Search found 7767 matches

by Phineas J. Whoopee
Tue Jan 15, 2019 2:59 pm
Forum: Investing - Help with Personal Investments
Topic: What is best strategy: Harvest Dividends or Sell shares?
Replies: 3
Views: 470

Re: What is best strategy: Harvest Dividends or Sell shares?

Hi, CarefulInvestor, and welcome to the forum. If you're going to spend the total amount of the dividends in either case you may as well not reinvest them. A frequent disagreement here is whether it's better to spend only dividends, or to sell shares as necessary to raise cash. In the end, ignoring ...
by Phineas J. Whoopee
Tue Jan 15, 2019 2:45 pm
Forum: Investing - Help with Personal Investments
Topic: Money market allocation
Replies: 2
Views: 345

Re: Money market allocation

Hi Bug. In a mixed portfolio there are higher-risk assets with higher potential (not guaranteed) returns, like equities, and lower-risk ones like bonds and cash. If you have an explicit cash slice in your asset allocation then indeed money market assets go in there. If you're simply splitting your a...
by Phineas J. Whoopee
Tue Jan 15, 2019 2:11 pm
Forum: Investing - Help with Personal Investments
Topic: VTIAX vs VXUS differences
Replies: 5
Views: 292

Re: VTIAX vs VXUS differences

Vanguard's Total International Stock Index Fund Admiral Shares , VTIAX, trades after market close. You're seeing Monday's closing net asset value. Vanguard's Total International Stock ETF , VXUS, trades continually throughout the day while US markets are open. You're seeing the most recent price at ...
by Phineas J. Whoopee
Tue Jan 15, 2019 2:01 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

^ Yes, that is what I meant.

It doesn't bother me if you and I disagree on something.

PJW
by Phineas J. Whoopee
Tue Jan 15, 2019 1:48 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

By all means buy a high-yield bond fund if that's your desire. Last decade's financial crisis has nothing to do with a decision today. You're justified in being skeptical of bond ratings, but that has always been the case, and everybody else knows it too. PJW I am struggling to see what your commen...
by Phineas J. Whoopee
Mon Jan 14, 2019 8:55 pm
Forum: Investing - Theory, News & General
Topic: How to avoid temptation to buy hot stocks or bitcoin?
Replies: 56
Views: 3648

Re: How to avoid temptation to buy hot stocks or bitcoin?

nyanchu021 wrote:
Mon Jan 14, 2019 7:44 pm
...
Do these media try to pursuade me to buy hot stocks or bitcoin?
No, they do not.

They try to persuade you to buy a Ford F-150. That's the business they're in.

PJW
by Phineas J. Whoopee
Mon Jan 14, 2019 8:38 pm
Forum: Investing - Theory, News & General
Topic: Medallion Signature guarantee?
Replies: 46
Views: 4320

Re: Medallion Signature guarantee?

I'm a bit confused over what Treasury Direct has ever needed a MSG for. I've sold paper bonds periodically since the mid 90's and never needed anything but a driver's license to the bank/credit union. I've sold literally hundreds of thousands of dollars of bonds....i and EE. Almost all were paper, ...
by Phineas J. Whoopee
Mon Jan 14, 2019 7:57 pm
Forum: Investing - Theory, News & General
Topic: Market cap weighting vs rebalancing
Replies: 16
Views: 1596

Re: Market cap weighting vs rebalancing

I'm still struggling with this same concept of the seeming discrepancy between the regularly stated best practice of determining asset class return, risk and correlation and then periodically rebalancing with the idea that for the equity portion of a portfolio I am then supposed to just use market ...
by Phineas J. Whoopee
Mon Jan 14, 2019 6:54 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

Also looks like you might get to see what happens in real time since PG&E just announced it would file for bankruptcy this morning... And their stock is down about 50% at the moment. In a capital structure reorganization shareholders are last in line to be paid. Frequently there's nothing left afte...
by Phineas J. Whoopee
Sun Jan 13, 2019 7:54 pm
Forum: Investing - Theory, News & General
Topic: Medallion Signature guarantee?
Replies: 46
Views: 4320

Re: Medallion Signature guarantee?

Sure. I was responding to Elena's question about electronic Series I Savings Bonds.
PJW
by Phineas J. Whoopee
Sun Jan 13, 2019 6:59 pm
Forum: Personal Consumer Issues
Topic: ID during International Travel
Replies: 14
Views: 778

Re: ID during International Travel

I like a photocopy of the identification page. There's a new-ish option, a passport card , which is only good for land or sea travel within certain parts of North America and associated islands, but US law specifies it as incontrovertible evidence of citizenship. That could be something to carry whe...
by Phineas J. Whoopee
Sun Jan 13, 2019 6:38 pm
Forum: Investing - Theory, News & General
Topic: Medallion Signature guarantee?
Replies: 46
Views: 4320

Re: Medallion Signature guarantee?

Treasury Direct did not require a medallion signature guarantee. There were a number of options. I certainly encountered ignorance at my bank when I tried to link my checking account. It was as if measures between notarization (not enough) and medallion (very considerably more than enough) didn't ex...
by Phineas J. Whoopee
Sun Jan 13, 2019 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term bond allocation
Replies: 8
Views: 630

Re: Short-term bond allocation

Vanguard's Total Bond Market Index Fund, VBMFX, includes short- medium- and long-term bonds. Average duration, looked up today, is 6 years.

I don't know what you will be most comfortable with, but you already have a substantial short-term stake.

PJW
by Phineas J. Whoopee
Sun Jan 13, 2019 11:43 am
Forum: Investing - Help with Personal Investments
Topic: Fidelity problems and what is substantially similar
Replies: 24
Views: 3092

Re: Fidelity problems and what is substantially similar

According to portfoliovisualizer.com, the total US funds have a 1.0 correlation and the total international funds have a .99 correlation. By that measure, they seem substantially identical. Read the hundreds of discussions about "substantially identical" here on the forum - I think you'll find you'...
by Phineas J. Whoopee
Sat Jan 12, 2019 1:25 pm
Forum: Investing - Theory, News & General
Topic: fed funds rate effect bond funds?
Replies: 8
Views: 328

Re: fed funds rate effect bond funds?

Thank you for clarifying my remarks.
PJW
by Phineas J. Whoopee
Sat Jan 12, 2019 1:21 pm
Forum: Investing - Theory, News & General
Topic: fed funds rate effect bond funds?
Replies: 8
Views: 328

Re: fed funds rate effect bond funds?

There are three problems, all due to oversimplifications. The first is the Fed only sets the Federal Funds Rate, as you said, the target for overnight loans between creditworthy banks adjusting their bank reserves to conform with regulations. Another is the Fed does not set bond yields at all. A fre...
by Phineas J. Whoopee
Sat Jan 12, 2019 1:01 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

Perhaps my business idea from several years ago would be apropos.
PJW
by Phineas J. Whoopee
Fri Jan 11, 2019 6:43 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

By all means buy a high-yield bond fund if that's your desire. I think you are missing my point. Let me ask you this - what wisdom descends from heaven , moving a child of 17 years and 364 days, to a person mature enough to vote the next day? None that I know of. It is an arbitrary line drawn in th...
by Phineas J. Whoopee
Fri Jan 11, 2019 5:32 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

By all means buy a high-yield bond fund if that's your desire. Last decade's financial crisis has nothing to do with a decision today. You're justified in being skeptical of bond ratings, but that has always been the case, and everybody else knows it too.
PJW
by Phineas J. Whoopee
Fri Jan 11, 2019 5:16 pm
Forum: Investing - Theory, News & General
Topic: PG&E Bonds
Replies: 48
Views: 4734

Re: PG&E Bonds

The bond gets droped by the index, then the fund has to sell. It is a valid criticism of bond index funds. As opposed to spending money trying to recover some portion of the value in bankruptcy court. Occasionally that results in bondholders receiving equity in the reorganized company. Equities in ...
by Phineas J. Whoopee
Fri Jan 11, 2019 5:08 pm
Forum: Personal Consumer Issues
Topic: NYC restaurant hidden gems?
Replies: 25
Views: 1921

Re: NYC restaurant hidden gems?

I'm not sure what you're into, OP, but elevator shaft restaurants are a thing and are authentic. A fine dining experience they are not. The time to visit is for lunch.
PJW
by Phineas J. Whoopee
Fri Jan 11, 2019 4:35 pm
Forum: Personal Finance (Not Investing)
Topic: How do you manage credit card use with monthly budget
Replies: 37
Views: 2291

Re: How do you manage credit card use with monthly budget

aristotelian wrote:
Thu Jan 10, 2019 3:32 pm
...
Unfortunately, whatever app or tracking system you use will not impact your actual level of spending.
You're talking about me personally? Fish is fish.

PJW
by Phineas J. Whoopee
Thu Jan 10, 2019 5:40 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6042

Re: Building Wealth Through Home Equity--Myth or Reality?

That may be true but I'm about to do the opposite: 1) buy 350k house on 15yr mortgage at $2400/mo payment. I do not want to do a 30-year mortgage. 2) rent a house valued at 425k for $1800/mo, and save $600/mo extra into a MM account in this case I am favoring option 2. I will be renting a house I c...
by Phineas J. Whoopee
Thu Jan 10, 2019 5:09 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]
Replies: 145
Views: 8344

Re: [Vanguard to stop accepting purchases in Leveraged or Inverse mutual funds]

Is Vanguard going to stop options trading and margin next ? It's hard to keep a consistent message when you ban inverse and leveraged ETFs but allow options and margin. It's a slippery slope. It's the thin edge of the wedge. What's next? Cats and dogs getting along? To be serious, there is no ban. ...
by Phineas J. Whoopee
Thu Jan 10, 2019 4:36 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6042

Re: Building Wealth Through Home Equity--Myth or Reality?

The correct financial comparison is renting or buying an equivalent dwelling. Of course each is unique, so the real comparison is renting or buying the very same space. PJW, Okay. So, what do you call folks that never intended to rent a 3,400 square feet single family home but use that rent to just...
by Phineas J. Whoopee
Thu Jan 10, 2019 3:42 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6042

Re: Building Wealth Through Home Equity--Myth or Reality?

The building wealth through home equity trope isn't based on property appreciation at all, I'm afraid. The idea is one borrows money to buy the dwelling, then gradually pays it back using a self-amortizing schedule. The loan and the resulting home are equivalent. Borrow $80,000 and put down $20,000 ...
by Phineas J. Whoopee
Thu Jan 10, 2019 3:27 pm
Forum: Personal Finance (Not Investing)
Topic: Building Wealth Through Home Equity--Myth or Reality?
Replies: 94
Views: 6042

Re: Building Wealth Through Home Equity--Myth or Reality?

... bberris, That is another major myth/lie. Very few folks buy the same house as the house they rent. They upsize the house. Then, they kid themselves that they make money from the appreciation. I buy a house because the PITI is 20% to 30% lower than the rent that I will be paying for the same hou...
by Phineas J. Whoopee
Thu Jan 10, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: Your Vanguard Page
Replies: 32
Views: 2847

Re: Your Vanguard Page

lostdog wrote:
Thu Jan 10, 2019 9:58 am
Once a week. I call them "Finance Fridays". Do the bills and such.
I do it too. My term is "Weekly Financials."

I call my more frequent checking checks "Daily Financials."

PJW
by Phineas J. Whoopee
Wed Jan 09, 2019 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: How do you manage credit card use with monthly budget
Replies: 37
Views: 2291

Re: How do you manage credit card use with monthly budget

My credit card use is subsumed within my overall spending plan. Whatever I spend, whether in physical cash, or by check (although that's very seldom), or by debit card (although I never do that if I can avoid it, but a new laundry contractor in the building has forced things a little), or by credit ...
by Phineas J. Whoopee
Wed Jan 09, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: Your Vanguard Page
Replies: 32
Views: 2847

Re: Your Vanguard Page

Once a week, to be sure we agree because if we don't the time to take action is now, and to practice my login credentials so I don't forget them. I'm not tempted to buy or sell. I use my preset rebalancing band for that decision.
PJW
by Phineas J. Whoopee
Wed Jan 09, 2019 5:45 pm
Forum: Investing - Theory, News & General
Topic: Why did RAD stock fall so much?
Replies: 15
Views: 920

Re: Why did RAD stock fall so much?

Theory A: "Nobody knows nuttin'." I believe that theory. (It's a reference to one of Jack Bogle's stories, in which he says it was the best investing advice he ever got). Theory B: Those who talk don't know, and those who know don't talk. And that's a reference to Master Lao. See section 56. There ...
by Phineas J. Whoopee
Wed Jan 09, 2019 5:30 pm
Forum: Investing - Theory, News & General
Topic: Portfolio of Leveraged Exchange Traded Funds
Replies: 33
Views: 1735

Re: Portfolio of Leveraged Exchange Traded Funds

ThrustVectoring wrote:
Wed Jan 09, 2019 5:19 pm
Leverage is leverage, and levered ETFs aren't the cheapest source of leverage. ...
A daily, or even monthly, double return ETF is nothing like borrowing to buy an index ETF. Leverage is not all the same.

PJW
by Phineas J. Whoopee
Wed Jan 09, 2019 5:26 pm
Forum: Investing - Help with Personal Investments
Topic: Why isn't an AA of 75/25 with a SWR 3.75% the standard??
Replies: 60
Views: 6233

Re: Why isn't an AA of 75/25 with a SWR 3.75% the standard??

Because over a period of decades it's overly precise. Four percent, if one uses that for planning purposes, is precise to one part in one hundred. 3.75% is precise to one part in ten thousand.
PJW
by Phineas J. Whoopee
Wed Jan 09, 2019 5:12 pm
Forum: Investing - Theory, News & General
Topic: Portfolio of Leveraged Exchange Traded Funds
Replies: 33
Views: 1735

Re: Portfolio of Leveraged Exchange Traded Funds

I disagree. Most people leverage. For example everybody having loans and investments at the same time. The question is not about leverage in general. It's about the specific workings of leveraged and inverse ETFs , which do not operate the way one might expect based only on their names. From time t...
by Phineas J. Whoopee
Tue Jan 08, 2019 7:47 pm
Forum: Investing - Theory, News & General
Topic: How do you determine appropriate AA?
Replies: 3
Views: 390

Re: How do you determine appropriate AA?

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 more practical to implement for most investors.

PJW
by Phineas J. Whoopee
Tue Jan 08, 2019 2:34 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1062

Re: VMMXX - Interest or Dividend Tax?

Ah, got it - so, basically there are no money market funds that are considered qualified dividends, correct? Even without my having fully detailed knowledge about every money market mutual fund that exists, I'm comfortable saying yes that's correct. There are tax-exempt money market funds that inve...
by Phineas J. Whoopee
Tue Jan 08, 2019 2:03 pm
Forum: Personal Finance (Not Investing)
Topic: Tax form availability - draft status
Replies: 7
Views: 640

Re: Tax form availability - draft status

With the partial government shutdown 88% of IRS staff have been furloughed. I wouldn't expect much in terms of finalizing form 5695 until the situation is resolved, and even then the employees will have a backlog to work through.
PJW
by Phineas J. Whoopee
Mon Jan 07, 2019 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: High Yield TIPS Bill
Replies: 5
Views: 423

Re: High Yield TIPS Bill

Hi, I am a beginner investor who just opened his first Merrill Edge account and was just browsing around when I notice a 1 year TIPS bill with a 4.4% Yield to Worst/Maturity. This boggled my mind because it is an inflation protected instrument so I would expect the yield to be low. I see that the c...
by Phineas J. Whoopee
Mon Jan 07, 2019 4:24 pm
Forum: Investing - Theory, News & General
Topic: VMMXX - Interest or Dividend Tax?
Replies: 10
Views: 1062

Re: VMMXX - Interest or Dividend Tax?

If I may add, mutual funds in the US (the only jurisdiction about which I have reasonable knowledge) are organized as corporations, and the money corporations pay their owners is called dividends. Congress didn't get confused when writing tax law. Money market mutual fund dividends are treated the s...
by Phineas J. Whoopee
Sun Jan 06, 2019 9:18 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone affected by the government shutdown?
Replies: 35
Views: 2984

Re: Anyone affected by the government shutdown?

TheHouse7 wrote:
Sun Jan 06, 2019 9:10 pm
Sorry about my ignorance, once the shutdown is over won't everyone get paid in full for "working for free"?
...
Only if Congress creates specific legislation saying so, including or not for furloughed employees, and the [(removed) --admin LadyGeek] president doesn't veto it.

PJW
by Phineas J. Whoopee
Sun Jan 06, 2019 3:27 pm
Forum: Investing - Theory, News & General
Topic: Avoid rebalancing between risky assets. Let bulls run.
Replies: 33
Views: 2760

Re: Avoid rebalancing between risky assets. Let bulls run.

... Ok. So clearly the return, risk, and risk-adjusted return are dominated by the market and the asset classes. But to the extent that rebalancing makes any difference at all, yearly rebalancing seems harmful , while a very wide rebalancing "band" of 10-15% seems to often increase returns slightly...
by Phineas J. Whoopee
Sun Jan 06, 2019 3:18 pm
Forum: Investing - Theory, News & General
Topic: How do you view a savings surplus in retirement?
Replies: 117
Views: 5913

Re: How do you view a savings surplus in retirement?

Dude, if you want to spend more then spend more. It's up to you.
PJW
by Phineas J. Whoopee
Sun Jan 06, 2019 3:16 pm
Forum: Personal Finance (Not Investing)
Topic: Do you take inheritance into account when calculating net worth?
Replies: 68
Views: 4484

Re: Do you take inheritance into account when calculating net worth?

No. Any of us could die of anything at any time.

I might die first.

PJW
by Phineas J. Whoopee
Sat Jan 05, 2019 9:59 pm
Forum: Investing - Theory, News & General
Topic: Total Investing Risk
Replies: 18
Views: 1451

Re: Total Investing Risk

Risk, in a sort of hand-wavy way, depends, I think, on what one is trying to accomplish. It isn't necessarily the conventional mathematical definition. My investing mission statement, which seems simple but took ever so long to formulate, and then still longer to express compactly, is: To meet my fu...
by Phineas J. Whoopee
Sat Jan 05, 2019 9:40 pm
Forum: Investing - Help with Personal Investments
Topic: comparing SEC yield with CD rates and consolidating to Vanguard fixed income
Replies: 2
Views: 395

Re: comparing SEC yield with CD rates and consolidating to Vanguard fixed income

simpleguy123 wrote:
Sat Jan 05, 2019 4:05 pm
...
Am I correct in my understanding that the SEC yield is directly comparable with bank/CD rate?
...
They don't measure precisely the same thing, but yes, if you're going to compare one to another, then SEC yield and APY of the CD are the numbers to look at.

PJW
by Phineas J. Whoopee
Sat Jan 05, 2019 8:55 pm
Forum: Investing - Help with Personal Investments
Topic: Which bond fund in 401(k)?
Replies: 4
Views: 463

Re: Which bond fund in 401(k)?

The closest to plain vanilla among them, which I think nobody could fault you for choosing, is intermediate Treasury. Nobody knows today which of them will result in the highest return over any chosen period of time in the future. Some may have higher expected returns, but actual results are highly ...
by Phineas J. Whoopee
Sat Jan 05, 2019 8:38 pm
Forum: Investing - Theory, News & General
Topic: Long bonds and duration risk and market efficiency
Replies: 47
Views: 2186

Re: Long bonds and duration risk and market efficiency

There are institutional investors, such as the frequently-cited insurance companies, endowments, and pension funds, which have fairly good ideas about how much money they will need and when. They're prime candidates to buy longer-term investment-grade bonds. PJW That would be my answer as well for ...
by Phineas J. Whoopee
Sat Jan 05, 2019 7:55 pm
Forum: Investing - Theory, News & General
Topic: Confessions of a broke financial advisor
Replies: 5
Views: 2102

Re: Confessions of a broke financial advisor

I have not conducted a survey, but I don't see very good reason to believe people in certain occupations are immune from poor debt choices and poor personal financial planning.

Overconfidence exists in every part of our economy. I didn't say it's universal. I said it exists.

PJW
by Phineas J. Whoopee
Sat Jan 05, 2019 7:42 pm
Forum: Investing - Theory, News & General
Topic: Long bonds and duration risk and market efficiency
Replies: 47
Views: 2186

Re: Long bonds and duration risk and market efficiency

HEDGEFUNDIE wrote:
Fri Jan 04, 2019 11:22 pm
...
Combine this with my point #2 above and I don’t see how you can say with confidence that these funds are piling into the long end of the yield curve.
Fortunately for me, at least, HEDGEFUNDIE, I wrote no such thing, not in my post you quoted nor anywhere else.

PJW