Search found 1367 matches

by Hector
Thu Sep 10, 2020 2:43 pm
Forum: Personal Investments
Topic: Best Use of Roth Space?
Replies: 17
Views: 1238

Re: Best Use of Roth Space?

I prefer 100% stock in Roth in this situation.
by Hector
Thu Sep 10, 2020 12:21 am
Forum: Personal Finance (Not Investing)
Topic: What % of income to spend on car?
Replies: 122
Views: 7937

Re: What % of income to spend on car?

Go get that car.
by Hector
Wed Sep 02, 2020 3:20 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2710

Re: Rising inflation with low or no yield in fixed income

I think people will take more risk by adding more stock or adding lower quality bonds by chasing the yield. See this thread from today on what Bridgewater and other hedge funds are doing: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=324518 Bridgewater is loading up on short TIPS and gold, ...
by Hector
Wed Sep 02, 2020 3:03 pm
Forum: Investing - Theory, News & General
Topic: Ark Funds
Replies: 28
Views: 2251

Re: Ark Funds

I am not a fan.
by Hector
Wed Sep 02, 2020 3:00 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2710

Re: Rising inflation with low or no yield in fixed income

I think people will take more risk by adding more stock or adding lower quality bonds by chasing the yield.
by Hector
Wed Aug 19, 2020 10:15 pm
Forum: Personal Investments
Topic: Please review my de-risking/cash-out plan
Replies: 111
Views: 5454

Re: Please review my de-risking/cash-out plan

Why are you limiting upside when you have 2 years worth expense in cash + 5 years worth in bonds? How about considering all your liquid assets as one bucket and keep at least 7 years of expense in cash/bond when you are selling bonds to buy stocks when market tanks? 1) CASH is a separate asset clas...
by Hector
Wed Aug 19, 2020 9:40 pm
Forum: Personal Investments
Topic: Please review my de-risking/cash-out plan
Replies: 111
Views: 5454

Re: Please review my de-risking/cash-out plan

Why are you limiting upside when you have 2 years worth expense in cash + 5 years worth in bonds? How about considering all your liquid assets as one bucket and keep at least 7 years of expense in cash/bond when you are selling bonds to buy stocks when market tanks? 1) CASH is a separate asset clas...
by Hector
Wed Aug 19, 2020 9:36 pm
Forum: Personal Investments
Topic: Please review my de-risking/cash-out plan
Replies: 111
Views: 5454

Re: Please review my de-risking/cash-out plan

What are you going to do if the market is down for 6 years? Does your plan address that? I'd like to have that answer if i was you before making a plan for the good years. If the market tanked and he rebalanced, he would at least have 7 years worth expense in cash/bond. If the market stays down for...
by Hector
Wed Aug 19, 2020 9:25 pm
Forum: Personal Investments
Topic: Please review my de-risking/cash-out plan
Replies: 111
Views: 5454

Re: Please review my de-risking/cash-out plan

Why are you limiting upside when you have 2 years worth expense in cash + 5 years worth in bonds?
How about considering all your liquid assets as one bucket and keep at least 7 years of expense in cash/bond when you are selling bonds to buy stocks when market tanks?
by Hector
Sun Aug 16, 2020 10:05 pm
Forum: Investing - Theory, News & General
Topic: Expected return of a bond fund
Replies: 92
Views: 10969

Re: Expected return of a bond fund

deleted. Hector, did you delete your post because you figured out the answer to your question? Basically you asked why the rolldown return you calculated was smaller for a steeper yield curve. Perhaps you figured out that the rolldown return depends not only on the slope of the yield curve, but als...
by Hector
Sun Aug 16, 2020 1:08 pm
Forum: Investing - Theory, News & General
Topic: Latest Thoughts from Larry Swedroe
Replies: 35
Views: 5324

Re: Latest Thoughts from Larry Swedroe

I thought his recent comments regarding concentration of the top 5 stocks by market cap Thanks for sharing. Did you mean this tweet only or was there an article about it? Thinking about diversification? As of 6/30 the top 5 companies in S&P 500 by market cap are larger than the bottom 350 companies...
by Hector
Fri Aug 14, 2020 5:07 pm
Forum: Investing - Theory, News & General
Topic: Expected return of a bond fund
Replies: 92
Views: 10969

Re: Expected return of a bond fund

deleted.
by Hector
Fri Aug 14, 2020 4:11 pm
Forum: Investing - Theory, News & General
Topic: Long Term Capital Gain Arbitrage - ETF Bond Funds
Replies: 3
Views: 365

Re: Long Term Capital Gain Arbitrage - ETF Bond Funds

So, like many people, I am sitting on large gains in my ETF bond funds (VCIT and USIG). Because I bought these funds many years ago, they are long-term capital gains. If would seem that if I continue to hold these, and interest rates stay where they are, that my long term capital gain will be burne...
by Hector
Fri Aug 14, 2020 10:43 am
Forum: Investing - Theory, News & General
Topic: Why Total Bond and not Treasuries?
Replies: 167
Views: 16417

Re: Why Total Bond and not Treasuries?

then as nisi had shown regarding the chart from 2008 where ITT gave back much of it's gain above TBM later on, it appears to have done so again between the worst of it and now: https://i.postimg.cc/qBKGgxCQ/Capture.jpg source: http://quotes.morningstar.com/chart/fund/chart?t=VTSAX&dataParams=%7B%22...
by Hector
Thu Aug 13, 2020 10:05 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage with a downpayment of less than 10%!
Replies: 12
Views: 1361

Re: Mortgage with a downpayment of less than 10%!

Hi. I’m looking to see if someone knows about a mortgage situation. I was looking to buy my first home and had everything planned out before. But unfortunately, I became unemployed temporarily; now, things have gone back to normal. I have a credit score of 650 and an excellent payment history. I ne...
by Hector
Thu Aug 13, 2020 9:59 pm
Forum: Investing - Theory, News & General
Topic: Why Total Bond and not Treasuries?
Replies: 167
Views: 16417

Re: Why Total Bond and not Treasuries?

then as nisi had shown regarding the chart from 2008 where ITT gave back much of it's gain above TBM later on, it appears to have done so again between the worst of it and now: https://i.postimg.cc/qBKGgxCQ/Capture.jpg source: http://quotes.morningstar.com/chart/fund/chart?t=VTSAX&dataParams=%7B%22...
by Hector
Thu Aug 13, 2020 1:13 pm
Forum: Investing - Theory, News & General
Topic: I Got Burned: Selling mutual fund and simultaneously purchasing ETF
Replies: 164
Views: 8094

Re: I Got Burned: Selling mutual fund and simultaneously purchasing ETF

rockstar wrote: Wed Aug 12, 2020 7:01 pm
Hector wrote: Wed Aug 12, 2020 2:15 pm
rockstar wrote: Tue Aug 11, 2020 9:59 pm Always wait for settlement. It gives you some time to think.
Market can move a lot if you wait for the settlement.
What's the rush?
I will be out of the market longer when waiting for settlement. I prefer not to be out of the market.
by Hector
Thu Aug 13, 2020 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Mortgage with a downpayment of less than 10%!
Replies: 12
Views: 1361

Re: Mortgage with a downpayment of less than 10%!

Hi. I’m looking to see if someone knows about a mortgage situation. I was looking to buy my first home and had everything planned out before. But unfortunately, I became unemployed temporarily; now, things have gone back to normal. I have a credit score of 650 and an excellent payment history. I ne...
by Hector
Wed Aug 12, 2020 2:21 pm
Forum: Investing - Theory, News & General
Topic: I Got Burned: Selling mutual fund and simultaneously purchasing ETF
Replies: 164
Views: 8094

Re: I Got Burned: Selling mutual fund and simultaneously purchasing ETF

I had $80k of VSIAX (Vanguard Small Cap Value index Fund). I decided I wanted to instead invest in a similar fund (VIOV) which is also a small cap value fund but tracks a different index. VIOV is an ETF with no equivalent mutual fund. So today during trading hours, I sold $80k of the mutual fund VS...
by Hector
Wed Aug 12, 2020 2:15 pm
Forum: Investing - Theory, News & General
Topic: I Got Burned: Selling mutual fund and simultaneously purchasing ETF
Replies: 164
Views: 8094

Re: I Got Burned: Selling mutual fund and simultaneously purchasing ETF

rockstar wrote: Tue Aug 11, 2020 9:59 pm Always wait for settlement. It gives you some time to think.
Market can move a lot if you wait for the settlement.
by Hector
Tue Aug 11, 2020 12:41 pm
Forum: Personal Investments
Topic: 3 fund portfolio - Bond indexes bad in this environment?
Replies: 30
Views: 2302

Re: 3 fund portfolio - Bond indexes bad in this environment?

You think bonds are riskier, yet you added to your bond portion.
by Hector
Thu Aug 06, 2020 1:49 pm
Forum: Personal Investments
Topic: Can't get my head around bond funds
Replies: 32
Views: 2741

Re: Can't get my head around bond funds

Great job starting this early!
I don't have international bond in my bonds. Internatonal bonds behave somewhat like equity. I prefer not to loose nominal $$ with my bonds.
I would go for 100% stock at 23.
by Hector
Wed Aug 05, 2020 11:09 pm
Forum: Investing - Theory, News & General
Topic: Anyone else hoarding cash right now?
Replies: 201
Views: 21416

Re: Anyone else hoarding cash right now?

I am not. I have learned that I do not know how to predict the future. I am sticking to my AA.
by Hector
Tue Aug 04, 2020 1:02 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on bonds from Fed decision...
Replies: 111
Views: 7793

Re: Thoughts on bonds from Fed decision...

I think we have no choice, but to take more risk by increasing bond duration and/or reducing bond quality and/or increasing equity portion of portfolio eventually.
by Hector
Tue Aug 04, 2020 12:34 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on bonds from Fed decision...
Replies: 111
Views: 7793

Re: Thoughts on bonds from Fed decision...

https://i2.wp.com/nationandstate.com/wp-content/uploads/2020/08/bfm283.jpg?resize=500%2C293&ssl=1 https://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx 10Y Treasury rate continues to fall. Today it dropped to 0.509%. As the Fed funds rate stays at zero for now (doesn't go negative),...
by Hector
Tue Aug 04, 2020 12:05 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on bonds from Fed decision...
Replies: 111
Views: 7793

Re: Thoughts on bonds from Fed decision...

Thus I am not motivated to change my asset allocation. However my equivalent to US TIPS are trading at -2.5% yields (yes, minus). US TIPS last time I looked were trading at much closer to zero yields. Thus, inflation protection is relatively cheap (compared to the UK) although absolutely expensive ...
by Hector
Mon Aug 03, 2020 2:48 pm
Forum: Personal Investments
Topic: Advice as I rebuild my financial future
Replies: 15
Views: 1542

Re: Advice as I rebuild my financial future

Congratulations on getting the job, Eric! Where are you in terms of retirement savings? Hi Hector, My retirement status is I currently contribute 6% for full employer match of 50% up to 6%, balance is 7k at my new job. I also have 850k in an IRA from previous employer at a 70/30 ratio and 30k in a ...
by Hector
Mon Aug 03, 2020 1:01 pm
Forum: Personal Investments
Topic: Advice as I rebuild my financial future
Replies: 15
Views: 1542

Re: Advice as I rebuild my financial future

Congratulations on getting the job, Eric!
Where are you in terms of retirement savings?
by Hector
Fri Jul 31, 2020 10:14 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 8817
Views: 696868

Re: U.S. stocks continue to soar!

One interesting perspective I recently heard about about the US outperformance which is primarily driven by big tech is that big tech gets a large part of their revenue from outside US. AND ironically even though the pandemic is managed better sooner outside the US, the benefit has actually gone to...
by Hector
Fri Jul 31, 2020 12:56 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio: Is He Saying Bonds Are Done?
Replies: 67
Views: 6879

Re: Ray Dalio: Is He Saying Bonds Are Done?

10-year government bonds in some countries are at these rates right now:
Germany: -0.521
U.K.: 0.105
Japan: 0.015
France: -0.200
Spain: 0.333

You get a higher rate in the US compare to these countries right now.
by Hector
Fri Jul 31, 2020 12:31 pm
Forum: Investing - Theory, News & General
Topic: Barron’s article on bonds
Replies: 89
Views: 5782

Re: Barron’s article on bonds

Nisiprius hit the nail squarely on the head. My risk tolerance didn't change to favor risker investments in response to a crisis. I'll stay the course. The question is whether bonds are now the riskier investment. I think they are. What are you going to do? Take more risk and increase stock allocat...
by Hector
Fri Jul 31, 2020 12:22 pm
Forum: Investing - Theory, News & General
Topic: Barron’s article on bonds
Replies: 89
Views: 5782

Re: Barron’s article on bonds

How is high-quality dividend stocks less risky than high-quality bond? A bond is a contract in which you are given interest on regular intervals plus principal at the end of the term. There is no contract that your high quality stock price won't be less than what you paid for after a certain term. ...
by Hector
Thu Jul 30, 2020 3:32 pm
Forum: Investing - Theory, News & General
Topic: Barron’s article on bonds
Replies: 89
Views: 5782

Re: Barron’s article on bonds

How is high-quality dividend stocks less risky than high-quality bond?
A bond is a contract in which you are given interest on regular intervals plus principal at the end of the term.
There is no contract that your high quality stock price won't be less than what you paid for after a certain term.
by Hector
Thu Jul 30, 2020 1:36 pm
Forum: Personal Investments
Topic: Wells Fargo PMA increasing fees
Replies: 49
Views: 4074

Re: Wells Fargo PMA increasing fees

I missed this notice from Wells Fargo, or didn't think it applied to my situation with them. I have just 5 funds invested in my Roth IRA with them. 2 from vanguard, 1 from AMG, 1 from Janus, and one from Fidelity. Total around $125K. If I understand correctly I will now be charged to buy and sell t...
by Hector
Wed Jul 22, 2020 2:27 pm
Forum: Personal Investments
Topic: Where is your fixed income invested?
Replies: 71
Views: 5334

Re: Where is your fixed income invested?

Individual short term (<=5 years) Treasury notes.
by Hector
Mon Jul 20, 2020 8:01 am
Forum: Personal Investments
Topic: Keep adding bonds? % AA or fixed income floor?
Replies: 30
Views: 1098

Re: Keep adding bonds? % AA or fixed income floor?

A) Remain at 80/20. Do nothing differently. If an emergency arises, draw on whichever asset is high at the time and remain at 80/20.
Just contribute to whichever account is lagging all the time. Rebalancing at 5% bands, the usual.
by Hector
Mon Jul 20, 2020 7:57 am
Forum: Personal Investments
Topic: Treating Taxable and Tax-Deferred as One
Replies: 13
Views: 1278

Re: Treating Taxable and Tax-Deferred as One

I don't struggle with this concept.
by Hector
Mon Jul 20, 2020 7:54 am
Forum: Personal Investments
Topic: When to sell individual stock after run up?
Replies: 51
Views: 3825

Re: When to sell individual stock after run up?

I would sell individual stock or fund in taxable only when I need money OR when I can have capital loss. When selling, I would sell stock/fund with lowest capital gain.
by Hector
Sun Jul 19, 2020 10:10 am
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 15953

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

I am still sticking with short term Treasurys in retirement ACs. I bought a 5-year note at 0.29% last week.
by Hector
Sat Jul 18, 2020 6:36 am
Forum: Personal Investments
Topic: Wells Fargo PMA increasing fees
Replies: 49
Views: 4074

Re: Wells Fargo PMA increasing fees

I trade Vanguard MF commission-free and I am disappointed that there is going to be a $35 transaction fee. I am thinking about selling MF and buying ETFs before August 31st. OMG, don't do that! You'll take a tax hit! You could just transfer them to Vanguard. Then you can trade them for free, or wha...
by Hector
Fri Jul 17, 2020 1:32 pm
Forum: Personal Investments
Topic: Wells Fargo PMA increasing fees
Replies: 49
Views: 4074

Re: Wells Fargo PMA increasing fees

I trade Vanguard MF commission-free and I am disappointed that there is going to be a $35 transaction fee.
I am thinking about selling MF and buying ETFs before August 31st.
by Hector
Fri Jul 17, 2020 1:16 pm
Forum: Personal Investments
Topic: Wells Fargo PMA increasing fees
Replies: 49
Views: 4074

Re: WellsTrade

I got more information but some things are still unclear. I did not get charged today for a transaction even though during the process I was told there would be a fee. As pointyhairedboss stated changes don't go into effect until August 31st. A Wells Fargo representative explained not all transacti...
by Hector
Fri Jul 17, 2020 1:04 pm
Forum: Personal Investments
Topic: Wells Fargo PMA increasing fees
Replies: 49
Views: 4074

Re: Wells Fargo PMA increasing fees

As for why anyone would be using Wellstrade, they've had available: PTTRX - the 0.46% ER Pimco Total Return class FNBGX - Fidelity 0.03% ER LT treasuries GABXX - 0.08% ER pure T-bills signal and then admiral shares of nearly all Vanguard funds, with no minimums for most funds 100 free trades for ET...
by Hector
Thu Jul 16, 2020 5:08 am
Forum: Investing - Theory, News & General
Topic: individual bonds vs bond funds
Replies: 36
Views: 1856

Re: individual bonds vs bond funds

Given your description, I'm assuming that the "half in bonds" you're referring to means corporate bonds? I suggest you review this: https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund Personally, I would not want to own any individual corporate bonds. There's no good way to diversify un...
by Hector
Wed Jul 15, 2020 10:47 am
Forum: Investing - Theory, News & General
Topic: individual bonds vs bond funds
Replies: 36
Views: 1856

Re: individual bonds vs bond funds

Given your description, I'm assuming that the "half in bonds" you're referring to means corporate bonds? I suggest you review this: https://www.bogleheads.org/wiki/Individual_bonds_vs_a_bond_fund Personally, I would not want to own any individual corporate bonds. There's no good way to diversify un...
by Hector
Sun Jun 21, 2020 4:40 pm
Forum: Personal Investments
Topic: Corporate Bonds
Replies: 35
Views: 2372

Re: Corporate Bonds

Hi all, New to investing in bonds. Can you suggest some low risk corporate bonds? Also, is now a good time to invest in corporate bonds? QLTA only has AAA/AA/A rated bonds. How has that fund performed? One issue I can see is: when some individual bonds get downgraded to less than A, they would get ...
by Hector
Sat Jun 20, 2020 5:40 pm
Forum: Personal Investments
Topic: Emergency Fund Allocation
Replies: 6
Views: 532

Re: Emergency Fund Allocation

Search for placement of emergency fund on wiki.
by Hector
Sat Jun 20, 2020 5:33 pm
Forum: Personal Investments
Topic: Corporate Bonds
Replies: 35
Views: 2372

Re: Corporate Bonds

Hi all, New to investing in bonds. Can you suggest some low risk corporate bonds? Also, is now a good time to invest in corporate bonds? QLTA only has AAA/AA/A rated bonds. How has that fund performed? One issue I can see is: when some individual bonds get downgraded to less than A, they would get ...
by Hector
Thu Jun 18, 2020 9:42 am
Forum: Personal Finance (Not Investing)
Topic: When does purchasing Umbrella Insurance Coverage makes sense?
Replies: 108
Views: 7142

Re: When does purchasing Umbrella Insurance Coverage makes sense?

Whenever you think filing bankruptcy is not ideal, it’s time to buy umbrella policy. Life happens. I would buy umbrella policy today.