Search found 7777 matches

by Phineas J. Whoopee
Fri Jan 18, 2019 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Ally CD rates - why is 12-month CD rate higher than 18-month CD?
Replies: 10
Views: 2187

Re: Ally CD rates - why is 12-month CD rate higher than 18-month CD?

A raise-the-rate CD includes an option. Options are valuable. Keep in mind the risk the issuer is taking. One shouldn't expect as high an APY on a CD with an option, as on a somewhat shorter CD without one.
PJW
by Phineas J. Whoopee
Fri Jan 18, 2019 3:01 pm
Forum: Investing - Theory, News & General
Topic: Gold ETF "Guarantee"
Replies: 12
Views: 539

Re: Gold ETF "Guarantee"

This information may be more basic than the question, but holding shares in a gold ETF does not entitle you to go to their door and receive physical gold in return for the shares, even if the ETF keeps all of it physical.
PJW
by Phineas J. Whoopee
Fri Jan 18, 2019 2:34 pm
Forum: Investing - Theory, News & General
Topic: Government shutdown and US Treasuries
Replies: 14
Views: 1959

Re: Government shutdown and US Treasuries

... If the US had a technical default on debt it would be on short term securities - those coming due. ... Technical default is a widely misused term. I won't speculate as to misusers' motivations. Any failure to pay interest or principal in full on time as originally agreed is default . There's no...
by Phineas J. Whoopee
Fri Jan 18, 2019 2:07 pm
Forum: Personal Finance (Not Investing)
Topic: [Wash sale concern - Are these stocks substantially identical?]
Replies: 45
Views: 1417

Re: [Wash sale concern - Are these stocks substantially identical?]

I think they're somewhat similar, but not substantially identical. As noted there has been no IRS ruling nor tax court decision. That said, I'd hate to become the subject of the test case. Close enough to each other should be good enough for an investor. Keep them low cost and holding the same basic...
by Phineas J. Whoopee
Thu Jan 17, 2019 3:53 pm
Forum: Personal Finance (Not Investing)
Topic: Savings Account Interest
Replies: 4
Views: 1019

Re: Savings Account Interest

If I may reinforce earlier answers, as long as you have enough earned income it doesn't matter where the new money originated. Each dollar is exactly like all the others and neither knows nor cares how it came into your possession.

In the words of some unknown sage, fish is fish.

PJW
by Phineas J. Whoopee
Thu Jan 17, 2019 3:45 pm
Forum: Investing - Help with Personal Investments
Topic: Why is my fund balance lower than my cost basis?
Replies: 4
Views: 745

Re: Why is my fund balance lower than my cost basis?

David is right. Reinvested distributions add to your cost basis just as if you had invested new money from any other source. That's all there is to it.
PJW
by Phineas J. Whoopee
Thu Jan 17, 2019 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Ever encountered a toxic advisor? How did you handle it?
Replies: 25
Views: 2993

Re: Ever encountered a toxic advisor? How did you handle it?

In a group employee meeting following a 401(k) sponsor change I had to ask several questions, finally narrowing it down to do there exist investments you will sell us within the 401(k) on which you personally earn a commission . He was pretty annoyed. My action was prompted when he answered a questi...
by Phineas J. Whoopee
Thu Jan 17, 2019 2:57 pm
Forum: Investing - Theory, News & General
Topic: Tributes to Jack Bogle
Replies: 88
Views: 6626

Re: Who Will Speak for US?

I'm afraid we have no remaining choice but to speak for ourselves.
PJW
by Phineas J. Whoopee
Thu Jan 17, 2019 2:36 pm
Forum: Personal Finance (Not Investing)
Topic: How long until we see negative ER funds?
Replies: 39
Views: 2439

Re: How long until we see negative ER funds?

Are we saying the risk of the fund manager lending securities is NOT a risk to the account holder? If it is a risk, would you be willing to pay a higher ER to reduce or eliminate lending? I understand that lending can boost acount holder returns, so I'm not picking a side, just genuinely asking wha...
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: 482

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: 365

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: 305

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: 49
Views: 5041

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: 49
Views: 5041

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: 63
Views: 4213

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: 4348

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: 1614

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: 49
Views: 5041

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: 4348

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: 792

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: 4348

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: 644

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: 3121

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: 335

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: 335

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: 49
Views: 5041

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: 49
Views: 5041

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: 49
Views: 5041

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: 49
Views: 5041

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: 1933

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: 2310

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: 6068

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: 8382

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: 6068

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: 6068

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: 6068

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: 2855

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: 2310

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: 2855

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: 924

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: 1747

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: 62
Views: 6789

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: 1747

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: 395

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: 1069

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: 644

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: 426

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: 1069

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...