Search found 1472 matches

by dkturner
Sat Apr 13, 2019 7:36 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Another wrinkle for me. I had Advantage checking on my personal account, and on a trust account and on a LLC account. I was notified yesterday that the trust and the LLC accounts are ineligible for check writing. The explanation is that a limited agent can't set up checkwriting. I have not discusse...
by dkturner
Thu Apr 11, 2019 10:20 am
Forum: Investing - Theory, News & General
Topic: Growth More Popular Than Value?
Replies: 8
Views: 1205

Re: Growth More Popular Than Value?

UpperNwGuy wrote:
Tue Apr 09, 2019 8:31 pm
I invest in the total market and ignore the concepts of growth and value. Life is easier that way.
Easier maybe, but not as lucrative as momentum investing.
by dkturner
Thu Apr 11, 2019 10:15 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

3 - there will NOT be a $250 minimum on checks drawn on it - and, oh by the way, the $250 minimum on Prime MM no longer exists. Can you set up an ACH pull based on that checkwriting information? Not a deposit, but if I wanted to pay my Amex could I put in the routing and account number of the Prime...
by dkturner
Mon Apr 08, 2019 6:32 pm
Forum: Investing - Theory, News & General
Topic: Indexing beats Wellington and Wellesley right?
Replies: 101
Views: 14558

Re: Indexing beats Wellington and Wellesley right?

Here is a Morningstar chart showing the full history of Wellesley Income Fund along with Wellington and the S&P 500 Total Return Index. The start date is 7-01-70. http://quotes.morningstar.com/chart/fund/chart?t=VWINX®ion=usa&culture=en-US&dataParams=%7B%22zoomKey%22%3A10%2C%22version%22%3A%22US...
by dkturner
Mon Apr 08, 2019 1:59 pm
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8173

Re: The "dividend preference anomaly"

Now I see what’s being assumed here. Larry Swedroe has gone on the record that the effect of dividends is in fact permanent in relation to the value of a share of stock. Similarly, several other financial authors have written that the effect is only temporary. On this forum, I will go forward with ...
by dkturner
Mon Apr 08, 2019 11:52 am
Forum: Investing - Theory, News & General
Topic: Valuation Informed Indexing
Replies: 37
Views: 1956

Re: Valuation Informed Indexing

The relative valuations have favored INTL for the last five years, and INTL has underperformed. Without posting your average holdings in VTI or equivalent and VXUS or equivalent over the time period, a comparison to VT is useless. Anyone who held 60% plus in VTI beat VT probably. My bad. In mention...
by dkturner
Sun Apr 07, 2019 1:48 pm
Forum: Investing - Theory, News & General
Topic: Valuation Informed Indexing
Replies: 37
Views: 1956

Re: Valuation Informed Indexing

The informed indexer would've lost money (EDIT: made less money) the last 5 years. How can you be so sure? We do most of the stuff mentioned in the article and, according to the Vanguard Personal Performance Report, our 50/50 portfolio had an annualized return of 5.2% for the last 5 calendar years,...
by dkturner
Sun Apr 07, 2019 11:22 am
Forum: Investing - Theory, News & General
Topic: Valuation Informed Indexing
Replies: 37
Views: 1956

Re: Valuation Informed Indexing

The informed indexer would've lost money (EDIT: made less money) the last 5 years. How can you be so sure? We do most of the stuff mentioned in the article and, according to the Vanguard Personal Performance Report, our 50/50 portfolio had an annualized return of 5.2% for the last 5 calendar years,...
by dkturner
Sun Apr 07, 2019 7:35 am
Forum: Investing - Theory, News & General
Topic: Valuation Informed Indexing
Replies: 37
Views: 1956

Re: Valuation Informed Indexing

The informed indexer would've lost money (EDIT: made less money) the last 5 years. How can you be so sure? We do most of the stuff mentioned in the article and, according to the Vanguard Personal Performance Report, our 50/50 portfolio had an annualized return of 5.2% for the last 5 calendar years,...
by dkturner
Sat Apr 06, 2019 9:53 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8173

Re: The "dividend preference anomaly"

"Some dividend proponents are so ignorant that they actually believe they can avoid the ex-dividend decline by investing in individual stocks rather than mutual funds." The market price of individual stocks is set based on supply and demand. It is not like buying merchandise in a department store w...
by dkturner
Sat Apr 06, 2019 9:34 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8173

Re: The "dividend preference anomaly"

Is there any evidence one could exploit this fallacy by focusing on non-dividend stocks to earn alpha? If not, why not? Actually, history suggests that dividend paying stocks produce higher total returns than non-dividend paying stocks, and they do so with lower volatility. In this regard take a lo...
by dkturner
Sat Apr 06, 2019 7:09 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8173

Re: The "dividend preference anomaly"

Can someone explain to me exactly what happens to stock prices when a dividend is paid? Nothing special happens to the price of any particular stock on the day it’s dividend is paid. On average a stock drops in price by the amount of its dividend on the day the stock begins to trade ex-dividend tho...
by dkturner
Sat Apr 06, 2019 6:50 am
Forum: Investing - Theory, News & General
Topic: The "dividend preference anomaly"
Replies: 183
Views: 8173

Re: The "dividend preference anomaly"

Is there any evidence one could exploit this fallacy by focusing on non-dividend stocks to earn alpha? If not, why not? Actually, history suggests that dividend paying stocks produce higher total returns than non-dividend paying stocks, and they do so with lower volatility. In this regard take a lo...
by dkturner
Fri Apr 05, 2019 7:31 am
Forum: Investing - Theory, News & General
Topic: How accurate is Vanguard's Personal Performance?
Replies: 4
Views: 1015

Re: How accurate is Vanguard's Personal Performance?

I have found a problem with Vanguard’s methodology when an account is closed. seven years ago I closed a Vanguard SEP IRA and transferred the balance to a Rollover IRA at Vanguard. Now the 1, 3 and 5 year results from Vanguard are exactly the same as the results I get by using the Excel XIRR functio...
by dkturner
Wed Apr 03, 2019 1:31 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Do “real banks” pay Vanguard money market fund interest rates on their zero balance requirement checking accounts? No but one Starbuck a week is not enough for me to give up all the other perks and benefits that our bank(s) offers. (I don't know what you mean by "zero balance requirement checking a...
by dkturner
Wed Apr 03, 2019 11:03 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

This thread has a life of its own. As a longtime Vanguard customer who maintains relatively large money market account balances I have a completely different viewpoint than most of posters. For security reasons I have no interest in having my Vanguard mutual account information circulating on check...
by dkturner
Mon Apr 01, 2019 12:59 pm
Forum: Investing - Theory, News & General
Topic: Best Fidelity Money Market Account to Hold Cash?
Replies: 40
Views: 10063

Re: Best Fidelity Money Market Account to Hold Cash?

You need $100k to get in. But, there is no required minimum to maintain. I basically use it as my sweep account in CMA (checking acct) at Fidelity. I currently have about $12k in it. I periodically manually put money into it, it comes out automatically to cover expenses. I am under the impression t...
by dkturner
Mon Apr 01, 2019 12:45 pm
Forum: Investing - Theory, News & General
Topic: What is the Boglehead opinion of the inverted yield curve?
Replies: 63
Views: 5004

Re: What is the Boglehead opinion of the inverted yield curve?

A true Boglehead can know nothing about the future movement of interest rates and equity prices, therefore they should have no opinion on the relationship between an inverted yield curve and the likleyhood of Recession in the near future.
by dkturner
Mon Apr 01, 2019 12:36 pm
Forum: Investing - Theory, News & General
Topic: Which Vanguard Dividend Fund to pick?
Replies: 47
Views: 2988

Re: Which Vanguard Dividend Fund to pick?

One of those funds has 180 stocks, the other has 396 stocks. Probably each stock is also in Total Stock Market which has 3,573 stocks. How does this add diversification? It's just betting heavier on some of the same stocks you probably already have in an index fund, isn't it? Who cares what the div...
by dkturner
Fri Mar 29, 2019 9:35 am
Forum: Investing - Theory, News & General
Topic: Anyone else concerned about future tinkering of LS Funds?
Replies: 21
Views: 1695

Re: Anyone else concerned about future tinkering of LS Funds?

I think Vanguard should be encouraged to tinker with its LifeStrategy funds whenever it thinks the latest tinker is in the best interests of its customers. What concerns me is the possibility that much of the prior tinkering has been in an attempt to moderate the accumulation of excessive positions ...
by dkturner
Mon Mar 25, 2019 3:14 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 110
Views: 7085

Re: Market timers thread

That's a good point, and I did look at that also, but I believe it is still a valid point to look at valuations, so I guess you have to make your own decision on what point you think it becomes overvalued? e.g would you still buy if the PE10 went to 50? Given the PE10 has only been this high on 2 o...
by dkturner
Mon Mar 25, 2019 1:47 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 110
Views: 7085

Re: Market timers thread

That's a good point, and I did look at that also, but I believe it is still a valid point to look at valuations, so I guess you have to make your own decision on what point you think it becomes overvalued? e.g would you still buy if the PE10 went to 50? Given the PE10 has only been this high on 2 o...
by dkturner
Mon Mar 25, 2019 10:32 am
Forum: Investing - Theory, News & General
Topic: The 17th Century Bond That’s Still Paying Interest
Replies: 14
Views: 3165

Re: The 17th Century Bond That’s Still Paying Interest

When I was administrating my father's estate I found some bearer bonds from Canadian Pacific that were in perpetuity. There was no makret for them and the only thing I could do was to have CP buy them back. If I recall, they paid 4% but it was too much of a hassle for too little return to hold onto...
by dkturner
Sun Mar 24, 2019 1:54 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 110
Views: 7085

Re: Market timers thread

If you want to time the market what the heck are you doing on this forum? :oops: Good question. I had noticed that Jack Bogle rarely posted anything on these boards either. I guess his remarks, that there was nothing wrong with taking advantage of depressed equity prices to increase equity exposure...
by dkturner
Sun Mar 24, 2019 1:14 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 110
Views: 7085

Re: Market timers thread

40% cash or treasuries at the moment. I don't expect lows to be retested, nor any other particular outcome regarding stock price. I do however, expect valuations, as defined by the Schiller P/E and Buffet Indicator, to return to more reasonable levels within the next several years. Why do you think...
by dkturner
Sun Mar 24, 2019 12:48 pm
Forum: Investing - Theory, News & General
Topic: Market timers thread
Replies: 110
Views: 7085

Re: Market timers thread

If you want to time the market what the heck are you doing on this forum? :oops: Good question. I had noticed that Jack Bogle rarely posted anything on these boards either. I guess his remarks, that there was nothing wrong with taking advantage of depressed equity prices to increase equity exposure...
by dkturner
Sat Mar 23, 2019 9:52 am
Forum: Investing - Theory, News & General
Topic: In Search of... the Inverted Yield Curve
Replies: 78
Views: 7169

Re: In Search of... the Inverted Yield Curve

Does anyone have a chart which illustrates how far in advance of prior recessions equity prices peaked?
by dkturner
Sat Mar 23, 2019 6:06 am
Forum: Investing - Theory, News & General
Topic: 10 Year/3 Month Treasuries Inversion
Replies: 100
Views: 8221

Re: 10 Year/3 Month Treasuries Inversion

We sold our corporate bonds (which had produced higher YTD, 3, 5 and 10 year total returns) and replaced them with Treasuries which have longer average maturities. A painless transaction resulting in considerably higher quality fixed income holdings. Time for a change after 10 years of holding prima...
by dkturner
Fri Mar 22, 2019 10:18 am
Forum: Investing - Theory, News & General
Topic: 10 Year/3 Month Treasuries Inversion
Replies: 100
Views: 8221

Re: 10 Year/3 Month Treasuries Inversion

I won't be doing anything. An inverted yield curve historically occurs 2-3 years before a recession is even called. It can also be a temporary blip and the curve could go back to "normal" tomorrow. When there has been a recession preceeded by an inversion, the range between the inversion and the st...
by dkturner
Thu Mar 21, 2019 5:58 am
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8159

Re: Retired Investors - Do You Keep Cash For Down Years

I am curious how people that do it actually account for it. e.g. for my emergency fund (I am still working) I have it outside my asset allocation and don't consider it at all. So doing the same with your example would it then be 50/40/10 or 45/45/10? We don’t treat our cash reserves as part of our ...
by dkturner
Thu Mar 21, 2019 5:19 am
Forum: Investing - Theory, News & General
Topic: Overbalancing, interested please explain it to me
Replies: 44
Views: 1971

Re: Overbalancing, interested please explain it to me

Funny how many people on here will argue for passive ETFs/Funds for days. Yet, the portfolio management rules/decisions are nothing more than an active strategy. To do anything other than rebalance to target, is an active bet. Are you looking to manage an active strategy? If someone chooses passive...
by dkturner
Wed Mar 20, 2019 3:42 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Jimmbo, Thanks for the thoughtful reply. For the life of me I can’t figure out what Signals Vanguard management is giving to its customer service personnel. We are fortunate to have Flagship Select service at Vanguard. We received a phone call from our Rep. advising us of the impending termination o...
by dkturner
Wed Mar 20, 2019 2:12 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Vanguard’s decision to eliminate the Advantage account has put many of its long-time customers and advocates in a frustrating and time-consuming mess. The problem is that Vanguard's in a far better position to determine this than you are. Truth is that 2% of customers eligible for Advantage have us...
by dkturner
Wed Mar 20, 2019 9:44 am
Forum: Investing - Theory, News & General
Topic: Overbalancing, interested please explain it to me
Replies: 44
Views: 1971

Re: Overbalancing, interested please explain it to me

Based on what I have observed on these boards there appear to be two types of rebalancers. Some rebalance on a calendar basis while others use a formula, such as rebalancing when their equity/fixed income allocation is out of balance by X%. If you want to go with the calendar method, and rebalance a...
by dkturner
Tue Mar 19, 2019 8:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

While we’re on the subject of pushing and pulling, is it possible to push money from a bank account to a Fidelity brokerage money market fund using your bank’s BillPay function? Has anyone tried this maneuver?
by dkturner
Mon Mar 18, 2019 1:06 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Don't Forget You Can Wire Your Bank in Just One Day!

One thing I want to make sure people realize going forward, as we try to keep our checking accounts dynamically funded: Vanguard bank transfers take 2 or 3 days, but there's an option to send via Wire, which takes only 1 day. Good to know in a pinch! You must opt for it every time, and both ways ar...
by dkturner
Mon Mar 18, 2019 10:50 am
Forum: Investing - Theory, News & General
Topic: Retired Investors - Do You Keep Cash For Down Years
Replies: 107
Views: 8159

Re: Retired Investors - Do You Keep Cash For Down Years

We keep a sizeable money market fund balance for extraordinary expenses, like replacing the HVAC system, taking an unplanned vacation, or buying a new vehicle. We would prefer not having to take a distribution from an IRA or incur a capital gain from a taxable account.
by dkturner
Mon Mar 18, 2019 10:42 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

... Fidelity Bill Pay: Ours is a joint account at Fidelity with each of us having a unique user name and PW for the same account. If I logon and send a bill pay check it only has my name on it; my wife's name doesn't show. I called Fidelity and after they checked with the outside bill pay vendor, U...
by dkturner
Fri Mar 15, 2019 12:28 pm
Forum: Investing - Theory, News & General
Topic: So what happened to the predicted bear market in bonds?
Replies: 47
Views: 4323

Re: So what happened to the predicted bear market in bonds?

The predicted bear market in bonds has been placed on hold temporarily, due to the predicted bear market in stocks. The S&P dropped 20% off its 52-week high last December that has not been fully recouped...which means we are in a stock bear market. Or a stock bull market that began on December 26. ...
by dkturner
Fri Mar 15, 2019 10:27 am
Forum: Investing - Theory, News & General
Topic: So what happened to the predicted bear market in bonds?
Replies: 47
Views: 4323

Re: So what happened to the predicted bear market in bonds?

The predicted bear market in bonds has been placed on hold temporarily, due to the predicted bear market in stocks. The S&P dropped 20% off its 52-week high last December that has not been fully recouped...which means we are in a stock bear market. Or a stock bull market that began on December 26.
by dkturner
Thu Mar 14, 2019 3:29 pm
Forum: Personal Investments
Topic: Wellington Fund (VWENX) vs. LifeStrategy Moderate Growth Fund (VSMGX)
Replies: 11
Views: 1475

Re: Wellington Fund (VWENX) vs. LifeStrategy Moderate Growth Fund (VSMGX)

maj wrote:
Thu Mar 14, 2019 3:27 pm
dk

do you happen to know the after-tax values?
No. I got the numbers from Morningstar’s chart comparing the gross returns of the two funds before taxes. I don’t understand how to interpret the post tax returns from the Morningstar chart, although it shows a higher value for the Wellington Fund.
by dkturner
Thu Mar 14, 2019 3:16 pm
Forum: Personal Investments
Topic: Wellington Fund (VWENX) vs. LifeStrategy Moderate Growth Fund (VSMGX)
Replies: 11
Views: 1475

Re: Wellington Fund (VWENX) vs. LifeStrategy Moderate Growth Fund (VSMGX)

Well, let’s take a look at the record. VSMGX began life on or about 9/30/1994. From that date a $10,000 investment would have grown to $58,650 by 3/13/2019. A $10,000 investment in VWELX (the investor share class of the Wellington Fund) would have grown to $90,302 for that same period. Will VWELX al...
by dkturner
Thu Mar 14, 2019 8:33 am
Forum: Investing - Theory, News & General
Topic: So what happened to the predicted bear market in bonds?
Replies: 47
Views: 4323

Re: So what happened to the predicted bear market in bonds?

Perhaps it’s less a bear and more the end of a bull; bonds returning to their trend of marginal real yield. Well stated. From 1982 to 2012 10 year Treasury Notes had an annualized real total return of 6.0%. From 2013 to 2018 the real annualized total return has been a negative 6/10 of 1%. Clearly s...
by dkturner
Tue Mar 12, 2019 1:55 pm
Forum: Investing - Theory, News & General
Topic: JPMorgan offers lowest cost ETFs so far
Replies: 8
Views: 907

Re: JPMorgan offers lowest cost ETFs so far

These new J.P. Morgan ETFs, when coupled with the relatively new JPM brokerage account with 100 free trades per year, should make for an interesting combination with the parsimonious set.
by dkturner
Tue Mar 12, 2019 1:35 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

I wonder if nearly everyone who has a VanguardAdvantage account has commented on this thread (ie it didn't appeal to many users outside active bogleheads). Combined with the minimum portfolio size requirement, I can see how the numbers might have just be too low to achieve the economies of scale to...
by dkturner
Mon Mar 11, 2019 12:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

We have had a Vanguard Advantage Account since late 2004 and received a phone call from our Flagship representative on March 4 advising us the decision to phase out Advantage accounts. The letter avsising us of the phase out was received on March 6. Our Flagship rep was very forthcoming in trying to...
by dkturner
Sun Mar 10, 2019 12:04 pm
Forum: Investing - Theory, News & General
Topic: Why does Vanguard use a 40% allocation to International in their Balanced Funds?
Replies: 60
Views: 6499

Re: Why does Vanguard use a 40% allocation to International in their Balanced Funds?

Instead they just keep doubling down. Of course they're bound to get some relief when eventually the dollar swings back down. Will that be enough, or will John Bogle turn out to have been right once again, at least for US investors for the intermediate future? There's a lot more than stock analysis...
by dkturner
Sun Mar 10, 2019 9:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Schwab vs. CapitalOne vs. Fido Online Banking

The Fido brokerage account, I was told by their rep, can own a “core” government MMF which has a decent rate, around 2.11%, as its only holding, no CMA needed, and can directly handle unlimited banking transactions. This seems too good to be true. Has anyone been able to set up the above described ...
by dkturner
Sat Mar 09, 2019 9:48 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

Once the initial dance of Vanguard recognizing the outside bank/CU and vice versa has gone through, how long does it typically take to move money out of VG to the bank/CU? And I think I read that it's faster if the funds are pulled from the outside institution; is that correct? I know there's a wea...
by dkturner
Sat Mar 09, 2019 8:51 am
Forum: Investing - Theory, News & General
Topic: Vanguard is Discontinuing their VanguardAdvantage Accounts
Replies: 586
Views: 44338

Re: Vanguard is Discontinuing their VanguardAdvantage Accounts

If I can summarize the options most often mentioned to replace the Advantage: 1) Go to Fidelity, establish either a brokerage account or a Cash Management Account, and move some/most/all of what lives in the Advantage account to Fidelity. You get an interest rate of about 80% of the Vanguard rate a...