Search found 1071 matches

by Hector
Fri Sep 13, 2019 7:48 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 277
Views: 16628

Re: First 20% of bonds in long-term Treasuries

also, how floating rate note fund would perform in this scenario? Would it produce higher return than 2-5 years treasury bond fund? I know what a floating rate is but this one is also new to me... Regular bond funds have rates that "float" based on the open market; is a floating rate fund based on ...
by Hector
Fri Sep 13, 2019 7:24 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 277
Views: 16628

Re: First 20% of bonds in long-term Treasuries

also, how floating rate note fund would perform in this scenario? Would it produce higher return than 2-5 years treasury bond fund? I know what a floating rate is but this one is also new to me... Regular bond funds have rates that "float" based on the open market; is a floating rate fund based on ...
by Hector
Fri Sep 13, 2019 6:59 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 277
Views: 16628

Re: First 20% of bonds in long-term Treasuries

also, how floating rate note fund would perform in this scenario? Would it produce higher return than 2-5 years treasury bond fund?
by Hector
Fri Sep 13, 2019 6:53 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 277
Views: 16628

Re: First 20% of bonds in long-term Treasuries

As a thought experiment, I use a modified version of longinvest's Bogleheads Bond Fund Simulator to simulate the returns of three bonds containing different maturities under the hypothetical scenario in which bond yields over the next 30 years are the exact mirror image of bond yields over the past...
by Hector
Fri Sep 13, 2019 6:23 pm
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 277
Views: 16628

Re: First 20% of bonds in long-term Treasuries

As a thought experiment, I use a modified version of longinvest's Bogleheads Bond Fund Simulator to simulate the returns of three bonds containing different maturities under the hypothetical scenario in which bond yields over the next 30 years are the exact mirror image of bond yields over the past...
by Hector
Fri Sep 13, 2019 4:48 pm
Forum: Personal Investments
Topic: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%
Replies: 32
Views: 3415

Re: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%

The SEC yield ignores the currency hedging; you expect a higher return from the fund than the SEC yield indicates. For example, if a euro bond has a 0% yield and a dollar bond has a 2% yield, and a contract to sell euros for $1020 next year costs $1000 in today's euros, then holding the euro bond a...
by Hector
Thu Sep 12, 2019 3:23 pm
Forum: Investing - Theory, News & General
Topic: Negative Interest Rates in U.S.
Replies: 249
Views: 21046

Re: Negative Interest Rates in U.S.

Interesting discussion. Not really sure how the financial system would actually fare under negative interest rates. Thinking about not paying off my mortgage any faster than I have to with the prospect of negative interest rates, though. Perhaps can refinance to an even lower rate or perhaps the ho...
by Hector
Thu Sep 12, 2019 2:57 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

We are definitely "doing something about it"! That is staying the course and continuing to save and invest according to our asset allocation. Stay the course is a common phrase here. A general question to folks here: when you decided on your course, Were these low rates a consideration? How about n...
by Hector
Thu Sep 12, 2019 2:52 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

This is what I was referring to earlier. ECB has just recommitted to buying $20B of Euro bonds per month for the foreseeable future. So owning Euro Gov’t Bonds promises a good risk-adjusted return of principal despite the negative yields. https://www.cnbc.com/2019/09/12/european-central-bank-launch...
by Hector
Thu Sep 12, 2019 12:10 pm
Forum: Personal Finance (Not Investing)
Topic: Lending to friend to India
Replies: 54
Views: 3422

Re: Lending to friend to India

There is a difference between lending few thousands $$ to a friend in need anywhere in the world VS lending $100k to a friend for making money.
A lot of times its good not to mix friendship with business.
by Hector
Thu Sep 12, 2019 11:52 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

This is what I was referring to earlier. ECB has just recommitted to buying $20B of Euro bonds per month for the foreseeable future. So owning Euro Gov’t Bonds promises a good risk-adjusted return of principal despite the negative yields. https://www.cnbc.com/2019/09/12/european-central-bank-launch...
by Hector
Wed Sep 11, 2019 6:53 pm
Forum: Personal Consumer Issues
Topic: How old is your cellphone?
Replies: 150
Views: 6459

Re: How old is your cellphone?

2 year-old iPhone 8. It still works fine but I’m going to upgrade to the 11 for the larger screen real estate. I used to balk at replacing cell phones until I realized just how intertwined it is with my everyday life. People will spend $30,000 on a car they drive one hour per day but gasp at a cell...
by Hector
Wed Sep 11, 2019 6:39 pm
Forum: Personal Consumer Issues
Topic: How old is your cellphone?
Replies: 150
Views: 6459

Re: How old is your cellphone?

Currently running an iPhone 6 (purchased December 2014) With software support ending on it shortly , I’m starting to get the itch to pull the trigger on a new device, but I would hate to do so because my device is still working. Do other bogleheads push their devices past their software support? An...
by Hector
Wed Sep 11, 2019 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Lending to friend to India
Replies: 54
Views: 3422

Re: Lending to friend to India

OP: As many have mentioned here - Dont do it and they are 100% right. I too am from India and have been living in US for past 35 years. Here is my story.... Year 1998: My childhood friend from India rings me and tells me he urgently needs 100K. I had just closed on my new house and I had no cash. H...
by Hector
Wed Sep 11, 2019 6:07 pm
Forum: Personal Consumer Issues
Topic: How old is your cellphone?
Replies: 150
Views: 6459

Re: How old is your cellphone?

Currently running an iPhone 6 (purchased December 2014) With software support ending on it shortly , I’m starting to get the itch to pull the trigger on a new device, but I would hate to do so because my device is still working. Do other bogleheads push their devices past their software support? An...
by Hector
Wed Sep 11, 2019 5:38 pm
Forum: Personal Finance (Not Investing)
Topic: Umbrella coverage a no brainer?
Replies: 13
Views: 1607

Re: Umbrella coverage a no brainer?

Yes. Most people should have umbrella coverage.
by Hector
Wed Sep 11, 2019 5:34 pm
Forum: Investing - Theory, News & General
Topic: Schwab cutting 600 jobs - announced today
Replies: 28
Views: 5410

Re: Schwab cutting 600 jobs - announced today

As more people become bogleheads, less financial advisors and money managers will be needed.
by Hector
Wed Sep 11, 2019 5:10 pm
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

Re: A question about wash sale rule

If you completely sell out of an investment that had wash sales and all the replacement shares were purchased in a taxable account, you will have recouped all the wash sale disallowments, and the only affect will be a load of paperwork to process for your taxes (and assuming if there is a loss, tha...
by Hector
Wed Sep 11, 2019 4:33 pm
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

Re: A question about wash sale rule

If you completely sell out of an investment that had wash sales and all the replacement shares were purchased in a taxable account, you will have recouped all the wash sale disallowments, and the only affect will be a load of paperwork to process for your taxes (and assuming if there is a loss, tha...
by Hector
Wed Sep 11, 2019 4:32 pm
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

Re: A question about wash sale rule

There are no tax consequences for these actions within a tax deferred account such as this HSA. So the W for wash means nothing. If you held the same fund in a Taxable account and tried to Tax Loss Harvest then you might have something to be worried about. Cheers HSA is not tax deferred account in ...
by Hector
Wed Sep 11, 2019 4:23 pm
Forum: Personal Investments
Topic: Tax loss harvesting in brokerage accounts
Replies: 11
Views: 754

Re: Tax loss harvesting in brokerage accounts

How do people enlarge from the 3 fund approach in their brokerage account to diversify holdings and allow for future tax loss harvesting. I’m using specid so it seems like if something goes down I can harvest a 3k loss. Would it not behoove me to own something like VOO s and p index and a small cap...
by Hector
Wed Sep 11, 2019 4:13 pm
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

Re: A question about wash sale rule

There are no tax consequences for these actions within a tax deferred account such as this HSA. So the W for wash means nothing. If you held the same fund in a Taxable account and tried to Tax Loss Harvest then you might have something to be worried about. Cheers HSA is not tax deferred account in ...
by Hector
Wed Sep 11, 2019 4:11 pm
Forum: Personal Investments
Topic: Is this a bad time to buy shares of a bond index fund?
Replies: 20
Views: 2586

Re: Is this a bad time to buy shares of a bond index fund?

I read a few posts on this topic on the forum but I was not able to find an answer to my question: I think I understand the logic behind not trying to time the market for stocks. However, It seems to me that bonds are different. We are right now at historically low-interest rates (high bond prices)...
by Hector
Wed Sep 11, 2019 3:14 pm
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

Re: A question about wash sale rule

In fidelity HSA, I hold fund for amount (less than $1,000) which is not enough to buy individual bonds. When I receive interest from individual bond, I buy fund from it. I also reinvest dividend from fund. Sometime I sell fund to have enough to buy individual bond. As a result this is how my current...
by Hector
Wed Sep 11, 2019 2:35 pm
Forum: Personal Consumer Issues
Topic: How old is your cellphone?
Replies: 150
Views: 6459

Re: How old is your cellphone?

The latest iPhone I ever got was when it launched. Since then I have bought all iPhones when my current phone stops working. I go to Apple store and buy the cheapest iPhone that they are selling. I have not faced software compatibility issue yet. I have iPhone 5s. I do't remember when I bought it. I...
by Hector
Wed Sep 11, 2019 11:55 am
Forum: Personal Finance (Not Investing)
Topic: A question about wash sale rule
Replies: 13
Views: 481

A question about wash sale rule

If I am making multiple trades of same fund and automatically reinvest dividends and gains, I would have a mess of wash sale. I don't need to worry about wash sale if I sell that fund before year end. is my understanding correct? Here is more detail: HSA is not tax deferred account in California. In...
by Hector
Wed Sep 11, 2019 11:16 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

Total US Bond Index funds have lost about 1% of their value in the past few days (even accounting for the monthly dividend), so something got pricked. Buy the dip in bonds just like buy the dip in stocks. They are both going to infinity. 1% down = dip :?: EDV down like 7% portfolio of VTI/EDV or VT...
by Hector
Wed Sep 11, 2019 10:23 am
Forum: Non-US Investing
Topic: Is investment in Eurozone bonds really speculation? And is gold likely to be a better hedge in case of a disaster?
Replies: 28
Views: 1488

Re: Is investment in Eurozone bonds really speculation? And is gold likely to be a better hedge in case of a disaster?

I am not playing verbal games really. It seems to me that if an individual investor has the choice between a safe current account yielding say 0% and AAA 10 year bonds yielding -0.53% and she chooses the latter, she can do it only for one these 2 reasons: - she speculates that the yield will get ev...
by Hector
Wed Sep 11, 2019 10:15 am
Forum: Personal Investments
Topic: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%
Replies: 32
Views: 3415

Re: Vanguard Total Int'l Bond VTABX/BNDX Yield 0.29%

The SEC yield ignores the currency hedging; you expect a higher return from the fund than the SEC yield indicates. For example, if a euro bond has a 0% yield and a dollar bond has a 2% yield, and a contract to sell euros for $1020 next year costs $1000 in today's euros, then holding the euro bond a...
by Hector
Wed Sep 11, 2019 10:10 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

robertmcd wrote:
Tue Sep 10, 2019 2:22 pm
livesoft wrote:
Tue Sep 10, 2019 2:17 pm
Total US Bond Index funds have lost about 1% of their value in the past few days (even accounting for the monthly dividend), so something got pricked.
Buy the dip in bonds just like buy the dip in stocks. They are both going to infinity.
1% down = dip :?:
by Hector
Tue Sep 10, 2019 11:19 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

Also, European bonds are a good place to be despite negative yields as the ECB has committed to buying a ton more bonds, which means that bond prices will continue to rise. That’s why people are buying European bonds: not for the yield, but for the price appreciation due to mandatory/committed purc...
by Hector
Mon Sep 09, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Passive in Name Only
Replies: 4
Views: 751

Re: Passive in Name Only

Even a fund tracking S&P500 index is not immune from turnover.
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by Hector
Mon Sep 09, 2019 6:14 pm
Forum: Personal Finance (Not Investing)
Topic: Can a Roth be an emergency EF?
Replies: 32
Views: 2539

Re: Can a Roth be an emergency EF?

Yes. I would withdraw from Roth before HELOC.
by Hector
Mon Sep 09, 2019 6:08 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

If I were the type to invest only in Treasuries (I'm not) and inclined to act on a fear of a bond bubble (also not me), then I would consider other bonds such as total bond market, global bonds, or perhaps some mix of TIPS. Other than that, I would look for bond alternatives such as annuities (prob...
by Hector
Fri Sep 06, 2019 7:39 pm
Forum: Personal Investments
Topic: Balanced Funds and Negative Interest Rates
Replies: 4
Views: 616

Re: Balanced Funds and Negative Interest Rates

the lower the interest rate goes, higher the gains you will see for your bonds. But how long can that apply to the downside? It seems at some point, the lower rates, go, money will be lost. Not if rates keep going down at a pace which is enough to produce value appreciation to compensate negative y...
by Hector
Fri Sep 06, 2019 7:28 pm
Forum: Personal Investments
Topic: Placing bid on brokered cd?
Replies: 10
Views: 854

Re: Placing bid on brokered cd?

I think fill or kill orders are similar to market orders when comparing to individual stock or ETF trading. So if you specify amount there which is below market, your order will be killed immideatley. I think you will need to place order without any limit, then only they might get filled.
by Hector
Fri Sep 06, 2019 4:54 pm
Forum: Personal Investments
Topic: Balanced Funds and Negative Interest Rates
Replies: 4
Views: 616

Re: Balanced Funds and Negative Interest Rates

the lower the interest rate goes, higher the gains you will see for your bonds.
by Hector
Thu Sep 05, 2019 11:41 am
Forum: Personal Investments
Topic: ERs Too Bad to Invest?
Replies: 5
Views: 697

Re: ERs Too Bad to Invest?

I rolled over current employer's HSA to Fidelity HSA.
by Hector
Thu Sep 05, 2019 11:36 am
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

cdu7 wrote:
Thu Sep 05, 2019 9:44 am
Hector wrote:
Wed Sep 04, 2019 10:11 pm
cdu7 wrote:
Wed Sep 04, 2019 9:38 pm
Oh my god, I'm dumping all my bonds now!

Just kidding, I wouldn't even pay attention to the bond markets. Stay the course.
What is stay the course in terms of bond?
Choose a bond fund you feel comfortable with over the long term and ignore it.
What's wrong with individual bonds?
by Hector
Wed Sep 04, 2019 10:11 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

cdu7 wrote:
Wed Sep 04, 2019 9:38 pm
Oh my god, I'm dumping all my bonds now!

Just kidding, I wouldn't even pay attention to the bond markets. Stay the course.
What is stay the course in terms of bond?
by Hector
Wed Sep 04, 2019 6:52 pm
Forum: Investing - Theory, News & General
Topic: Conceptual Q - Bonds vs Bond Funds
Replies: 19
Views: 913

Re: Conceptual Q - Bonds vs Bond Funds

individual bonds that have rolling maturities How is this different than a bond fund? Because as long as I hold to maturity I don’t lose principal. The bond fund puts the principal at risk. Need to review the wiki above So your rolling maturities mean you are going to replace the bond when it is ma...
by Hector
Wed Sep 04, 2019 6:31 pm
Forum: Investing - Theory, News & General
Topic: Conceptual Q - Bonds vs Bond Funds
Replies: 19
Views: 913

Re: Conceptual Q - Bonds vs Bond Funds

individual bonds that have rolling maturities How is this different than a bond fund? Because as long as I hold to maturity I don’t lose principal. The bond fund puts the principal at risk. Need to review the wiki above So your rolling maturities mean you are going to replace the bond when it is ma...
by Hector
Wed Sep 04, 2019 5:24 pm
Forum: Personal Investments
Topic: Would you invest in Vanguard total bond market now for college money?
Replies: 9
Views: 1219

Re: Would you invest in Vanguard total bond market now for college money?

I would keep money in individual bonds or CDs if I need it in 3 years.
by Hector
Wed Sep 04, 2019 5:12 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

Alan Greenspan conveys that soon negative interest rates will spread to the U.S. Unbelievable, you pay them to hold on to your money. Utter madness. Seems as if everyone is intentionally being cornered to take on more risk in the stock market. For last few years there were multiple posts about inte...
by Hector
Wed Sep 04, 2019 5:05 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

Alan Greenspan conveys that soon negative interest rates will spread to the U.S. Unbelievable, you pay them to hold on to your money. Utter madness. Seems as if everyone is intentionally being cornered to take on more risk in the stock market. For last few years there were multiple posts about inte...
by Hector
Wed Sep 04, 2019 5:03 pm
Forum: Non-US Investing
Topic: risk tolerance - too much in bonds?
Replies: 34
Views: 2461

Re: risk tolerance - too much in bonds?

I think you are doing great. in 20s with EF and rest in stock is a great plan.
by Hector
Wed Sep 04, 2019 4:58 pm
Forum: Personal Investments
Topic: Has the bond bubble finally arrived? If so, is anyone doing anything about it?
Replies: 86
Views: 9024

Re: Has the bond bubble finally arrived? If so, is anyone doing anything about it?

money market fund / brokered cds / individual treasury bills / stable value funds
by Hector
Wed Sep 04, 2019 4:45 pm
Forum: Personal Investments
Topic: Just getting started, help with individual equities?
Replies: 12
Views: 629

Re: Just getting started, diversifying portfolio. Help with individual equities?

I would sell losers for capital loss and ride ones with gain to delay capital gain tax.
by Hector
Wed Sep 04, 2019 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Do you have disability insurance?
Replies: 37
Views: 1751

Re: Do you have disability insurance?

I am going through the motions of getting term life, and in the process my agent recommended disability insurance. I immediately figured it was an up-sell so I quickly declined (it was never brought up again), but is there a consensus on this? I work in an office environment and for the most part s...