Search found 8370 matches

by Doc
Sat Aug 18, 2018 5:37 pm
Forum: Investing - Theory, News & General
Topic: Massive small cap tilt with low equity AA - anybody do this?
Replies: 30
Views: 2204

Re: Massive small cap tilt with low equity AA - anybody do this?

We are 50/50 AA with 40% of the equity as small.

VBR is NOT small. VIOV has a very low trading volume. I would prefer IJS. To get around the high cost of frequent purchases just put your regular contributions into the CRSP fund and swap it for IJS once a year.
by Doc
Sat Aug 18, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

Re: Vanguard & retirement accounts. I have no personal knowledge of cash available restrictions in retirement accounts. I have not seen the issue but maybe I never triggered it Yeah, you described the dire warning well. On a related "say what", in a taxable account I can initiate a money transfer at...
by Doc
Sat Aug 18, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

Whether a violation occurs when you sell T+2 and buy T+1 is a separate issue from whether a broker will let you do it. I would guess that most brokers now will let you do it, but there is no requirement that they do so. I would think that the SEC rules not the broker? (Vanguard gives you a dire war...
by Doc
Sat Aug 18, 2018 12:40 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

Vanguard will even let you sell a T+2 security (ETF, stock, brokered CD, corporate bond) and use the proceeds to buy a Vanguard mutual fund (T+1) immediately. Not just Vanguard. "Liquidation violations in a cash account occur if you sell securities after the purchase date of a new trade in order to...
by Doc
Sat Aug 18, 2018 10:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard Switch to Brokerage Accounts
Replies: 53
Views: 4217

Re: Vanguard Switch to Brokerage Accounts

2. Makes people who made the switch (like me) pissed off, especially seeing that the legacy accounts still exist and will continue to do so with no definite switch over date in sight. I concur about being ... but for the opposite reason. For me the brokerage platform is much better despite its wart...
by Doc
Fri Aug 17, 2018 7:19 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

MnD wrote:
Fri Aug 17, 2018 5:18 pm
At auction - not the secondary market the OP is asking about.
The Treasury makes it schedule at least in part so that a new issue settles on the maturity date of a similar existing issue. Our 28/29/30/31 365/366 day calendar obfuscates the schedule. fogetaboutit. :wink:
by Doc
Fri Aug 17, 2018 4:24 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

I've recently sold T-bills on the secondary market at Fidelity and the value of the sale was instantly available to trade. Yes, but I believe that's the case with all securities at Fidelity--one can use funds for trading prior to settlement, but not for withdrawal. Available to trade is standard - ...
by Doc
Fri Aug 17, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

. Treasury bills are about the only security that can be transacted and settled on the same day Read more: What do T+1, T+2 and T+3 mean? | Investopedia https://www.investopedia.com/ask/answers/what-do-t1-t2-and-t3-mean/#ixzz5ONaoH1es Ain't Goggle a wonderful thing? :D "Can be" transacted, given my...
by Doc
Fri Aug 17, 2018 1:37 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

i just looked on my brokerage account trade history at 3 consecutive monthly purchases of 13-week T-bills all purchased at auction on Mondays. Two have a settlement date on Tuesday (next day) and one has a settlement date of Thursday in that week. That's very odd. The T-0 or T-1 settlements apply t...
by Doc
Fri Aug 17, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: Vanguard Switch to Brokerage Accounts
Replies: 53
Views: 4217

Re: Vanguard Switch to Brokerage Accounts

I would not have a problem with brokerage accounts. It does not seem to be anything major. However, the one thing that is preventing us from changing (and thus getting upset) is the brokerage statements. Our mutual fund accounts have year to date statements. We only save a print on statement each y...
by Doc
Thu Aug 16, 2018 4:39 pm
Forum: Investing - Theory, News & General
Topic: What is the settlement time for T-bills held in a brokerage account?
Replies: 19
Views: 1038

Re: What is the settlement time for T-bills held in a brokerage account?

. Treasury bills are about the only security that can be transacted and settled on the same day

Read more: What do T+1, T+2 and T+3 mean? | Investopedia https://www.investopedia.com/ask/answer ... z5ONaoH1es

Ain't Goggle a wonderful thing? :D
by Doc
Wed Aug 15, 2018 11:58 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 137
Views: 14242

Re: Swedroe's guidelines to Bonds

larryswedroe wrote: The market price based on the historical evidence is that today's yield curve is the best estimate of tomorrow's yield curve. Although this may seem like a niggling question, is it actually based on historical evidence? I thought it was a direct corollary of the EMH. It wouldn't...
by Doc
Wed Aug 15, 2018 11:48 am
Forum: Investing - Theory, News & General
Topic: Since you would want to eventually reinvest dividends/distros anyways, why wouldn't you make them automatic for TLH?
Replies: 13
Views: 911

Re: Since you would want to eventually reinvest dividends/distros anyways, why wouldn't you make them automatic for TLH?

I think the core thing I'm getting at is: is it even physically possible to avoid a wash sale with manual bookkeeping since you can't let dividends accumulate forever without reinvesting and you also can't predict if a big loss in the future? Just let the dividend sit in your MM account for 30 days...
by Doc
Wed Aug 15, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: Since you would want to eventually reinvest dividends/distros anyways, why wouldn't you make them automatic for TLH?
Replies: 13
Views: 911

Re: Since you would want to eventually reinvest dividends/distros anyways, why wouldn't you make them automatic for TLH?

I frequently see suggestions to turn off automatic reinvestments when doing tax loss harvesting. However, you would eventually want to reinvest the money on a somewhat regular basis anyways. What frequency would you manually reinvest at? Every 31 days? Even then there's a good chance you'll reinves...
by Doc
Wed Aug 15, 2018 10:53 am
Forum: Investing - Theory, News & General
Topic: Swedroe's guidelines to Bonds
Replies: 137
Views: 14242

Re: Swedroe's guidelines to Bonds

As Larry explained early on in the thread, he generally favors CDs over Treasuries if the CD yield premiums are reasonable, especially in tax-advantaged accounts, but suggests that one might still want to hold some Treasuries to rebalance into stocks in a flight-to-safety scenario, in which Treasur...
by Doc
Tue Aug 14, 2018 10:41 am
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 185
Views: 11464

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

My browser deletes cookies whenever I quit. Vanguard must use something else besides cookies to identify the computer. Perhaps a browser fingerprint? Yes. I investigated and also asked. Forget the asked. He wasn't sure. With Internet Explorer resetting cookies triggers a new code requirement. Chrom...
by Doc
Mon Aug 13, 2018 6:48 pm
Forum: Investing - Theory, News & General
Topic: New Vanguard Security Code Requirement [2FA: Two-factor authentication]
Replies: 185
Views: 11464

Re: New Vanguard Security Code Requirement [2FA: Two-factor authentication]

gmaynardkrebs wrote:
Mon Aug 13, 2018 12:31 pm
So, I think it's safe, and if your cookies get cleared or change browsers of computers, it's not a probkem.
I keep seeing this cookies clear thing. I periodically clear cookies but have not had a 2FA problem. Either cookies are not an issue or I have screwed up somewhere.

Help me.
by Doc
Sat Aug 11, 2018 6:28 pm
Forum: Investing - Theory, News & General
Topic: Request for distribution data of Vanguard REIT Index Fund
Replies: 10
Views: 911

Re: Request for distribution data of Vanguard REIT Index Fund

Believe OP is looking for the number that would show up as Box 3, Non-dividend Distributions, on a 1099-DIV. That's the return of capital that reduces the basis of a REIT. Not an issue if the REIT is held in tax-deferred account. Wasn't sure. I can get ten year old Quicken data a lot easier than ol...
by Doc
Sat Aug 11, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: [New Vanguard website layout starting Saturday, August 11]
Replies: 115
Views: 7573

Re: Anyone noticing Vanguard website changes today Saturday August 11

Paul, there might be a change in the Holdings Summary.

Gee, I think it might have just changed. :?: Weird.
by Doc
Sat Aug 11, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: Request for distribution data of Vanguard REIT Index Fund
Replies: 10
Views: 911

Re: Request for distribution data of Vanguard REIT Index Fund

However, I want the return of capital per share of each distribution, from June 2007 to June 2008, to the number of digits used by Vanguard. My Quicken entries show the last Long Term Capital Gain distribution in December 2006 for Investor class. If there was a return of capital that showed up on t...
by Doc
Sat Aug 11, 2018 1:28 pm
Forum: Investing - Theory, News & General
Topic: [New Vanguard website layout starting Saturday, August 11]
Replies: 115
Views: 7573

Re: Anyone noticing Vanguard website changes today Saturday August 11

Paul Romano wrote:
Sat Aug 11, 2018 1:18 pm
Anyone else noticing these changes?
No.
by Doc
Thu Aug 09, 2018 6:57 pm
Forum: Investing - Theory, News & General
Topic: Which bond asset class best protects against stock market crash?
Replies: 9
Views: 1086

Re: Which bond asset class best protects against stock market crash?

The "ahem" refers to the fact that you assume as a given that the market will recover. I got that. I was addressing the bond market. And those bonds will mature. So you will get your money back at about the length of time as the duration of your bonds or maybe sooner. The time it takes for the stoc...
by Doc
Thu Aug 09, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: Which bond asset class best protects against stock market crash?
Replies: 9
Views: 1086

Re: Which bond asset class best protects against stock market crash?

... as the markets recover. ahem... The bond markets. I've already taken care of the equity rebalncing now I only need to get the FI back to the desired Treasury/Corporate mix. And that should be a given after the "duration". If you don't want to wait that long use a 1-5 funds instead of a 1-10.
by Doc
Thu Aug 09, 2018 3:46 pm
Forum: Investing - Theory, News & General
Topic: Which bond asset class best protects against stock market crash?
Replies: 9
Views: 1086

Re: Which bond asset class best protects against stock market crash?

The term "bond tent" is not in my vocabulary so let me try to work around it. Therefore, to narrow the discussion, let's make some assumptions about our investor: - is near the onset of retirement - has an AA of 60/40 (stocks/bonds) - planning a "bond tent". - goal is to mitigate against Sequence of...
by Doc
Thu Aug 09, 2018 12:34 pm
Forum: Investing - Theory, News & General
Topic: Bond Holding
Replies: 11
Views: 1138

Re: Bond Holding

On the other hand, there's currently a thread titled "Treasuries are the only bonds you'll ever need." So obviously there are lots of opinions out there. I agonized over this at one point and decided that Total Bond Index was "good enough" and probably better than most choices (although I was aware...
by Doc
Thu Aug 09, 2018 9:59 am
Forum: Investing - Theory, News & General
Topic: Bond Holding
Replies: 11
Views: 1138

Re: Bond Holding

My wife's financial advisor wants her to get out of Vanguard's Total Market Bond Fund arguing that, despite VG's designation, it is not an "intermediate" term fund and exposes her to too much interest rate risk. This fund is now our key fixed holding. Thought? Don't be too critical of your advisor ...
by Doc
Thu Aug 09, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: Vanguard Long-Term Treasury (VUSUX) beta = 3.20?
Replies: 15
Views: 1254

Re: Vanguard Long-Term Treasury (VUSUX) beta = 3.20?

The following rolling return charts illustrates the problem with trying to treat this question statistically. (Take note of the scale differences.) IEI iShares 3/7 Treasury ETF 2008 ish https://s8.postimg.cc/63nefyoxx/Treasury_Correlation_2008_Capture.gif 2014 ish https://s8.postimg.cc/gqh7lsx7p/Tre...
by Doc
Thu Aug 09, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: Accrued Interest on Treasury Auctions
Replies: 6
Views: 463

Re: Accrued Interest on Treasury Auctions

It's been a few years since I bought Treasury securities in a taxable account. But the last time I did, the broker did not deduct the accrued interest from the amount reported on the 1099-INT (line 3 Interest on U.S. Savings Bonds and Treas. Obligations). It was l isted in the supplemental pages th...
by Doc
Thu Aug 09, 2018 8:31 am
Forum: Investing - Theory, News & General
Topic: Accrued Interest on Treasury Auctions
Replies: 6
Views: 463

Re: Accrued Interest on Treasury Auctions

It should how up on your tax forms from your broker under "Accrued Interest Paid on Purchases".
by Doc
Thu Aug 09, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: Accrued Interest on Treasury Auctions
Replies: 6
Views: 463

Re: Accrued Interest on Treasury Auctions

It may be small for auctions but up to almost six months interest if bought on secondary market.
by Doc
Wed Aug 08, 2018 11:16 am
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 12804

Re: "Age in Bonds" fails almost everyone

"Age in Bonds" fails almost everyone "Fails" is a nice attention getter. Definition of fail failed; failing; fails intransitive verb 1 a : to lose strength : weaken her health was failing b : to fade or die away until our family line fails c : to stop functioning normally the patient's heart failed ...
by Doc
Tue Aug 07, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1622

Re: Where to Hold TIPS?

Sorry, I am confused. Are the proceeds of the TIPs fund exempt from state taxation or not? I don't know. Depends on what proceeds you are addressing. Your 1099 may have lots of things on it. You could have dividends, qualified or not, and you could have capital gains. Some of those dividends repres...
by Doc
Tue Aug 07, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 12804

Re: "Age in Bonds" fails almost everyone

simple man wrote:
Tue Aug 07, 2018 12:23 pm
Well, when Treasuries hit 8%, I will be 100% Treasuries and TIPS.... :D
simple man = "MARKET TIMER" :D
by Doc
Tue Aug 07, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1622

Re: Where to Hold TIPS?

TIPS do just as well in a tax deferred account, like a traditional IRA, as in a Roth retirement account. In both, the after tax real return equals the pre tax real return -- regardless of the amount of inflation. Quibble: If inflation is very very high the TIPS in the tIRA could push you into a hig...
by Doc
Mon Aug 06, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: "Age in Bonds" fails almost everyone
Replies: 217
Views: 12804

Re: "Age in Bonds" fails almost everyone

Help me understand, how did you get from the target date to age? Meaning, target date could be 62 years old, 65 years old, 70 years old or many other ages. What am I missing? Or are you assuming target date = 65 years old? In any event, the S curve seems to fall to: Until 40, 10% bonds. 40-60, incr...
by Doc
Mon Aug 06, 2018 11:14 am
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1622

Re: Where to Hold TIPS?

munemaker wrote:
Mon Aug 06, 2018 9:48 am
Individual TIPs (as opposed to a TIPs fund) are exempt from state and local income taxes.
A TIPS fund 1099 will show the amount of the distribution that comes from Treasury securites just like a nominal Treasury fund does. They should be the same for state tax purposes.
by Doc
Mon Aug 06, 2018 9:31 am
Forum: Investing - Theory, News & General
Topic: Where to Hold TIPS?
Replies: 20
Views: 1622

Re: Where to Hold TIPS?

TIPS are not tax efficient in Taxable. This of course is a non-issue in Traditional or Roth. That's too broad a statement. As an example short term TIPS are likely more tax efficient than an S&P 500 fund for many. Part of the statement in the Wiki is misleading. If you hold individual TIPS in a tax...
by Doc
Sun Aug 05, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 112
Views: 11368

Re: Treasury Bonds are the Only Bonds You Need

I'm not trying to derail this thread. I do have a question that I did not want to start a new thread for. I recently discovered Treasury Direct and CD's. My experience has only been with rates as they are currently. I went to TD and looked at previous treasury rates. In 2012 were one year treasury ...
by Doc
Sun Aug 05, 2018 3:51 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 112
Views: 11368

Re: Treasury Bonds are the Only Bonds You Need

Treasuries have demonstrated negative correlation to equities during some big stock downturns, but not all. Nominal Treasury values went up as stocks went down in late 2008, and the longer the term, the more pronounced the effect. So if you think it's likely that something like this will happen aga...
by Doc
Sun Aug 05, 2018 11:47 am
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 7: Bonds during the financial crisis
Replies: 8
Views: 1035

Re: Matter/scatter, part 7: Bonds during the financial crisis

By 4th year the recovery of corporates is complete and you are back to square one. You are missing a major point in the Treasury/Corporate trade off analysis. That is what does one do when the stock market drops by say 40%. Do you use your fixed income to buy equities to maintain your AA or do you ...
by Doc
Sun Aug 05, 2018 11:29 am
Forum: Investing - Theory, News & General
Topic: Bonds, CDs with Vanguard
Replies: 8
Views: 830

Re: Bonds, CDs with Vanguard

In the case of a really serious problem, wherein the Treasury defaults on paying back Treasury bond principal, wouldn't the funds available to the FDIC to cover losses of CD principal be impacted as well? FDIC deposit insurance covers the depositors of a failed FDIC-insured depository institution d...
by Doc
Sat Aug 04, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 7: Bonds during the financial crisis
Replies: 8
Views: 1035

Re: Matter/scatter, part 7: Bonds during the financial crisis

So nisiprius what are your thoughts on the following strategy: 1. For those that are >5 years away from retirement: Continue investing in corporate bonds. Even if they fall they will recover in the next 5 years. 2. For retired people and those nearing retirement keep bonds worth 1 to 2 years of exp...
by Doc
Sat Aug 04, 2018 3:11 pm
Forum: Investing - Theory, News & General
Topic: Matter/scatter, part 7: Bonds during the financial crisis
Replies: 8
Views: 1035

Re: Matter/scatter, part 7: Bonds during the financial crisis

In any case, during 2007-2009, the Treasury fund got a small upward kick, presumably the "flight to safety," while the corporate bond funds took a nasty knock. At one point, on a $10,000 investment, VFIUX is up almost $1,500 while the corporate bond funds are down almost $1,000... a 25% difference....
by Doc
Fri Aug 03, 2018 10:28 am
Forum: Investing - Theory, News & General
Topic: CRSP index construction
Replies: 1
Views: 260

Re: CRSP index construction

Because the number of publicly traded securities changes over time, CRSP’s solution is to base its indexes on cumulative market capitalization . This parallels industry convention in international markets, making global diversification on a cap-basis more accurate and easier to implement . To sum u...
by Doc
Fri Aug 03, 2018 9:10 am
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 112
Views: 11368

Re: Treasury Bonds are the Only Bonds You Need

According to Vanguard, the Total Bond Market fund has an average duration of about 6 years, while the Intermediate Term Treasury fund has average duration of 5 years. So, the ITT fund has lower term risk than TBM (risk of rising interest rates). Over the period 1987 - present (30 years), an allocat...
by Doc
Thu Aug 02, 2018 4:26 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 112
Views: 11368

Re: Treasury Bonds are the Only Bonds You Need

Doc, can you (or someone else that understands this) elaborate on the above? You say that treasuries are all one needs, and seem to suggest to the posters advocating for TBM that they compare performance during stressed markets, but then the chart shows (unless I'm reading it wrong) that the aggreg...
by Doc
Thu Aug 02, 2018 10:34 am
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 112
Views: 11368

Re: Treasury Bonds are the Only Bonds You Need

TBM is heavy on bonds that have a declared or assumed federal backing, so I wouldn't lift a mouse button to get into a Treasury only fund. +1 You might want to look what happens when there is market stress. Intermediate Treasuries and Total Bond Market - 12 month rolling return chart. https://s8.po...
by Doc
Sun Jul 29, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation if bond fund currently holds 3% short term?
Replies: 6
Views: 784

Re: Asset Allocation if bond fund currently holds 3% short term?

Guess I'll just ignore the cash and carry on. :D Marc The thing you are missing is that many (most) funds use derivatives of some type for cash flow or similar reasons. So for example an interest rate swap that represents the return for maybe a two year note but that expires in 3 months is consider...
by Doc
Sat Jul 28, 2018 3:27 pm
Forum: Investing - Theory, News & General
Topic: Asset Allocation if bond fund currently holds 3% short term?
Replies: 6
Views: 784

Re: Asset Allocation if bond fund currently holds 3% short term?

I hold SCHZ which is a bond fund that has a goal to "track as closely as possible...the total return of the Bloomberg Barclays U.S. Aggregate Bond Index". So in my mind this is a bond index fund. But SCHZ currently holds about 3% cash investments. According to Morningstar as of 7/26/18 SCHZ holds m...