Search found 7006 matches

by Doc
Sat Apr 29, 2017 4:03 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

The short-term Treasury fund only holds only about 20% of its portfolio in Treasuries with maturities of less than one year. ...thank you very much The Vanguard short term Treasury fund follows the BBgBarc 1-5 Treasury index. The less than one year holdings are near zero. Your bad. Straight from th...
by Doc
Sat Apr 29, 2017 12:32 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

What if you are an older person who is not very computer literate, and you don't know, or you don't want to know how to go online and move money from Vanguard to your checking account? I have several family members in this category. Then you get someone that is more capable to help them set it up a...
by Doc
Sat Apr 29, 2017 9:46 am
Forum: Investing - Theory, News & General
Topic: Write checks from a bond fund in a Vanguard brokerage account?
Replies: 11
Views: 627

Re: Write checks from a bond fund in a Vanguard brokerage account?

I would imagine that means checkwriting on cash in the account. Note it says account and not fund. It would be similar to setting up electronic transfers of cash in and out of an account, but to get from a fund or stock/bond holding to cash there has to be a sale or a distribution. Naturally if Van...
by Doc
Sat Apr 29, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Write checks from a bond fund in a Vanguard brokerage account?
Replies: 11
Views: 627

Re: Write checks from a bond fund in a Vanguard brokerage account?

@livsoft After I logged in I got a screen that had as an option "set up checkwriting". (VBA) Vanguard Brokerage Account Checkwriting Form For Upgraded Vanguard Brokerage Account clients . . . Establish the checkwriting option on your upgraded brokerage account or to change or update signat...
by Doc
Sat Apr 29, 2017 9:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Drawdown is a period of negative total return. I usually think of "drawdown" as a voluntary reduction of a source of assets like a saving account, or a line of credit or even a manure pile but I see where you use of the term is valid. The problem with it's use in the current topic is that...
by Doc
Sat Apr 29, 2017 8:57 am
Forum: Investing - Theory, News & General
Topic: Write checks from a bond fund in a Vanguard brokerage account?
Replies: 11
Views: 627

Re: Write checks from a bond fund in a Vanguard brokerage account?

Is it possible to write checks from a Vanguard brokerage account, with redemptions coming from a specified Vanguard bond fund? No But you can move the money to your checking account in one business day. The following post shows how to do it from your settlement fund but you can also do a "sell...
by Doc
Sat Apr 29, 2017 6:56 am
Forum: Investing - Theory, News & General
Topic: How many 10-Year Samples are there?
Replies: 21
Views: 1485

Re: How many 10-Year Samples are there?

Within the historical data, we see that that start date can have a substantial impact on the CAGR of a given period of time. Several years ago Charles Royce of the Royce funds published a study in their annual report using market cycles instead of fixed time periods to avoid the start/end point pro...
by Doc
Fri Apr 28, 2017 4:11 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

"Moving your Vanguard funds to a Vanguard Brokerage Account" Disclosure statement

http://www.vanguard.com/pdf/vbafqm.pdf

a 12 page PDF with a before and after chart at the bottom.
by Doc
Fri Apr 28, 2017 3:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

*3!4!/5! wrote:Oops, factor of ten

Been there, done that. :beer
by Doc
Fri Apr 28, 2017 3:52 pm
Forum: Investing - Theory, News & General
Topic: The Importance of “Cash on Hand” to Life Satisfaction
Replies: 29
Views: 3120

Re: The Importance of “Cash on Hand” to Life Satisfaction

Doc. I also pulled out some cash cash during that time period. I remembered my Mom talking about the bank closing and trouble during the depression. She and all her relatives of that generation kept cash under the mattress for emergencies. I also bank with two separate brokerages and banks for simi...
by Doc
Fri Apr 28, 2017 3:41 pm
Forum: Investing - Theory, News & General
Topic: Five year CD paying more than 10 yr. treasury
Replies: 18
Views: 2037

Re: Five year CD paying more than 10 yr. treasury

The yield curve is pretty flat in the 5 to 10 year range and even flatter in the 7 - 10. Comparing 5 years CD's to 10 yr Treasuries is misleading or at best overstating the CD outperformance. https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Why...
by Doc
Fri Apr 28, 2017 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

A short-term Treasury fund is not really a substitute for cash. For example, max drawdown for VFISX often has exceeded -0.6%, with the most recent such drawdown of -0.84% from July-November of 2016, from which the fund had not yet recovered as of the end of March (and I believe it still has not rec...
by Doc
Fri Apr 28, 2017 2:40 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Perhaps you are not thinking of the new upgraded brokerage system that everyone is "itching" about. :D Perhaps you are right since my mutual fund accounts have not been upgraded to the "new and improved" accounts. In reading this conversation and others I'm not real anxious to m...
by Doc
Fri Apr 28, 2017 2:25 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

The conversion is a great concern of mine. My employer will not allows me to hold brokerage accounts with outside firms. If Vanguard tried to do this I would have to close all accounts and transfer the assets away. If Vanguard forces this on me it would be a major negative event in my life. As I un...
by Doc
Fri Apr 28, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

I do notice that the Prime MM rate is up to 0.96% now, so now in the ballpark of a savings account. I think the Prime MM is not a settlement fund any longer so you might just as well use a short Treasury fund instead as long as you don't need money more than once every thirty days (wash sale concer...
by Doc
Fri Apr 28, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: The Importance of “Cash on Hand” to Life Satisfaction
Replies: 29
Views: 3120

Re: The Importance of “Cash on Hand” to Life Satisfaction

The only time I felt really good by having cash on hand was during the Lehman crisis. And I walked down to the bank and withdrew several $k. When the teller asked politely why I needed the cash I said "you may not be open tomorrow". His face turned white. :sharebeer I feel good when all my...
by Doc
Fri Apr 28, 2017 1:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Bogleheads don't make mutual fund investments through their bank so why should they want to write checks on their investment accounts? :? Because it is a convenient way to move money from my VG money market fund to my checking (or other) account. Also a convient way to pay a bill that is a bit too ...
by Doc
Fri Apr 28, 2017 9:43 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Now I electronically move money from her money market fund to my local bank checking account, then pay the bill using my local bank check, to avoid all the hassle. Right. Bogleheads don't make mutual fund investments through their bank so why should they want to write checks on their investment acc...
by Doc
Fri Apr 28, 2017 7:50 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Did Vanguard lose your cost basis information during the conversion to a brokerage :happy o account? No. Nor did they loose the lot data on admiral conversions or when moving shares from "hers to ours". Maybe your "to" account had an average share default set on the account basi...
by Doc
Thu Apr 27, 2017 11:14 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

Atgard wrote:I only wished they would have let me do it sooner.

This whole thread is confusing me. We converted in November 2014 and that was after several months of adding and "fixing" some accounts because we had to do all or none.
by Doc
Thu Apr 27, 2017 11:01 am
Forum: Investing - Theory, News & General
Topic: DEMSX vs VSS [DFA Emerg. Mkts Small Cap vs. Vanguard FTSE All-World ex-US]
Replies: 20
Views: 1323

Re: DEMSX vs VSS

NiceUnparticularMan wrote:
Doc wrote:.5*.25*.4*.15*.1= 0.00075 -> 8 bps maybe


Well, you're no fun. Yes, chasing more efficiency in small parts of your portfolio may end up having very little practical significance.

But Doc is having a lot of fun with you guys. :sharebeer
by Doc
Thu Apr 27, 2017 10:17 am
Forum: Investing - Theory, News & General
Topic: DEMSX vs VSS [DFA Emerg. Mkts Small Cap vs. Vanguard FTSE All-World ex-US]
Replies: 20
Views: 1323

Re: DEMSX vs VSS

Of course if you believe the analysis I just did, what you would really want is a separate EM fund that also applied the Targeted screens. Interestingly it looks like they offer such a thing in the UK, but I am not sure any of their U.S. offerings qualify. AA: 50/50 F/US: 25/75 S/L: 40/60 EM/Dev: 1...
by Doc
Thu Apr 27, 2017 9:11 am
Forum: Investing - Theory, News & General
Topic: DEMSX vs VSS [DFA Emerg. Mkts Small Cap vs. Vanguard FTSE All-World ex-US]
Replies: 20
Views: 1323

Re: DEMSX vs VSS

I use DWUSX because I understand the advantageS of using a fund that holds both Developed + Emergent. I would not use DWUSX because I understand the disadvantages of using a fund the holds both Developed + Emergent. :D I consider EM to be high risk but may also have higher return to make up for tha...
by Doc
Thu Apr 27, 2017 8:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

On the MF platform, you can tell fund A's dividends and/or capital gains to be 1) reinvested, 2) sent to a linked bank account, or 3) invested into fund B. On the Brokerage platform, you cannot do #3. (Maybe someone can confirm if you can do #2, I don't recall (I'm still MF-only).) Thus, you have t...
by Doc
Thu Apr 27, 2017 6:09 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

This thread comes up every few months for the past few years at least. For what it's worth, I have four different mutual fund accounts with Vanguard (3 variations of tax-deferred, plus 1 taxable), and have not yet been asked to switch to a brokerage account. The oldest account is about 20 years old...
by Doc
Thu Apr 27, 2017 5:55 am
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 21
Views: 2545

Re: Schwab Vs. Vanguard?

One difference that I think I saw between some Schwab index funds and Vanguard is that Schwab paid out dividends one per year vs Vanguard 4x per year (based on the distributions tab that I see on Schwab's site for SWTSX). I would rather get them quarterly, esp if I was in retirement years and not l...
by Doc
Wed Apr 26, 2017 4:00 pm
Forum: Investing - Theory, News & General
Topic: International Tax Efficiency - Bogleheads vs. Morningstar
Replies: 5
Views: 530

Re: International Tax Efficiency - Bogleheads vs. Morningstar

The Boglehead method uses data about a set of data or a specific fund: dividends, qualified dividend, LTCG, Foreign tax credit, tax rates and more. It requires a lot of work to get an actual dollar amount. The M* method is much simpler but it is easy to use it to compare relative efficiency of two s...
by Doc
Wed Apr 26, 2017 3:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

@hushpuppy

OK. I am not well versed in the whole ROTH conversion/re-characterization thing. I got myself hung up on the average cost default method that Vanguard uses for mutual funds and thought it was applicable. My bad.
by Doc
Wed Apr 26, 2017 1:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

The posts I made are not related to Specific ID in any way. I am only referring to conversions to Roth followed by any recharacterization(s) When you tried to make the characterization they couldn't identify the last shares in becaue they have no way to "specifically identify" the lot tha...
by Doc
Wed Apr 26, 2017 12:54 pm
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 21
Views: 2545

Re: Schwab Vs. Vanguard?

Schwab only just started offering a total bond index fund - and bonds seem to be difficult enough to index that I would not be comfortable there. Most of our bond fund portfolio is at Vanguard and my preferred management style for bonds is active not indexed when I can get around the $50k minimum f...
by Doc
Wed Apr 26, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 106
Views: 8904

Re: Vanguard has switched to brokerage only accounts

This issue was brought to the attention of my Flagship representative that could not be bothered. This issue was then brought to the attention of a Client Manager, Vanguard Flagship Services. I asked that this pitfall which could potentially harm any less than fully aware Vanguard customer converti...
by Doc
Wed Apr 26, 2017 10:56 am
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 21
Views: 2545

Re: Schwab Vs. Vanguard?

The way I look at it is that if they have the basic 3 funds I'm looking for ... The Total Stock Market funds are not the same: Schwab uses Dow US total stock market and Vanguard uses CRSP US stock market. To make it even fuzzier Morningstar benchmarks both of them against the Russell 1000. In this ...
by Doc
Wed Apr 26, 2017 6:44 am
Forum: Investing - Theory, News & General
Topic: Schwab Vs. Vanguard?
Replies: 21
Views: 2545

Re: Schwab Vs. Vanguard?

It's probably a difference in ER from the prospectus vs a annual report. See recent thread "Schwab false add". It's not. Schwab has lower costs in many cases but it's not enough difference to base a decision on. However once you get beyond the 500 you may see differences in index which cou...
by Doc
Tue Apr 25, 2017 8:36 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4201

Re: Is $20K I-Bonds considered cash or bond?

When I determine my asset allocation, I am more concerned with risk than with which legal category the investment belongs to. You can do whatever makes sense to you. But if you choose definitions/classes that are not industry standard then you have no data and are operating in a vacuum. I use Morni...
by Doc
Tue Apr 25, 2017 7:25 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4201

Re: Is $20K I-Bonds considered cash or bond?

. The question is how to "count" different types of bonds for asset allocation purposes. Some types of bonds are more like stocks in terms of risk/reward which is not what people are generally looking for in their bond portfolio. The legal definition is the key. Bonds are a contract that ...
by Doc
Tue Apr 25, 2017 6:13 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4201

Re: Is $20K I-Bonds considered cash or bond?

Where would you classify High Yield bonds? I think you are on the right track, but for me the divide has to do with risk and return, so I would put REIT's and junk bonds (perhaps along with long term bonds) on the stock side (higher risk/return) even though they produce income. I would put cash alo...
by Doc
Mon Apr 24, 2017 5:57 pm
Forum: Investing - Theory, News & General
Topic: Morningstar rating: S&P 5-stars, but TSM 4-stars?
Replies: 10
Views: 1178

Re: Morningstar rating: S&P 5-stars, but TSM 4-stars?

I wouldn't necessarily dismiss a fund based on star ratings, especially in the smaller categories. It may just mean that the fund is not a good fit for the category. You're right. I developed my screening procedure over ten years ago but haven't needed it for new funds for a long time. And I have m...
by Doc
Mon Apr 24, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Morningstar rating: S&P 5-stars, but TSM 4-stars?
Replies: 10
Views: 1178

Re: Morningstar rating: S&P 5-stars, but TSM 4-stars?

To answer the OP, the 500 fund had higher return and lower risk than the TSM fund over the last several yields undoubtedly due to the under performance of the smaller companies in the broader index.
by Doc
Mon Apr 24, 2017 12:42 pm
Forum: Investing - Theory, News & General
Topic: Morningstar rating: S&P 5-stars, but TSM 4-stars?
Replies: 10
Views: 1178

Re: Morningstar rating: S&P 5-stars, but TSM 4-stars?

Anyway, why do you care what Morningstar's algorithms or analysts think about an index fund? Because an out of line star rating may indicate that the index being used is not representative of the group to which it is being compared. Or maybe their e/r is high. Or maybe they don't know how to run an...
by Doc
Mon Apr 24, 2017 12:14 pm
Forum: Investing - Theory, News & General
Topic: Vanguard corrected 1099B is now incorrect
Replies: 20
Views: 2527

AARRGGHH

Just got number 4 correction from Schwab.

Vanguard 2 vs. Schwab 4
by Doc
Mon Apr 24, 2017 11:43 am
Forum: Investing - Theory, News & General
Topic: Schwab False Ad (4X Cheaper than VG)
Replies: 20
Views: 1686

Re: Schwab False Ad (4X Cheaper than VG)

Truthfully I don't know Vanguard's immediate aims: how does it help passive investors to grow the AUM of their active funds? I don't know what any of their aims are - immediate or otherwise. They basically are a not for profit so there is no profit motive. They are not a charity so their is no &quo...
by Doc
Mon Apr 24, 2017 10:31 am
Forum: Investing - Theory, News & General
Topic: Schwab False Ad (4X Cheaper than VG)
Replies: 20
Views: 1686

Re: Schwab False Ad (4X Cheaper than VG)

Just to add, too, that I doubt Schwab matters terribly much as "competition" to Vanguard. Why should it? Vanguard isn't operating for profit so competition has to be defined along some other axis. Like: lower fees. I don't get the point here. We usually rank companies by profit or revenue...
by Doc
Mon Apr 24, 2017 9:31 am
Forum: Investing - Theory, News & General
Topic: Schwab False Ad (4X Cheaper than VG)
Replies: 20
Views: 1686

Re: Schwab False Ad (4X Cheaper than VG)

Regardless, I think it's good that Vanguard still has competition in this arena. Investors are the benefited party in this race to the bottom of ERs. I'm waiting for someone to come out with a fund or ETF with a 1 basis point ER. Vanguard can never win the race to the bottom ironically because they...
by Doc
Mon Apr 24, 2017 8:41 am
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4201

Re: Is $20K I-Bonds considered cash or bond?

From Morningstar: http://www.morningstar.com/InvGlossary/?CustId=&CLogin=&CType=&CName= Asset Allocation The process of dividing investments among different kinds of asset categories, such as stocks, bonds, real estate and cash , to optimize the risk/reward tradeoff based on an individua...
by Doc
Sun Apr 23, 2017 5:49 pm
Forum: Investing - Theory, News & General
Topic: Is $20K I-Bonds considered cash or bond?
Replies: 62
Views: 4201

Re: Is $20K I-Bonds considered cash or bond?

Spirit Rider wrote:In my view anything that is principal protected and relatively liquid is Cash.

A thirty year Treasury bond can be sold in a minute during market hours and you can have Franklin's in your hands tomorrow morning. But I don't consider them as cash.
by Doc
Sun Apr 23, 2017 5:37 pm
Forum: Investing - Theory, News & General
Topic: The Skinny on Dividends
Replies: 11
Views: 2370

Re: The Skinny on Dividends

... and then simultaneously save for the $3k minimum to play in the low-cost index funds outside of the retirement playing field Think outside the Vanguard box. Schwab $1k to open account and only $1 to invest in their funds. (There is a $100 monthly alternative to the $1k to open.) Many of Schwab'...
by Doc
Sun Apr 23, 2017 5:20 pm
Forum: Investing - Theory, News & General
Topic: LMP-1: P&I article on corporate & public pension plans
Replies: 25
Views: 1692

Re: LMP-1: P&I article on corporate & public pension plans

grok87 wrote:My liability matching portfolio is aimed at replicating a pension since i don't have one

I always wondered why you would want to fund a 30 yr LMP with real yields at rock bottom instead of taking more risk until yields improved. Now I know. :sharebeer
by Doc
Sun Apr 23, 2017 9:51 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3830

Re: Ally Bank Just Raised 5yr CD to 2.25%

I'm a big fan of Vanguard Short-Term Corporate Fund https://personal.vanguard.com/us/funds/snapshot?FundId=1945&FundIntExt=INT Yielding 2.18% right now. Rates will continue to rise slowly but likely so will these yields (eventually). So much can happen over the next five years I wouldn't go loc...
by Doc
Sun Apr 23, 2017 6:30 am
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3830

Re: Ally Bank Just Raised 5yr CD to 2.25%

You're missing interest rate risk If the stock market tanks the Treasury price is likely to go up and the CD goes down because of the EWP. Risk is a two way street. Kevin and I have gone round & round on the CD/Treasury. He discounts things like covariance with equities calling them "specu...
by Doc
Sat Apr 22, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Ally Bank Just Raised 5yr CD to 2.25%
Replies: 28
Views: 3830

Re: Ally Bank Just Raised 5yr CD to 2.25%

HueyLD wrote:
The big problem I have with TIPS is that the brokers can't seem to get the OID and ABP bookkeeping right. We've gotten five 1099 corrections from our brokers this year and all the corrections concerned TIPS.

Who is the broker? Vanguard?


Brokers plural.

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