Search found 2680 matches

by Munir
Wed Aug 05, 2020 8:43 am
Forum: Investing - Theory, News & General
Topic: Vanguard Group sells largest US Private Placement deal in history
Replies: 29
Views: 3383

Re: Vanguard Group sells largest US Private Placement deal in history

In plain English, what does the headline mean? Is Vanguard borrowing the money for its own use or is it a conduit for another group that is borrowing money? Yes. For its own use. If you are a farmer, and you buy a new harvesting machine, taking equipment finance (lease). You have the confidence tha...
by Munir
Tue Aug 04, 2020 5:58 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Group sells largest US Private Placement deal in history
Replies: 29
Views: 3383

Re: Vanguard Group sells largest US Private Placement deal in history

In plain English, what does the headline mean? Is Vanguard borrowing the money for its own use or is it a conduit for another group that is borrowing money?
by Munir
Mon Aug 03, 2020 11:44 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio: Is He Saying Bonds Are Done?
Replies: 67
Views: 6663

Re: Ray Dalio: Is He Saying Bonds Are Done?

Seems like Ray Dalio expects total return from bonds. Bogleheads expect safety from bonds. Bogleheads expect total return from stocks. Some of us would like some return from bond funds- if possible. I am thinking of retirees with portfolios in the 70-80% fixed income range in their portfolio.
by Munir
Sun Aug 02, 2020 11:27 pm
Forum: Non-US Investing
Topic: Best bond for non US investors? (formerly:VBTLX)
Replies: 28
Views: 2251

Re: VBTLX

Betelgeuse79 wrote:
Wed Jul 29, 2020 11:03 pm
Isn't VBTLX only available to US investors?
I suggest you call Vanguard for a definitive answer.
by Munir
Sun Aug 02, 2020 12:51 am
Forum: Investing - Theory, News & General
Topic: Ray Dalio: Is He Saying Bonds Are Done?
Replies: 67
Views: 6663

Re: Ray Dalio: Is He Saying Bonds Are Done?

I watched the whole video. It struck me that Dalio's observations fit pretty well with Buffett's observations from the 2011 letter on pages mid 17 to the end of page 19. I've posted links to that repeatedly because of how valuable I think the thought process is. So here it is again. Page 17-19. htt...
by Munir
Sun Aug 02, 2020 12:36 am
Forum: Investing - Theory, News & General
Topic: Dr. Wade Pfau is my guest on the "Bogleheads on Investing" podcast!
Replies: 273
Views: 12679

Re: Dr. Wade Pfau is my guest on the "Bogleheads on Investing" podcast!

I am a retiree in my eighties who purchased four SPIAs over 10 years from different companies when I was in my seventies. I learned and followed the advice on this forum about SPIAs. I don't remember Wade Pfau's name in those days. I am very happy with my purchases and wish I had bought a couple mor...
by Munir
Fri Jul 31, 2020 2:13 pm
Forum: Investing - Theory, News & General
Topic: Ray Dalio: Is He Saying Bonds Are Done?
Replies: 67
Views: 6663

Re: Ray Dalio: Is He Saying Bonds Are Done?

Among short term Vanguard bond funds, the Short Term Federal Fund (VSGDX) has an SEC rate of 1.10%. Among the Vanguard Intermediate bond funds, the Core Bond Fund (VCOBX) has an SEC rate of 1.46%. Total Bond Market Index (VBTLX) has a rate of 1.17%.
by Munir
Wed Jul 29, 2020 8:54 pm
Forum: Non-US Investing
Topic: Best bond for non US investors? (formerly:VBTLX)
Replies: 28
Views: 2251

Re: VBTLX

Taylor has posted really good year by year results of Total Bond and inflation that may be helpful. Isn't it a mantra on this forum that "past performance does not predict future performance" or some similar language? Excellent information on total bonds historical performance! abuss368: you did no...
by Munir
Wed Jul 29, 2020 6:46 pm
Forum: Non-US Investing
Topic: Best bond for non US investors? (formerly:VBTLX)
Replies: 28
Views: 2251

Re: VBTLX

abuss368 wrote:
Wed Jul 29, 2020 6:17 am
Taylor has posted really good year by year results of Total Bond and inflation that may be helpful.
Isn't it a mantra on this forum that "past performance does not predict future performance" or some similar language?
by Munir
Tue Jul 28, 2020 11:54 pm
Forum: Non-US Investing
Topic: Best bond for non US investors? (formerly:VBTLX)
Replies: 28
Views: 2251

Re: VBTLX

There are other bond funds that are popular on this forum than VBTLX. Being the largest bond fund does not necessarily make it the best nor the most appropriate for everyone. What does the size of the fund have to do with "best"? There are many BH who post here who prefer other bond funds. I hope ne...
by Munir
Mon Jul 27, 2020 5:17 pm
Forum: Investing - Theory, News & General
Topic: Article - Vanguard managing more active bond money
Replies: 16
Views: 1152

Re: Article - Vanguard managing more active bond money

Thanks for sharing. I agree. Hard to justify moving away from Total Bond! There is good reason that fund is the largest bond fund on the planet. I don't know who abuss368 was agreeing with but I have moved to VCOBX. PS: In the M* page on risk vs. category, they both have average risk but VCOBX is h...
by Munir
Mon Jul 27, 2020 4:47 pm
Forum: Investing - Theory, News & General
Topic: Article - Vanguard managing more active bond money
Replies: 16
Views: 1152

Re: Article - Vanguard managing more active bond money

https://www.wsj.com/articles/vanguard-challenges-bond-behemoths-with-active-funds-11595853819 Vanguard Group, the titan of low-cost index funds, is coming after a fast-growing pocket of the money-management industry: actively managed bond funds. The firm’s investment dollars in such funds pushed pa...
by Munir
Sun Jul 26, 2020 10:57 pm
Forum: Personal Investments
Topic: Vanguard Short-Term Treasury showing a negative return
Replies: 12
Views: 1241

Re: Vanguard Short-Term Treasury showing a negative return

I just looked at the Vanguard Short-Term Treasury Fund VFISX and it's showing a negative return of -0.05% A. I've never seen that before with any fund and didn't know it was possible. Given the 0.20% expense ratio, would it be better to keep the money under my bed? Have you looked at Short Term Fed...
by Munir
Sun Jul 26, 2020 3:12 pm
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

Is it possible that the next distribution yield for VFISX will be negative? Or that it will be negative unless they do something like have the otherwise negative distribution yield be reflected in a reduced share price or magically reduce the fund's expenses so that the distribution yield is at lea...
by Munir
Sun Jul 26, 2020 2:51 pm
Forum: Investing - Theory, News & General
Topic: Allan Roth: The Question Every Advisor Must Answer
Replies: 3
Views: 1030

Re: Allan Roth: The Question Every Advisor Must Answer

Article conclusion: Stay the course? Keep the same asset allocation one had in January 2020?
by Munir
Thu Jul 23, 2020 5:22 pm
Forum: Investing - Theory, News & General
Topic: Questions On Mortgage Backed Securities (MBS)
Replies: 11
Views: 728

Re: Questions On Mortgage Backed Securities (MBS)

I am not sure what links you referred to in your first sentence. I was referring to the links I included in my post. Regards, I apologize for not seeing that. My issue is that I was trying to compare these four short term bond funds named in my second post and found that their ownership of MBS vari...
by Munir
Thu Jul 23, 2020 4:16 pm
Forum: Personal Consumer Issues
Topic: Prime Membership Question/Prime Video
Replies: 11
Views: 1307

Re: Prime Membership Question/Prime Video

The annual fee for Prime is about $120 now and for me worth it. It's not the shipping but the movie streaming and especially the European programs on MhZ ( requires an additional $8/month). As a retiree who is basically house-confined due to COVID prevention measures, it's worth every penny. PS: I h...
by Munir
Thu Jul 23, 2020 3:46 pm
Forum: Investing - Theory, News & General
Topic: Questions On Mortgage Backed Securities (MBS)
Replies: 11
Views: 728

Re: Questions On Mortgage Backed Securities (MBS)

Based on the funds in these links, GNMAs and Intermediate Corp. Bond Index, they have a risk rating that is comparable. Vanguard considers each of them a "2" on the 1-5 scale. I suspect the main difference is that GNMAs have pre-payment risk that isn't discussed for the Int. Corp bond index fund. I...
by Munir
Thu Jul 23, 2020 12:30 pm
Forum: Investing - Theory, News & General
Topic: Questions On Mortgage Backed Securities (MBS)
Replies: 11
Views: 728

Questions On Mortgage Backed Securities (MBS)

I have some unanswered questions about the role of MBS in Vanguard mutual funds- other than the issues of convexity risk: 1. How risky are MBS on the spectrum between equities and bonds? Are they closer to high-quality corporate bonds or to government bonds? 2. If an MBS is "Government-backed", how ...
by Munir
Tue Jul 21, 2020 2:27 pm
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

The Vanguard Short Term Federal Fund (VSGBX/VSGDX) has an SEC rate of 1.22% as of 7/17/20. What is wrong with holding it as a substitute for a MM fund? https://i.postimg.cc/bv7B52nN/Short-Federal-Fund.jpg Some people do not like to see the price of their "cash" to go down by 1% over a couple of day...
by Munir
Tue Jul 21, 2020 1:16 pm
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

The Vanguard Short Term Federal Fund (VSGBX/VSGDX) has an SEC rate of 1.22% as of 7/17/20. What is wrong with holding it as a substitute for a MM fund? https://i.postimg.cc/bv7B52nN/Short-Federal-Fund.jpg Some people do not like to see the price of their "cash" to go down by 1% over a couple of day...
by Munir
Tue Jul 21, 2020 12:35 pm
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

The Vanguard Short Term Federal Fund (VSGBX/VSGDX) has an SEC rate of 1.22% as of 7/17/20. What is wrong with holding it as a substitute for a MM fund?
by Munir
Tue Jul 21, 2020 12:30 pm
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

Rick, I listened to and enjoyed that episode as I have all of the Bogleheads on Investing podcasts. As I was listening I kept wondering if given our current economic conditions you still feel that 30% is a good default equity position for the mythical "average retiree". Dr. Malkiel argued for a muc...
by Munir
Sun Jul 19, 2020 12:26 am
Forum: Investing - Theory, News & General
Topic: 0.00% Yield on the Vanguard Short-Term Treasury Fund
Replies: 203
Views: 14883

Re: 0.00% Yield on the Vanguard Short-Term Treasury Fund

I am using Federal Short Term Bond Fund (VSGBX/VSGDX) in place of a MM fund. It has a duration of 2 years and an SEC 30 day Rate of 1.22%. Vanguard gives it the safest rating #1 and Morningstar gives it 5 stars. You might want to check its volatility and see if you are comfortable with it- it should...
by Munir
Sat Jul 18, 2020 1:28 am
Forum: Personal Consumer Issues
Topic: Hummus Alternative:
Replies: 33
Views: 3278

Re: Hummus Alternative:

I also like Baba ganoush. Or Buy organic chickpeas and make your own hummus. Also hummus does not have to be made with chick peas. It is also traditionally made with fava beans and can be made with red lentils. Tahini + chickpeas = Hummus Tahini + roasted eggplant= Baba ghannouj (or gannoush) Tahin...
by Munir
Fri Jul 17, 2020 11:12 pm
Forum: Personal Consumer Issues
Topic: Hummus Alternative:
Replies: 33
Views: 3278

Re: Hummus Alternative:

I also like Baba ganoush. Or Buy organic chickpeas and make your own hummus. Also hummus does not have to be made with chick peas. It is also traditionally made with fava beans and can be made with red lentils. Tahini + chickpeas = Hummus Tahini + roasted eggplant= Baba ghannouj (or gannoush) Tahin...
by Munir
Fri Jul 17, 2020 1:30 pm
Forum: Personal Investments
Topic: Fixed Income in Pension Account
Replies: 8
Views: 670

Re: Fixed Income in Pension Account

I recommend just two funds:

VCOBX for longer term investments.

VSGBX (Vanguard Short Term Federal) as a MM fund substitute.
by Munir
Fri Jul 17, 2020 1:07 pm
Forum: Personal Investments
Topic: Vanguard VUSXX
Replies: 11
Views: 1349

Re: Vanguard VUSXX

I am using Federal Short Term Bond Fund (VSGBX) in place of VUSSX. It has a duration of 2 years and a recent 30 day SEC Rate of 1.22%. Expense ratio 0.10. Vanguard gives it the safest rating of 1. Morningstar gives it 5 stars. You might want to check its volatility and see if you are comfortable wit...
by Munir
Fri Jul 17, 2020 12:58 pm
Forum: Personal Consumer Issues
Topic: Hummus Alternative:
Replies: 33
Views: 3278

Re: Hummus Alternative:

There is no alternative to hummus. :happy . I have been eating it for the last 83 years.
by Munir
Sun Jul 12, 2020 5:11 pm
Forum: Investing - Theory, News & General
Topic: Prime Money Market Question - where to park cash?
Replies: 12
Views: 1729

Re: Prime Money Market Question - where to park cash?

I am using Federal Short Term Bond Fund (VSGBX) in place of a MM fund. It has a duration of 2 years and an SEC Rate of 1.3%. Vanguard gives it the safest rating #1. You might want to check its volatility and see if you are comfortable with it- it should be very low. I am sure you are aware that unl...
by Munir
Sun Jul 12, 2020 5:01 pm
Forum: Investing - Theory, News & General
Topic: Prime Money Market Question - where to park cash?
Replies: 12
Views: 1729

Re: Prime Money Market Question - where to park cash?

I am using Federal Short Term Bond Fund (VSGBX) in place of a MM fund. It has a duration of 2 years and an SEC Rate of 1.3%. Vanguard gives it the safest rating #1. You might want to check its volatility and see if you are comfortable with it- it should be very low. I would consider doing the same ...
by Munir
Sun Jul 12, 2020 4:26 pm
Forum: Investing - Theory, News & General
Topic: Prime Money Market Question - where to park cash?
Replies: 12
Views: 1729

Re: Prime Money Market Question - where to park cash?

I am using Federal Short Term Bond Fund (VSGBX) in place of a MM fund. It has a duration of 2 years and an SEC Rate of 1.3%. Vanguard gives it the safest rating #1. You might want to check its volatility and see if you are comfortable with it- it should be very low.
by Munir
Fri Jul 10, 2020 3:21 pm
Forum: Investing - Theory, News & General
Topic: Short-Term Bond Fund: VFSUX vs VBIRX
Replies: 12
Views: 1145

Re: Short-Term Bond Fund: VFSUX vs VBIRX

How about the ultra-short term bond fund, VUSFX? VUSFX has a duration of 0.9 years and 30 day SEC yield of 1.13% (as of yesterday per Vanguard) VSGDX has a duration of 2 years and a 30 day SEC yield of 1.23% (as of yesterday per Vanguard) VSGDX has performed slightly better and has a slightly highe...
by Munir
Fri Jul 10, 2020 2:36 pm
Forum: Investing - Theory, News & General
Topic: Short-Term Bond Fund: VFSUX vs VBIRX
Replies: 12
Views: 1145

Re: Short-Term Bond Fund: VFSUX vs VBIRX

Thinking to move some Vanguard Money Market (VMMXX) to a short term bond fund for a bit more yield. I won't be needing the money for at least a year. This is part of my 60/40 AA. Considering Short-Term Bond Index Admiral (VBIRX) and Short-Term Investment Grade Admiral (VFSUX). I've looked at Vangua...
by Munir
Thu Jul 09, 2020 3:04 pm
Forum: Investing - Theory, News & General
Topic: Reaching for Yield: Is It Really Different This Time?
Replies: 79
Views: 5488

Re: Reaching for Yield: Is It Really Different This Time?

Munir wrote: I'd like to hear contrarian views. Munir, you asked for contrarian views so I'll add my 2 cents worth. This is only the way I see it, not a recommendation for anyone but me. Personally, I do not have much fear of equity volatility and am not a risk averse individual. I have been invest...
by Munir
Thu Jul 09, 2020 12:34 pm
Forum: Investing - Theory, News & General
Topic: Reaching for Yield: Is It Really Different This Time?
Replies: 79
Views: 5488

Re: Reaching for Yield: Is It Really Different This Time?

As an older retiree in the distribution phase and a limited time horizon, it seems to me that both equities and bonds are too risky for someone like me in this environment. It may be that the current 1% yield (interest) on a high yield savings account (or a ladder of CDs) is the best I can look for...
by Munir
Thu Jul 09, 2020 12:30 pm
Forum: Investing - Theory, News & General
Topic: Reaching for Yield: Is It Really Different This Time?
Replies: 79
Views: 5488

Re: Reaching for Yield: Is It Really Different This Time?

As an older retiree in the distribution phase and a limited time horizon, it seems to me that both equities and bonds are too risky for someone like me in this environment. It may be that the current 1% yield (interest) on a high yield savings account (or a ladder of CDs) is the best I can look forw...
by Munir
Wed Jul 08, 2020 8:55 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund
Replies: 75
Views: 5830

Re: Vanguard Prime Money Market Fund

VSGBX holdings from the Vanguard web site: Distribution by issuer (% of fund) as of 05/31/2020 Asset-Backed 4% Commercial Mortgage-Backed 5.8% Government Mortgage-Backed 63% Treasury/Agency 27% Note that nearly all the MBS are government-backed. If my memory is correct, those who object to MBS are ...
by Munir
Wed Jul 08, 2020 5:57 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund
Replies: 75
Views: 5830

Re: Vanguard Prime Money Market Fund

Slightly off-topic but how are the Government Mortgage-Backed ABS different from Commercial Mortgage backed ABS (as described by Vanguard) as investment vehicles except for the obvious description of who is backing them? In other words, is the government-backed ABS safer than the commercial-backed o...
by Munir
Wed Jul 08, 2020 1:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund
Replies: 75
Views: 5830

Re: Vanguard Prime Money Market Fund

VSGBX holdings from the Vanguard web site: Distribution by issuer (% of fund) as of 05/31/2020 Asset-Backed 4% Commercial Mortgage-Backed 5.8% Government Mortgage-Backed 63% Treasury/Agency 27% Note that nearly all the MBS are government-backed. If my memory is correct, those who object to MBS are m...
by Munir
Wed Jul 08, 2020 12:52 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund
Replies: 75
Views: 5830

Re: Vanguard Prime Money Market Fund

I went into Vanguards short-term bond fund last fall, and its worked great. Keep the emergency fund there. +1 Investment grade version or the index version? BSV? Might be a good idea What about Vanguard Short Term Federal Fund (VSGBX)? https://investor.vanguard.com/mutual-funds/profile/VSGBX I am c...
by Munir
Wed Jul 08, 2020 11:26 am
Forum: Personal Investments
Topic: Another one on the "bond Market" is dead
Replies: 11
Views: 846

Re: Another one on the "bond Market" is dead

If the bond funds' yields continue to be very low and the total return keeps dropping, what will MBS (government mortgage backed instruments) do? I know there is a strong sentiment on this forum against MSBs, but some intermediate bond funds have a higher % of their portfolio in them. In case of a b...
by Munir
Wed Jul 08, 2020 10:51 am
Forum: Personal Investments
Topic: Searching For An Emergency Fund
Replies: 7
Views: 585

Re: Searching For An Emergency Fund

Points well-taken. I really should not call it an emergency fund but a conservative stable fund which will not drop significantly in a future crisis. I do have a line of credit to tap if I need money in an emergency. I don't expect it to grow but I would like some interest (call it greed). If the r...
by Munir
Wed Jul 08, 2020 10:35 am
Forum: Personal Investments
Topic: Searching For An Emergency Fund
Replies: 7
Views: 585

Re: Searching For An Emergency Fund

Currently, my emergency fund is the Vanguard US Treasury money market fund (VUSSX) which I would like to replace When you replace VUSSX, you may want to leave a small amount in that fund rather than move everything. That fund is closed to new investors, so if you sell all of it, you may not be able...
by Munir
Wed Jul 08, 2020 10:33 am
Forum: Personal Investments
Topic: Searching For An Emergency Fund
Replies: 7
Views: 585

Re: Searching For An Emergency Fund

Recently money market funds yields have dropped to below 0.18% and many short term bond funds to below 0.50%. Treasury money market funds and treasury short term bond funds have the lowest yields but are considered the "safest". Looking for an emergency-type fund for my IRA while keeping those cave...
by Munir
Wed Jul 08, 2020 9:39 am
Forum: Investing - Theory, News & General
Topic: Reaching for Yield: Is It Really Different This Time?
Replies: 79
Views: 5488

Re: Reaching for Yield: Is It Really Different This Time?

Is the conclusion then that there isn't an A-rated (or above) fixed income vehicle at present that will provide a return higher than inflation?
by Munir
Wed Jul 08, 2020 9:10 am
Forum: Personal Investments
Topic: Searching For An Emergency Fund
Replies: 7
Views: 585

Searching For An Emergency Fund

Recently money market funds yields have dropped to below 0.18% and many short term bond funds to below 0.50%. Treasury money market funds and treasury short term bond funds have the lowest yields but are considered the "safest". Looking for an emergency-type fund for my IRA while keeping those cavea...
by Munir
Sun Jul 05, 2020 2:34 pm
Forum: Investing - Theory, News & General
Topic: Bond valuation - expected to go down?
Replies: 21
Views: 1528

Re: Bond valuation - expected to go down?

Let me try to give a short, simple answer to a complicated question. I'm going to say "Treasury note" but it's about the same for most bonds. 1) Don't trust anyone who expresses high confidence in what to expect. 2) Bond interest rate changes are unpredictable. They really are. Don't believe anyone...
by Munir
Wed Jun 24, 2020 2:16 pm
Forum: Investing - Theory, News & General
Topic: Taleb: The coronavirus is not a black swan.
Replies: 81
Views: 7915

Re: Taleb: The coronavirus is not a black swan.

Most people posting here have not read the book "The Black Swan." The events we are talking about here are Black Swans, capitalized; not small-case black swans, birds. Pandemics as a class of events are known. BUT The devil is in the details: - lock-downs that bring down economies - political decis...
by Munir
Thu Jun 18, 2020 11:39 am
Forum: Personal Finance (Not Investing)
Topic: [Marcus Savings Account - Interest rate is now 1.7%]
Replies: 193
Views: 25454

Re: [Marcus Savings Account - Interest rate is now 1.7%]

The interest rate on Marcus Online savings is 1.15% if you are an AARP member- which I think is about $12-$16/year. You have to be 50 or above in age.