Search found 1301 matches

by Hector
Sat May 23, 2020 10:27 am
Forum: Personal Investments
Topic: Has anyone ever used their Emergency Fund?
Replies: 87
Views: 6784

Re: Has anyone ever used their Emergency Fund?

I don’t have a separate EF or even funds to pay regular bills. It’s just one bucket and necessary money comes from bonds part of it which also includes checking account.
I have experienced a situation where I needed more cash $$ than I ever imagined.
by Hector
Fri May 22, 2020 2:03 pm
Forum: Investing - Theory, News & General
Topic: Warren Buffett "Most People Shouldn't Pick Individual Stocks"
Replies: 36
Views: 2689

Re: Warren Buffett "Most People Shouldn't Pick Individual Stocks"

steve321 wrote:
Fri May 22, 2020 1:39 pm
Yes but if you get it right you hit the jackpot 8-) When I wrote this
viewtopic.php?f=1&t=258102
I put quite a bit of money in those 2 stocks. I am pretty happy with that decision 8-) They did much better than my ETFs
:sharebeer
by Hector
Sat May 16, 2020 3:30 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 140
Views: 16552

Re: Still using total bond market?

... I'm trying to learn, so this may be a novice question, but if the current interest rate is ultra-low, is it reasonable to buy new shares of TBM now and expect them to increase in share price when I eventually sell them in my retirement? This question applies whether rates are ultra-low, normal,...
by Hector
Fri May 15, 2020 11:23 am
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 140
Views: 16552

Re: Still using total bond market?

Look at the below yield to maturity data and decide for yourself SHY (short term treasuries) 0.22% IEI (intermediate term treasuries) 0.38% TLT (long term treasuries) 1.16% IGSB (short term Corp) 2.18% LQD (intermediate term Corp - this ETF has a bit longer maturity) 2.77% AGG (total bond) 1.42% No...
by Hector
Thu May 14, 2020 7:09 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 140
Views: 16552

Re: Still using total bond market?

Look at the below yield to maturity data and decide for yourself SHY (short term treasuries) 0.22% IEI (intermediate term treasuries) 0.38% TLT (long term treasuries) 1.16% IGSB (short term Corp) 2.18% LQD (intermediate term Corp - this ETF has a bit longer maturity) 2.77% AGG (total bond) 1.42% No...
by Hector
Wed May 13, 2020 10:09 pm
Forum: Personal Investments
Topic: To elect contributing to Dependent Care FSA or not? related to COVID
Replies: 2
Views: 221

Re: To elect contributing to Dependent Care FSA or not? related to COVID

I believe the IRS has provided employers with the option to be flexible with these types of accounts and allow mid-year changes for the time being. I don't know if something similar might be put into effect next year as well but it very well could be if covid continues to be an issue. There is some...
by Hector
Wed May 13, 2020 9:11 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income lessons learned from Coronavirus?
Replies: 48
Views: 4254

Re: Fixed Income lessons learned from Coronavirus?

I have not made any changes yet. I hold short term treasury for bond.
by Hector
Wed May 13, 2020 8:55 pm
Forum: Investing - Theory, News & General
Topic: Fixed Income lessons learned from Coronavirus?
Replies: 48
Views: 4254

Re: Fixed Income lessons learned from Coronavirus?

Are there any “lessons” you have learned or adjustments you have made? I learned that if yields go low enough for the expected real return to drop below zero, then there is no need to hold fixed income when in the accumulation phase and nowhere near retirement, other than a liquid cash emergency fu...
by Hector
Wed May 13, 2020 7:17 pm
Forum: Personal Investments
Topic: To elect contributing to Dependent Care FSA or not? related to COVID
Replies: 2
Views: 221

To elect contributing to Dependent Care FSA or not? related to COVID

Hi all, I need to select benefits for next year (from July to June). My child is enrolled in preschool for next year; after summer. Who knows when the actual starting date would be due to COVID. I don't know what to do about Dependent Care FSA. It would be nice to pay for preschool from pretax money...
by Hector
Mon May 11, 2020 4:13 pm
Forum: Personal Investments
Topic: Redemption of Treasury Direct Series I Bond question
Replies: 11
Views: 732

Re: Redemption of Treasury Direct Series I Bond question

Yes, you can partially redeem an electronic i-Bond. You must redeem a minimum of $25 and leave at least $25 in your TD account. See Treasury Direct’s FAQ here: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iredeem.htm Oh perfect! Thank you for the link. :beer TD prepares t...
by Hector
Sat May 09, 2020 2:53 pm
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 394
Views: 70764

Re: Bonds - Throw it all on the table!!!

Bogleheads - Has anyone changed their bond strategy in the current environment of low interest rates? I still hold short term Treasurys; average maturity ~3 years. But I am not excited about buying new 5-year notes with ~0.3% rate. At that rate, why not just do a HY Savings account (e.g. Ally)? You...
by Hector
Fri May 08, 2020 8:58 pm
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 394
Views: 70764

Re: Bonds - Throw it all on the table!!!

Bogleheads - Has anyone changed their bond strategy in the current environment of low interest rates? I still hold short term Treasurys; average maturity ~3 years. But I am not excited about buying new 5-year notes with ~0.3% rate. At that rate, why not just do a HY Savings account (e.g. Ally)? You...
by Hector
Fri May 08, 2020 5:36 pm
Forum: Personal Investments
Topic: Bond Index vs Bond Managed Fund
Replies: 13
Views: 1211

Re: Bond Index vs Bond Managed Fund

I think when it comes to bond funds, actively managed funds can be better than index funds.
I personally don't want to lose $$ in bonds in nominal terms and hold individual short term Treasurys.
by Hector
Fri May 08, 2020 5:24 pm
Forum: Investing - Theory, News & General
Topic: Bonds - Throw it all on the table!!!
Replies: 394
Views: 70764

Re: Bonds - Throw it all on the table!!!

abuss368 wrote:
Fri May 08, 2020 12:48 pm
Bogleheads -

Has anyone changed their bond strategy in the current environment of low interest rates?
I still hold short term Treasurys; average maturity ~3 years. But I am not excited about buying new 5-year notes with ~0.3% rate.
by Hector
Wed May 06, 2020 11:55 pm
Forum: Investing - Theory, News & General
Topic: [Are American markets likely to outperform INTL]
Replies: 237
Views: 16056

Re: [Are American markets likely to outperform INTL]

I hold international stock based on the FTSE Global All Cap Index because I don't know which market will perform better in the future.
by Hector
Tue May 05, 2020 2:06 pm
Forum: Investing - Theory, News & General
Topic: Share your Re-Balancing Strategy
Replies: 25
Views: 1679

Re: Share your Re-Balancing Strategy

In the accumulation phase, sell bonds to buy stocks when stocks go below the desired allocation.
Use new contributions/dividend into bonds when bonds go below the desired allocation.
by Hector
Mon May 04, 2020 11:41 am
Forum: Investing - Theory, News & General
Topic: Check my "roll yield" math please
Replies: 5
Views: 589

Re: Check my "roll yield" math please

Date: 5/1/20 7-year yield: 0.54 5-year yield: 0.36 Price of 7-year note after 2 years: =-PV(0.36%, 5, 0.54, 100) = 100.84 Expected roll yield = 100-84/100-1 = 0.84% Total return = 0.54 + 0.84 = 1.38% Assuming the rate stays the same. I don't do it that way. First: I think we are both using YTM for ...
by Hector
Sat May 02, 2020 4:49 pm
Forum: Investing - Theory, News & General
Topic: Check my "roll yield" math please
Replies: 5
Views: 589

Check my "roll yield" math please

Date: 5/1/20
7-year yield: 0.54
5-year yield: 0.36
Price of 7-year note after 2 years: =-PV(0.36%, 5, 0.54, 100) = 100.84
Expected roll yield = 100-84/100-1 = 0.84%
Total return = 0.54 + 0.84 = 1.38%
Assuming the rate stays the same.
by Hector
Thu Apr 30, 2020 8:37 am
Forum: Investing - Theory, News & General
Topic: Vanguard Short-Term Treasury Fund Admiral Shares' 30 day SEC yield
Replies: 3
Views: 345

Vanguard Short-Term Treasury Fund Admiral Shares' 30 day SEC yield

Why VFIRX, Vanguard Short-Term Treasury Fund Admiral Shares' 30 day SEC yield is 0.70% as of 4/28? Its Average effective maturity is 2.2 years and rate of 2 year Treasury note is 0.20% Where, VSBSX, Vanguard Short-Term Treasury Index Fund Admiral Shares' 30 day SEC yield is 0.19% as of 4/28. This is...
by Hector
Tue Apr 28, 2020 12:39 am
Forum: Investing - Theory, News & General
Topic: Which Bonds when the S&P 500 Tanks
Replies: 82
Views: 6183

Re: Which Bonds when the S&P 500 Tanks

Not what I would have expected. Which part did you not expect? Intermediate corporate correlating to S&P 500? Long T's going down on the 20th of March. What Kevin addressed. I haven't looked through all this but liquidity might be a factor . I'm asking. There is no "might"; it was the factor. There...
by Hector
Tue Apr 21, 2020 11:08 pm
Forum: Personal Investments
Topic: (3FP) - How much intl?
Replies: 18
Views: 1159

Re: (3FP) - How much intl?

I follow Vanguard Total World Stock Index Fund which tracks FTSE Global All Cap Index.
by Hector
Sun Apr 19, 2020 1:03 am
Forum: Personal Investments
Topic: How to get more information about stable value fund in 401(k)
Replies: 2
Views: 274

How to get more information about stable value fund in 401(k)

I am not able to find information about the Stable Value Fund in my 401(k). Where do I look? Name: Wells Fargo Synthetic Stable Value Fund TICKER: WFSSVMC CUSIP: 949791669 Inception Date: May 20, 2019 Expense Ratio: 0.45% https://content.schwabplan.com/funddetail/WFSSVMC.pdf I am interested in curre...
by Hector
Fri Apr 17, 2020 2:59 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio: ‘you’d be pretty crazy to hold bonds’ right now
Replies: 128
Views: 13147

Re: Ray Dalio: ‘you’d be pretty crazy to hold bonds’ right now

The duration of BND is currently about 6 years. The SEC yield for BND 6 years ago was just above 2%. I know the duration changes somewhat over time but even if you take 5 or 7 years ago, the SEC yield would be either a bit below or above 2%. Under some assumptions, the SEC yield should give us a re...
by Hector
Thu Apr 16, 2020 6:28 pm
Forum: Investing - Theory, News & General
Topic: Short vs long TIPS inflation protection
Replies: 63
Views: 5673

Re: Short vs long TIPS inflation protection

To me, a new TIPS that costs $1000 and pays 4% real is the bargain of a lifetime, while a new TIPS $1000 paying -.5% is no bargain at all. If TIPS ever got back to 2% real, I'd back up the truck, and not worry about whether someone, somewhere is making a killing with something else. I think you're ...
by Hector
Thu Apr 16, 2020 4:41 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio: ‘you’d be pretty crazy to hold bonds’ right now
Replies: 128
Views: 13147

Re: Ray Dalio: ‘you’d be pretty crazy to hold bonds’ right now

I agree with Ray Dalio on this. Bonds look good in the rear view mirror, because interest rates were higher in the past. If you buy bonds and interest rates fall, that's good news, because you earn an above-market yield. If you want to sell rather than hold your bonds in this scenario, you get to s...
by Hector
Thu Apr 16, 2020 3:04 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 140
Views: 16552

Re: Still using total bond market?

I don't like the MBS of the TBM funds. Plus the only USD TBM ETF available to us has an ER = 0.25%. Too much. BND = 48% Treasuries + 25% Corp + 25% MBS + 2% Other. We use 3 bond ETFs + CASH. ER = 0.10%.Our FI allocation: FI = 50% Treasuries + 20% Corps + 20% TIPS + 10% CASH. I think Total Bond is o...
by Hector
Thu Apr 16, 2020 12:15 pm
Forum: Investing - Theory, News & General
Topic: Short vs long TIPS inflation protection
Replies: 63
Views: 5673

Re: Short vs long TIPS inflation protection

However, people here have said that TIPS only protect against unexpected inflation. I'm trying to get my head around this. Perhaps an example with numbers will help (it helped me at one point understand TIPS and unexpected inflation): In the example below, the expected return for a nominal Treasury...
by Hector
Thu Apr 16, 2020 1:52 am
Forum: Personal Investments
Topic: ICSH and other ultrashort term bond funds - should I be worried?
Replies: 26
Views: 2051

Re: ICSH and other ultrashort term bond funds - should I be worried?

We have seen preference for corporate bonds over treasury for better yield during last few years. Now ship is sinking and we are seeing how risk is working out. It’s important not to forget what we are seeing now when things are great again.
by Hector
Tue Apr 14, 2020 5:56 pm
Forum: Personal Investments
Topic: Still using total bond market?
Replies: 140
Views: 16552

Re: Still using total bond market?

I have never used the total bond fund.
I am holding iBond/MM/short term Treasurys/short term CDs/Stable Value fund right now.
by Hector
Sun Apr 12, 2020 3:43 pm
Forum: Investing - Theory, News & General
Topic: Emergency Fund - part of Asset Allocation?
Replies: 93
Views: 3115

Re: Emergency Fund - part of Asset Allocation?

I have 70/30 AA and EF is part of 30%. In the situation, if/when the market goes down a lot, I would leave a certain amount into bonds.
by Hector
Mon Apr 06, 2020 5:27 pm
Forum: Investing - Theory, News & General
Topic: Roll return on Individual TIPS
Replies: 0
Views: 105

Roll return on Individual TIPS

Is there any roll return from the short term (say 1-5 year) individual TIPS?
Spread on TIPS is generally higher and I am wondering is it worth to sell before maturity when the yield curve is normal.
by Hector
Thu Apr 02, 2020 5:42 pm
Forum: Investing - Theory, News & General
Topic: Buying T-Bills - direct purchase vs. ETFs
Replies: 8
Views: 520

Re: Buying T-Bills - direct purchase vs. ETFs

I am having a hard time selling T-Bills at Fidelity. Not at Charles Schwab though.
I prefer a direct purchase.
As Doc mentioned, it involves bookkeeping.
by Hector
Thu Apr 02, 2020 1:53 pm
Forum: Personal Investments
Topic: Why buy treasuries when CD rates are so much better?
Replies: 42
Views: 4307

Re: Why buy treasuries when CD rates are so much better?

birnhamwood wrote:
Thu Apr 02, 2020 1:35 pm
From the standpoint of safety ALONE, which is better, CDs or Vanguard Total Bond Index Admiral. VBTLX

No other considerations. Thanks
The principle of CDs within FDIC limit is the safest.
by Hector
Wed Apr 01, 2020 6:18 pm
Forum: Personal Investments
Topic: Why would anyone buy Intermediate Term Treasury Bonds right now?
Replies: 34
Views: 2886

Re: Why would anyone buy Intermediate Term Treasury Bonds right now?

OP, VGIT is not CASH aka CD. Diversification is a good thing. If you exchange VGIT with CD, you are no longer investing in an asset class -> Ultra-safe bond. In a crisis, ultra-safe bond tends to do very well. CD does not give you that. I have both. I do not consider them as the same. KlangFool +1 ...
by Hector
Wed Apr 01, 2020 12:11 am
Forum: Personal Investments
Topic: Fidelity CD ladders
Replies: 7
Views: 786

Re: Fidelity CD ladders

I don't have experience with CD auto-roll. But with Treasurys auto-roll, it impacts the full lot.
by Hector
Tue Mar 31, 2020 1:31 pm
Forum: Personal Investments
Topic: Why buy treasuries when CD rates are so much better?
Replies: 42
Views: 4307

Re: Why buy treasuries when CD rates are so much better?

The fact that big buyers of treasuries can't buy CD's is why the *total expected return* of treasuries is so much worse than best CD's. We'll see. I'm not putting all my eggs into either basket. Watchnerd has been a great help to me in other threads helping me understand why someone would buy a 20-...
by Hector
Mon Mar 30, 2020 10:35 pm
Forum: Personal Investments
Topic: Why buy treasuries when CD rates are so much better?
Replies: 42
Views: 4307

Re: Why buy treasuries when CD rates are so much better?

Kevin M wrote:
Mon Mar 30, 2020 8:03 pm
Google search: cd "Kevin M" site:bogleheads.org: About 1,310 results.

Kevin
I remember reading posts in which you mentioned that you were preferring.2 year CDs over short term Treasurys. What is your preference these days?
by Hector
Mon Mar 30, 2020 5:16 pm
Forum: Personal Investments
Topic: Why buy treasuries when CD rates are so much better?
Replies: 42
Views: 4307

Re: Why buy treasuries when CD rates are so much better?

I am going to shift from short term Treasurys to brokered CDs over the next few weeks.
by Hector
Sun Mar 29, 2020 4:21 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth selling TBills before maturity?
Replies: 17
Views: 758

Re: Is it worth selling TBills before maturity?

I must be missing something. You locked in the return of your T bills when you bought them. The fall in yields that happened after your purchase does not affect you. For T bills that have matured and you now seek to reinvest the cash, you should look to your best return on comparably safe investmen...
by Hector
Sun Mar 29, 2020 4:19 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth selling TBills before maturity?
Replies: 17
Views: 758

Re: Is it worth selling TBills before maturity?

You need to ask yourself why a small-investor would buy your TBills when they (too) can get a much better rate right now in a savings account, CD, or MM account. That's why it's hard to sell small blocks at the moment. That said, I understand it can be done by calling and waiting - and do not expec...
by Hector
Sun Mar 29, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: TIPS Yield Curve & Changing Inflation Expectations
Replies: 61
Views: 4923

Re: TIPS Yield Curve & Changing Inflation Expectations

since march 9th 30 year tips have been on a wild ride from -0.20% on march 9th to +0.78% on march 19th to -0.11% yesterday evening (march 27th). in price terms, given the real duration of about 25, those 100 bps moves are about 25% price moves, down and up. grok, I really wanted to buy the Feb 2050...
by Hector
Sun Mar 29, 2020 3:23 pm
Forum: Personal Investments
Topic: 3 month brokered CDs instead of short term treasurys
Replies: 6
Views: 791

Re: 3 month brokered CDs instead of short term treasurys

I keep short term Treasurys (not more than 5 years duration) for the bond. The way interest rates are right now, I am thinking about selling Treasurys to buys 3 month brokered CDs. What are the disadvantages of doing so? Why brokered CD’s. How about buying CD’s directly from banks or credit unions....
by Hector
Sun Mar 29, 2020 2:02 pm
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 141
Views: 12828

Re: What's happening with Muni Money Market fund yields?

How many are shifting from treasury/prime money market fund to muni? What’s are the risks?
by Hector
Fri Mar 27, 2020 7:26 pm
Forum: Personal Investments
Topic: 3 month brokered CDs instead of short term treasurys
Replies: 6
Views: 791

Re: 3 month brokered CDs instead of short term treasurys

I keep short term Treasurys (not more than 5 years duration) for the bond. The way interest rates are right now, I am thinking about selling Treasurys to buys 3 month brokered CDs. What are the disadvantages of doing so? Why brokered CD’s. How about buying CD’s directly from banks or credit unions....
by Hector
Fri Mar 27, 2020 5:59 pm
Forum: Personal Investments
Topic: 3 month brokered CDs instead of short term treasurys
Replies: 6
Views: 791

3 month brokered CDs instead of short term treasurys

I keep short term Treasurys (not more than 5 years duration) for the bond.
The way interest rates are right now, I am thinking about selling Treasurys to buys 3 month brokered CDs. What are the disadvantages of doing so?
by Hector
Wed Mar 25, 2020 1:09 pm
Forum: Investing - Theory, News & General
Topic: Smarter approach to "emergency funds"?
Replies: 114
Views: 9127

Re: Smarter approach to "emergency funds"?

Some of us don't have separate emergency funds. In that scenario, when you rebalance from bond to stock in the crash, make sure that bonds stay at a certain amount(emergency fund). This works with very conservation bond selection. People with total bonds and long term bonds would need a bigger cushi...
by Hector
Wed Mar 25, 2020 12:51 am
Forum: Investing - Theory, News & General
Topic: Bond Strategy
Replies: 69
Views: 4711

Re: Bond Strategy

Do what helps you sleep better at night. Remember how you are feeling right now if/when you are in a bull market again. It is important to have a plan and stick to it. The right strategy is the one that works for you. personally I do not care about making $$ with bond and am in short term Treasurys/...
by Hector
Wed Mar 25, 2020 12:42 am
Forum: Investing - Theory, News & General
Topic: Negative interest rate has arrived
Replies: 37
Views: 4325

Re: Negative interest rate has arrived

Per https://www.wsj.com/market-data/bonds, the 3-month bill is trading at -0.005% and the 1 month at -0.010% right now. Go go long term Treasuries! On the downside, I'm curious to see what this does to my Treasury MM fund, which uses T-bills (VUSXX). Win some, lose some... Its time to check MM yiel...
by Hector
Tue Mar 24, 2020 12:38 am
Forum: Investing - Theory, News & General
Topic: Negative interest rate has arrived
Replies: 37
Views: 4325

Negative interest rate has arrived

Per https://www.wsj.com/market-data/bonds, the 3-month bill is trading at -0.005% and the 1 month at -0.010% right now.