Search found 9011 matches

by Doc
Thu May 23, 2019 12:12 pm
Forum: Investing - Theory, News & General
Topic: When to trade total international ETFs?
Replies: 8
Views: 592

Re: When to trade total international ETFs?

You can check a ticker of TICKER.IV for the indicative value of an ETF, but the premium or discount isn't meaningful when the foreign markets are closed. A Europe-only ETF might be able to avoid this in the morning in the US, but a broad-based international fund will have a lot of holdings in Japan...
by Doc
Wed May 22, 2019 7:19 pm
Forum: Investing - Theory, News & General
Topic: When to trade total international ETFs?
Replies: 8
Views: 592

Re: When to trade total international ETFs?

When trading foreign ETFs (not funds) I try to trade in the hour or so when both European and NY exchanges are both open. (Maybe 10 to 11 eastern. Don't recall exact time.) When I was looking at price charts there is a discontinuency in the chart after Europe exchanges close. May not matter on high ...
by Doc
Sat May 18, 2019 7:31 am
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1211

Re: Bond funds without mortgage backed part?

The problem with negative convexity is that it is asymmetrical. In the example above, if rates rose by 1% instead, the conventional bond would lose 4.8%, while the mortgage-backed bond would lose 6%. In addition the MBS duration also increases because people don't move. Maybe this is just the reaso...
by Doc
Sat May 18, 2019 7:22 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

it’s a long convoluted story because our Joint MM Account is a brokerage account and our IRAs are individual mutual fund accounts) It's not just the brokerage vs. mutual fund account. Transfers between accounts with different ownership forms like joint, single, taxable, ROTH is subject to weird res...
by Doc
Fri May 17, 2019 4:33 pm
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1211

Re: Bond funds without mortgage backed part?

The very short answer is that move in the opposite direction than normal bonds. When interest rates fall then bonds rise. Unless they have negative convexity, then they fall. And when rates fall, bonds rise except those which have negative convexity which fall. Without nitpicking, "Generally, when ...
by Doc
Fri May 17, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1211

Re: Bond funds without mortgage backed part?

So this "negative convexity" thing...is it any worse than the higher default rate of corporate bonds or the lower yield of a treasury due to state tax deductions? It's different. With MBS the borrower has the option to extend or shorten the term whenever it suits his needs. While some corporate bon...
by Doc
Fri May 17, 2019 3:18 pm
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1211

Re: Bond funds without mortgage backed part?

The "problem" with MBS is their negative convexity. First, when you are looking at the statement of holdings, realize that there is a difference between Fannie Mae and Freddie Mac debt and MBS that have been issued by Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac debt works like any other ...
by Doc
Fri May 17, 2019 7:44 am
Forum: Investing - Theory, News & General
Topic: Bonds beyond Total Bond Market - Anyone ?
Replies: 47
Views: 3438

Re: Bonds beyond Total Bond Market - Anyone ?

midareff wrote:
Fri May 17, 2019 7:04 am
71 and 8 years retired with a pension and SS that pay the monthly bills.
This is just one of many reasons that a single TBM bond position is why one size does not fit all. Others include high equity positions, tax sheltered space and aversion to mortgage backed securities.
by Doc
Fri May 17, 2019 7:32 am
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1211

Re: Bond funds without mortgage backed part?

I'm looking to reduce the exposure to mortgage backed bonds which I owe via BND. Any diversified funds but without mortgage backed part? :confused Why don’t you like mortgage backed bonds? The "problem" with MBS is their negative convexity. If interest rates rise borrowers tend to hold on to their ...
by Doc
Mon May 13, 2019 8:24 am
Forum: Investing - Theory, News & General
Topic: Bonds for growth Vs Bonds for rebalancing
Replies: 7
Views: 568

Re: Bonds for growth Vs Bonds for rebalancing

Is this question about rebalancing or is it about optimizing portfolio efficiency, meaning specifically reducing volatility at same return or increasing return at same volatility (or both). It should be right that a portfolio fairly heavy in stock would best be paired with long bonds, but that is a...
by Doc
Sat May 11, 2019 6:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Part of verifying a new bank connection is sending paper mail to your address of record notifying you that a new bank has been added to your account, and giving you time to dispute the new connection before it's used. This is a fraud protection measure to prevent someone masquerading as you from qu...
by Doc
Sat May 11, 2019 12:49 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Mel Lindauer wrote:
Sat May 11, 2019 12:25 pm
What did you have to do to get the $2500 bonus?
Goggle "Fidelity move in bonus" and get

https://www.moneysmylife.com/fidelity-promotions/

and several more. :D
by Doc
Thu May 09, 2019 7:19 pm
Forum: Investing - Theory, News & General
Topic: Triggering a wash sale with TSM fund?
Replies: 8
Views: 656

Re: Triggering a wash sale with TSM fund?

That said, the IRS has ruled that purchases in an IRA can cause a wash sale, and that begs the question about how any one would know if the taxable account and IRA are at different brokerages. I'm not referring to tax evasion, but one could inadvertently cause a wash sale (sell TSM in taxable and b...
by Doc
Thu May 09, 2019 5:36 pm
Forum: Investing - Theory, News & General
Topic: Triggering a wash sale with TSM fund?
Replies: 8
Views: 656

Re: Triggering a wash sale with TSM fund?

I’ve heard of people swapping different S&P500 funds themselves without issue but that’s too far for me. I’d have no problem doing two different TSM funds though, if they use different indices. It is my understanding that the IRS only considers trades with the sample CUSIP in the same account when ...
by Doc
Thu May 09, 2019 7:38 am
Forum: Investing - Theory, News & General
Topic: Knowing when to TLH
Replies: 12
Views: 1430

Re: Knowing when to TLH

I would like to hear from the TLH pros regarding what thresholds they use to decide when to pull the trigger. I use a dollar value instead of a percentage. The amount is dependent on "hassle" and trading cost. The result is that most TLH is limited to fixed income since we are no longer putting new...
by Doc
Mon May 06, 2019 9:57 am
Forum: Investing - Theory, News & General
Topic: Tax efficiency Fidelity v. Vanguard total stk mkt
Replies: 8
Views: 864

Re: Tax efficiency Fidelity v. Vanguard total stk mkt

Also note that Vanguard ETFs that have an index mutual fund share class should, by definition, have the same M* tax cost ratio. They usually do not and I have never seen why M* does not give them the same tax-cost ratio. The Vanguard ETF share class may be one of the reasons that Vanguard's tax cos...
by Doc
Mon May 06, 2019 7:33 am
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Re: Introducing Two New Morningstar Bond Categories

Good points.

These are some of the reasons why the category change may be significant even to the three fund investors.
by Doc
Sun May 05, 2019 6:39 pm
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Re: Introducing Two New Morningstar Bond Categories

I try to balance risk and return within the context of my own situation. Hopefully you do too. I've been fussing with you on the risk vs. reward aspects of this change. But on thinking about the ramifications of the change an interesting thought occurred. Morningstar's change in their methodology h...
by Doc
Sun May 05, 2019 5:20 pm
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Re: Introducing Two New Morningstar Bond Categories

The difference in the two new categories is indeed the risk profile. If you are concerned only about risk you should be using Treasuries not any of the funds in either of these new categories. I don't agree. I am concerned enough about risk to avoid the Core Plus funds, but I am not so obsessed abo...
by Doc
Sun May 05, 2019 12:21 pm
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Re: Introducing Two New Morningstar Bond Categories

Pimco Total return should not be compared to a Core bond fund due to it's risk profile. I just used Pimco Total return to get to the Core Bond Plus category data. The numbers I quoted were for the core plus category not the Pimco fund which I then compared to compared to TBM. (The new category actu...
by Doc
Sun May 05, 2019 11:31 am
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Re: Introducing Two New Morningstar Bond Categories

No impact on me because my only bond holdings are Vanguard Total Bond (which falls into the better of the two new categories) and Vanguard Intermediate Tax Exempt (which is outside the scope of this re-bucketing exercise). Depends on how you define "better". :D Last 10 years growth for the new Inte...
by Doc
Sat May 04, 2019 12:28 pm
Forum: Investing - Theory, News & General
Topic: Introducing Two New Morningstar Bond Categories
Replies: 13
Views: 1049

Introducing Two New Morningstar Bond Categories

For those of you that are not wedded to Total Bond Market only be aware The intermediate-term bond Morningstar Category long ranked as the largest of the fixed-income categories, home to funds that invested primarily in investment-grade fixed-income debt and had durations (a measure of interest-rate...
by Doc
Tue Apr 30, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

it’s a long convoluted story because our Joint MM Account is a brokerage account and our IRAs are individual mutual fund accounts) It's not just the brokerage vs. mutual fund account. Transfers between accounts with different ownership forms like joint, single, taxable, ROTH is subject to weird res...
by Doc
Wed Apr 24, 2019 10:15 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 420
Views: 88464

Re: "Vanguard converting mutual fund accounts to brokerage?

Those of us who are perfectly content with the mutual fund only site, does anyone know if there is a date we'll be forced off? About a year ago I remember a bunch of messages asking me to convert which I declined. Nothing since. What do you see as a downside of having a brokerage account that only ...
by Doc
Wed Apr 24, 2019 8:13 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 420
Views: 88464

Re: "Vanguard converting mutual fund accounts to brokerage?

Those of us who are perfectly content with the mutual fund only site, does anyone know if there is a date we'll be forced off? About a year ago I remember a bunch of messages asking me to convert which I declined. Nothing since. What do you see as a downside of having a brokerage account that only ...
by Doc
Tue Apr 23, 2019 11:26 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 420
Views: 88464

Re: "Vanguard converting mutual fund accounts to brokerage?

What? You have to print and mail in a form just because you converted a mutual fund account to a brokerage account? We converted in 2014 so my memory is a little hazy. We already had both mutual funds and brokerage funds in one personal and one joint account in taxable and only a mutual fund in a R...
by Doc
Tue Apr 23, 2019 7:50 am
Forum: Investing - Theory, News & General
Topic: "Vanguard converting mutual fund accounts to brokerage?
Replies: 420
Views: 88464

Re: "Vanguard converting mutual fund accounts to brokerage?

Your updated bank authorization hasn't been received. You must complete the Updated Bank Authorization Agreement, choose another bank, or select a different funding method Yeh they seem to have a problem there. :D Unfortunately I did not read these posts untill after I converted a three weeks ago. ...
by Doc
Thu Apr 18, 2019 6:29 pm
Forum: Investing - Theory, News & General
Topic: Would you be willing to temporarily change your AA?
Replies: 54
Views: 3840

Re: Would you be willing to temporarily change your AA?

Sorry to bump an oldish thread, but just ran across this, and I have a different opinion than most. I'd suggest it is not market timing, as long as you have a plausible belief that equities will recover in the 22 years until your retirement (well 21 now, I suppose). I know, Japan, Japan, Japan. Wel...
by Doc
Thu Apr 18, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: In which companies do you own a single share, or token amount, of stock?
Replies: 80
Views: 5180

Re: In which companies do you own a single share, or token amount, of stock?

I have 4.129 shares of Wabtec, shares spun off by a business deal involving Wabtec and GE. Currently on my holding I am up 13 cents, stock trading at $78.01, but I'm holding out for $79/share with a limit order I put in a couple of days ago. All my other individual stocks are each valued in the tho...
by Doc
Wed Apr 17, 2019 6:53 pm
Forum: Investing - Theory, News & General
Topic: U.S. Bank/Bancorp 100 free trades per year
Replies: 19
Views: 832

Re: U.S. Bank/Bancorp 100 free trades per year

Why do you need 100 free trades a year? What kind of balance is required for platinum checking (i.e. what is the opportunity cost)? It's not just platinum but also gold. And as far as I can tell the requirements are modest like having a USB credit card. Just go look at their site and find out for y...
by Doc
Sun Apr 14, 2019 2:55 pm
Forum: Investing - Theory, News & General
Topic: Does international small cap matter?
Replies: 14
Views: 1721

Re: Does international small cap matter?

50% of my INTL exposure is in SC, substantially overweighted relative to cap weighted indexes. Reasons: First, better diversification relative to US TSM which is dominated by US LC and plays in the same global markets as INTL LC. INTL SC tends to play not in global markets but in their home country...
by Doc
Thu Apr 11, 2019 4:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

heartwood wrote:
Thu Apr 11, 2019 2:39 pm
Anyone have a work around?
Don't know about the Fidelity CMA account but "regular" Fidelity accounts download directly to Quicken in the same way as Schwab, Vanguard and both our banks do.
by Doc
Thu Apr 11, 2019 11:17 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

I tried this out by sending an ACH transfer from our MM settlement account at Vanguard, BEFORE 12:00 PM, to our Chase account. The money was in our Chase account the next business day at 7:00 am - and was available for withdrawal that same day. If you try this from another Vanguard MM fund it will ...
by Doc
Wed Apr 10, 2019 3:34 pm
Forum: Investing - Theory, News & General
Topic: Can you lose principal with Short Term Bond ETF?
Replies: 14
Views: 1731

Re: Can you lose principal with Short Term Bond ETF?

This is almost a joke, but I did want to find the answer to satisfy my own curiosity. In reality, Morningstar is showing SHV with a duration of 0.4 years. well not a joke but ... Why SHV? 1. Exposure to U.S. Treasury bonds that mature in less than 1 year iShares Short Treasury Bond ETF Sector: Cash...
by Doc
Tue Apr 09, 2019 1:17 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10545

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

So, just to be clear on what Morningstar is doing (without asking questions about what is the "right" or the "wrong" definition or index, or whether Vanguard funds are icky poo, etc.) This really is just a question about Morningstar's mechanics, not an apologia for Vanguard. ... and the screener fi...
by Doc
Mon Apr 08, 2019 2:09 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10545

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

why didn't Vanguard Small-Cap Value index make the cut? Nice catch Nisiprius. It's not small cap value. :( See Morningstar Portfolio report http://portfolios.morningstar.com/fund/summary?t=VSIAX®ion=usa&culture=en_US Style Details VSIAX Avg Market Cap USD: 3,482 Mil Benchmark Market Cap USD 1,63...
by Doc
Mon Apr 08, 2019 1:02 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10545

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

It was my understanding research has already found that a fund's ER has had a statistically significant inverse relationship with its returns (i.e. higher ER, lower returns). Exactly. So if you remove the high ER funds from the universe both active and index, and then do your active/index analysis ...
by Doc
Mon Apr 08, 2019 11:04 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10545

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

It was my understanding research has already found that a fund's ER has had a statistically significant inverse relationship with its returns (i.e. higher ER, lower returns). Exactly. So if you remove the high ER funds from the universe both active and index, and then do your active/index analysis ...
by Doc
Mon Apr 08, 2019 10:05 am
Forum: Investing - Theory, News & General
Topic: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"
Replies: 76
Views: 10545

Re: Thoughts on this Forbes article? "Why Most Index Funds And ETFs Are Not Good Investments"

. COSTS MATTER If someone reliable would do an active/passive analysis with a screening criteria of only including funds with e/r's less than the category average I think that the active/passive comparison would be much different. Additionally I think there would be a difference in the "not large bl...
by Doc
Sat Apr 06, 2019 6:05 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Benefits Of International Diversification
Replies: 86
Views: 6768

Re: Larry Swedroe: Benefits Of International Diversification

Starting and ending points make a huge difference. Perhaps take rolling 20 year periods and count the number where one investment outperformed the other by a threshold amount and the number where they were close. I have not gone through this thread but just happen to be planning a rebalancing effor...
by Doc
Thu Apr 04, 2019 3:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

At any rate, even if I was keeping minimal balances, and juggling my inflows and outflows, I still don't see why I wouldn't use a money market fund. It's just a better rate. UBS checking account MM sweep is paying about 2% right now. It's just like any other checking account you'd have. If you have...
by Doc
Thu Apr 04, 2019 1:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Even easier, at least with BofA, I have set a minimum account balance monitor online, if checking account balance falls below that level I receive mobile notice from bank. Makes life easier. That's a good idea. The way I do it takes more work but you get a projected balance. But to do that you need...
by Doc
Thu Apr 04, 2019 9:23 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

I don't bother with the bank checking account precisely because I don't want to be constantly monitoring if there is enough cash to cover expenses. There is accounting software that will do the monitoring for you. Whenever I boot my computer I get a small screen from billminder.exe that informs me ...
by Doc
Wed Apr 03, 2019 4:37 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

I'm not going to throw away several hundred dollars a year by keeping my cash there. Then don't keep your cash there. What is several hundred dollars a year. Say several is a $300 loss. At 2.5% that's a balance of some $12000. I wouldn't keep $12000 in my checking account either. But a $1000 balanc...
by Doc
Wed Apr 03, 2019 3:19 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Now, Doc, you know better than that. It’s not unusual for people to draw down their checking account balances from time to time, even if they normally maintain sizeable balances. We keep a relatively high balance, but it’s going way down next week when we pay federal and state taxes. No I don't kno...
by Doc
Wed Apr 03, 2019 11:41 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

sport wrote:
Wed Apr 03, 2019 11:29 am
I keep just enough money in my bank checking account to avoid fees.
Maybe it's only because we are old but both our banks do not have a minimum balance requirement as long as you have at least one direct deposit a month.
by Doc
Wed Apr 03, 2019 11:21 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Do “real banks” pay Vanguard money market fund interest rates on their zero balance requirement checking accounts? No but one Starbuck a week is not enough for me to give up all the other perks and benefits that our bank(s) offers. (I don't know what you mean by "zero balance requirement checking a...
by Doc
Wed Apr 03, 2019 10:52 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

This thread has a life of its own. As a longtime Vanguard customer who maintains relatively large money market account balances I have a completely different viewpoint than most of posters. For security reasons I have no interest in having my Vanguard mutual account information circulating on check...
by Doc
Wed Apr 03, 2019 10:49 am
Forum: Investing - Theory, News & General
Topic: Allocation tracking tools?
Replies: 6
Views: 302

Re: Allocation tracking tools?

When I first started investing, I used Quicken, and quickly learned it wasn't very great and didn't let me categorize things the way I wanted. Quicken now uses Morningstar X-Ray to do the allocation. The hitch is you need to use listed securites. To get around this requirement you need to substitut...
by Doc
Tue Apr 02, 2019 3:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 613
Views: 50833

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

This thread has a life of its own. As a longtime Vanguard customer who maintains relatively large money market account balances I have a completely different viewpoint than most of posters. For security reasons I have no interest in having my Vanguard mutual account information circulating on check...