Search found 7085 matches

by Phineas J. Whoopee
Sun Jul 15, 2018 3:32 pm
Forum: Personal Finance (Not Investing)
Topic: Are Credit Cards Actually Convenient?
Replies: 32
Views: 1329

Re: Are Credit Cards Actually Convenient?

Yes, in my experience credit cards are convenient, and I never * buy anything using one I can't pay off when the bill comes. I had a card declined one time due to suspected fraud. The card issuer told me later they tried to phone me to verify it was legitimate. Although online they had my number, in...
by Phineas J. Whoopee
Sun Jul 15, 2018 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: How often do you buy a primary residence?
Replies: 35
Views: 2171

Re: How often do you buy a primary residence?

Once, so far. I didn't look for a "starter." I looked for a "finisher." I found one. Of course anything could happen to compel me to buy and move again. Perhaps if I eventually need assisted living it might make sense. Here's a post from three years ago about my original purchase reasoning, which I ...
by Phineas J. Whoopee
Sun Jul 15, 2018 12:01 pm
Forum: Investing - Theory, News & General
Topic: Why is leveraging property good but leveraging stocks bad?
Replies: 82
Views: 4950

Re: Why is leveraging property good but leveraging stocks bad?

... Excellent comments! Each sentence is a gem of its own. I love this part: "the return is lousy". That needs to be a required statement to be placed on top of every R/E and Mortgage Brokerage company sign! ReMAX Realty Housing is a Lousy Investment(TM). Presuming you or somebody else would pay th...
by Phineas J. Whoopee
Fri Jul 13, 2018 2:04 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 5027

Re: Home ownership vs investing -- condos vs renting, etc

danielc wrote:
Thu Jul 12, 2018 4:40 pm
Nate79 wrote:
Thu Jul 12, 2018 4:36 pm
Buyers almost never pay a commission. Sellers pay the commission.
That's interesting. Thanks, I did not know that. Ok, so 3.6% it is.
All the money that crosses the closing table originates from the buyer and if necessary the buyer's lender.

PJW
by Phineas J. Whoopee
Thu Jul 12, 2018 8:30 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 83
Views: 3109

Re: Advice on IT Certification program

OP, There are many possible jobs in the IT and Networking area. What is your kid's MBTI personality type? It could be useful for him/her to take the test. There should be a free test available online. KlangFool I recommend against using unproven, inconsistent, and subjective measures like the Myers...
by Phineas J. Whoopee
Thu Jul 12, 2018 8:15 pm
Forum: Investing - Theory, News & General
Topic: Yield Curve Inversions — Any Benefit from Market Timing?
Replies: 16
Views: 902

Re: Yield Curve Inversions — Any Benefit from Market Timing?

I've yet to see a market timing scheme that outperformed consistently over long periods. You had seen it. It is right in front of you. It is a fixed AA with buy, holds, and rebalancing. With a fixed AA and rebalancing, you always "buy low and sell high". It is the best market timing tool by not tim...
by Phineas J. Whoopee
Thu Jul 12, 2018 5:33 pm
Forum: Personal Consumer Issues
Topic: Advice on IT Certification program
Replies: 83
Views: 3109

Re: Advice on IT Certification program

Any graduate Computer Science program worth going through won't admit the fully-adult human being with a Bachelor's degree without a lot more preparation. I think the certification program would be more practical over the short term, but computing technology, both hardware and software, including en...
by Phineas J. Whoopee
Thu Jul 12, 2018 5:00 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using an ETF for TIPS investing
Replies: 10
Views: 916

Re: Thoughts on using an ETF for TIPS investing

If I may, to help readers who aren't already familiar with bogleheads.org jargon, David is referring to Series I Savings Bonds.
PJW
by Phineas J. Whoopee
Thu Jul 12, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: Questions about my perspective on bond funds
Replies: 13
Views: 886

Re: Questions about my perspective on bond funds

Increasing yields are good for bond investors, including those using funds, over longer periods of time, because bond returns come from coupons. Even in terrible-case scenarios it's good after about twice the duration, and we may not be in a terrible case.
PJW
by Phineas J. Whoopee
Thu Jul 12, 2018 4:39 pm
Forum: Personal Finance (Not Investing)
Topic: Credit score after becoming debt free?
Replies: 44
Views: 2833

Re: Credit score after becoming debt free?

As others have written paid-off mortgages and HELOCs stay on your reports for ten years. Not so long ago I had an entirely-predicted (by me) small reduction in credit score, as my loan fell off after the ten years. It still left me above 800. Generally anything above about 740, some sources say 760,...
by Phineas J. Whoopee
Thu Jul 12, 2018 4:09 pm
Forum: Investing - Theory, News & General
Topic: Can Inflation Timing Be Done?
Replies: 15
Views: 986

Re: Can Inflation Timing Be Done?

How could one reliably and repeatedly tell whether more inflation is "coming down the road?" Furthermore, how could one reliably and repeatedly tell that better than the other market participants?
PJW
by Phineas J. Whoopee
Thu Jul 12, 2018 3:38 pm
Forum: Investing - Theory, News & General
Topic: Yield Curve Inversions — Any Benefit from Market Timing?
Replies: 16
Views: 902

Re: Yield Curve Inversions — Any Benefit from Market Timing?

Reuters published an article about other possible indicators earlier today: Goodbye inverted yield curve? Fed looks for alternative signals to guide policy.

Please don't fail to take into account the intentionally-humorous Betteridge's law of headlines.

PJW
by Phineas J. Whoopee
Thu Jul 12, 2018 3:15 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 100
Views: 7383

Re: "Bonds are for Safety" ?

... And again I say...and so what? Your financial decision making should not be based on random market swings: that's called market timing. I'm an investor in the accumulation phase. My portfolio goes up and down by four or five figures all the time. Have I "lost" anything? Or gained anything, on a...
by Phineas J. Whoopee
Thu Jul 12, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

... I would suggest that the participants that are required to bid in order to maintain their status might simply put in a low bid that they don't want to be filled anyway. Hence low cover ratios can distort the market if it is below normal. Given that the bids are yields, not prices, with the lowe...
by Phineas J. Whoopee
Wed Jul 11, 2018 6:30 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 10
Views: 653

Re: Market cap weighting vs rebalancing

If one, and let's confine ourselves to US stock exchanges for the moment although the reasoning transfers to many other markets, adopts an allocation other than the cap-weighted market portfolio one can expect gross returns different from it. They may be higher or lower. The ones who get less have t...
by Phineas J. Whoopee
Wed Jul 11, 2018 5:29 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 100
Views: 7383

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

... I consider treasuries a different class entirely. In fact, S&P doesn't even have them rated AAA at the moment and hasn't for several years. They are AA+. Yes. That's right. Up until they stopped prospectuses for US Treasuries didn't mention political risk, but they did for any foreign holdings....
by Phineas J. Whoopee
Wed Jul 11, 2018 5:18 pm
Forum: Investing - Theory, News & General
Topic: Question About Interaction Between Buy & Sell Limit Orders
Replies: 5
Views: 375

Re: Question About Interaction Between Buy & Sell Limit Orders

What we call the market price is the most recent price at which a buyer and a seller agreed and traded. It's usually what mark-to-market accounting marks to. As I explain in my linked post most potential buyers, and most potential sellers, disagree over prices, and that's only the ones who are activ...
by Phineas J. Whoopee
Wed Jul 11, 2018 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: What rate of return are you using for retirement projections?
Replies: 89
Views: 7522

Re: What rate of return are you using for retirement projections?

Zero percent real.

Most likely it will wind up having been higher than that.

PJW
by Phineas J. Whoopee
Wed Jul 11, 2018 4:33 pm
Forum: Investing - Theory, News & General
Topic: Question About Interaction Between Buy & Sell Limit Orders
Replies: 5
Views: 375

Re: Question About Interaction Between Buy & Sell Limit Orders

This is a purely hypothetical scenario, for that reason it may not be actionable, but let's hope the moderators disagree. Let's say we are dealing with a stock that has extremely low trading volume. Person A places a limit order to sell 1 share of stock X at $100. Person B places a limit order to b...
by Phineas J. Whoopee
Wed Jul 11, 2018 3:41 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 10
Views: 653

Re: Market cap weighting vs rebalancing

Hi mlz. I see you just joined yesterday. Welcome. Optimization is quite a word. Seldom can one do that. You correctly note that in investing it's an impossibility in practice because we lack information about the future. A cap-weighted stock portfolio needs no rebalancing within itself, because as t...
by Phineas J. Whoopee
Wed Jul 11, 2018 3:30 pm
Forum: Personal Consumer Issues
Topic: Living above means until March 1st
Replies: 16
Views: 1999

Re: Living above means until March 1st

One could argue I live above my means every day except payday. I think for so short a period of time, as long as you have the resources to cover it it's a nonissue.
PJW
by Phineas J. Whoopee
Wed Jul 11, 2018 3:28 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 100
Views: 7383

Re: "Bonds are for Safety" ?

... It's only a "real loss" if you sell. If you buy and hold, and ride out the rough patches, and continue to invest, you are likely to come out ahead. I'm not going to lose sleep over a year or two or even three of paper losses on my TBM holdings. That's a pervasive notion which undermines financi...
by Phineas J. Whoopee
Tue Jul 10, 2018 7:29 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 5027

Re: Home ownership vs investing -- condos vs renting, etc

Fortunately for me, I didn't ask about KlangFool's. I asked about one's.
PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 7:24 pm
Forum: Investing - Help with Personal Investments
Topic: Big expense in 3 mo. Money now. Where to hide money?
Replies: 13
Views: 1507

Re: Big expense in 3 mo. Money now. Where to hide money?

jacoavlu wrote:
Tue Jul 10, 2018 6:57 pm
PJW how do you know OP is a physician? Maybe he’s in HVAC ;)
I guessed based on the username and the question. As you know, I do not in fact know.

PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 7:22 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6183

Re: Bucket Portfolio article by Christine Benz

No matter what one thinks is a bucket or is not a bucket, one owns the totality of what one owns. Thinking about it differently doesn't change that fundamental truth. True. But there is sometimes value in segregating assets e.g. an emergency fund, college funding for kids, etc. In retirement, that ...
by Phineas J. Whoopee
Tue Jul 10, 2018 7:14 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 5027

Re: Home ownership vs investing -- condos vs renting, etc

1) Are you willing to rent the same house as what you choose to buy? I would be willing to rent something comparable. I would like a small upgrade, and I understand that I might need to adjust the "rent" value accordingly. 2) Are you buying a house with PITI that is 20% to 30% cheaper than renting ...
by Phineas J. Whoopee
Tue Jul 10, 2018 7:13 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 5027

Re: Home ownership vs investing -- condos vs renting, etc

You actually lose money by buying a house instead of renting an apartment. So your assertion that buying reduces living costs is incorrect right off the bat. Buying a house is a lifestyle choice, not a financial one. Many people understand this and buy a house anyway. In this case it's not seen as ...
by Phineas J. Whoopee
Tue Jul 10, 2018 7:01 pm
Forum: Investing - Theory, News & General
Topic: Is Your Retirement Portfolio All-Weather?
Replies: 7
Views: 1283

Re: Is Your Retirement Portfolio All-Weather?

My portfolio is carefully tailored to my needs and to the risks I personally face. I don't know about the weather. Even the meteorologists have trouble beyond just a few days out. Tailors too.
PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 6:50 pm
Forum: Investing - Theory, News & General
Topic: Stock ETFs -- Should I look at the SEC yield, Distribution Yield, or TTM yield?
Replies: 22
Views: 955

Re: Stock ETFs -- Should I look at the SEC yield, Distribution Yield, or TTM yield?

With respect to US stocks and all, or nearly all, US stock funds, and the F in ETF stands for Fund, yield is irrelevant. If a stock or an ETF pays out, say, $1 per share, it's share price immediately drops by that amount because a share of stock plus one dollar is worth one dollar more than the very...
by Phineas J. Whoopee
Tue Jul 10, 2018 6:40 pm
Forum: Investing - Help with Personal Investments
Topic: Big expense in 3 mo. Money now. Where to hide money?
Replies: 13
Views: 1507

Re: Big expense in 3 mo. Money now. Where to hide money?

Exercise the discipline it took you to make it through med school and residency. That is, don't spend it on something else regardless of where it is.

For three months an, or combination of because of the large amount, FDIC-insured account is the best choice.

PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 5:32 pm
Forum: Investing - Theory, News & General
Topic: Bucket Portfolio article by Christine Benz
Replies: 85
Views: 6183

Re: Bucket Portfolio article by Christine Benz

No matter what one thinks is a bucket or is not a bucket, one owns the totality of what one owns. Thinking about it differently doesn't change that fundamental truth.
PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 100
Views: 7383

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

Empirical evidence, as well as reason, shows fixed income is persistently less volatile than equity.

Unless you give a precise definition of what you mean by the investment-world useless word safe, your question cannot be answered.

PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 5:10 pm
Forum: Investing - Theory, News & General
Topic: Six stocks make up 98% of S&P 500 gains in 2018
Replies: 71
Views: 8599

Re: Six stocks make up 98% of S&P 500 gains in 2018

As should normally be expected. Now, if you can reliably and repeatedly identify those few stocks in advance , without benefit of hindsight , you will be able to buy and sell the likes of me. But can you reliably and repeatedly identify the future top performers in advance? If so, congratulations. PJW
by Phineas J. Whoopee
Tue Jul 10, 2018 4:44 pm
Forum: Investing - Theory, News & General
Topic: Home ownership vs investing -- condos vs renting, etc
Replies: 108
Views: 5027

Re: Home ownership vs investing -- condos vs renting, etc

I wholeheartedly agree with danielc's position, and furthermore object to the idea that an investment isn't an investment unless one sells it for a price higher than one paid, that is, you find out whether it was an investment in the first place after its disposition. It's an example of the No True ...
by Phineas J. Whoopee
Mon Jul 09, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Roth Account
Replies: 4
Views: 391

Re: Roth Account

You'll get far more meaningful responses if you post in our Asking Portfolio Questions format. You can simply edit your first post using the button that looks like a pencil.
PJW
by Phineas J. Whoopee
Fri Jul 06, 2018 6:52 pm
Forum: Investing - Help with Personal Investments
Topic: Bond questions
Replies: 9
Views: 784

Re: Bond questions

What is the best bond funds/bond index funds to pick? I am already on the 3-fund portfolio. Why are there so many bond funds with differnt return rates? Just don't get it. Your question is a frequent one here. As long as you stick to intermediate-term, investment-grade, low-cost bond funds they wil...
by Phineas J. Whoopee
Fri Jul 06, 2018 1:55 pm
Forum: Investing - Help with Personal Investments
Topic: What’s the lowest risk investment to keep up with inflation?
Replies: 8
Views: 1485

Re: What’s the lowest risk investment to keep up with inflation?

stan1 wrote:
Fri Jul 06, 2018 1:51 pm
Phineas J. Whoopee wrote:
Fri Jul 06, 2018 1:49 pm
Where did you find 2.8% as the current rate of inflation?
PJW
https://www.bls.gov/news.release/cpi.nr0.htm

Last twelve months ending May, 2018; not seasonally adjusted.
Thank you.

PJW
by Phineas J. Whoopee
Fri Jul 06, 2018 1:28 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation once you reach your target
Replies: 42
Views: 2990

Re: Asset Allocation once you reach your target

This is what I did, and a couple of years later I answered some questions about it.

For the record, I think an age-based asset allocation will be far more practical for most people.

PJW
by Phineas J. Whoopee
Fri Jul 06, 2018 1:10 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17896

Re: Morningstar: prepare for a lost decade for U.S. stocks

OP, If you believe valuation matters, then, you should pick an active fund/stock. I put 40% of my portfolio into Wellington Fund for this reason. Or, you place your bet with Warren Buffett, BRK.A or BRK.B. KlangFool No, you should not do that. If you believe you can spot valuations, and you think s...
by Phineas J. Whoopee
Fri Jul 06, 2018 1:03 pm
Forum: Investing - Theory, News & General
Topic: Morningstar: prepare for a lost decade for U.S. stocks
Replies: 198
Views: 17896

Re: Morningstar: prepare for a lost decade for U.S. stocks

OP, If you believe valuation matters, then, you should pick an active fund/stock. I put 40% of my portfolio into Wellington Fund for this reason. Or, you place your bet with Warren Buffett, BRK.A or BRK.B. KlangFool No, you should not do that. If you believe you can spot valuations, and you think s...
by Phineas J. Whoopee
Fri Jul 06, 2018 12:50 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

I'm sorry nedsaid, but the Fed is only the lender of last resort for US banks. PJW Wow. I went directly to Fed sources to research. Congress back in Great Depression times gave the Federal Reserve Bank extraordinary powers to act during times of crisis. This authority goes beyond just US Banks. Ple...
by Phineas J. Whoopee
Thu Jul 05, 2018 11:33 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

I'm sorry nedsaid, but the Fed is only the lender of last resort for US banks. PJW Well, there was lending to at least some non-US banks https://www.smh.com.au/world/fed-lifts-lid-on-crisis-lending-to-nonus-banks-20101202-18hn8.html The Fed has lent to other banks, including central banks, but the ...
by Phineas J. Whoopee
Thu Jul 05, 2018 11:06 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

I'm sorry nedsaid, but the Fed is only the lender of last resort for US banks.
PJW
by Phineas J. Whoopee
Thu Jul 05, 2018 11:05 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

... PJW, If the primary dealers know that the Fed wants rates to rise, do yo think they might be nudged to raise their bids a bit? I don't know how that could happen given the fact the auctions are sealed-bid. Nobody knows what anybody else has bid, and even the Fed, which merely conducts the aucti...
by Phineas J. Whoopee
Thu Jul 05, 2018 2:33 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

Hi Doc. I understand where you're coming from. Yes, the references that don't include the words Primary Dealers are to institutions other than the Primary Dealers. If Bloomberg or Reuters, both of which aim their news at financial services professionals, meant Primary Dealers they would have said Pr...
by Phineas J. Whoopee
Thu Jul 05, 2018 1:51 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

.. It is highly unlikely that either of these factors had anything to do with lack of interest by the Primary Dealers at Monday's auction. Whether the lack of interest as due to the Fourth of July or the World Cup will be answered shortly if the lack of interests continues for the next several week...
by Phineas J. Whoopee
Thu Jul 05, 2018 1:27 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

... Yes, what you said is technically how the process works, thanks. However, what happens after the Primary Dealers purchased the Treasuries at auctions? Don't they sell them right back to other investors and also Fed in the "open market"? My understanding is that the Primary Dealers role in the a...
by Phineas J. Whoopee
Thu Jul 05, 2018 1:23 pm
Forum: Investing - Theory, News & General
Topic: Treasury Auction - Nobody Came: "Great T-Bill Massacre"
Replies: 145
Views: 11768

Re: Treasury Auction - Nobody Came: "Great T-Bill Massacre"

I think it is worth running through what happens when the Fed, as somebody above quoted somebody else, "creates money out of thin air." Most of the money in our economy, indeed in many economies, is created by banks as they lend. They create two things simultaneously: a bank deposit; and a debt. The...