Search found 8594 matches

by Doc
Fri Oct 19, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

It is not that clear as Vanguard does mention the sell date, too. But under "How to avoid trade restrictions" they say: If you're paying for a trade with assets from a Vanguard fund, request the exchange into your settlement fund by the close of regular trading on the New York Stock Exchange (NYSE)...
by Doc
Fri Oct 19, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

There were warnings when the trade to buy the CD was placed, but I thought it just meant the funds had to be in settlement account in two days. I did not read the warnings that closely, as I had seen the same with prior CD purchases that were placed before 4 pm eastern. Liquidation violations in a ...
by Doc
Fri Oct 19, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Morningstar Not Displaying Money Market Quotes?
Replies: 5
Views: 263

Re: Morningstar Not Displaying Money Market Quotes?

I see the same error now, but I would never have noticed. I've always just tracked my MM funds as cash in my M* portfolio. I noticed. I sometimes used a MM fund as a base in the chart function when I wanted to compare two ETF's. I can no longer do that. I just edit "ETF" in the chart page URL to "f...
by Doc
Fri Oct 19, 2018 2:12 pm
Forum: Investing - Theory, News & General
Topic: Morningstar Not Displaying Money Market Quotes?
Replies: 5
Views: 263

Re: Morningstar Not Displaying Money Market Quotes?

I see the same error now, but I would never have noticed. I've always just tracked my MM funds as cash in my M* portfolio. I noticed. I sometimes used a MM fund as a base in the chart function when I wanted to compare two ETF's. I can no longer do that. Not Found The requested URL /money-market/quo...
by Doc
Thu Oct 18, 2018 11:08 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

Valuethinker wrote:
Thu Oct 18, 2018 8:24 am
Poster grok87 loaded up I believe (and posted about it). There were others, here.
And I sold my entire TIPS ladder at a large loss in order to rebalnce into stocks. :(
by Doc
Thu Oct 18, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

There were warnings when the trade to buy the CD was placed, but I thought it just meant the funds had to be in settlement account in two days. I did not read the warnings that closely, as I had seen the same with prior CD purchases that were placed before 4 pm eastern. Liquidation violations in a ...
by Doc
Wed Oct 17, 2018 6:27 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

Yes, CD/bond market hours are until 5. I learned this after my CD purchase. I was actually surprised when I noticed the time...almost as surprised as I was a to see a 4 month CD with YTM of 3.15% :) . After re-reading the email, that listed conditions for trading without settled funds, it seems the...
by Doc
Wed Oct 17, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: Treasuries safe?
Replies: 33
Views: 1518

Re: Treasuries safe?

Rick Ferri wrote:
Wed Oct 17, 2018 1:50 pm
Check back with me if you notice all your neighbors walking around with shotguns in their hands.
I've lived in areas where that was normal.

And nobody mugged people on the street or broke into houses.
by Doc
Wed Oct 17, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

jeffyscott wrote:
Wed Oct 17, 2018 2:51 pm
They gave me a pass, this time. So no trading restrictions. Just trying to learn the rules.
:sharebeer
by Doc
Wed Oct 17, 2018 2:45 pm
Forum: Investing - Theory, News & General
Topic: 8-week t-bill debuts tomorrow 10/16
Replies: 3
Views: 1009

Re: 8-week t-bill debuts tomorrow 10/16

Damn. I have a spreadsheet to calculate roll down yields from the Treasury yield curve data. I just copy and paste directly form their data. Now it's going to have an extra data point and it will cause my spreadsheet to hiccough. :oops:

Thanks for the warning.
by Doc
Wed Oct 17, 2018 2:38 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

Sequence was: bought CD at 4:30 EST, placed order to sell mutual fund immediately after. So the fund sale occurred at next days close. And both trades settled the day after. Never had a brokerage account until about 4 months ago, so I don't really know if that would be considered a violation. I fig...
by Doc
Wed Oct 17, 2018 1:47 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

It closes at 5pm EST. Thanks, did not know I had an extra hour available. Or not... It turns out Schwab will basically not let me make use of that extra hour of the bond market. I got a trade violation email because the mutual fund sale to cover CD purchase happened the next day (since market was c...
by Doc
Wed Oct 17, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: 30 yr TIPs auction: Oct. 18: 1.2% real yield?
Replies: 41
Views: 3330

Re: 30 yr TIPs auction: Oct. 18: 1.2% real yield?

It's at 1.19% now. Even if I knew rates would never be that high again, I wouldn't be interested. There have to be better places to put your money. Even for a TIPS fan like me. In Swedroe's "Winning Bond Strategy" March 2006 p 225 he recommended 100% TIPS at > 3% real yield and 0% at < 1.5% for the...
by Doc
Wed Oct 17, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: flattening yield curve and tlh treasuries
Replies: 6
Views: 684

Re: flattening yield curve and tlh treasuries

Waiting to the end of the year may result in a loss of opportunity. and the value of the tax loss more than offsets any new yield. Waiting to the end of the year to TLH bonds in a rising rate environment is unlikely to result in a lost opportunity. If the the tax loss is used to offset cap gains th...
by Doc
Wed Oct 17, 2018 8:09 am
Forum: Investing - Theory, News & General
Topic: flattening yield curve and tlh treasuries
Replies: 6
Views: 684

Re: flattening yield curve and tlh treasuries

I have a $5k short-term cap loss in two-year Treasuries. Given the flattening of the yield curve, I can harvest the position, move to one-year treasuries at a "cost" of about 22 basis points. In general, the flattening of the yield curve seems to offer superior TLH opportunities for treasuries. mak...
by Doc
Wed Oct 17, 2018 7:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

How are you guys generating YTD statements? I use Quicken to download all 7 of our accounts at three different brokers, 2 checking accounts at two different banks and 3 credit card accounts at one bank. I only download the end of year statements and most times stick them in the tax file without eve...
by Doc
Tue Oct 16, 2018 6:16 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

Did you make a killing doing that in 2008? Just curious. No. I had been going with the mantra that TIPs were just like nominal Treasuries except for the inflation protection. In the spring of '08 I completed creating my 10 year TIPs ladder just in time to find out that TIPs were not "just like Trea...
by Doc
Tue Oct 16, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

... in any case. So, I certainly have no intention to ever sell CDs in order to rebalance into stocks (or for any purpose). Any purpose? Don't disagree with the CD price aspects, but would you sell Treasuries that were up 10% to buy corporates that were down 10%. That's a 20% freebee. If it happens...
by Doc
Tue Oct 16, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

But in a non-margin account you do get money market interest for the difference in settlement period because they sweep the money to the settlement account. My question was do you then have to pay interest going the other way? I now see the one day balance increase in the MM account. I confused mys...
by Doc
Tue Oct 16, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

No. If you sell T+2 and buy T+1 in a non-margin account, they float the difference in settlement with no interest charge. That's why I was surprised the one time I did it in a margin account and got a small margin interest charge. I agree that they float the difference. What I was questioning was w...
by Doc
Tue Oct 16, 2018 2:37 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

You are comparing a CD held to maturity with a fund that normally sells it's holding with one year remaining. That comparison could be misleading. As could annualizing the last 30 days total return (SEC yield) and comparing it to a future fixed income multi-year promise. Okay, how about this one? :...
by Doc
Tue Oct 16, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

All I'm saying is that when the settlement period is in your favor--buy ETF, sell MF--Vanguard sweeps the amount to the Federal Money Market Fund and pays you interest on it for a day. OK. I have seen that small credit and assumed it was accrued dividends from what I sold. Now the question is what ...
by Doc
Tue Oct 16, 2018 12:38 pm
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

The next day, my account showed a money market balance equal to the amount of VSBSX I sold with an offsetting negative balance in "Total credits and debits" for the unsettled ETF purchases. When the last ETF purchase settled the balances netted out, and I received a money market dividend of $0.98. ...
by Doc
Tue Oct 16, 2018 10:59 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

I took a few secondaries in between 2-3 year at about 3.2% today. I figured since that is nearly equal to SEC yield of Vg short term investment grade (VFSUX), it was a reasonable yield with no credit risk. You are comparing a CD held to maturity with a fund that normally sells it's holding with one...
by Doc
Tue Oct 16, 2018 10:46 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

The pages of the statement that show the brokerage account say "year-to-date" on them. However, the data is not YTD. You might be mis-interpreting the report. The "year-to-date" refers to the totals. The "transaction" section is only for the current quarter. I think on the old platform the reports ...
by Doc
Tue Oct 16, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard has switched to brokerage only accounts
Replies: 160
Views: 36778

Re: Vanguard has switched to brokerage only accounts

Going in the other direction, if you do have a margin account they will charge you a day of interest if you do the ETF to mutual fund swap (because the mutual fund buy settles a day before the ETF sale). But If you don't have a margin account, Vanguard just floats it. I'm not sure that's correct. O...
by Doc
Mon Oct 15, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Schwab-specific TLH question - SCHF/SCHE
Replies: 11
Views: 425

Re: Schwab-specific TLH question - SCHF/SCHE

The easiest thing to do would probably be to move into the corresponding Vanguard ETFs (i'd like to keep Emerg/Dev separate since Emerging has gotten killed and I havent rebalanced). This is what I do but I buy the replacement funds in a Vanguard IRA and reverse the positions after 30 days. But I d...
by Doc
Mon Oct 15, 2018 11:05 am
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

And *most* of a significant allocation to FI is not realistically subject to use in rebalancing. To review for a 60/40 mix: 10% drop in the stock market means shifting 2.4 of the original 40 to stocks, 6% of your original FI 20% drop, shift 12% of your original FI 30% drop, shift 18% 50% drop, shif...
by Doc
Mon Oct 15, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: Is your Taxable account crowed with "highly correlated" but not "substantially identical' funds? how else can you TLH
Replies: 15
Views: 1062

Re: Is your Taxable account crowed with "highly correlated" but not "substantially identical' funds? how else can you TL

Of course brokers report what you sell in a taxable account. That is what a 1099-B is. Will brokers report a wash sale? I don't know for sure, but at least Vanguard will make adjustments if CUSIP are the same in the same account. As far as I know brokers are only obligated to report wash sales with...
by Doc
Sun Oct 14, 2018 3:59 pm
Forum: Investing - Theory, News & General
Topic: Vanguard website problems [Transactions won't go through, 500 error...]
Replies: 94
Views: 4045

Re: Vanguard website problems [Transactions won't go through, 500 error...]

MFInvestor wrote:
Sun Oct 14, 2018 2:35 pm
They report that they only received 75 complaints. That number seems very low to me.
Maybe they only got 75 complaints because there phones weren't working either. :twisted:
by Doc
Sun Oct 14, 2018 3:15 pm
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

Again you seem to ignore the point I made then you repeated yourself a couple of posts ago. We both gave examples of how even a large decline in stocks results in having to sell a minority of one's FI to rebalance. IOW almost everyone fulfills the criterion you give in the last sentence. For that p...
by Doc
Sun Oct 14, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

I can understand that if you are only considering the correlation with equities, but I don't think that's really all you do. I believe you have mentioned owning investment-grade bonds for at least some of the portion of your fixed income not targeted for rebalancing into stocks. If I held TIPS, I w...
by Doc
Sun Oct 14, 2018 12:24 pm
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

Correlation with equities is related to credit risk, which tends to show up in a financial crisis when stocks tank, as happened in late 2008. Usually but not always. TIPs vs Nominals in late 2008: https://i.postimg.cc/bwYtFWRg/TIPS-vs-Nominals-Capture.gif This is why I gave up on TIPS. :(
by Doc
Sun Oct 14, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

I am sill puzzled by the emphasis of some posters solely on the SEC yield in choosing a short term bond fund when for intermediate term funds one would also consider other factors such as the duration, credit worthiness, correlation with equities, performance history etc. If you are comparing two f...
by Doc
Fri Oct 12, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

I don't really want anything less than 6-month or more than 2-year maturity, so the index fund comes closer to what I want. I'm putting much more into individual Treasuries than I have in the fund. OK, so you know more than the management team at Vanguard Short Term Treasury fund and go with the lo...
by Doc
Fri Oct 12, 2018 3:11 pm
Forum: Investing - Theory, News & General
Topic: Does Fidelity offer the best index products for a passive investor compared to Vanguard
Replies: 61
Views: 5371

Re: Does Fidelity offer the best index products for a passive investor compared to Vanguard

You will get calls from the Fidelity reps to sell you other items. Just think of when you get the low price for an oil change or a brake job on your car. You take in the coupon and you are told you need other things for your car. We have had an account with Fidelity since 2002 and have never gotten...
by Doc
Fri Oct 12, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21446

Re: Treasury Bonds are the Only Bonds You Need

I think this thread shows us how complicated the bond market can be. Because many investors (including me) don't fully understand how the band market works, it is an inefficient market, and leads to incorrect pricing. Also, I believe even the rating agencies are subject to misreading risk. So, I av...
by Doc
Fri Oct 12, 2018 2:43 pm
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 10174

Re: Short Term Bond yield over 3%

Short-Term Treasury Index Admiral with SEC yield of 2.75% is TEY for me of 3.09%. Duration is 1.9 years. I own some of this fund in taxable, but it's only a small portion of my fixed income. Why do you prefer ST Treasury to ST Treasury Index? Typo. Fixed. I prefer the index fund since duration is s...
by Doc
Fri Oct 12, 2018 2:20 pm
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

I don't think it's common for people to think they can sell CD's at a premium when rate declines for the small part of their fixed income allocation which is likely to end up getting rebalanced into stocks. It does seem common for people to think it means anything that treasuries change in price an...
by Doc
Fri Oct 12, 2018 2:05 pm
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2469

Re: [Fidelity announces simplified index fund structure]

Isn't Russell indexes considered relatively poorly constructured among the peers. I wonder why Fidelity uses this index, possibly cheaper licensing costs for them, which makes up for the lower ER marketing strategy. Once upon a time the Russells were constructed such that changes in the index were ...
by Doc
Fri Oct 12, 2018 6:44 am
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2469

Re: [Fidelity announces simplified index fund structure]

Elysium wrote:
Thu Oct 11, 2018 7:24 pm
Also, can someone explain why their Large Value index fund is trailing the Vanguard counterpart by such a large margin?
CRSP index?
by Doc
Thu Oct 11, 2018 6:22 pm
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

<snip> ... for all but very high stock allocations a large portion of fixed income is not realistically subject to being sold to buy stocks and there will almost always be some which is not. And for that portion, for a given maturity, the fact that treasuries show a price increase and CD's do not i...
by Doc
Thu Oct 11, 2018 1:30 pm
Forum: Investing - Theory, News & General
Topic: [Fidelity announces simplified index fund structure]
Replies: 20
Views: 2469

[Fidelity announces simplified index fund structure]

From an email: A more simplified fund structure Because you're an existing shareholder, we're writing to inform you about recent enhancements to how the majority of our index funds are structured and named. The following changes will begin to roll out in November. • A simplified index fund structure...
by Doc
Thu Oct 11, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

Kevin, thanks for the feedback. I have trouble getting my mind around these "which FI security is best" threads because the discussion is almost always about yield and the risk associated with the FI alone whether it be term or credit risk. I look at my high quality FI in terms of how it reacts with...
by Doc
Thu Oct 11, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: Vanguard Upgrade and Quicken
Replies: 6
Views: 1540

Re: Vanguard Upgrade and Quicken

Could you give more details about how to transfer individual mutual funds into brokerage accounts? My mutual funds (manually updated, not downloading from VG) are each in their own individual account. Now I have upgraded to brokerage accounts, and several of each mutual fund accounts are now to be ...
by Doc
Wed Oct 10, 2018 6:38 pm
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 5424

Re: Which is better CD - rates and terms?

If you are more concerned about rising yields (term risk) than reinvestment risk, you could stick with shorter-term fixed income until your risk aversion profile changes, but most will ding such a move as market timing Kevin, would you please elaborate on this idea. I'm having a problem understandi...
by Doc
Wed Oct 10, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

Maybe you can read this thread and understand before commenting whether brokered CDs are better or worse than bond funds? I never said that CDs are better or worse than bond funds. I only said that comparing YTD performance of a bond fund with the future returns of a CD held to maturity is not the ...
by Doc
Wed Oct 10, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

That's why we look at SEC yields. Also, if you look at FDIC CDs current yield vs current treasury yield, CD will still beat it for the same terms. SEC yields don't tell you anything about early withdrawal penalties. I'm not very familiar with brokered CDs but I just took a fast look and didn't see ...
by Doc
Wed Oct 10, 2018 9:27 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 466
Views: 67844

Re: 2-year CDs at Vanguard and Fidelity Today

Vanguard short-term bond admiral index's SEC yield is 2.98%, and Vanguard short-term treasury admiral's SEC yield is only 2.72%. Both have negative return YTD with and short term bond has 40% of its holdings in 3-5 years. This means if one has CDs vs these bond funds you have already been out-perfo...
by Doc
Tue Oct 09, 2018 3:58 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting and selling a mutual fund within 30 days of purchase
Replies: 10
Views: 552

Re: Tax loss harvesting and selling a mutual fund within 30 days of purchase

It would not be a wash sale since you did not repurchase. As long as you sold the same lot that you recently purchased there is no wash sale. But if you are using an average cost cost basis method that many do with mutual funds the lots sold are based on FIFO (First In First Out). In that case you ...