Search found 7291 matches

by Phineas J. Whoopee
Sun Sep 23, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: New immigrant with complicated situation
Replies: 8
Views: 629

Re: New immigrant with complicated situation

I am puzzled by your receiving Medicaid within the first year of immigrating to the U.S. How did the NY state decide to waive the customary 5-year waiting period? ... New York State, in part because of a decision by its Court of Appeals , the highest state court, provides a Medicaid equivalent for ...
by Phineas J. Whoopee
Sat Sep 22, 2018 4:55 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice
Replies: 48
Views: 4791

Re: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice

... When the settlement funds were changed to Vanguard's Federal Money Market fund, I just got rid of all our Vanguard Prime Money Market funds. I do give up a bit of return, but because I try to stay fully invested, the real difference is negligible. I much prefer the simplicity of fewer accounts ...
by Phineas J. Whoopee
Sat Sep 22, 2018 2:15 pm
Forum: Investing - Help with Personal Investments
Topic: Starting Fidelity Roth IRA
Replies: 13
Views: 894

Re: Starting Fidelity Roth IRA

FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio). If FSTVX is your goal, just invest. I believe that takes effect in early November . It isn't an investing issue, just a matter of helping OP with realistic expectations. P...
by Phineas J. Whoopee
Sat Sep 22, 2018 1:58 pm
Forum: Investing - Help with Personal Investments
Topic: Stable Value Similat to What Bond Fund
Replies: 9
Views: 726

Re: Stable Value Similat to What Bond Fund

For the record, there are two types of stable value funds. The first is entirely dependent on the claims-paying ability of an insurance company. Should it not be able to pay, admittedly an unlikely situation, the SVF becomes an unsecured creditor in bankruptcy court. The other owns underlying shorte...
by Phineas J. Whoopee
Sat Sep 22, 2018 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice
Replies: 48
Views: 4791

Re: Ally Savings vs Vanguard Prime Money Market Fund - Need Advice

Alliteration always amplifies, but the alliterative break the buck isn't the only issue. I agree most prime money market funds, including Vanguard's Prime Money Market Fund , VMMXX, are unlikely to encounter these restrictions, but they're subject to them. That motivated Vanguard to change their bro...
by Phineas J. Whoopee
Sat Sep 22, 2018 1:20 pm
Forum: Investing - Help with Personal Investments
Topic: Still haven't made sense of this 50-50 AA situation
Replies: 9
Views: 1299

Re: Still haven't made sense of this 50-50 AA situation

For a more detailed description of grabiner's point, which is correct, you might want to read our wiki article Placing cash needs in a tax-advantaged account. You can retain tax efficiency and at the same time maintain asset allocation.
PJW
by Phineas J. Whoopee
Sat Sep 22, 2018 1:10 pm
Forum: Investing - Help with Personal Investments
Topic: Starting Fidelity Roth IRA
Replies: 13
Views: 894

Re: Starting Fidelity Roth IRA

FSTVX no longer has a minimum to invest. FZROX is a similar FIdelity fund that has no minimum to invest (and no expense ratio). If FSTVX is your goal, just invest. I believe that takes effect in early November . It isn't an investing issue, just a matter of helping OP with realistic expectations. PJW
by Phineas J. Whoopee
Sat Sep 22, 2018 12:34 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

... Does this get more complicated with a balanced fund since here you have equities and bonds? I beleive the nav does change with a balanced fund when a dividend distribution is made. Is that just from the equity side? thanks I believe the answer must be yes, but we've gone beyond my specific know...
by Phineas J. Whoopee
Fri Sep 21, 2018 9:19 pm
Forum: Investing - Theory, News & General
Topic: Is there any difference? (Re-balancing AA)
Replies: 14
Views: 1008

Re: Is there any difference? (Re-balancing AA)

fortfun wrote:
Fri Sep 21, 2018 9:05 pm
...
Thanks PJW. So, when you buy total index bonds, you are buying some new, middle aged, and old bonds? Than you.
Yes, that's correct.

PJW
by Phineas J. Whoopee
Fri Sep 21, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: Is there any difference? (Re-balancing AA)
Replies: 14
Views: 1008

Re: Is there any difference? (Re-balancing AA)

... To me, buy and hold means to buy a portfolio and hold it, adding to, drawing from, and maintaining it as necessary. It does not mean something as simplistic and literal as never exchange components within the portfolio to preserve its original design. My unit of measure is the portfolio as a wh...
by Phineas J. Whoopee
Fri Sep 21, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Is there any difference? (Re-balancing AA)
Replies: 14
Views: 1008

Re: Is there any difference? (Re-balancing AA)

"Buy and hold" really just means "don't sell for any reason other than rebalancing, tax loss harvesting, or retirement." Yeah? To me, selling for any reason means you didn’t buy and hold, you bought and sold some. ... To me, buy and hold means to buy a portfolio and hold it, adding to, drawing from...
by Phineas J. Whoopee
Fri Sep 21, 2018 2:39 pm
Forum: Investing - Theory, News & General
Topic: A bump on the road from active to passive
Replies: 24
Views: 2206

Re: A bump on the road from active to passive

HEDGEFUNDIE wrote:
Fri Sep 21, 2018 7:47 am
...
Index fund investing is a psychological defense mechanism against regret, which to be fair is a big driver of poor investment decision making.
Quite the subtle argument.

Index fund investing is acknowledgement of basic arithmetic.

PJW
by Phineas J. Whoopee
Thu Sep 20, 2018 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Im going to die somewhere between Bankruptcy and $20 million
Replies: 31
Views: 6014

Re: Im going to die somewhere between Bankruptcy and $20 million

The longer the time horizon the greater the dispersion of potential financial outcomes. That's all there is to that.

Save, invest, stick to your plan, and each of us will die eventually.

PJW
by Phineas J. Whoopee
Thu Sep 20, 2018 8:52 pm
Forum: Investing - Help with Personal Investments
Topic: Dollar cost average funds being transferred to new retirement account?
Replies: 24
Views: 1487

Re: Dollar cost average funds being transferred to new retirement account?

If you were not changing custodians, would you sell everything, go to cash, then gradually buy back in to your current allocation where your account already is? I am not changing custodians. Should I sell everything, go to cash, then gradually buy back in to my chosen allocation? If the answer is no...
by Phineas J. Whoopee
Thu Sep 20, 2018 8:42 pm
Forum: Personal Finance (Not Investing)
Topic: ACA subsidy question
Replies: 3
Views: 404

Re: ACA subsidy question

For clarification...If I estimate income above the income cut off and don't receive any subsidies during 2019 to lower my premiums(policy bought on my state exchange), I can still reconcile on my taxes in April of 2020 and receive the full subsidy? Yes, if you fill out the forms properly you will r...
by Phineas J. Whoopee
Thu Sep 20, 2018 5:24 pm
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 54
Views: 7482

Re: Are We Headed For A Passive Index Meltdown?

And if I may add to nisi's point, a great one about small sectors, it is to be expected that some active funds will return more than the relevant comparison index every year. The difficulty is predicting in advance which ones will. Of course somebody somewhere will have an active fund that returned ...
by Phineas J. Whoopee
Thu Sep 20, 2018 5:06 pm
Forum: Investing - Help with Personal Investments
Topic: Very Basic Investing Question on Portfolio Growth Day-to-Day
Replies: 3
Views: 449

Re: Very Basic Investing Question on Portfolio Growth Day-to-Day

... For example, let's say you have the $1000 in VGTSX. That index fund is up 0.82% today. So shouldn't that person now have $1008.20? This does not appear to be the case , am I missing something? Thanks for any clarification. Hi bullsdoc. The fund you mention, Vanguard's Total International Stock ...
by Phineas J. Whoopee
Thu Sep 20, 2018 4:40 pm
Forum: Investing - Theory, News & General
Topic: Are We Headed For A Passive Index Meltdown?
Replies: 54
Views: 7482

Re: Are We Headed For A Passive Index Meltdown?

What if everybody indexed?

Interestingly enough, the first search hit at this moment has to do with the Bogle quote the Forbes article leads with.

PJW
by Phineas J. Whoopee
Thu Sep 20, 2018 4:18 pm
Forum: Personal Finance (Not Investing)
Topic: ACA tax credits
Replies: 6
Views: 718

Re: ACA tax credits

Each year on one's tax return one reconciles the premium tax credit with what income turned out to be, so yes as stated above the total 2019 credit will be based on 2019 modified adjusted gross income in the end.
PJW
by Phineas J. Whoopee
Thu Sep 20, 2018 3:48 pm
Forum: Personal Finance (Not Investing)
Topic: Physical Banking - Any benefits anymore?
Replies: 129
Views: 6848

Re: Physical Banking - Any benefits anymore?

Secure physical storage, which is not available online and most people don't need, is specifically why I use brick and mortar.
PJW
by Phineas J. Whoopee
Thu Sep 20, 2018 3:40 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

... Thanks for all the detail very helpful. Question, I understand how the compnay recives money when it issues a bond, but it also recieves money when it sells a share of stock although without the obligation. Is that the key? Secondly, does the NAV drop in a bond fund when it pays interests ? Tha...
by Phineas J. Whoopee
Thu Sep 20, 2018 3:32 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

Thesaints wrote:
Wed Sep 19, 2018 6:09 pm
S_Track wrote:
Wed Sep 19, 2018 5:51 pm
Secondly, does the NAV drop in a bond fund when it pays interests?
Of course it does. In fact, the drop is even closer to the disbursed interest than for stocks.
Of course it does not, for most but not all bond funds, as I detailed in my post above.

PJW
by Phineas J. Whoopee
Wed Sep 19, 2018 3:03 pm
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 45
Views: 2384

Re: Why should bond duration = investment horizon?

... I happen to agree with you, but we are in the distinct minority here. I agree it's the minority, and I fully understand the reasoning. I disagree with the conclusion because it makes assumptions about the individual's financial circumstances each and every year for the next many years. Nobody l...
by Phineas J. Whoopee
Wed Sep 19, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: What is the risk in buying Purchased Money Funds?
Replies: 4
Views: 412

Re: What is the risk in buying Purchased Money Funds?

I can't tell if it's just legal boilerplate or a real risk? Things like Prime Money Funds (SWVXX), Govt Funds (SNVXX or SNOXX). I thought I read it was almost impossible to "break the buck" but of course everything says it's not a guarantee not to lose money. I've also got what I think is similar b...
by Phineas J. Whoopee
Wed Sep 19, 2018 2:17 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS yields good yet?
Replies: 15
Views: 1443

Re: Are TIPS yields good yet?

Of course people can ignore whatever they want to ignore. They can carry the bond fund on their books at its original NAV at purchase if they want.

I stated no hypothesis. I pointed out your non sequitur.

PJW
by Phineas J. Whoopee
Wed Sep 19, 2018 1:54 pm
Forum: Investing - Theory, News & General
Topic: Why should bond duration = investment horizon?
Replies: 45
Views: 2384

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 Phineas J. Whoopee
Wed Sep 19, 2018 1:38 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS yields good yet?
Replies: 15
Views: 1443

Re: Are TIPS yields good yet?

Nice, thanks for sharing. I'm wrapping my head around: are you saying you'd buy a 5-year TIPS and hold on to it for 5 years? Or some fund vehicle (where I guess the value can fluctuate)? The market values of directly-held bonds fluctuate just as much. People who don't want to believe it simply don'...
by Phineas J. Whoopee
Wed Sep 19, 2018 1:34 pm
Forum: Investing - Theory, News & General
Topic: Corporate debt bubble?
Replies: 13
Views: 1673

Re: Corporate debt bubble?

Ron Scott wrote:
Wed Sep 19, 2018 5:33 am
The markets, we are told, are efficient so debt issues are already baked into prices so...no problem.
Nobody has to accept the Efficient Market Hypothesis, in any of its weak, semi-strong, or strong forms, if they don't want to.

PJW
by Phineas J. Whoopee
Wed Sep 19, 2018 1:13 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS yields good yet?
Replies: 15
Views: 1443

Re: Are TIPS yields good yet?

Nice, thanks for sharing. I'm wrapping my head around: are you saying you'd buy a 5-year TIPS and hold on to it for 5 years? Or some fund vehicle (where I guess the value can fluctuate)? The market values of directly-held bonds fluctuate just as much. People who don't want to believe it simply don'...
by Phineas J. Whoopee
Wed Sep 19, 2018 12:40 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

... Stock dividends do not increase one's wealth. They don't work at all like bond interest, or like a savings account. Curious about this, why does bond interest differ from a dividend? Tax aside, don't both types of distrubutions reduce the NAV ? Hi S_Track, happy to help. Let's compare a share o...
by Phineas J. Whoopee
Tue Sep 18, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Equity in house / Do you use it?
Replies: 56
Views: 3306

Re: Equity in house / Do you use it?

In my neighborhood many homeowners with Home Equity Lines of Credit saw them cancelled, or converted to no more than they had outstanding at the time.

In 2009.

When they needed them.

PJW
by Phineas J. Whoopee
Mon Sep 17, 2018 6:13 pm
Forum: Investing - Theory, News & General
Topic: Equity in house / Do you use it?
Replies: 56
Views: 3306

Re: Equity in house / Do you use it?

Yes, although mine is an order of magnitude less than yours. I use mine to manage my monthly housing costs. Money one doesn't have to pay has exactly the same effect on the bottom line as money one takes in, after accounting for income tax. Paying only costs, but not profit to a landlord, is my divi...
by Phineas J. Whoopee
Mon Sep 17, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: Do vanguard tsm and 500 funds distribute capital gain?
Replies: 11
Views: 1241

Re: Do vanguard tsm and 500 funds distribute capital gain?

They can, yes. Usually they don't. It's an artifact of Vanguard's patented method to (not idea to) make ETF shares simply another share class of a mutual fund. ETFs have a built-in advantage with respect to capital gain distributions. There still may be some every now and then.
PJW
by Phineas J. Whoopee
Fri Sep 14, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Assets Held In Street Name
Replies: 52
Views: 1396

Re: Vanguard Brokerage Assets Held In Street Name

Vanguard Marketing Corporation holds no customer assets at all. The first sentence is just incorrect. VMC offers brokerage services as VBS. You can go confirm that they're aliases by looking at VMC's FINRA BrokerCheck Page (https://brokercheck.finra.org/firm/summary/7452). If that's not enough, her...
by Phineas J. Whoopee
Thu Sep 13, 2018 8:29 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Assets Held In Street Name
Replies: 52
Views: 1396

Re: Vanguard Brokerage Assets Held In Street Name

... I think my question was pretty clear, but I do not mind repeating - what is the total amount of assets held by Vanguard Brokerage Services aka Vanguard Marketing Corporation in street name? ... Vanguard Marketing Corporation holds no customer assets at all. It is owned by the constituent mutual...
by Phineas J. Whoopee
Thu Sep 13, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Index allocation question.
Replies: 13
Views: 736

Re: Index allocation question.

Thesaints wrote:
Thu Sep 13, 2018 7:51 pm
No. Just saying I don't have 50-year bonds in my portfolio.
The thread is about equities, not fixed income.

PJW
by Phineas J. Whoopee
Thu Sep 13, 2018 7:48 pm
Forum: Investing - Help with Personal Investments
Topic: Index allocation question.
Replies: 13
Views: 736

Re: Index allocation question.

If I may add, the boost, if there is one, comes over very long periods of time, perhaps decades. If one wants to use a tilting strategy one has to commit for the long term, and not get discouraged after a year or ten of underperformance relative to a cap-weighted approach. PJW People generally enjo...
by Phineas J. Whoopee
Thu Sep 13, 2018 7:43 pm
Forum: Investing - Help with Personal Investments
Topic: Index allocation question.
Replies: 13
Views: 736

Re: Index allocation question.

Without betraying the basic goal of using index funds and maintaining simplicity, would using more narrowly focused funds boost returns? Yes, some people here believe it would boost returns. It's called "slicing n' dicing" or "tilting". Typically one would overweight small caps and value stocks by ...
by Phineas J. Whoopee
Thu Sep 13, 2018 7:34 pm
Forum: Investing - Help with Personal Investments
Topic: treating all of investments as one asset allocation pool
Replies: 14
Views: 1363

Re: treating all of investments as one asset allocation pool

Hi OregonDucksFan, and welcome to the forum.

You might want to read this article from our wiki: Placing cash needs in a tax-advantaged account.

PJW
by Phineas J. Whoopee
Thu Sep 13, 2018 7:25 pm
Forum: Investing - Theory, News & General
Topic: Isn't cap weighting less diversified than equal weighting?
Replies: 72
Views: 2976

Re: Isn't cap weighting less diversified than equal weighting?

Well, everybody keeps yapping about how owning the entire U.S. market represents great diversification. If you own everything are maximally diversified. What exactly does that mean, anyway? Seems to me that if you own everything equally weighted, that's more diversified since you're putting an equa...
by Phineas J. Whoopee
Thu Sep 13, 2018 6:30 pm
Forum: Personal Finance (Not Investing)
Topic: Homeowner's Insurance - Price vs. Quality
Replies: 21
Views: 1563

Re: Homeowner's Insurance - Price vs. Quality

Beyond financial strength of the issuer, there also is a question of what each policy covers. Homeowners insurance policies are not a commodity product. Some may be more valuable to you than others, which could justify paying a higher price.
PJW
by Phineas J. Whoopee
Thu Sep 13, 2018 12:02 am
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

Dividend payouts directly diminish valuation, in both funds and individual stocks.[/url] There's no way to escape that a withdrawal is a withdrawal, even if the cash is immediately reinvested. Earnings growth is a genuine effect, but what if it can't go on forever ? PJW Dividends are part of your t...
by Phineas J. Whoopee
Wed Sep 12, 2018 10:12 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

... There is a well know formula that breaks future returns in terms of: dividend payout, earnings growth, changes in valuation. ... Dividend payouts directly diminish valuation, in both funds and individual stocks. There's no way to escape that a withdrawal is a withdrawal, even if the cash is imm...
by Phineas J. Whoopee
Wed Sep 12, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

Stein's law: If something cannot go on forever, it will stop.

That's one way to answer but what if it can't go on forever? We don't know what specific finite time less than forever it will turn out to be.

We have to play the hand we're dealt.

PJW
by Phineas J. Whoopee
Wed Sep 12, 2018 8:09 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

A global SHTF black Swan event such as a massive meteor strike or a global epidemic killing 1/3 of the Earth’s population could do it. I'm afraid, GrowthSeeker, that as defined by Taleb if you can conceive of it at all in advance it is not a black swan . You've already thought of those two things, ...
by Phineas J. Whoopee
Wed Sep 12, 2018 7:46 pm
Forum: Investing - Theory, News & General
Topic: Why do we expect TSM to keep growing?
Replies: 68
Views: 7216

Re: Why do we expect TSM to keep growing?

I notice you use the Universal We . You do not speak for the Individual Me . I am trying to manage the risk of running out of resources during my own personal lifetime, while continuing to lead a reasonable (to me) lifestyle. I do not expect TSM to keep growing. I'm using evidence and using stocks a...
by Phineas J. Whoopee
Wed Sep 12, 2018 4:19 pm
Forum: Investing - Help with Personal Investments
Topic: Bond fund with specific maturity dates
Replies: 5
Views: 336

Re: Bond fund with specific maturity dates

Hi Carterman32. Often people find bonds confusing. There are basic principles, but some bonds are more complicated. I'll suggest one of our wiki pages, then provide a brief introduction to Yield to Maturity, YTM. The wiki page is Bond basics . Often here misunderstandings boil down to people not rea...