Search found 1178 matches

by pascalwager
Fri Sep 21, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 273
Views: 25399

Re: U.S. stocks continue to soar!

I have a DFA stock funds account which was last re-balanced late 2011 at 51/49, US/int'l, and untouched since then.

Now it's 63/37.
by pascalwager
Thu Sep 20, 2018 10:48 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 47
Views: 4401

Re: Total Bond or Total Bond/short-term

Total bond/short-term combination balances inflation risk and reinvestment risk, but I prefer short-term by itself to further reduce inflation risk as I'm not reaching for yield with bonds.
by pascalwager
Thu Sep 20, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 1690

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

A bond fund purchased for $1000 may be worth less than $1000 at the 10 year mark and may not have actually earned enough more in interest to make up the shortfall. Going back to the middle of the Depression, in 1930, a constant maturity fund of 10-year bonds has never lost money over ANY 10-year pe...
by pascalwager
Thu Sep 20, 2018 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 47
Views: 4401

Re: Total Bond or Total Bond/short-term

Personally, I'm only using short-term bond funds because when I look at bond funds I would want the fund to roughly match what a ladder of individual bonds I might be willing to hold to maturity would look like. If I would hold a ladder of bonds maturing in 1,2,3,4, and 5 years out it gets me an av...
by pascalwager
Wed Sep 19, 2018 9:44 pm
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 45
Views: 2268

Re: Why should bond duration = investment horizon?

If bond funds did not existed and one had to use individual bonds, wouldnn’t make a lot of sense to pick maturity dates close to one’s time horizon ? ... Only if one has a known obligation at some fixed point in the future. Many, not all, members have as one of their objectives funding retirement. ...
by pascalwager
Wed Sep 19, 2018 6:07 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 1690

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

In a bond fund you have redemption risk related to market turmoil and, in general, there's no guarantee of getting your principal back unlike individual bonds as long as you wait for maturity.
by pascalwager
Mon Sep 17, 2018 6:28 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 47
Views: 4401

Re: Total Bond or Total Bond/short-term

Thanks for the input and different perspectives everybody. I'm 22 years away from retirement, so i'll think i'll just stick with Total Bond and probably move to other Fixed Income Opportunities (short-term, TIPS, CDs) when I get closer to retirement. Appreciate the advice Seems reasonable for a wor...
by pascalwager
Sun Sep 16, 2018 1:24 am
Forum: Investing - Theory, News & General
Topic: Synchrony Bank Issues
Replies: 15
Views: 1665

Re: Synchrony Bank Issues

I had a lot of money at Synchrony Bank for several years--savings and CDs. It worked well for me, all online transactions, and their rates are near the top for banks. At one time the ACH maximum was $50k, but recently there was no maximum. I only left because Treasury-based MM rates improved so I no...
by pascalwager
Sat Sep 15, 2018 8:14 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26509

Re: THE 60/40 SOLUTION by Peter Bernstein

asset_chaos wrote; I have no evidence of where the 60:40 conventional wisdom came from. THE 60/40 SOLUTION by Peter Bernstein Best wishes. Taylor That's a good article, which I've read before, but it doesn't say where 60:40 comes from, just that 60:40 "was so popular in the era before the bull mark...
by pascalwager
Sat Sep 15, 2018 4:54 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26509

Re: Bill Sharpe's preferred portfolio

Personally, I totally abandoned the bonds part of the WBS portfolio at Vanguard. After reading about the nature of the int'l fund investors and govt coercion for European banks to buy large amounts of low-yielding bonds, I decided that I was not an average investor (large entities). In other words, ...
by pascalwager
Sat Sep 15, 2018 4:09 pm
Forum: Investing - Help with Personal Investments
Topic: Total Bond or Total Bond/short-term
Replies: 47
Views: 4401

Re: Total Bond or Total Bond/short-term

Personally, I'm only using short-term bond funds because when I look at bond funds I would want the fund to roughly match what a ladder of individual bonds I might be willing to hold to maturity would look like. If I would hold a ladder of bonds maturing in 1,2,3,4, and 5 years out it gets me an av...
by pascalwager
Sat Sep 15, 2018 12:17 am
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

There must be another issue involved here. If this relative can't support herself for a few months on her own assets until she becomes a multi-millionnaire, how is she going to (mentally) process/ invest an inheritance that large if she can't manage a smaller amount now? Have you addressed that? Do...
by pascalwager
Fri Sep 14, 2018 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

Awhile back, I gave someone $5,000 to put in her personal credit union savings account (0.35% APY). She's 15 years younger than me (I'm 76) and if I were to die, she would absolutely depend on this money and her credit card for a few weeks for living expenses until she inherited something like $2.3...
by pascalwager
Fri Sep 14, 2018 8:18 pm
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

Just have a joint checking account with wife. Make sure that you also have beneficiaries on that account. I'm not married, but I spent about three weeks this summer making sure that all of my assets had the same named beneficiary. The one exception was my car, but she would get that due to a partic...
by pascalwager
Fri Sep 14, 2018 7:57 pm
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

How soon would she need access to the money? Is this strictly a contingency? A better suggestion might be an account in your name with her as a POD beneficiary. That requires a copy of the death certificate, which can take a few days. Yes, my own sizable bank checking account is already set up for ...
by pascalwager
Fri Sep 14, 2018 11:55 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard platform
Replies: 50
Views: 5178

Re: Vanguard platform

Lol, I am surprised there are still holdouts. OP, are you the type that still uses a landline? I was able to wait until 2009 to get a cell phone but eventually I caved in. Yes, I still use a cordless phone with message recording. Larger, easy-to-use buttons. But I'm not really phone-oriented, anywa...
by pascalwager
Fri Sep 14, 2018 2:03 am
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

How soon would she need access to the money? Is this strictly a contingency? A better suggestion might be an account in your name with her as a POD beneficiary. That requires a copy of the death certificate, which can take a few days. Yes, my own sizable bank checking account is already set up for ...
by pascalwager
Wed Sep 12, 2018 1:17 am
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Re: Critical Account

Why not put the money you think she needs immediately in a joint account (you and her) and put it wherever you feel is best. Joint account owners still have access to the account if one person passes away in most circumstances. The way you're doing it now could make it difficult for you to get your...
by pascalwager
Tue Sep 11, 2018 11:11 pm
Forum: Personal Finance (Not Investing)
Topic: Critical Account
Replies: 20
Views: 2425

Critical Account

Awhile back, I gave someone $5,000 to put in her personal credit union savings account (0.35% APY). She's 15 years younger than me (I'm 76) and if I were to die, she would absolutely depend on this money and her credit card for a few weeks for living expenses until she inherited something like $2.3 ...
by pascalwager
Tue Sep 11, 2018 4:05 pm
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26509

Re: Bill Sharpe's preferred portfolio

There has been an interesting development regarding the indexes that Sharpe has been using for this portfolio. The Citi bond indexes are now FTSE Russell indexes. This means that it is now possible to get numbers for all four portfolio components from FTSE. This would presumably give a bit more con...
by pascalwager
Mon Sep 10, 2018 12:07 am
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 58
Views: 5130

Re: Is individual Bonds better than Bond Fund?

Bond funds, in the interest of convenience, encourage the investor to ignore premature redemptions and lost principle during rising rates. Individual bonds avoid this problem if the investor waits for his bonds to mature rather than selling early. The individual investor needs to decide which is mo...
by pascalwager
Sat Sep 08, 2018 5:21 pm
Forum: Investing - Theory, News & General
Topic: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF
Replies: 48
Views: 5362

Re: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF

With VT's expense ratio where it's at and now this new fund all one needs to be globally diversified at market cap is VT+BNDW. Whoa, slow down. Bndw in choosing its index made a conscious choice to underweight Tips. You’ll have to use 3 funds to get market weight. The two bond funds Sharpe uses in ...
by pascalwager
Sat Sep 08, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF
Replies: 48
Views: 5362

Re: September 6,2018-Vanguard Introduces Low-Cost Total World Bond ETF

With VT's expense ratio where it's at and now this new fund all one needs to be globally diversified at market cap is VT+BNDW. Whoa, slow down. Bndw in choosing its index made a conscious choice to underweight Tips. You’ll have to use 3 funds to get market weight. The two bond funds Sharpe uses in ...
by pascalwager
Wed Sep 05, 2018 11:18 pm
Forum: Personal Consumer Issues
Topic: Removing Existing Satellite Systems
Replies: 23
Views: 3235

Re: Removing Existing Satellite Systems

Finally did it. Removed two old dish systems, a telephone system and a TV system. The larger dish was trying to pull me off the roof, but I removed the bolts in a sequence that barely allowed me to maintain adequate control. I left the mounting brackets on the roof for the large dish and they're pre...
by pascalwager
Mon Sep 03, 2018 11:59 pm
Forum: Investing - Theory, News & General
Topic: US Treasuries vs Munis in taxable
Replies: 15
Views: 2638

Re: US Treasuries vs Munis in taxable

Thanks all for the comments, especially grabiner. We are in a similar situation as others, now in the 24% tax bracket and are currently about 50/50 intermediate treasuries and intermediate munis in the bond portion of our taxable account. Considering moving to less munis and more treasuries as at t...
by pascalwager
Sat Sep 01, 2018 3:02 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Construction: Total World Stock + TIPS or Treasuries
Replies: 40
Views: 3243

Re: Portfolio Construction: Total World Stock + TIPS or Treasuries

If you go 50:50 Nominals/TIPS why not 'barbell' : have the TIPS intermediate/long duration but the Nominals shorter. You take the term risk on the TIPS side (without interest rate risk), whereas you got the short term nominals for liquidity and re-balancing. Wow, really like the thought process Dud...
by pascalwager
Sat Sep 01, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Construction: Total World Stock + TIPS or Treasuries
Replies: 40
Views: 3243

Re: Portfolio Construction: Total World Stock + TIPS or Treasuries

Help me resolve my dichotomy of thought-process. Essentially, what is the default passive, agnostic risk-free bond allocation: 100% TIPS or 50% TIPS/50% Treasuries. It depends on your age. For one thing, if you're young, then stock returns might be expected to make up for bond losses to inflation.
by pascalwager
Fri Aug 31, 2018 5:14 pm
Forum: Investing - Theory, News & General
Topic: Portfolio Construction: Total World Stock + TIPS or Treasuries
Replies: 40
Views: 3243

Re: Portfolio Construction: Total World Stock + TIPS or Treasuries

You could use a combination of ST and IT Treasury funds for an overall maturity of five (5) years as a compromise between inflation risk and reinvestment risk.
by pascalwager
Wed Aug 29, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: U.S. stocks continue to soar!
Replies: 273
Views: 25399

Re: U.S. stocks continue to soar!

Hope to see this thread reappearing regularly for years to come! Or a similar international thread. Either way for me since I have a world AA for both my VG and DFA portfolios.

It's a nice counterweight to the old "free fall" thread.
by pascalwager
Wed Aug 29, 2018 12:23 pm
Forum: Investing - Theory, News & General
Topic: [New Vanguard website layout starting Saturday, August 11]
Replies: 130
Views: 9625

Re: [New Vanguard website layout starting Saturday, August 11]

I don't notice anything new, but the Holdings screen seems fairly recent (last two years or so) and I disliked it right away: too bright, mixture of large and small fonts. It bothered me immediately and I don't even see the purpose. Actually, the appearance is harsh and I just simply always want to ...
by pascalwager
Tue Aug 28, 2018 10:53 pm
Forum: Investing - Theory, News & General
Topic: International investing and currency risk - why do it?
Replies: 43
Views: 2886

Re: International investing and currency risk - why do it?

a) Currency risk is bad, but it is not all that bad and it more than offset by other things that are good. b) Currency risk is not bad, because it doesn't lower return. c) Currency risk is good, because the random fluctuations around zero return magically add valuable diversification. d) Currency r...
by pascalwager
Tue Aug 28, 2018 10:46 pm
Forum: Investing - Theory, News & General
Topic: International investing and currency risk - why do it?
Replies: 43
Views: 2886

Re: International investing and currency risk - why do it?

a) Currency risk is bad, but it is not all that bad and it more than offset by other things that are good. b) Currency risk is not bad, because it doesn't lower return. c) Currency risk is good, because the random fluctuations around zero return magically add valuable diversification. d) Currency r...
by pascalwager
Tue Aug 28, 2018 9:42 pm
Forum: Investing - Theory, News & General
Topic: International investing and currency risk - why do it?
Replies: 43
Views: 2886

Re: International investing and currency risk - why do it?

a) Currency risk is bad, but it is not all that bad and it more than offset by other things that are good. b) Currency risk is not bad, because it doesn't lower return. c) Currency risk is good, because the random fluctuations around zero return magically add valuable diversification. d) Currency r...
by pascalwager
Mon Aug 27, 2018 12:13 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

The answer to your concern is Duration. You should not hold a bond fund with a duration longer than the time you need to cash it in. A bond fund is nothing more than a collection of individual bonds. If you hold the fund long enough, the drop in value will be temporary. This is similar to holding a...
by pascalwager
Sun Aug 26, 2018 4:52 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

You should not hold a bond fund with a duration longer than the time you need to cash it in. I have no idea when I am going to "cash it in". If you are using your bonds strictly for some future liability matching the duration match may be important but that's not the only reason to hold bonds. Do t...
by pascalwager
Sun Aug 26, 2018 4:35 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

The answer to your concern is Duration. You should not hold a bond fund with a duration longer than the time you need to cash it in. A bond fund is nothing more than a collection of individual bonds. If you hold the fund long enough, the drop in value will be temporary. This is similar to holding a...
by pascalwager
Sun Aug 26, 2018 12:55 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

You should not hold a bond fund with a duration longer than the time you need to cash it in. I have no idea when I am going to "cash it in". If you are using your bonds strictly for some future liability matching the duration match may be important but that's not the only reason to hold bonds. Do t...
by pascalwager
Sun Aug 26, 2018 12:36 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

The answer to your concern is Duration. You should not hold a bond fund with a duration longer than the time you need to cash it in. A bond fund is nothing more than a collection of individual bonds. If you hold the fund long enough, the drop in value will be temporary. This is similar to holding a...
by pascalwager
Sun Aug 26, 2018 12:24 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Re: Bond Fund Redemptions

The answer to your concern is Duration. You should not hold a bond fund with a duration longer than the time you need to cash it in. A bond fund is nothing more than a collection of individual bonds. If you hold the fund long enough, the drop in value will be temporary. This is similar to holding a...
by pascalwager
Sat Aug 25, 2018 4:01 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 976

Bond Fund Redemptions

"TIPS are also highly sensitive to changes in prevailing interest rates. As a result, you could lose money if you sell a TIPS prior to its maturity. In this case, the loss of principal may far outweigh the benefit of inflation protection. If you intend to hold the bond until maturity, however, that ...
by pascalwager
Sun Aug 05, 2018 11:18 am
Forum: Investing - Theory, News & General
Topic: Vanguard Precious Metals and Mining Fund is changing
Replies: 77
Views: 8826

Re: Vanguard Precious Metals and Mining Fund is changing

Years ago, W Bernstein advised avoiding this fund when it began including base-metal mining (iron, copper, lead, etc.).
by pascalwager
Sun Aug 05, 2018 10:50 am
Forum: Investing - Theory, News & General
Topic: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)
Replies: 737
Views: 69883

Re: Fidelity Files for two Fidelity ZERO℠ Funds (0.00% ER total stock and total international mutual funds)

I have about $60,000 in a Vanguard taxable account, in vtsax. This is my only taxable mutual fund investment. I'm going to give it about 1 month, for Vanguard to respond. That should be enough time, don't you guys think? At that time, I'm moving this entire modest taxable account to Fidelity. 0.00%...
by pascalwager
Thu Aug 02, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: Interesting Take on the 3 Fund Model
Replies: 66
Views: 3164

Re: Interesting Take on the 3 Fund Model

1/3 in REIT index, 1/3 in Utilities Index, 1/3 in Blue Chips. A dividend-heavy long term plan for tax free accounts. Thoughts? In the absence of actual dividends, you could simply sell, say, 2% of your more growth oriented equity shares and thereby create your own dividends. This might even confer ...
by pascalwager
Thu Aug 02, 2018 2:42 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4586

Re: Larry Swedroe: Size Factor Not Dead

The DFA advisor fee is a variable that is different for different investors. Vanguard may have had fees to buy its funds in the 1980s but doesn't have any now when you go through its platform. PortfolioVisualiser only goes back to 1985, but comparing the two funds since Jan 1985 shows DFSCX had aro...
by pascalwager
Mon Jul 30, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: are bond funds worth the risk/reward right now?
Replies: 10
Views: 1264

Re: are bond funds worth the risk/reward right now?

I like to keep my bond funds overall duration at about 2.5 years. Then I also keep a big chunk in a MMF. I've learned from experience--and as a retiree especially--that I just don't handle duration risk well. So I avoid it.
by pascalwager
Mon Jul 30, 2018 8:21 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4586

Re: Larry Swedroe: Size Factor Not Dead

The DFA advisor fee is a variable that is different for different investors. Vanguard may have had fees to buy its funds in the 1980s but doesn't have any now when you go through its platform. PortfolioVisualiser only goes back to 1985, but comparing the two funds since Jan 1985 shows DFSCX had aro...
by pascalwager
Thu Jul 26, 2018 12:05 pm
Forum: Investing - Theory, News & General
Topic: Anyone find a better all-in-one bond fund than FTBFX?
Replies: 5
Views: 649

Re: Anyone find a better all-in-one bond fund than FTBFX?

Personally, I wouldn't even be curious about a bond fund that costs 45 basis points. Not when I can hold VBIRX or VSBSX (two short-term index funds) for a 7 basis points ER.
by pascalwager
Wed Jul 25, 2018 11:10 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Size Factor Not Dead
Replies: 46
Views: 4586

Re: Larry Swedroe: Size Factor Not Dead

I've held DFA US Microcap (DFSCX) (deciles 9 and 10) since July 1995, so I did a check tonight on M* charts. Ten thousand dollars grew to $113,087 compared to $78,070 for the S&P 500 (large cap). Of course, my portfolio was re-balanced quarterly, so my actual returns were smaller. But one could be t...
by pascalwager
Mon Jul 23, 2018 3:03 am
Forum: Investing - Theory, News & General
Topic: Bill Sharpe's preferred portfolio
Replies: 128
Views: 26509

Re: Bill Sharpe's preferred portfolio

Closest Vanguard approximation would be VSMGX (60/40 Life Strategy). One could do a lot worse over 30-50 years. This may be someone's preferred portfolio, but the world portfolio may be something like 30/70 US/non-US in the future. In that case, would 60/40 still be a good approximation? Many US in...
by pascalwager
Wed Jul 18, 2018 10:02 pm
Forum: Personal Consumer Issues
Topic: Computer Clocks
Replies: 17
Views: 1666

Re: Computer Clocks

I went to the NIST system ("corrected for network time delay") at time.gov and my PC is right on the mark--to the second. At least for awhile.

Thanks for the ideas.