Search found 9740 matches

by Doc
Thu Sep 24, 2020 2:23 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

The OP was addressing Neve r to Rebalance from Bonds to Stocks. Several people have posted their need or desire to have some basic amount of fixed income as reserve that they don't want to drop below. There is nothing in this desire to mean that you should Never Ever rebalance from bonds to stocks. ...
by Doc
Thu Sep 24, 2020 12:43 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

But, I am only comfortable if my fixed income portion is at least 5 years of annual expense. If your interest and dividends were greater than your annual expenses would you still want another five years of expenses in FI? None of us has the same circumstances as everyone else. The problem I have wi...
by Doc
Wed Sep 23, 2020 4:32 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

But, I am only comfortable if my fixed income portion is at least 5 years of annual expense. If your interest and dividends were greater than your annual expenses would you still want another five years of expenses in FI? None of us has the same circumstances as everyone else. The problem I have wi...
by Doc
Wed Sep 23, 2020 4:13 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

Northern Flicker wrote: Wed Sep 23, 2020 4:04 pm Regarding rebalancing after a crash... if you were comfortable with a 55/45 allocation before a market crash, why would the same allocation become more risky after the crash? The downside risk was obviously much greater before the crash.
Well said.
by Doc
Wed Sep 23, 2020 3:34 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

For all of you that have a concern about having "enough" FI to last for "whatever" I suggest taking that "enough" and putting it in Treasuries but having those Treasuries as part of the fixed income portion of your AA. So you would still rebalnce into stocks in a market cash at least until your tot...
by Doc
Wed Sep 23, 2020 2:57 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

For all of you that have a concern about having "enough" FI to last for "whatever" I suggest taking that "enough" and putting it in Treasuries but having those Treasuries as part of the fixed income portion of your AA. So you would still rebalnce into stocks in a market cash at least until your tota...
by Doc
Wed Sep 23, 2020 2:45 pm
Forum: Investing - Theory, News & General
Topic: In which companies do you own a single share, or token amount, of stock?
Replies: 109
Views: 8388

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

A blast from the past! I sold all my Wabtec. I still have GE, to the tune of 1000 shares. I am ever the optimist on GE. In the spring of '09 DW said "the market is way down we should buy some stock". I told here we already had plenty of stock mutual funds. She replied "No not stock funds. Real stoc...
by Doc
Wed Sep 23, 2020 2:28 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

Once you get close to retirement, controlling risk is about dollar amounts, not percentages. You just change your AA as you age. Some people use an "age in bonds" metric to define their AA so as they age their AA goes down. But if you have more than you are going to ever spend your AA might as well...
by Doc
Wed Sep 23, 2020 2:20 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

There is something to be said for liquidity. An investor may view their bond allocation in terms of X years' expenses and be unwilling to see their bond allocation drop below that number. You are not addressing rebalancing as a risk maintenance concept. If rebalancing to a target AA in a market cra...
by Doc
Wed Sep 23, 2020 1:25 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

There is something to be said for liquidity. An investor may view their bond allocation in terms of X years' expenses and be unwilling to see their bond allocation drop below that number. That's a reasonable position but the OP was asking about rebalncing which is a risk management tool. The positi...
by Doc
Wed Sep 23, 2020 1:16 pm
Forum: Investing - Theory, News & General
Topic: Risk of creating bond ladder with few longer term maturity bonds vs typical ladder.
Replies: 2
Views: 366

Re: Risk of creating bond ladder with few longer term maturity bonds vs typical ladder.

One of the prime reasons for having a Treasury bond ladder is to capture the roll (down) yield that is achieved by selling before maturity. The amount of that extra you get by selling early depends on the shape of the yield curve. A 10-3 or 7-3 ladder was typical a few years ago before the yield cur...
by Doc
Wed Sep 23, 2020 12:59 pm
Forum: Investing - Theory, News & General
Topic: In which companies do you own a single share, or token amount, of stock?
Replies: 109
Views: 8388

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 Sep 23, 2020 12:55 pm
Forum: Investing - Theory, News & General
Topic: Never Ever Rebalance Bonds into Stocks?
Replies: 134
Views: 8263

Re: Never Ever Rebalance Bonds into Stocks?

I don't understand this whole thread. I had always thought that we rebalanced to control risk not to influence return. Many posters have referred to matching retirement needs. Fine. We set our asset allocation to meet that objective. We then rebalance to keep the risk of that AA constant. If you don...
by Doc
Tue Sep 22, 2020 12:51 pm
Forum: Investing - Theory, News & General
Topic: Doesn't it still make sense to hold bonds in tax advantaged?
Replies: 37
Views: 2623

Re: Doesn't it still make sense to hold bonds in tax advantaged?

I have seen some comments on the forum that this perhaps is no longer the case due to extremely low interest rates and yields on stocks being more than bonds. Does this consider TLH? Do the TLH opportunities of keeping stocks in taxable accounts and bonds in tax advantaged outweigh the tax advantag...
by Doc
Mon Sep 21, 2020 4:49 pm
Forum: Investing - Theory, News & General
Topic: Doesn't it still make sense to hold bonds in tax advantaged?
Replies: 37
Views: 2623

Re: Doesn't it still make sense to hold bonds in tax advantaged?

Greenman72 wrote: Mon Sep 21, 2020 10:58 am And I've never heard of TLH-ing fixed income. I guess it's theoretically possible, but not something I would spend a lot of time worrying about.
Now you have. :D

Sold Vanguard Short Corp VCSH for a $3K loss in March.

But worrying is not an issue.
by Doc
Wed Sep 16, 2020 5:00 pm
Forum: Investing - Theory, News & General
Topic: Growth v. value in two Vanguard active international funds
Replies: 20
Views: 1096

Re: Growth v. value in two Vanguard active international funds

Unless I’m missing something that graph could do with a key as to what color is what, also the PV link doesn’t work Sorry about that. Nisi doesn't use active funds and I don't use portfolio visualizer. :D I used Nisi's link and substituted ARTKX for his Vanguard fund. You can tell which is which by...
by Doc
Wed Sep 16, 2020 4:24 pm
Forum: Investing - Theory, News & General
Topic: Growth v. value in two Vanguard active international funds
Replies: 20
Views: 1096

Re: Growth v. value in two Vanguard active international funds

Just stirring the pot. To be clear, I don't hold any active stock funds myself, don't tilt toward growth or value, and don't intend to. Just stirring the pot. To be clear, I do hold an active stock fund myself, do tilt , and intend to continue . :D Source: https://www.portfoliovisualizer.com/fund-p...
by Doc
Sun Sep 13, 2020 10:50 am
Forum: Investing - Theory, News & General
Topic: The Vanguard Core Bond Fund vs. Total Bond Question..
Replies: 4
Views: 643

Re: The Vanguard Core Bond Fund vs. Total Bond Question..

The managers of VCORX seem to have added some value this year (probably by rotating from short-term Treasuries into higher yielding corporate bonds during the crisis in March), but I wouldn't expect that to be the normal case. Don't know about the rotation in March but there is a very large differe...
by Doc
Fri Sep 11, 2020 7:49 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

Kevin, I think the drop in T prices might just have been a volume thing. I think it was a liquidity thing (maybe that's what you mean), which is part of why the Fed stepped in, but surprised that liquidity hit Treasuries this way, since they typically are the most liquid asset in a crisis. On the o...
by Doc
Thu Sep 10, 2020 7:23 pm
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

Kevin, I think the drop in T prices might just have been a volume thing.
by Doc
Thu Sep 10, 2020 10:28 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

I didn't say stay down, but just that they tank (yields increase) when stocks also tank, as happened for quite a few months in 1974, for example (and even for more than a week in March , but that wasn't an extended period). Intermediate Treasuries vs. Corps in March (Price): https://i.postimg.cc/0N...
by Doc
Wed Sep 09, 2020 2:09 pm
Forum: Investing - Theory, News & General
Topic: A Brand New Bond World
Replies: 17
Views: 2003

Re: A Brand New Bond World

Moderators: The reference to "get around the paywall" is a link that Morningstar itself provides to enable sharing of articles.
by Doc
Wed Sep 09, 2020 1:57 pm
Forum: Investing - Theory, News & General
Topic: A Brand New Bond World
Replies: 17
Views: 2003

A Brand New Bond World

A very interesting article form Morningstar's Eric Jacobson on the current and future bond market. I think this link will get you around the paywall. (You may need to accept a free trial.) https://www.morningstar.com/articles/1000714/a-brave-new-bond-world?utm_medium=referral&utm_campaign=linkshare&...
by Doc
Wed Sep 09, 2020 10:00 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

Doc, the more important point is what are you going to do if corporate bonds don't recover for a long time after stocks and corporate bonds both tank? Cross that bridge when you come to it. But with separate T's and C"s at least you have control of the draw span. Buying C's at a low price is not ne...
by Doc
Tue Sep 08, 2020 3:25 pm
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

I have suggested something similar in the past, but using direct CDs instead of corporate bonds, due to comparable yield premiums over Treasuries, but no credit risk if you stay within federal deposit insurance limits. With VCSH (short corp) and VCIT (intermediate corp) having sec yields of 0.87% a...
by Doc
Tue Sep 08, 2020 12:18 pm
Forum: Investing - Theory, News & General
Topic: Hedging interest rate risk?
Replies: 31
Views: 2031

Re: Hedging interest rate risk?

But I don't believe there is some cheap, easy thing you could add to a portfolio that would just eliminate interest rate risk. T-Bills. Very short-term bonds largely eliminate market price risk but leave long-term investors greatly exposed to coupon reinvestment risk, as noted in this thread . Ain'...
by Doc
Tue Sep 08, 2020 11:30 am
Forum: Investing - Theory, News & General
Topic: Hedging interest rate risk?
Replies: 31
Views: 2031

Re: Hedging interest rate risk?

nisiprius wrote: Mon Sep 07, 2020 5:54 pm But I don't believe there is some cheap, easy thing you could add to a portfolio that would just eliminate interest rate risk.
T-Bills.
by Doc
Tue Sep 08, 2020 10:38 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

arcticpineapplecorp. wrote: Tue Sep 08, 2020 9:18 am not used to the new(er) format.
Yeh. I actually like the old format better. I find the rolling return charts very enlightening.
by Doc
Tue Sep 08, 2020 8:47 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

you're looking at a price chart not a growth chart. it makes a difference. try this link for starters instead: The price/growth problem in the new Morningstar charts was corrected some time ago. From my prior post: https://i.postimg.cc/rsdQDjVr/Values.jpg From Vg site today Ten year growth: BND 142...
by Doc
Tue Sep 08, 2020 8:29 am
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

If we sell treasuries and buy stocks our allocation then has a higher weight in corporates and is thus riskier than using only total bond. You would rebalnce your FI portfolio as soon as the crisis passes. In the recent case about in July. So your "higher risk" FI portfolio only exists for a few mo...
by Doc
Mon Sep 07, 2020 4:12 pm
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

Based on the recent market kerfuffle I suggest that we use a four fund portfolio instead. Use two funds for the bond portion instead of only one. An Intermediate Treasury fund plus an intermediate Treasury fund instead of only one TBM fund. An intermediate Treasury fund plus what? :happy I think Do...
by Doc
Mon Sep 07, 2020 4:10 pm
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

Re: The Four (not Three) Fund Portfolio

you're looking at a price chart not a growth chart. it makes a difference. try this link for starters instead: I was looking at both. I've been getting messed up with M*'s new and improved??? charts. portfolio visualizer is good for comparing portfolios. That's good for portfolios as you suggest an...
by Doc
Mon Sep 07, 2020 3:33 pm
Forum: Investing - Theory, News & General
Topic: The Four (not Three) Fund Portfolio
Replies: 27
Views: 3383

The Four (not Three) Fund Portfolio

For a long time the three fund portfolio has been sort of a mainstay for Boglehead's primary thought process. The three funds are Total Us Stock Market, Total International Stock Market and Total Bond Market. Most of us use some kind of variations on this idea in one form or another. Based on the re...
by Doc
Thu Sep 03, 2020 12:16 pm
Forum: Investing - Theory, News & General
Topic: Moving my wife's investments to Schwab?
Replies: 64
Views: 4195

Re: Moving my wife's investments to Schwab?

Sounds like schwab would be good for her. She could even keep her vanguard funds. Have her take out a bigger amount when she needs money. Maybe a check for 10k and up. That way the fee would be super small compared to the overall amount. IIRC Schwab's fees for fee based mutual funds are only on the...
by Doc
Thu Sep 03, 2020 12:06 pm
Forum: Investing - Theory, News & General
Topic: SWAGX dividend vanished
Replies: 20
Views: 1200

Re: SWAGX dividend vanished

Nate79 wrote: Thu Sep 03, 2020 11:43 am Very strange. I also had the issue with SWSBX in two accounts and the dividend corrected to a lower amount in both accounts.
Mine were very small. Maybe just a round off difference.
by Doc
Thu Sep 03, 2020 11:32 am
Forum: Investing - Theory, News & General
Topic: Moving my wife's investments to Schwab?
Replies: 64
Views: 4195

Re: Moving my wife's investments to Schwab?

“In kind” transfers are common. Schwab can initiate the transfer for you, so you don’t have to do anything with Vanguard. Sometimes a specific investment can’t transfer, but Schwab will be able to tell you that beforehand. All they need is the ticker symbol to tell you if they can move it. It's pos...
by Doc
Thu Sep 03, 2020 10:51 am
Forum: Investing - Theory, News & General
Topic: SWAGX dividend vanished
Replies: 20
Views: 1200

Re: SWAGX dividend vanished

So it seems to me that they issued too big of a dividend, retracted it, and replaced it with a smaller dividend. My account has the dividend re-posted, but for a lesser amount. Looks like they miscalculated (or ran the wrong file) based on all the funds affected. In two accounts but same position b...
by Doc
Thu Sep 03, 2020 9:07 am
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

JackoC wrote: Thu Sep 03, 2020 9:02 am If I only had any money in cash for brief periods, it wouldn't matter what rate I got on it.
:thumbsup
by Doc
Wed Sep 02, 2020 4:59 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

The lion's share of investors would be better off earning .80% from an FDIC insured high-yield savings account than T-bills paying .13%. I agree. I don't think I've ever made a transaction like that. But I have made many trades of smaller amounts that would have been greatly hampered and often cost...
by Doc
Wed Sep 02, 2020 4:32 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

RE: Transfer limits. That's not typical. I have a pretty large number of accounts and one (a business MM account for my LLC) has restrictions anywhere near that low on ACH ($20k). Also where there are low limits it's often on ACH 'push' and doesn't apply to 'pull' from another bank. During market ho...
by Doc
Wed Sep 02, 2020 4:26 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

OK. So if inflation goes to 2.1% over the next 6 months do you expect T-Bills to yield 0.5%. I wish they did. I'm trying to understand the current situation and the often conflicting advice. Quickcalc: that means an increase in inflation rate of 1.2%. I expect that new T-Bill rates would also incre...
by Doc
Wed Sep 02, 2020 4:12 pm
Forum: Investing - Theory, News & General
Topic: SWAGX dividend vanished
Replies: 20
Views: 1200

Re: SWAGX dividend vanished

Ditto Schwab Short-Term 1-5 Bond Inx (SWSBX).

Sorry Nate I missed your post.
by Doc
Wed Sep 02, 2020 3:52 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

I wish T-Bills matched inflation. I don't see them matching inflation now. Inflation is around 1.6%. I was thinking inflation increases not trying to "beat" the current inflation rate. The thread is about "Rising inflation ..." I don't expect my cash like assets to beat current inflation. And I don...
by Doc
Wed Sep 02, 2020 3:12 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

Why would you buy T-bills yielding .13% when high-yield savings accounts are paying much more? 1) Liquidity. 2) Paying more for how long? I can turn over T-Bills with a lot less agro than redoing a high-yield savings account that may come with restrictions. I don't expect to be in the T-Bill positi...
by Doc
Wed Sep 02, 2020 2:57 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

Rolling t-bills are less tax-efficient than i-bonds because you realize the income as it is earned. i-bonds are not fully liquid for the first 5 years after purchase. Tax efficiency: Zero income = zero tax. Ditto ROTH. If you think they will track inflation if the latter increase, rates have to tra...
by Doc
Wed Sep 02, 2020 12:14 pm
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

Rolling t-bills are less tax-efficient than i-bonds because you realize the income as it is earned. i-bonds are not fully liquid for the first 5 years after purchase. Tax efficiency: Zero income = zero tax. Ditto ROTH. "i-bonds are not fully liquid for the first 5 years after purchase." Ugh. I wasn...
by Doc
Wed Sep 02, 2020 11:52 am
Forum: Investing - Theory, News & General
Topic: Rising inflation with low or no yield in fixed income
Replies: 61
Views: 2720

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

At the same time, I think that I bonds are a slam dunk right now. There's virtually no downside risk, and you're guaranteed to match inflation (though you're subject to taxflation). T-Bills. :idea: NO downside risk. They will match inflation unless it jumps significantly over a few months. And you ...
by Doc
Tue Sep 01, 2020 4:39 pm
Forum: Investing - Theory, News & General
Topic: The Final, Definitive Thread on Margin Loans
Replies: 16
Views: 662

Re: The Final, Definitive Thread on Margin Loans

"Special Considerations A key aspec t of investment interest expense is the property held for investment , which the proceeds from the loan were used to purchase. According to the tax code, this includes property that produces a gain or a loss. In addition to interest and dividends, this can also in...
by Doc
Mon Aug 31, 2020 4:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard seems to have web online sign on problem
Replies: 145
Views: 6595

Re: Vanguard seems to have web online sign on problem

Here's the link in human readable format: Vanguard website goes down briefly Monday, as Apple and Tesla shares both split The reporter who boosted TheTimeLord into fame is Erin Arvedlund. She attended the local Philadelphia Bogleheads chapter meetings a few years ago. I'm glad that Erin's post has ...
by Doc
Mon Aug 31, 2020 10:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard seems to have web online sign on problem
Replies: 145
Views: 6595

Re: Vanguard seems to have web online sign on problem

Using Quicken I can download form Schwab and Fidelity but not Vanguard. New error message re Vanguard: "Quicken is unable to update your account because unexpected (Information) was received from your financial institution." A short time ago the the error message was the standard "password" type mes...