Search found 6997 matches

by Phineas J. Whoopee
Tue Jun 19, 2018 4:33 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 13
Views: 1132

Re: Treasury Direct Question

I think I should add Treasury Bills, T-bills, those with a maturity of less than a year, like the one you bought, have no coupons. They're sold at a discount, with YTM working out the same, and at maturity yield just as if they had coupons.
PJW
by Phineas J. Whoopee
Tue Jun 19, 2018 4:18 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 13
Views: 1132

Re: Treasury Direct Question

The practice is Treasury security coupons are in multiples of 0.125% (that has a mildly interesting history which doesn't pertain to your question). If necessary, which it usually is, to fine tune the yield the securities are issued at a small premium or a small discount. Yield, which if not otherwi...
by Phineas J. Whoopee
Tue Jun 19, 2018 3:47 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 13
Views: 1132

Re: Treasury Direct Question

You, and the successful competitive bidders and all the noncompetitive bidders, get the highest rate accepted at the auction. The way it works is the Fed, which is not lending or borrowing money, just conducting an auction as one of the banking services it offers to the federal government, arranges ...
by Phineas J. Whoopee
Tue Jun 19, 2018 3:35 pm
Forum: Investing - Help with Personal Investments
Topic: Mutual Fund Dividends
Replies: 6
Views: 790

Re: Mutual Fund Dividends

I'm afraid you may not understand that stock prices, and therefore the net asset values of funds that hold stocks, fluctuate every market day. You're right that the dividend reduces the net asset value, as it must because individual stock dividends reduce their share prices, but there are many other...
by Phineas J. Whoopee
Mon Jun 18, 2018 3:12 pm
Forum: Investing - Theory, News & General
Topic: Basic Inflation Questions
Replies: 21
Views: 1055

Re: Basic Inflation Questions

We have some misinformation in this thread. First, here is the CPI-U and CPI-W basket of goods and services . It includes food and energy. There's a variant that does not, but it isn't the official number. At present CPI-W is used for Social Security Cost of Living Adjustments. Second, the way it is...
by Phineas J. Whoopee
Mon Jun 18, 2018 1:29 pm
Forum: Investing - Theory, News & General
Topic: What does it mean: Rule No. 1: Never lose money
Replies: 65
Views: 4873

Re: What does it mean: Rule No. 1: Never lose money

... Usually "never lose money" boils down to preservation of capital and simple mathematics: A 50% loss requires a 100% gain just to break even. A 30% loss requires a 42.86% gain to break even. A 10% loss requires only a 11.11% gain to break even. ... If I may help clarify for anybody who comes acr...
by Phineas J. Whoopee
Sun Jun 17, 2018 12:47 pm
Forum: Personal Consumer Issues
Topic: African Safari: Worth it or Hype?
Replies: 57
Views: 4395

Re: African Safari: Worth it or Hype?

Fourteen years ago I went to Tanzania for a week, on an organized wildlife-observation tour (plus Oldupai Gorge which I had long wanted to visit). It was my fourth of the seven continents. I've since visited the other three, an ambition I took up during the plane ride home. I was careful to trade of...
by Phineas J. Whoopee
Wed Jun 13, 2018 1:55 pm
Forum: Investing - Theory, News & General
Topic: Diversified portfolio but still too much Apple, Microsoft, etc.
Replies: 13
Views: 1425

Re: Diversified portfolio but still too much Apple, Microsoft, etc.

If the market portfolio is not diversified, then what is, and what definition are you using for the word diversified?
PJW
by Phineas J. Whoopee
Sun Jun 10, 2018 9:12 pm
Forum: Investing - Theory, News & General
Topic: Indexing will fail investors in next decade
Replies: 57
Views: 8838

Re: Indexing will fail investors in next decade

I like my odds with real estate by a mile since land is a finite commodity and they aren't making any more of it. Paper has no value, currency can be manipulated, printed, and created out of thin air in all sorts of ways. ... Presumably you're aware that what we think of as real estate ownership is...
by Phineas J. Whoopee
Sun Jun 10, 2018 9:09 pm
Forum: Investing - Theory, News & General
Topic: Yes, you can diversify a market portfolio
Replies: 190
Views: 9372

Re: Yes, you can diversify a market portfolio

Is it absolutely unavoidable that we argue about the definition of the word diversify again?
PJW
by Phineas J. Whoopee
Thu Jun 07, 2018 11:57 am
Forum: Investing - Help with Personal Investments
Topic: Help me pick my vanguard investment
Replies: 39
Views: 1725

Re: Help me pick my vanguard investment

detroitdiablo wrote:
Thu Jun 07, 2018 10:52 am
...
Thanks can't pass, so what would your choice be? Of the 4 with most aggressive and a stomach for high risk yet the main objective looking for the highest return?
The requirements you list contradict themselves over any finite time period, so no answer is possible.

PJW
by Phineas J. Whoopee
Thu Jun 07, 2018 11:50 am
Forum: Investing - Theory, News & General
Topic: Indexing will fail investors in next decade
Replies: 57
Views: 8838

Re: Indexing will fail investors in next decade

What do investors expect indexing will do? Only if it doesn't do that will it fail.
PJW
by Phineas J. Whoopee
Wed Jun 06, 2018 2:55 pm
Forum: Investing - Theory, News & General
Topic: vanguard fund that is the safest fund that is most likely to just keep up with inflation
Replies: 18
Views: 2477

Re: vanguard fund that is the safest fund that is most likely to just keep up with inflation

To me, it raises the issue of why the VG stable value fund is only available in (certain) 401k/403b plans and not for individual investors: https://retirementplans.vanguard.com/pe/pdfs/F4197.pdf EDIT: above not guaranteed to keep up with inflation.... Stable value funds may have serious liquidity i...
by Phineas J. Whoopee
Wed Jun 06, 2018 1:46 pm
Forum: Investing - Theory, News & General
Topic: Do bond funds lose value while CDs do not?
Replies: 31
Views: 3344

Re: Do bond funds lose value while CDs do not?

I think the OP may be referring to the way when a bond fund pays dividends it drops in value an equivalent amount. ... Most bond funds do not behave that way. Stock funds, and individual stocks themselves, do. For most, not all, bond funds dividends are declared daily and paid monthly, quarterly, o...
by Phineas J. Whoopee
Thu May 31, 2018 11:44 am
Forum: Investing - Help with Personal Investments
Topic: physical real estate as safe money
Replies: 11
Views: 1626

Re: physical real estate as safe money

Groucho Marx, for the movie Cocoanuts, wrote:... You can have any kind of a home you want. You can even get stucco. Oh, how you can get stucco. ...
PJW
by Phineas J. Whoopee
Mon May 21, 2018 2:14 pm
Forum: Investing - Theory, News & General
Topic: Is Vanguard anti-competitive?
Replies: 29
Views: 3130

Re: Is Vanguard anti-competitive?

New investor here. When you say that Vanguard is returning returns to the shareholders (i.e. its funds i.e. its fund holders) in the form of lower costs, does it not mean that it is avoiding paying corporate taxes on what would otherwise be treated as earnings? Is that not anti-competitive? Some of...
by Phineas J. Whoopee
Mon May 21, 2018 1:54 pm
Forum: Investing - Help with Personal Investments
Topic: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??
Replies: 16
Views: 1319

Re: Is Vanguard's Tax Managed Balanced Fund (VTMFX) truly passive/Index??

I don't understand the reason for the the hair-spitting here. Certainly the s&p 500 is by no means passive, yet an index based on it can be considered passively managed , so... where does that leave you? It's almost like people are wondering if a fund is "pure" enough to receive some sort of Bogleh...
by Phineas J. Whoopee
Sat May 19, 2018 3:38 pm
Forum: Personal Consumer Issues
Topic: Hot food flavoring (sauces, spices and peppers)
Replies: 51
Views: 3078

Re: Hot food flavoring (sauces, spices and peppers)

If I want some heat in soupy/stewy sorts of things, as long as they're going to simmer at least an hour I like to float one or more scrubbed but not chopped serrano peppers. They steep out their flavors like tea does. Using this method they should be removed before eating. Because not every fruit is...
by Phineas J. Whoopee
Sun May 06, 2018 6:27 pm
Forum: Personal Finance (Not Investing)
Topic: What career for smartest kid in the class?
Replies: 132
Views: 8333

Re: What career for smartest kid in the class?

Seems like "smart" is too narrow a characteristic to be deterministic. I was the smartest kind in the class by some measures, but also way too lazy to have gone through med school, too anti-authoritarian to do most business jobs, etc. And that's not even discussing the wide variety of skill sets, t...
by Phineas J. Whoopee
Sun May 06, 2018 5:54 pm
Forum: Personal Finance (Not Investing)
Topic: What career for smartest kid in the class?
Replies: 132
Views: 8333

Re: What career for smartest kid in the class?

If I were the smartest in the class, and I probably was until my family moved to a better school district, I would consider both intellectually and emotionally what I wanted to achieve, and create a path.

As things worked out what I wanted to achieve changed over time. I accomplished most of it.

PJW
by Phineas J. Whoopee
Wed May 02, 2018 7:01 pm
Forum: Personal Consumer Issues
Topic: Not Wasting Food
Replies: 60
Views: 3655

Re: Not Wasting Food

Never, having thawed food you bought on sale then froze to keep your overall costs lower than they would have been if you didn't buy on sale, find yourself feeling too ill to cook.
PJW
by Phineas J. Whoopee
Wed May 02, 2018 2:57 pm
Forum: Investing - Theory, News & General
Topic: Value tilted S&P 500 fund for dividend?
Replies: 45
Views: 2249

Re: Value tilted S&P 500 fund for dividend?

patrick13, what is an optimum dividend index? And when you've explained that, how can one reliably find them in advance, rather than after the fact?
PJW
by Phineas J. Whoopee
Wed May 02, 2018 2:35 pm
Forum: Investing - Theory, News & General
Topic: Value tilted S&P 500 fund for dividend?
Replies: 45
Views: 2249

Re: Value tilted S&P 500 fund for dividend?

I'm afraid, ChinchillaWhiplash, that stock dividends do not increase your wealth. After the corporation distributes a dividend investors won't pay as much for its shares. Their market value goes down by the amount of the dividend. The same happens with stock funds, whose values are based on their un...
by Phineas J. Whoopee
Tue May 01, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Isn't it expensive for a company to pay dividends? Not the dividend itself, but the mechanics.
Replies: 11
Views: 948

Re: Isn't it expensive for a company to pay dividends? Not the dividend itself, but the mechanics.

... Yes, good points. By "large" I meant large enough that the costs might be negligible, e.g. a company large enough or valuable enough to go public in the first place. But I didn't think about companies which borrow to pay dividends. Surely no company starts out declaring their first dividend, in...
by Phineas J. Whoopee
Mon Apr 30, 2018 11:09 am
Forum: Personal Consumer Issues
Topic: 3 days in London - must dos?
Replies: 31
Views: 1976

Re: 3 days in London - must dos?

I suggest visiting the ruins of St. Dunstan-in-the-East , a London church built originally around 1100, restored, modified, and rebuilt, then destroyed in World War Two. It's preserved as a memorial. I suggest spending at least a few minutes sitting on a bench in what used to be the pew area. Never ...
by Phineas J. Whoopee
Fri Apr 27, 2018 2:42 pm
Forum: Investing - Help with Personal Investments
Topic: Regarding Index Funds
Replies: 29
Views: 2816

Re: Regarding Index Funds

I completely agree that selling one beaten-down asset to buy another similarly beaten-down asset does not cause any sort of a problem. PJW Would it become a problem if an investor continually did something like this - that is, buy one fund, lose a little, sell at a loss and go with another similar ...
by Phineas J. Whoopee
Fri Apr 27, 2018 1:06 pm
Forum: Investing - Help with Personal Investments
Topic: Regarding Index Funds
Replies: 29
Views: 2816

Re: Regarding Index Funds

Stocks do not have principal. Principal is money somebody owes somebody else. With stocks nobody owes you nothing. You may be thinking of your original investment, but to think of stocks as if they are a certificate of deposit, which does have principal, is a serious error. I completely agree that s...
by Phineas J. Whoopee
Thu Apr 26, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: An Article Claiming Vanguard Will Be Responsible For The Next Bear Market
Replies: 29
Views: 4751

Re: An Article Claiming Vanguard Will Be Responsible For The Next Bear Market

... Blindly putting money into index funds would make the market rise instead of fall, I reckon? Yes, in precisely the same way that selectively investing the same amount in the stock market would make it rise instead of fall. IlliniDave got it right upthread. All these arguments by salespeople who...
by Phineas J. Whoopee
Wed Apr 25, 2018 8:34 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

... Sorry --- I was referring to Inbox788 's comment about needing separate lists for bill pay. Why can't spouses use a joint checking account and have either of them "pay bills" without creating two separate bill pay "lists"? "inbox788 wrote: ↑Wed Apr 25, 2018 7:46 pm I've frequently done this whe...
by Phineas J. Whoopee
Wed Apr 25, 2018 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

... Certainly retirement accounts are "individual" accounts. But regular taxable accounts, at least in every state I've ever lived in , can be "joint". EACH party has the right to access the information; each can withdraw money at the bank; each can write checks (which have both names on them, but ...
by Phineas J. Whoopee
Wed Apr 25, 2018 7:57 pm
Forum: Investing - Help with Personal Investments
Topic: Rising Interest and bond funds
Replies: 19
Views: 2182

Re: Rising Interest and bond funds

The overall expected return of a bond ladder would be exactly the same as an index fund which is a collection of bond ladders. With the ladder, you have no principal risk but you are locked into the lower yield of the original bond. With the index fund, you have principal risk but the yield rises a...
by Phineas J. Whoopee
Wed Apr 25, 2018 7:39 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

... I thought the joint account would retain the access to the survivor with regard to financial accounts as well as safe deposit boxes. Are you saying in some states this status changes when a party dies? I'm talking about joint ownership where either party has 100% rights to the account when both...
by Phineas J. Whoopee
Wed Apr 25, 2018 6:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

... Also, one of the ways people access deceased person's accounts is password sharing. Password sharing can void the fraud reimbursement guarantee of mutual fund and brokerage firms that have a guarantee. Thanks for the good additional thought. That's true even without anybody dying. It's always b...
by Phineas J. Whoopee
Wed Apr 25, 2018 6:29 pm
Forum: Personal Finance (Not Investing)
Topic: Social Security computing question
Replies: 12
Views: 1251

Re: Social Security computing question

Most future benefits calculations assume you will continue earning the same amount as you did the year before last until your claiming date. It seems as if that's not the case for you. After not having employment income, self or otherwise, for long enough, the assumption becomes that you continue to...
by Phineas J. Whoopee
Wed Apr 25, 2018 5:42 pm
Forum: Investing - Help with Personal Investments
Topic: 40/60 Balanced Index ?
Replies: 10
Views: 1290

Re: 40/60 Balanced Index ?

All the suggested funds are viable options. Some are actively managed, some are funds of index funds. Only you can decide what you're more comfortable with. Any one of the funds beating any of the others, in the 40/60 asset allocation neighborhood, is not predictable, although in the fullness of tim...
by Phineas J. Whoopee
Wed Apr 25, 2018 5:33 pm
Forum: Investing - Help with Personal Investments
Topic: Do I have 3 different investment horizons when planning for retirement?
Replies: 32
Views: 2610

Re: Do I have 3 different investment horizons when planning for retirement?

Regardless of what makes anybody feel better thinking of it as, one owns the totality of what one owns. Cash for three years, bonds for five more years, and a, say, 70/30 portfolio for beyond eight years is still the total portfolio. Thinking of parts as if they are different does not change the tot...
by Phineas J. Whoopee
Wed Apr 25, 2018 5:11 pm
Forum: Investing - Help with Personal Investments
Topic: Rising Interest and bond funds
Replies: 19
Views: 2182

Re: Rising Interest and bond funds

In the spirit of not biting recent joiners, said article is here: Rolling ladders versus bond funds.
PJW
by Phineas J. Whoopee
Wed Apr 25, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

Thesaints wrote:
Wed Apr 25, 2018 4:46 pm
Yeah! Always follow the Law; do not rush it.
Pretending to be a person you know has died to access their financial accounts is always fraud, rushed or otherwise, whether or not anybody else knows yet.

PJW
by Phineas J. Whoopee
Wed Apr 25, 2018 4:41 pm
Forum: Personal Finance (Not Investing)
Topic: [Vanguard account locked out due to deceased owner]
Replies: 73
Views: 5438

Re: [Vanguard account locked out due to deceased owner]

Access to a safe deposit box after the renter's death is regulated by state law. One person's experience may not match another's in a different state. There may be states where one of a pair of joint holders can access the box after the other dies, and some where they can't. I do not know the law in...
by Phineas J. Whoopee
Mon Apr 23, 2018 8:27 pm
Forum: Investing - Theory, News & General
Topic: Bond prices and "expected" interest rate changes
Replies: 12
Views: 1299

Re: Bond prices and "expected" interest rate changes

And although the secondary bond market is structured as price-maker / price-taker, the existence of multiple dealers each managing their own inventory of Treasuries causes the secondary-market outcome to be little different than if it were a continuous, ongoing auction like that for listed stocks.
PJW
by Phineas J. Whoopee
Mon Apr 23, 2018 5:30 pm
Forum: Investing - Theory, News & General
Topic: Bond prices and "expected" interest rate changes
Replies: 12
Views: 1299

Re: Bond prices and "expected" interest rate changes

Hi OP. The underlying conceptual problem is conflating interest rates with bond yields, which if not otherwise qualified means Yield to Maturity , YTM. It is not your fault. The popular financial press seems to feel their annual bonuses will be bigger if they mislead their readers. Bond yields, Yiel...
by Phineas J. Whoopee
Mon Apr 23, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: Buffett tax red herring?
Replies: 13
Views: 2068

Re: Buffett tax red herring?

He seems to be comparing Earnings with Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).

Alternatively, maybe he is referring to individual income tax on dividends, of which his conglomerate Berkshire Hathaway, BRK.A, doesn't distribute any.

PJW
by Phineas J. Whoopee
Mon Apr 23, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: [essay] The Limits of Theory
Replies: 10
Views: 986

Re: [essay] The Limits of Theory

Thesaints wrote:
Mon Apr 23, 2018 3:37 pm
...
All these statements, and many more, are seldom well understood and instead are taken as the Revealed Truth, unfortunately by most BH-eds as well.
This poster does not speak for me.

PJW