Search found 155 matches

by Kevin8696
Fri Oct 12, 2018 8:20 am
Forum: Personal Investments
Topic: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)
Replies: 23
Views: 1639

Re: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)

I don't speak ticker so I have no idea what you said. :happy I edited the post to include descriptions and links. OP.... why the long-term bond preference ? You like riding roller coasters ? The reasons that I keep seeing are: Long term bonds seem to have a negative correlation with the stock marke...
by Kevin8696
Thu Oct 11, 2018 6:27 pm
Forum: Personal Investments
Topic: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)
Replies: 23
Views: 1639

Re: Intermediate-term Bond Fund or Target Retirement Fund in 401(k)

OP.... why the long-term bond preference ? You like riding roller coasters ?
by Kevin8696
Thu Oct 11, 2018 12:12 pm
Forum: Personal Investments
Topic: Is it time to go shorter in bonds ?
Replies: 115
Views: 10042

Re: Is it time to go shorter in bonds ?

Vineviz... Thanks for responding. Still trying to get my arms around the length of time that it takes to recoup the hit to principal. I think you're going to confuse yourself by trying to use the concept of principal at all when it comes to bonds and especially bond funds. Ok, let's use the term &q...
by Kevin8696
Thu Oct 11, 2018 12:03 pm
Forum: Personal Investments
Topic: Is it time to go shorter in bonds ?
Replies: 115
Views: 10042

Re: Is it time to go shorter in bonds ?

Vineviz... Thanks for responding. Still trying to get my arms around the length of time that it takes to recoup the hit to principal. I think you're going to confuse yourself by trying to use the concept of principal at all when it comes to bonds and especially bond funds. Ok, let's use the term &q...
by Kevin8696
Thu Oct 11, 2018 11:44 am
Forum: Personal Investments
Topic: Is it time to go shorter in bonds ?
Replies: 115
Views: 10042

Re: Is it time to go shorter in bonds ?

Question is this... Assuming rates stay constant after the increase, when will I get to back to even on the 6% hit to principal ? If the SEC yield goes up by 1.00% and stays there, does this mean it will take me 6 years to get back to even ? Not exactly. A duration of 6 years implies that it will t...
by Kevin8696
Thu Oct 11, 2018 11:04 am
Forum: Personal Investments
Topic: Very Basic Asset Allocation Help Needed
Replies: 8
Views: 723

Re: Very Basic Asset Allocation Help Needed

Nevada2012 wrote: Thu Oct 11, 2018 10:47 am
I have no desire to go International in stocks or bonds.....
Does this seem reasonable or do I need to add in some bonds/ Target funds....

Any thoughts would be greatly appreciated !
Beware of those Target date funds... most all of them are loaded with international stocks and bonds !!
by Kevin8696
Thu Oct 11, 2018 10:56 am
Forum: Personal Investments
Topic: Is it time to go shorter in bonds ?
Replies: 115
Views: 10042

Re: Is it time to go shorter in bonds ?

Question relating to the impact of rising interest rates. Rule of thumb that I have heard... to estimate the price impact of a rate/yield increase, multiply the increase by the bond fund duration. Using this formula, a 1.00% increase in rates for VG Total Bond Fund (VBTLX) with a duration of around ...
by Kevin8696
Thu Oct 11, 2018 9:58 am
Forum: Investing - Theory, News & General
Topic: Short Term Bond yield over 3%
Replies: 74
Views: 11703

Re: Short Term Bond yield over 3%

I was in my accounts today and noticed that the SEC yield on the Vanguard Short Term Bond Fund (Admiral: VBIRX) is 3.01% :happy This is the fund where I am holding our living expenses for the first next two years of retirement (out years are in intermediate term). David Jay, A limitation of the SEC...
by Kevin8696
Tue Oct 09, 2018 11:21 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 121641

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Why invest in an asset class that when compared to the US stock market has lower returns, higher volatility, is closely correlated to the US market, and is loaded with currency exchange risk ? Why? Because only one of those four descriptions is relevant, only two of the four descriptions are object...
by Kevin8696
Tue Oct 09, 2018 10:57 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 121641

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

Why invest in an asset class that when compared to the US stock market has lower returns, higher volatility, is closely correlated to the US market, and is loaded with currency exchange risk ? Why? Because only one of those four descriptions is relevant, only two of the four descriptions are object...
by Kevin8696
Tue Oct 09, 2018 10:20 am
Forum: Investing - Theory, News & General
Topic: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!
Replies: 1247
Views: 121641

Re: It's not enough to mumble "Stay the Course"... INT'L Investing has been a disaster!

I think international has done fairly well over the last 20years. Callan periodic table https://www.callan.com/wp-content/uploads/2018/01/Callan-PeriodicTbl_KeyInd_2018.pdf 5.22% CAGR over the last 20 years. That's pretty bad... Only a little higher than the US total bond index (4.55%), but with MU...
by Kevin8696
Tue Oct 09, 2018 8:10 am
Forum: Personal Finance (Not Investing)
Topic: Which is better CD - rates and terms?
Replies: 65
Views: 7021

Re: Which is better CD - rates and terms?

I recently went through a similar exercise and settled for a 12 month CD @ 2.55% from Marcus by Goldman Sachs. Likewise I am thinking that since interest rates are creeping up, might as well not lock up the capital for too long. Tony I looked at Marcus by Goldman Sachs too, but passed when I saw th...
by Kevin8696
Tue Oct 09, 2018 8:01 am
Forum: Personal Consumer Issues
Topic: What purchase saved you the most money?
Replies: 136
Views: 14023

Re: What purchase saved you the most money?

Navy ROTC paid my way through college, and then the GI Bill paid for grad school. Never paid a nickel myself.

Go Navy !!
by Kevin8696
Tue Oct 09, 2018 7:53 am
Forum: Investing - Theory, News & General
Topic: [Deleted]
Replies: 116
Views: 7603

Re: Emerging Market Bond Funds

From the VWOB page on the Vanguard site: "Returns of emerging market bonds, even dollar-denominated bonds like those owned by the fund, can be quite volatile, and tend to correlate more closely with U.S. and foreign stock returns than the returns of developed market bonds in general. Consequent...
by Kevin8696
Sat Sep 29, 2018 8:01 pm
Forum: Personal Investments
Topic: 40/60 allocation returns ytd
Replies: 29
Views: 5388

Re: 40/60 allocation returns ytd

Two funds that seem to best replicate the Wellesley stock and bond portfolios (as proxies) are: 1. Vanguard High Dividend Yield Index Fund (VHDYX) 2. Vanguard Intermediate-term Bond Index Fund (VBILX) Are you sure? Wellesley shows a historical much higher sharpe ratio For the 10-yr period 2008-2017...
by Kevin8696
Thu Sep 20, 2018 7:31 pm
Forum: Investing - Theory, News & General
Topic: Bond Funds vs. Individual Bonds: Can someone quanitfy?
Replies: 31
Views: 2404

Re: Bond Funds vs. Individual Bonds: Can someone quanitfy?

The duration of the bond or fund is the number of years you have to wait such that you'd make your lost principal back in interest payments after rates start rising. I've not heard this definition of duration before. Do you have a source that you can provide that would help to explain your assertio...
by Kevin8696
Thu Sep 20, 2018 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages - Pros, Cons
Replies: 55
Views: 4388

Re: Reverse Mortgages - Pros, Cons

When you take out a reverse mortgage, do they give you the bumper sticker that says "We're spending our kids inheritance" ?
by Kevin8696
Wed Sep 19, 2018 6:47 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages - Pros, Cons
Replies: 55
Views: 4388

Re: Reverse Mortgages - Pros, Cons

Ask him/her to redo the plan without the reverse mortgage. I would leave that as a last resort. I would agree with this advice. Have your FA show you two plans, with and without the reverse mortgage. Then have your FA explain the pros and cons of the reverse mortgage (lots of cons... costs, high in...
by Kevin8696
Wed Sep 19, 2018 2:26 pm
Forum: Investing - Theory, News & General
Topic: Where to place 100K for construction?
Replies: 8
Views: 1255

Re: Where to place 100K for construction?

Thank you to all, did not even know about no penalty CD's. Going to use that for other funds. For the construction funds, I am going with Discover MM checking...@ 1.85 I think it is the best solution. JCC Glad I could introduce you to No Penalty CD's. Here's some more about my experience with Ally....
by Kevin8696
Tue Sep 18, 2018 10:48 pm
Forum: Personal Finance (Not Investing)
Topic: Reverse Mortgages - Pros, Cons
Replies: 55
Views: 4388

Re: Reverse Mortgages - Pros, Cons

Maybe the FA wants you to have more AUM with him/her ? Ka-ching !!
Maybe the FA gets a referral fee from the lender. Ka-ching !!
by Kevin8696
Tue Sep 18, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Where to place 100K for construction?
Replies: 8
Views: 1255

Re: Where to place 100K for construction?

Thank you to all, did not even know about no penalty CD's. Going to use that for other funds. For the construction funds, I am going with Discover MM checking...@ 1.85 I think it is the best solution. JCC Glad I could introduce you to No Penalty CD's. Here's some more about my experience with Ally....
by Kevin8696
Mon Sep 17, 2018 2:52 pm
Forum: Investing - Theory, News & General
Topic: Why is it so much cheaper to borrow money in Euros?
Replies: 19
Views: 2774

Re: Why is it so much cheaper to borrow money in Euros?

This is probably an obvious question but I'll ask it anyway. If you want to borrow, say, $2 million USD on margin at Interactive Brokers, you'll pay around 2.65% annually for the privilege. But if you want to borrow the equivalent amount in Euros, you'll only pay around 0.75%. Why is there such a d...
by Kevin8696
Mon Sep 17, 2018 2:10 pm
Forum: Personal Consumer Issues
Topic: $180 IPhone SE or $90 Iphone 5S
Replies: 33
Views: 2504

Re: $180 IPhone SE or $90 Iphone 5S

I need to get a cellphone in the next day. I have narrowed it down to two options: Option 1: $180 Brand New Factory Unlocked Iphone SE, 32 GB. Option 2: $90 Manufacturer Refurbished Iphone 5S, 16GB. Which one is a better value? I won't be using this phone much - it's going to be more like a backup ...
by Kevin8696
Mon Sep 17, 2018 1:58 pm
Forum: Investing - Theory, News & General
Topic: Why is it so much cheaper to borrow money in Euros?
Replies: 19
Views: 2774

Re: Why is it so much cheaper to borrow money in Euros?

This is probably an obvious question but I'll ask it anyway. If you want to borrow, say, $2 million USD on margin at Interactive Brokers, you'll pay around 2.65% annually for the privilege. But if you want to borrow the equivalent amount in Euros, you'll only pay around 0.75%. Why is there such a d...
by Kevin8696
Mon Sep 17, 2018 1:50 pm
Forum: Investing - Theory, News & General
Topic: A Question [about Vanguard's asset allocation recommendations]
Replies: 11
Views: 1500

Re: A Question for the Bogleheads

More thoughts are need from the Bogleheads! Plain and simple. Follow Mr. Bogle's advice, and Occam's Razor. Buy a broad market stock index fund, buy a broad market bond index fund... and you own the haystack. Re-balance as you see fit. If 60/40 allocation floats your boat, buy the Vanguard Balanced...
by Kevin8696
Mon Sep 17, 2018 1:36 pm
Forum: Personal Investments
Topic: Vanguard vs. EJ vs. Fidelity
Replies: 13
Views: 1385

Re: Vanguard vs. EJ vs. Fidelity

Afternoon, I am looking to roll my Roth 401k and Traditional 401K to IRA’s. I’ve been doing some research on EJ, Vanguard & Fidelity. It is all very confusing to me. My gut says go with Vanguard. Targeted retirement funds which will make things easier. I am 55 and currently out of work. EJ seem...
by Kevin8696
Mon Sep 17, 2018 1:20 pm
Forum: Investing - Theory, News & General
Topic: Where to place 100K for construction?
Replies: 8
Views: 1255

Re: Where to place 100K for construction?

Ally Bank would be my choice. Option 1. Put all 100k in Online Savings (currently 1.85%) and ACH the funds to your checking account as needed. Six withdrawals per month are allowed. Option 2. Break the 100k into chunks and buy multiple No Penalty CD's that pay 2.00%. It's an 11-month CD that you can...
by Kevin8696
Mon Sep 17, 2018 1:01 pm
Forum: Personal Finance (Not Investing)
Topic: Amended tax return problem 1040x
Replies: 7
Views: 474

Re: Amended tax return problem 1040x

Davistax wrote: Mon Sep 17, 2018 12:56 pm Amend the return & return the check uncashed with the amended return.
Concur. Do another 1040x that amends the first 1040x and send the check back with the second amended return.
by Kevin8696
Sun Sep 16, 2018 1:07 pm
Forum: Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 7320

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

stemikger wrote: Sun Sep 16, 2018 1:03 pm This definitely would not have Jack's blessing. One bond fund is enough for me, heck one fund is enough for me. Vanguard Balanced Index Fund end of story.
Concur. Think "broad market index"... for both stocks and bonds, and then buy the haystack !!
by Kevin8696
Sun Sep 16, 2018 12:44 pm
Forum: Personal Investments
Topic: Vanguard Advisor suggesting 7 Bond funds for my 40%
Replies: 44
Views: 7320

Re: Vanguard Advisor suggesting 7 Bond funds for my 40%

errrr other than the exact mix (and I'd demand an answer on why to deviate) why not just go with Vanguard's Total World Bond Fund https://investor.vanguard.com/etf/profile/BNDW EDIT: Or if not ETF's then just buy the right split of VTIBX and VBMFX Are the foreign currencies hedged in BNDW or VTIBX ?
by Kevin8696
Sun Sep 16, 2018 10:10 am
Forum: Investing - Theory, News & General
Topic: Synchrony Bank Issues
Replies: 15
Views: 2269

Re: Synchrony Bank Issues

Gsbank's rates are the same as Synchrony's and their ACH transfers take only 1 day instead of 3. Ally Bank's ACH transfers are next day, and rates are competitive with Synchrony and GS Bank (Goldman Sachs). One thing to beware of with GS Bank (now called Marcus), their early withdrawal penalty for ...
by Kevin8696
Sat Sep 15, 2018 8:54 pm
Forum: Investing - Theory, News & General
Topic: Synchrony Bank Issues
Replies: 15
Views: 2269

Re: Synchrony Bank Issues

Kevin - Using Synchrony I have pulled more than $5K at a time from NFCU so that remains a viable option. Why I cannot push from NFCU I don't understand. Thanks for your comments. Your 'Pork Chop' friends will take good care of you 'fly boys'. Had two older brothers as pilots; USAF and USMC. I initi...
by Kevin8696
Sat Sep 15, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: Synchrony Bank Issues
Replies: 15
Views: 2269

Re: Synchrony Bank Issues

Kevin - What I am not enamored with is NFCU's limit of $5K per day per ACH. :annoyed Heck, investment companies send large amounts of distributions each day to their clients via ACH, even my RMD each year goes via ACH to NFCU and it is much more than $5K Tom... I checked my notes from when I was lo...
by Kevin8696
Sat Sep 15, 2018 12:43 pm
Forum: Investing - Theory, News & General
Topic: Synchrony Bank Issues
Replies: 15
Views: 2269

Re: Synchrony Bank Issues

I have been banking at the Navy Federal Credit Union (NFCU) since 1961. I recently saw advertisements for Synchrony Bank high yield savings (HYS) account and CDs. Their HYS account has an APY of 1.85% which is 1.40% higher than my NFCU Flagship checking account so I opened the account at Synchrony....
by Kevin8696
Fri Sep 14, 2018 2:16 pm
Forum: Personal Investments
Topic: 40/60 allocation returns ytd
Replies: 29
Views: 5388

Re: 40/60 allocation returns ytd

And yet my 50/50 portfolio has a YTD return of 3.97%. That's because a good chunk of my equity component is small-cap which had a YTD return the last I checked of about 17.4% v. 10% for total stock market. Similarly, a good chunk of my fixed component is high-yield bonds, with a YTD return of 2.66%...
by Kevin8696
Fri Sep 14, 2018 11:49 am
Forum: Personal Investments
Topic: 40/60 allocation returns ytd
Replies: 29
Views: 5388

Re: 40/60 allocation returns ytd

kaeltor wrote: Fri Sep 14, 2018 11:46 am What's YTD return on VTSAX?
YTD as of 9/13 for VTSAX was 10.43%
by Kevin8696
Fri Sep 14, 2018 11:45 am
Forum: Personal Investments
Topic: 40/60 allocation returns ytd
Replies: 29
Views: 5388

Re: 40/60 allocation returns ytd

Curious to know how other 40/60 allocations are performing YTD. Appears Vanguard Wellesley Income fund VWINX is only returning .41% YTD. Likely due to rising interest rates. Wellesley is being hit from both sides... their portfolio of dividend paying stocks is waaay out of favor, and the increase i...
by Kevin8696
Thu Sep 13, 2018 2:17 pm
Forum: Personal Finance (Not Investing)
Topic: Credit card advice
Replies: 22
Views: 1530

Re: Credit card advice

Can you convert your annual fee card to a no annual fee card at your current credit card company ?

That might avoid the hit of closing an account...
by Kevin8696
Thu Sep 13, 2018 2:03 pm
Forum: Personal Investments
Topic: Wife's Roth @ a Financial Advisor
Replies: 33
Views: 2038

Re: Wife's Roth @ a Financial Advisor

Do you pay the 5.75 fee every time you contribute or was that fee paid for back when the account was originally opened? Every purchase will have a front end load fee. Well this fact alone has made the decision what to do moving forward. I'm not paying 5.75% every time we contribute plus the cost fo...
by Kevin8696
Thu Sep 13, 2018 1:52 pm
Forum: Personal Investments
Topic: Best bonds securities for Taxable account
Replies: 14
Views: 3097

Re: Best bonds securities for Taxable account

Ricchan... In calculating tax-equivalent SEC yields for these funds, are you taking into account the federal tax on capital gains ? The SEC yield formula excludes realized capital gains . I'm just dividing SEC yield by ( 1 - tax_rate ). Since the SEC yield formula excludes capital gains and include...
by Kevin8696
Thu Sep 13, 2018 11:43 am
Forum: Personal Investments
Topic: Wife's Roth @ a Financial Advisor
Replies: 33
Views: 2038

Re: Wife's Roth @ a Financial Advisor

My wife has a Roth IRA with about $ 86,000 in it. She had it prior to us getting married 8 years ago and we have never contributed to it since being married, it has just sat there. We are both 32 years old. We want to start maxing it out every year moving forward. It is currently being "manage...
by Kevin8696
Tue Sep 11, 2018 10:40 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 134
Views: 11313

Re: Argument for taking social security before 70. Comments?

Okay, I see a little spreadsheet work in my future --- I had been sort of taking it on faith that waiting to age 70 was the way to go. One other wild card that I don't know how to 'weight' in the calculation is the possibility of the government changing the rules of the game as we age. I do NOT mea...
by Kevin8696
Tue Sep 11, 2018 9:53 pm
Forum: Investing - Theory, News & General
Topic: Argument for taking social security before 70. Comments?
Replies: 134
Views: 11313

Re: Argument for taking social security before 70. Comments?

Duffer..... I think you are perfectly sane. After reading tons of articles suggesting that retirees delay benefits from 66 until 70, I put together a cash flow spreadsheet to see what my situation would be. I calculated the monthly savings/portfolio draw-downs that I would need to support living exp...
by Kevin8696
Tue Sep 11, 2018 8:57 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Simple Factor Investing
Replies: 46
Views: 5707

Re: Larry Swedroe: Simple Factor Investing

Clicked the link in the OP post.

Took me to a site to create an account.

Created account.

Verified account.

Now, where the heck is the article that is the subject of the original post ?

Or do I have to buy something to see it ?
by Kevin8696
Tue Sep 11, 2018 8:39 pm
Forum: Personal Investments
Topic: Best bonds securities for Taxable account
Replies: 14
Views: 3097

Re: Best bonds securities for Taxable account

To expand on what exigent said, here's a table of the various municipal bond funds at Vanguard with their current tax equivalent SEC yields for the 22% bracket. Term Exp SEC Yield 22% TEY VMLTX Limited-Term Tax-Exempt Short 0.19 1.95 2.50 VWSTX Short-Term Tax-Exempt Short 0.19 1.68 2.15 VWITX Inter...
by Kevin8696
Tue Sep 11, 2018 6:00 pm
Forum: Personal Investments
Topic: Money market vs Bond funds
Replies: 19
Views: 8583

Re: Money market vs Bond funds

What am I missing? Intermediate VG bond funds have lost from 1.25 to 1.50% YTD 9/2018. Short term funds have lost a small amount YTD. It would seem reasonable to expect interest rate to increase in future resulting in more loss of principal. VG Prime money market fund has a SEC yield of 2 %. Why sh...
by Kevin8696
Tue Sep 11, 2018 3:50 pm
Forum: Investing - Theory, News & General
Topic: Breaking down BND (and all bond funds)
Replies: 14
Views: 1973

Re: Breaking down BND (and all bond funds)

I've given up on understanding bond funds. :happy I thought about adding this to the thread on misunderstood/misused terms - a one word reply: 'bonds'. They may be less volatile than equities, but they're more complicated to understand, in my opinion. MarieZZZ... Maybe try investopedia.com. They ha...
by Kevin8696
Tue Sep 11, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: Is individual Bonds better than Bond Fund?
Replies: 58
Views: 6850

Re: Is individual Bonds better than Bond Fund?

Before I started reading advice from the Bogleheads about simplifying, I decided to make up my own little five-year bond ladder, a mix of CDs and treasuries, just to see what would happen. The average interest rate of that particular bond ladder turns out to be 2.65%. So, today I can compare that t...
by Kevin8696
Sun Sep 09, 2018 4:48 pm
Forum: Personal Investments
Topic: Bond fund overlap
Replies: 14
Views: 846

Re: Bond fund overlap

ruralavalon wrote: Sun Sep 09, 2018 3:56 pm
Munir wrote: Sun Sep 09, 2018 3:41 pm I don't understand the argument that any future rise of interest rates is already priced in the current NAV of the fund. Then, why does the NAV keep falling?
Because expectations change?
Like most everything in life... it all works fine until it doesn't.