
Replies: 59
Views: 7845

Re: Confused, bummed, and concerned

These low (4.5% - 5%) returns estimates are for the next decade. Over your investing lifetime, they are likely to be more in line with long-term historical averages.
by Call_Me_Op
Tue Aug 13, 2019 7:10 am
Forum: Personal Investments
Topic: Should Bonds be removed from Asset Allocation
Replies: 49
Views: 3337

Re: Should Bonds be removed from Asset Allocation

With what is going on right now with interest rates should the entire idea of Bonds as a % of your asset allocation be changed in favor of Cash? For example if you are normally 80/20 Asset Allocation change that to 80% Stocks 20% Cash? Are Intermediate Bonds less of a concern right now vs. short te...
by Call_Me_Op
Tue Aug 13, 2019 7:07 am
Forum: Investing - Theory, News & General
Topic: Switch AA 10-year to 2-year Treasuries?
Replies: 55
Views: 3259

Re: Switch AA 10-year to 2-year Treasuries?

You could certainly invoke Pascal's Wager to justify 2 year notes instead of the 10 year bonds. In other words the risk going with 2 year is re-investment risk if rates fall further - while the risk with the 10 year is inflation risk if there is a sharp rise in inflation - arguably more threatening.
by Call_Me_Op
Sat Aug 10, 2019 6:29 am
Forum: Investing - Theory, News & General
Topic: The fallacy of Dollar Cost Averaging
Replies: 101
Views: 8366

Re: The fallacy of Dollar Cost Averaging

While it is true that statistically speaking, lump sum will beat DCA more than 50% of the time, that's not why some people prefer DCA. They prefer it because it avoids the possibility of severe anxiety or regret in the cases where the market tanks shortly after lump summing. This is a behavioral con...
by Call_Me_Op
Fri Aug 09, 2019 7:29 am
Forum: Personal Investments
Topic: LMP: Is it OK to use mutual funds instead of treasuries/TIPS/CDs?
Replies: 54
Views: 3603

Re: LMP: Is it OK to use mutual funds instead of treasuries/TIPS/CDs?

This is a very good question, and I have not seen it before. The principal risk with the mutual fund route - in my view - is manager risk. I would carefully study your Wells-Fargo fund, which is your largest holding. If it were me, I would spread that money between the Wells Fargo Fund, the Total Bo...
by Call_Me_Op
Wed Aug 07, 2019 6:50 am
Forum: Investing - Theory, News & General
Topic: Factors, tilting, and efficient markets
Replies: 55
Views: 3140

Re: Factors, tilting, and efficient markets

s their implications for the efficient market hypothesis (EMH). If you accept that factor tilts are real and increase returns in a portfolio, is that a rejection (at least implicitly) of EMH? No, why would it be a rejection of EMH? if you are willing to accept higher risks, you should anticipate hi...
by Call_Me_Op
Wed Aug 07, 2019 6:47 am
Forum: Investing - Theory, News & General
Topic: "When Will Smart Beta Be Smart?"
Replies: 28
Views: 1983

Re: "When Will Smart Beta Be Smart?"

I am very surprised that someone as seemingly knowledgeable as Allan places any weight in market results over the short period of 5 years.
by Call_Me_Op
Sun Jul 28, 2019 6:54 am
Forum: Personal Investments
Topic: What to do in a crash
Replies: 65
Views: 6856

Re: What to do in a crash

So I understand that I am in it for 15 years and you lose by selling in a correction or crash. So, in a crash, what do you do? What are the temptations and thought proccess s that occur and what are the mistakes commonly made? It seems straightforward. Don’t sell no matter what. The key is to hold ...
by Call_Me_Op
Sun Jul 28, 2019 6:28 am
Forum: Personal Finance (Not Investing)
Topic: Do I include taxes when calculating a retirement number?
Replies: 63
Views: 5139

Re: Do I include taxes when calculating a retirement number?

OP, It depends on whether your annual expense is around 50K or above 100K. For annual expense around 50K, taxes is approximately zero around retirement time. For annual expense above 100K, you have to estimate your taxes. Not exactly. Taxes, depend upon income, not expenses. If you have a high RMD,...
by Call_Me_Op
Fri Jul 19, 2019 4:39 pm
Forum: Investing - Theory, News & General
Topic: What are the benefits of 403(b) over IRA?
Replies: 17
Views: 1354

Re: What are the benefits of 403(b) over IRA?

Apart from access to stable value fund if any, what are other benefits of 403(b) over IRA? Is protection in 403(b) the same as IRA? What are the disadvantages of rolling over 403(b) to IRA? The 403B generally has stronger asset protection. It may also offer some unique investment choices unavailabl...
by Call_Me_Op
Fri Jul 19, 2019 4:37 pm
Forum: Personal Investments
Topic: 60/40 or 40/60 Stock/Cash for retired folks in mid 60s
Replies: 23
Views: 2680

Re: 60/40 or 40/60 Stock/Cash for retired folks in mid 60s

Just joined the group and have been delighted with all the knowledge that is being shared. I had a question - given the market and political conditions today, I wonder if a 60/40 or a 40/60 Stock/Cash portfolio is better for someone who is retired and in mid 60s. The political conditions certainly ...
by Call_Me_Op
Fri Jul 19, 2019 6:11 am
Forum: Personal Investments
Topic: Assisting mom with her bond portfolio
Replies: 7
Views: 539

Re: Assisting mom with her bond portfolio

I advise my mom on her investments. I have her in a Vanguard Life-Strategy Fund, and she also has CDs and a bank account

I don't like individual munis. I prefer the Vanguard muni funds.
by Call_Me_Op
Thu Jul 18, 2019 8:23 am
Forum: Investing - Theory, News & General
Topic: Changes to Morningstar Website?
Replies: 141
Views: 8690

Re: Changes to Morningstar Website?

schismal wrote:
Thu Jul 18, 2019 7:52 am
I see the tax cost ratio under the "Price" header. I'm not premium.

https://www.morningstar.com/funds/xnas/vtsax/price

Their style boxes have also changed. I think I like it better.
Thanks friend (although I like the old format better).
by Call_Me_Op
Thu Jul 18, 2019 7:46 am
Forum: Investing - Theory, News & General
Topic: Changes to Morningstar Website?
Replies: 141
Views: 8690

Re: Changes to Morningstar Website?

Reminds me of the old saying "All good things come to an end."
by Call_Me_Op
Thu Jul 18, 2019 7:31 am
Forum: Investing - Theory, News & General
Topic: Changes to Morningstar Website?
Replies: 141
Views: 8690

Changes to Morningstar Website?

I am not a frequent user of Morningstar, but I visited today and it looked like there was a lot less information provided for each mutual fund. For example, I could not find the tax cost ratio - which in the past I have found useful. Does anyone know if Morningstar has recently changed their website...
by Call_Me_Op
Wed Jul 17, 2019 6:58 am
Forum: Personal Investments
Topic: Asset Location - Soliciting Thoughts
Replies: 12
Views: 1014

Re: Asset Location - Soliciting Thoughts

Tax-Efficient Placement of Asset Types US tax laws impact the decision that we make about the kind of investments that should go into our investment accounts. I have summarized below the ordering of placement preference for each investment types. the preferred location for each investment type in o...
by Call_Me_Op
Tue Jul 16, 2019 5:59 pm
Forum: Personal Investments
Topic: Asset Location - Soliciting Thoughts
Replies: 12
Views: 1014

Re: Asset Location - Soliciting Thoughts

OP, I feel the same discomfort you do. Non-muni bonds in tax deferred make sense; indexed equities in taxable, however, forego the potentially higher earnings on the government-owned portion (if it were instead in tax deferred) substantially captured (1 - tax rate) by the investor. If the gains spr...
by Call_Me_Op
Tue Jul 16, 2019 8:23 am
Forum: Investing - Theory, News & General
Topic: Fidelity Expands Their Index Fund Lineup
Replies: 70
Views: 8899

Re: Fidelity Expands Their Index Fund Lineup

mervinj7 wrote:
Tue Jul 09, 2019 1:31 pm


Hurray! Small Cap Value Index (FISVX) looks promising from the name. It could be a good alternative to IJS for those who tilt but don't want to use ETFs in their accounts.
Why are some people afraid to use ETFs?
by Call_Me_Op
Tue Jul 16, 2019 7:50 am
Forum: Personal Investments
Topic: Asset Location - Soliciting Thoughts
Replies: 12
Views: 1014

Re: Asset Location - Soliciting Thoughts

Good comments livesoft. Thanks,
by Call_Me_Op
Tue Jul 16, 2019 6:35 am
Forum: Personal Investments
Topic: Asset Location - Soliciting Thoughts
Replies: 12
Views: 1014

Re: Asset Location - Soliciting Thoughts

If you are in a high tax state (CA?) and some of those munis are state funds, I think keeping each account at about 40% stock and 60% bonds is probably ok, particularly if that is your preference. If not, have you considered having both stocks and bonds in each account with most of the bonds in tax...
by Call_Me_Op
Tue Jul 16, 2019 5:30 am
Forum: Personal Investments
Topic: Not Another Pay off the House or Invest...
Replies: 29
Views: 2577

Re: Not Another Pay off the House or Invest...

What differentiates this question from physics is that it is not governed by known immutable laws. You need to decide whether you want to take the safest route - paying-off the mortgage, or accept some risk in a hope that you will do better by investing the money.
by Call_Me_Op
Tue Jul 16, 2019 5:19 am
Forum: Personal Investments
Topic: Asset Location - Soliciting Thoughts
Replies: 12
Views: 1014

Asset Location - Soliciting Thoughts

I am struggling a bit with the asset location decision. My investable assets are split 50-50 between a taxable and tax-deferred account (meaning same amount of money in each). For simplicity, let' s say I desire a 40/60 stock/bond asset allocation. The usual recommendation would be to fill the tax-a...
by Call_Me_Op
Sat Jul 13, 2019 10:45 am
Forum: Personal Investments
Topic: Zero Coupon Bonds and TIPS In Taxable Account
Replies: 7
Views: 785

Re: Zero Coupon Bonds and TIPS In Taxable Account

You seem to be mixing-up tax efficiency with other issues, such as reinvestment risk. Bonds in general are not particularly tax efficient, although treasuries are a bit better than corporates. However, there may be reasons to hold them in taxable account; tax-efficiency is not usually one of them.
by Call_Me_Op
Wed Jul 10, 2019 7:08 am
Forum: Investing - Theory, News & General
Topic: Tax-Efficient Fund Placement - Wiki
Replies: 7
Views: 1029

Re: Tax-Efficient Fund Placement - Wiki

"Due to higher returns, equities have the potential to expand tax-advantaged space, leading to higher tax savings later on despite higher tax bills in the present. This is particularly true at the presently low bond yields, when the tax penalty from bonds in taxable is not as high as it has been in...
by Call_Me_Op
Wed Jul 10, 2019 5:33 am
Forum: Investing - Theory, News & General
Topic: Tax-Efficient Fund Placement - Wiki
Replies: 7
Views: 1029

Tax-Efficient Fund Placement - Wiki

There is one statement from the Wiki on Tax-efficient fund placement that I find confusing. In the section called "Criticism of this tax-placement strategy" the Wiki states: "Due to higher returns, equities have the potential to expand tax-advantaged space, leading to higher tax savings later on des...
by Call_Me_Op
Fri Jul 05, 2019 6:53 am
Forum: Personal Investments
Topic: Microsoft bond
Replies: 15
Views: 1996

Re: Microsoft bond

This bond is a Microsoft AA rated bond with a 5.3% coupon. Nice. The maturity date is 2041. One thing I don’t understand is this: Bonds with a distant term maturity rate are supposed to return more as a payoff for such a distant maturity rate. However, you can sell bonds anytime and from what I see...
by Call_Me_Op
Fri Jul 05, 2019 6:34 am
Forum: Personal Finance (Not Investing)
Topic: Home Price as a % of Net Worth
Replies: 20
Views: 1795

Re: Home Price as a % of Net Worth

The only criteria for buying a home should be do you like it and can you afford it.
by Call_Me_Op
Thu Jul 04, 2019 10:40 am
Forum: Investing - Theory, News & General
Topic: Asset Allocation Jitters
Replies: 25
Views: 2281

Re: Asset Allocation Jitters

Regattamom wrote:
Wed Jul 03, 2019 8:05 pm
We are at 60/40 and I can't seem to pull the trigger to change our allocation. I'm too nervous about carrying more risk.
Then you should not do it.
by Call_Me_Op
Thu Jul 04, 2019 8:01 am
Forum: Personal Consumer Issues
Topic: Parents got ripped off, what can I do about it?
Replies: 75
Views: 7026

Re: Parents got ripped off, what can I do about it?

If you live in a HCOL area (like I do), the amount charged for any service is ridiculous and bears little relationship to the amount of work actually done. I know of only 1 guy who charges a reasonable fee (materials plus $50/hr) and he is so busy I have to wait months or years for him. I recently p...
by Call_Me_Op
Thu Jul 04, 2019 5:43 am
Forum: Personal Investments
Topic: Got more than enough for retirement. What to do now?
Replies: 42
Views: 4077

Re: Got more than enough for retirement. What to do now?

Depends. Do you have heirs to whom you wish to leave a lot of money?
by Call_Me_Op
Sun Jun 30, 2019 7:16 am
Forum: Investing - Theory, News & General
Topic: 80% of the stock market is now on autopilot
Replies: 17
Views: 3844

Re: 80% of the stock market is now on autopilot

For the active fund manager who complained in the article, he should be happy as it would be so easy for him to make money now. Passive fund automatically buy shares of X and his research shows that X will go bankrupt. He can sell the shares on the high. I know I am exaggerating. To me, some active...
by Call_Me_Op
Sat Jun 29, 2019 6:56 am
Forum: Personal Investments
Topic: Which Bond Fund to Choose in 401k?
Replies: 17
Views: 1501

Re: Which Bond Fund to Choose in 401k?

Hello! I am in the accumulation phase & looking to increase my bond allocation. I'm looking for advice on which bond fund to choose in my 401k. My 401k has these options: Loomis Sayles Core Plus Bond - expense ratio .38 Vanguard Inflation Protected (VIPIX) - expense ratio .11 SSgA Short Term US Gov...
by Call_Me_Op
Sat Jun 29, 2019 6:48 am
Forum: Investing - Theory, News & General
Topic: Small Value vs Multifactor
Replies: 58
Views: 4946

Re: Small Value vs Multifactor

A stock, or stocks in general, can be underpriced or overpriced. Eventually, the market gets it right. Overpriced or underpriced with respect to what? The market price is the best estimate we have of market value at any point in time. Just because a stock tanks today does not mean it was "over-pric...
by Call_Me_Op
Fri Jun 21, 2019 7:00 am
Forum: Personal Consumer Issues
Topic: Radon levels in home
Replies: 50
Views: 4524

Re: Radon levels in home

The 4 pCi/L EPA action limit is arbitrary. This is equivalent to something like 200 chest x-rays per year. Unless you believe this is all hype, there is no proven safe level for ionizing radiation - it is a statistical "game." I would rather minimize any exposure above the unavoidable background. A...
by Call_Me_Op
Thu Jun 20, 2019 6:46 am
Forum: Investing - Theory, News & General
Topic: Recent Brokered CDs In Vanguard Account List Value Below Par
Replies: 7
Views: 720

Re: Recent Brokered CDs In Vanguard Account List Value Below Par

I've purchased several brokered CDs through Vanguard over the past two months during declining rates. I understand these are sold at par without a commission and their value will vary over the term. But why would the listed value in the account view be below par if interest rates have been going do...
by Call_Me_Op
Sun Jun 16, 2019 6:52 am
Forum: Personal Finance (Not Investing)
Topic: Modular Homes-Advice?
Replies: 7
Views: 1344

Re: Modular Homes-Advice?

They tend to be very well built because they are built under controlled conditions and also must withstand the stresses of transport.
by Call_Me_Op
Sun Jun 16, 2019 6:36 am
Forum: Personal Consumer Issues
Topic: Radon levels in home
Replies: 50
Views: 4524

Re: Radon levels in home

The 4 pCi/L EPA action limit is arbitrary. This is equivalent to something like 200 chest x-rays per year. Unless you believe this is all hype, there is no proven safe level for ionizing radiation - it is a statistical "game." I would rather minimize any exposure above the unavoidable background.
by Call_Me_Op
Sun Jun 16, 2019 6:29 am
Forum: Personal Investments
Topic: Have to Have Treasuries?
Replies: 14
Views: 1691

Re: Have to Have Treasuries?

You should not be focusing strictly on what happened in 2008, but thinking more generally. More generally, I would be uncomfortable having all of my fixed-income in munis. Therefore, I think a portion in treasuries makes sense. You may make a bit less, but this will be safer. I hold a healthy fracti...