Bogleheads.org

Vanguard ETFs and mutual funds can be very close to identical. For example VPU and VUIAX. Except that some think the mutual fund version is better. So what was the question?

Buffett just bought more stock in Oxy. Now controls 23%. Single biggest shareholder.

Russell 1000 would provide more diversified exposure by including mid-cap market. Or consider adding defensive sector fund, such as vanguard utilities fund. Or both.

Fisher Investments announced they are moving HQ to Texas for tax reasons.

Not sure that Japan and US are comparable. But if you believe US market is over-priced, then you might tilt toward value investing for equities. While treasuries could be used for stability.

Wellington has established history as actively manged mutal fund 60/40. It has mangement fees, and wouldn't be considered tax efficient in taxable account. If you're ok with that.

"Deutsche Bank is not the next Credit Suisse, analysts say as panic spreads."

Which means it really is.

You sound like inexperienced first time buyer (sucker) who is getting pushed into transaction, leading to buyer's remorse. If your buyer agent isn't willing to spend months with you touring homes in person, so you can get educated on the market, so you can come to know a good deal from a bad dea, dump them hard. On the issue of buyer making multiple offers on different properties at same time, its not illegal or unethical. However the seller(s) have no way of verifying if you have actually opened escrow on multiple homes, or you are bluffing, so there is little or no negotiating advantage to you as buyer. What you can do is have your buyer agent present your purchase offer contract with covering letter, stating that the buyer reserves the r...

So that means evaluating individual stocks based on "value"? Market timing?

I own some BRKB as diversifier to vanguard index fund. Its been working for me. But be aware that buffet is market timer, for good or bad.

I got citi to credit me back lesser charge approx. $110. Which was probably made eaiser because vendor cooperated. Actual "fraud" is criminal, you shouldn't be forced to pay more than $50 or whatever your terms and conditions say on your credit card agreement, which most people don't save.

So to be "compliant" that means commodities speculations, buy low sell high. Or become investor in business and receiving stream of profits. I dunno what I am talking about now.

I have an old friend who has been sitting on $2m in cash for 3 years. His religion forbids earning interest so it is earning zero. :( He reached out asking about investing. I know there are several shariah-compliant ETFs for stocks. But what would one use as a bond alternative in a diversified portfolio? Gold and real estate are options, but they are more volatile than bonds (ignoring 2022 performance). Are there any bond funds that don't generate interest? Just cash? I know a cash allocation generates some miniscule yield in my brokerage (0.01%). Would the recommendation to hold cash and donate the $100 generated in interest to charity be shariah-compliant? What about structured products? I just saw something that generates 7% yield so lo...

I started with vangaurd wellington in taxable. I didn't have much money to invest, so taxes weren't top of mind back then. I didn't mind paying for active management because I didn't have confidence to do it myself. Eventually, if you come to accumulate enough, the tax inefficiency can't be ignored. I sold it off in chunks, trying to use losses elsewhere to offset capital gains. Now I use vanguard tax managed capital appreciation fund for core fund in taxable account, more tax efficient and lower fees. If you still want the bond exposure in taxable account, vanguard has tax exempt bond funds. You can significantly reduce your tax drag, and save on fees.

My paycheck goes into my credit union and then I want a portion of it to go to various other investment and savings accounts. Are there any pros/cons to initiating those transfers from the credit union side vs the online savings or broker accounts? As in pushing the money from my checking vs having it pulled? Interested to hear any thoughts on the subject, thanks. Credit unions have their own rules on ACH amounts and time frames. My local credit union only allows $5k per month, and it takes up to 6 days, if I initiate ACH transfer from my credit union side to move money out of my credit union account. However, when I initiate ACH transfer from vanguard side I have not yet hit any amount limit, and it takes 2 business days. So when I need t...

WestCoastPhan wrote: ↑Mon Feb 20, 2023 1:26 pm

WolfgangPauli wrote: ↑Mon Dec 26, 2022 10:46 am This is not sexy - no electric cars, fancy cloud computer etc. etc and certainly no bitcoin and gold. The closest he comes to sexy is his significant investment in Apple.

Just FYI, BH has ~$10 billion in Chinese electric car company BYD. BH has done very well with it, though Tesla has performed much better over the 15-ish year hold period so far.

BRKB dipping below 300. Time to buy more?

Blend mid cap with large cap. Russell 1000 index.

If you are holding them in taxable account and in upper tax bracket(s), then you can pay the taxes now or later. You very well might consider selling them now, and re-invest in tax exempt money market fund like VMSXX. The logic there is the longer you wait to sell, the bigger your tax liability with grow into the future.

Too much churning for too little benefit.

If you are in upper tax brackets with high state income tax, you should consider relocation if its feasible for you. What is "feasible" ? Depends on your personal situation with job and family.

There's no one right answer. There is sound arguement to make largest down payment you can afford to minimize interest payment. I tilt that way. But other people have had great success making minimum down payment, with max leverage. There are many variables to the equation. Such as what's the true underlying value to the property, what is your ability to add value with capital improvements, is the neighborhood location in transition, how long will you hold the property, what can you re-sell the property for, etc. Then there is also the renting option, which could get you a location that you could otherwise not afford, and gives you flexibility to relocate for career. I wonder nationally what it is like out there renting. In our town, it is...

Chatgpt is the magic 8 ball of the internet.

Energy stocks and energy commodities? But they have demonstrated potential to drop fast so you have to watch it closely.

There's no one right answer.

There is sound arguement to make largest down payment you can afford to minimize interest payment. I tilt that way. But other people have had great success making minimum down payment, with max leverage. There are many variables to the equation. Such as what's the true underlying value to the property, what is your ability to add value with capital improvements, is the neighborhood location in transition, how long will you hold the property, what can you re-sell the property for, etc.

Then there is also the renting option, which could get you a location that you could otherwise not afford, and gives you flexibility to relocate for career.

Could be hard landing for economy, worst case scenario your portfolio drops another 25% and takes several years to recover. Should have dumped those stinky bonds and bought utilities to ride it out. Keep on vanguarding.

If the buyer's offer has finance contingency, then the buyer didn't choose the appraiser, the buyer's lender did.

In such case if the appraisal came in low, your options are: accept the lower value and do the deal, demand buyer make bigger down payment to cover the difference, seller finance for the difference, or reject the offer and go back to marketing the property for new buyer. So the answer depends on your personal motivation as seller.

Generally speaking, seller financing for the difference (with seller taking 2nd position behind the 1st lender) isn't that risky for smaller loan amounts. Research on google if you don't understand what's involved with seller carryback loan.

All managed futures that I'm aware of are high management, and therefore high expense ratio. If you are hell bent on commodity exposure as diversifer for your AA, maybe consider broad basket commodity index ETF, such as Abrdn Bloomberg All Commodity ETF (BCD).

If you want to invest with leverage, research Proshares or Direxion. That requires irrational self confidence. Very different from vanguarding.

If you are in complicated market like NYC, you might benefit from having your own exclusive tenant agent to schedule tours and advise you on rental prices. That requires signing a tenant rep agreement up front. Then you work exclusively through your tenant rep for certain amount of time, 30 - 60 - 90 days? If you go around your tenant rep and do your own deal without using him/her, then you still might be obligated to pay the tenant rep some fee. So you really need to be confident that your tenant rep has the time to properly serve you, and will go to work for you. If you haven't signed any written agreement, you probably aren't legally obligated to anybody as tenant rep yet, and can still do your own lease deal. But be aware, cutting out t...

Hi folks, I have recently opened a Citibank Double Cash CC and have read that you accrue points at 1% when you make a purchase and at 1% when you pay it off. However, I have been making purchases for a month now and my point balance is still 0. Because the card is new, I haven't yet received a statement. My question: does the 1% accrue after the actual purchase is made? Or does it accrue only once you receive the statement on which the purchase appears? And if it is tied to the statement, does paying off the balance "early" cause me to miss out on points in any way? Thanks! You should see the first 1% on the first statement. You should get the second 1% few days after your payment, this is designed to encourage you to pay full ba...

Magic 8 ball question. Interest rates are changing with the weather now.

If UMB goes down would it stall out basic functions of moving money around within Fidelity CMA?

Have they put band aid on trauma patient?

djshackesq wrote: ↑Mon Oct 03, 2022 5:27 pm I’m looking to move some cash from a HYSA to a money market fund at Merrill Edge to (1) keep up PR status and (2) get slightly higher interest. I understand MMFs are not FDIC insured and in rare circumstances have “broke the dollar” so to speak. Therefore, would it be considered safer to invest in a couple funds from different firms, such as one Blackrock fund and one Federated Hermes fund?

Different versions of same thing?

Systemic risk. Contagion effect. Flight to quality. Buy utilities.

I've often seen answers include the recommendation "When you've won the game,stop playing." What does this mean in practice? I have won the game in the sense that assuming a 3% real return, that I can maintain my usual lifestyle, plus travel, plus a side stash of $50K for some completely unexpected expense . Our usual lifestyle is 50% more than our minimal spending this last year, so we have lots of room to it back. So what does stop playing mean? If I convert all to cash, I haven't won the game, since I won't get 3% real, and I have inflation risk . Does it mean to create a large cash cushion ,( multiple years of expenses), and shift to more bonds,changing what had been your AA? Without some specific action to take, the recommen...

alpenglow wrote: ↑Mon Mar 13, 2023 7:02 am

smooth_rough wrote: ↑Mon Mar 13, 2023 6:27 am First Republic imploding now. Schwab stock plunging.

FRC down 64%.

Flight to safety !

First Republic imploding now. Schwab stock plunging.

YoungSisyphus wrote: ↑Sat Mar 11, 2023 10:54 pm Is UMB on this list the same UMB that manages the cash positions in Fidelity CMAs? Interesting if so.

Yep that's it.

Silvergate, SVB, Signature. Tip of the iceberg?

FDIC has seized Signature Bank!

Auction process underway to find buyer for SVB. Bidding starting at $1.

fanmail wrote: ↑Sun Mar 12, 2023 2:26 pm

lgs88 wrote: ↑Sun Mar 12, 2023 1:49 pm Can one of you help me understand how a prudent bank manages in a rising interest rate environment?

My understanding of the purpose of banks is the conversion of short-term liabilities (deposits) into long-term liabilities (loans). It seems to me that by its very nature, every bank should get hammered in a rising interest rate environment — their loan portfolio loses value, while they have to pay out more interest to hold onto their deposits.

How is it that only SVB has hit the rocks already, given the sharp increase in rates?

Better customer variety
Hedge interest rate risk
Believe the fed when they say they’re going to raise rates

Except the fed was sending mixed messages.

FDIC might have way to "encourage" sale of SVB to major bank? Offer some kinds of guarantees or backstop the deal to de-risk it for the acquiring bank? Does SVB have any assets worth acquiring?

Should have already sold off long bonds and bought utlitites. Its too late now.

Managed Futures have high management fees, and aren't tax efficicent in taxable account? Is that right?

Contagion spreading to other regional banks such as First Republic Bank, Signature Bank, Zions Bancorp, and Charles Schwab?

What is schwabs exposure to long bonds?

saver007 wrote: ↑Sat Mar 11, 2023 9:00 am SVB is not all that unique in large banks.. SCHWAB has similar percentage (~70%) of it's deposits invested in securities (available for sale and held to maturities) . They also had to take a loan from FHLB to manage liquidity similar to SVB.

From the reports I see on Twitter based on their monthly call reports,Schwab's unrealized losses on HTM portfolio exceed equity of it's banking entities which is pretty bad. What is better for them is that they have more equity in the parent level that it can inject into banks. But I can see Schwab's largest depositors getting nervous right now and looking to diversify which can worsen their liquidity problem.

Time for schwab customers to start moving assets out?