Search found 231 matches

by dougpnca
Thu Feb 16, 2017 6:08 pm
Forum: Investing - Theory, News & General
Topic: Net Worth Diversification Concern
Replies: 10
Views: 2488

Re: Net Worth Diversification Concern

For no cost with low risk, Treasury Direct is worth considering. Withdrawls before maturity have some restrictions but you have a wide choice of maturities. Interest is taxable at the Federal level, and is seldom exciting. I think it's a good place for some emergency backup if the SHTF money. dougP
by dougpnca
Sat Jul 30, 2016 3:53 pm
Forum: Personal Investments
Topic: Vanguard Prime Money Market Fund (VMMXX) Question?
Replies: 33
Views: 14498

Re: Vanguard Prime Money Market Fund (VMMXX) Question?

The number & variety of responses to the change from Prime MM to Federal MM suggests some inconsistency by Vanguard. We have been Flagship clients for many years and did not receive anything in the mail. We are signed up for "electronic only" communications except for our annual statements. Returnin...
by dougpnca
Tue Jul 26, 2016 10:59 pm
Forum: Personal Investments
Topic: Upgrade to Brokerage Account with Vanguard
Replies: 46
Views: 12712

Re: Upgrade to Brokerage Account with Vanguard

My experience with this so-called "upgrade" has been frustrating. It was put to me that it was required since I had both brokerage and taxable mutual fund accounts. The short answer was that as of Oct 1, 2016, all brokerage settlements had to be deposited into a fund that only invested in short term...
by dougpnca
Wed Dec 02, 2009 6:49 pm
Forum: Investing - Theory, News & General
Topic: Stocks and Bonds both up?
Replies: 13
Views: 2745

Recall one year ago when everything was in the tank. Bonds daily valuations are mark to market. With very little moving, values were established by desperate sellers. Perfectly good bonds, paying interest, from issuers in no danger of default, were selling at deep discounts. So various types of secu...
by dougpnca
Wed Dec 02, 2009 6:42 pm
Forum: Investing - Theory, News & General
Topic: Jack Bogle's Portfolio
Replies: 11
Views: 4711

It can be that simple. The lure to complicate our investment decisions is caused by the "Lake Wobegon Syndrome", that place where all the children are above average, etc. (thanks to Garrison Keillor for ID'ing this). We all think we're better than average at much of what we do. So of course we can "...
by dougpnca
Thu Aug 07, 2008 11:34 pm
Forum: Personal Investments
Topic: Re: REITs
Replies: 5
Views: 1947

We've held 10% in REITs over the years, in Van REIT Idx. During the boom of course we had to keep re-balancing (a pleasant duty) but now it's been down a bit. Whatever portion you decide upon, hold in tax deferred as REITs are required to pay out annually. When the RE market is dodgy, this problem m...
by dougpnca
Thu Aug 07, 2008 11:29 pm
Forum: Personal Investments
Topic: Is Vang Health Care tax efficient?
Replies: 26
Views: 6506

We've had HC for a number of years in IRAs. It tends to deliver money in unpredictable (but welcome) chunks, so is best in tax deferred.

dougP
by dougpnca
Thu Aug 07, 2008 11:21 pm
Forum: Investing - Theory, News & General
Topic: Vanguard is reopening two funds.
Replies: 19
Views: 6016

The management at Health Care is a pretty smart group & I suspect they're looking ahead to possible election outcomes. My guess is they'll have some ideas to put to work, depending on the outcome in November. Of course, whatever the next administration proposes has a lot of hurdles to cross before t...
by dougpnca
Thu Aug 07, 2008 11:15 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Healthcare Fund
Replies: 2
Views: 1195

While it's been quiet the last few years, when Health Care spins off money it's in healthy chunks. We've had IRAs in it & glad they were tax deferred. We've had Health Care for probably 15 years.

dougP
by dougpnca
Thu Aug 07, 2008 11:07 pm
Forum: Personal Consumer Issues
Topic: More Free Time Lately, What Can I Do?
Replies: 22
Views: 5427

Park the car & ride a bike. You get economy, exercise & help the ecology all in one. Every trip, even the grocery store, is an adventure. If you have small children, a trailer works. If they're a bit older, a tandem or their own singles. If unsure how to get started, check out a local touring (NOT R...
by dougpnca
Sun Mar 30, 2008 8:46 pm
Forum: Personal Finance (Not Investing)
Topic: Health - Cholesterol / TriGlycerides
Replies: 92
Views: 20701

I have never had high cholesterol nor any other markers for heart disease, & have bicyclied 3-4K miles per year most of my adult life. At age 52, I had a heart attack & one cardiac artery was 90% blocked so they stented it. Then it was a regimen of various drugs until the cardiologist was satisfied ...
by dougpnca
Sun Mar 30, 2008 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Wills and Living Trusts
Replies: 26
Views: 6277

The answer to your question "Do we need....?" requires knowledge of the laws of the state in which you reside. We live in Calif & of course everything here involving legal & financial matters is complicated, so we used an attorney & set up trusts, wills, etc. Ask around your friends who are in simil...
by dougpnca
Thu Mar 27, 2008 11:24 am
Forum: Investing - Theory, News & General
Topic: Automobile leasing - not always a bad idea
Replies: 40
Views: 6603

ddb: It sounds like you really, really want to do the deal. What you might do is quiz some of your most honest friends about their leasing experiences & especially who they did business with. That seems to be a key element to getting a deal that's livable & covers the contingencies. Hey, for $37K yo...
by dougpnca
Thu Mar 27, 2008 10:28 am
Forum: Investing - Theory, News & General
Topic: Does anyone believe this time really IS different?
Replies: 15
Views: 3334

Some days the dragon wins.

dougP
by dougpnca
Thu Mar 27, 2008 10:14 am
Forum: Investing - Theory, News & General
Topic: Asset allocation and location
Replies: 8
Views: 2622

Because of the ever present potential for changes in tax law, I just assume current values when figuring my AA. The house is not part of my equation.

dougP
by dougpnca
Thu Mar 27, 2008 10:09 am
Forum: Investing - Theory, News & General
Topic: Interesting "Econophysics" Article
Replies: 5
Views: 1584

Ah, but it is true. Everything is Connected to Everything Else! No matter where you go, there you are.

dougP
by dougpnca
Thu Mar 27, 2008 10:03 am
Forum: Investing - Theory, News & General
Topic: Fair comparisons of active & passive funds
Replies: 22
Views: 4026

Bill Sharpe has lived & breathed this stuff for a half century, & when asked where he puts his money, the response is "...the bulk of my money is in passively managed index funds." Still, it's always fun to try to do "just a little bit better". We're a competitive species.

dougP
by dougpnca
Thu Mar 27, 2008 9:46 am
Forum: Investing - Theory, News & General
Topic: Automobile leasing - not always a bad idea
Replies: 40
Views: 6603

There's a lot of discipline required to effectively use leasing as a financing tool. First you have to understand leasing & the dealers do their best to prevent that. Second you have to figure out what you want & stick to it. Dealers make lots of extra money by "moving you up" for just a few dollars...
by dougpnca
Sat Mar 22, 2008 12:21 pm
Forum: Personal Finance (Not Investing)
Topic: Renting and driving a car in Guatemala (insurance question)
Replies: 21
Views: 6278

We have traveled in Guatemala, Costa Rica & Mexico and have never rented a car. The so-called convenience of having a car is overridden by the hassle factor and the ease of bus service. In third world countries much of the population depends on public transportation so there are a variety of bus ser...
by dougpnca
Sat Mar 22, 2008 12:01 pm
Forum: Investing - Theory, News & General
Topic: no capital gains?
Replies: 4
Views: 1509

See the thread about "Total Stock Market no capital gains?". TSM pays about as low a cap gain as you can get. But as noted above, you will see at least some over time. The only way to control the distribution of cap gains is by owning individual stocks, and you may still have dividends to pay at ord...
by dougpnca
Sat Mar 22, 2008 11:26 am
Forum: Investing - Theory, News & General
Topic: "High net worth investors"
Replies: 25
Views: 6441

There have been mulitple studies of human behavior, done over decades, that show that the more we have, the more we want. The result seems to be that everyone from poverty level to HNWI (whatever level that may be) feels that if they just had about 15% "more" they would be satisfied. Of course, that...
by dougpnca
Thu Mar 20, 2008 11:44 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing Daily!
Replies: 34
Views: 8115

Madsinger: Thanks for the update. I'm a bit on the lazy side so I tend to re-balance less frequently. My "rule" (loosely followed) is to consider a re-balance when things get to 5% off target. Then I'll usually re-balance if it looks like a trend. I only look quarterly so sometimes 3-4 quarters can ...
by dougpnca
Thu Mar 20, 2008 7:45 pm
Forum: Investing - Theory, News & General
Topic: Inherited IRA payout
Replies: 5
Views: 2026

Inherited IRA payout

Does anyone out there have experience with the payout of an inherited IRA? The situation is a non-spouse (child or grandchild of descedent) who inherits an IRA. The IRS rules require RMDs based on the life expectancy of the beneficiary, or withdrawl in substantially equal payments. The IRS regs do n...
by dougpnca
Thu Mar 20, 2008 7:28 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing Daily!
Replies: 34
Views: 8115

Madsinger: Great that you stepped up & crunched the data. The results are a bit inconclusive in that there is no clear trend. But as you point out, this may be a function of the particular data set, time period, etc. Still, while it confirms the value of periodic re-balancing, it doesn't suggest tha...
by dougpnca
Thu Mar 20, 2008 12:07 pm
Forum: Investing - Theory, News & General
Topic: Total Stock Market vs Prime Money Market, 1/1/00 - 3/18/08
Replies: 13
Views: 3398

So is the Century of the Money Market? Going to be tough for a bubble to develop!

8+ years....goes by quickly. Fun poll, thanks for posting. Good reminders.

dougP
by dougpnca
Thu Mar 20, 2008 11:58 am
Forum: Investing - Theory, News & General
Topic: Rebalancing Daily!
Replies: 34
Views: 8115

Allen: An annual re-balance is often recommended. Quarterly is not uncommon. Probably a lot of folks do it monthly. Your scheme is simply extending the logic to another degree. If you had ETFs & nothing else to do, you could perform this effort continuously thru the day. Theoreticaly (ignores taxes ...
by dougpnca
Thu Mar 20, 2008 11:49 am
Forum: Investing - Theory, News & General
Topic: Rebalancing When Retired: A Psychological Trick
Replies: 19
Views: 3793

Ken: I'm glad you brought up this subject & there's some thinking on this. My re-balancing rule is when something gets over 5% out of plan & seems to be trending further, say over a couple of quarters, then I'll re-balance. We have enough in tax deferred that we can accomplish the re-balance immedia...
by dougpnca
Thu Mar 20, 2008 11:30 am
Forum: Investing - Theory, News & General
Topic: tax deferred can be suboptimal?
Replies: 8
Views: 1946

Sewall: Just a couple of rules of thumb: 1) fully fund your 401(k) and any other tax deferred accounts first; 2) use tax efficient (usually equity) index funds in taxable accounts; 3) keep bond funds in tax deferred vehicles. These are general guidelines only & there will be numerous exceptions due ...
by dougpnca
Thu Mar 20, 2008 10:58 am
Forum: Investing - Theory, News & General
Topic: biodiesel article
Replies: 6
Views: 1323

In the 70s the federal Energy & Research Development Agency was elevated to cabinet level & renamed the Energy Dept. and we launched a huge national initiative for energy independence. Billions going into all sorts of energy areas, both government funded & from the oil companies. This was in respons...
by dougpnca
Thu Mar 20, 2008 10:44 am
Forum: Investing - Theory, News & General
Topic: Proof #11,842 that you CANNOT time the market
Replies: 4
Views: 1646

One of my personal leading indicators of areas of speculation that may hold the potential for the next bubble is the number of seminars, workshops, presentations, etc., given by "experts" in their field, usually inlcuding the best selling "How to get rich in.....". The last year or so it's been comm...
by dougpnca
Thu Mar 20, 2008 10:34 am
Forum: Investing - Theory, News & General
Topic: giving up the tilt...now what?
Replies: 29
Views: 5554

Jane: You've just stated on of the fundamentals of the argument for owning index funds. "But in the end, the difference between a highly nuanced portfolio and one invested in the total market may not end up being that great." IMO you are correct. Between Total Stock & Total Int'l you'll capture what...
by dougpnca
Wed Mar 12, 2008 12:00 am
Forum: Investing - Theory, News & General
Topic: Big runup in the market today!
Replies: 41
Views: 7182

An analyst alerted everyone that when the S&P hit 1,250 it would be a strong buy signal....but that was in 2000! The more things change....

dougP
by dougpnca
Tue Mar 11, 2008 6:14 pm
Forum: Investing - Theory, News & General
Topic: SWRs for Europeans
Replies: 5
Views: 1386

Sounds like a question for Vanguard or someone else familiar with cost of living in Europe. The Euro / dollar situation will add another layer of complexity to that analysis if you're thinking of withdrawing in USD & living in Europe.

dougP
by dougpnca
Tue Mar 11, 2008 6:11 pm
Forum: Investing - Theory, News & General
Topic: Big runup in the market today!
Replies: 41
Views: 7182

Check the article on Morningstar for the mechanics of the liquidity infusion. Actually, it may be hydraulics, not mechanics. Not sure I understand all the nuances but it sounds pretty creative. Maybe too creative....doesn't sound like anything more than patchwork. I'm going with the dead cat for now...
by dougpnca
Mon Mar 10, 2008 10:46 pm
Forum: Investing - Theory, News & General
Topic: Are Those BEAR TRACKS I See?
Replies: 20
Views: 4072

Regardless of the percentage drop, the mood is distinctly bearish. RE problems; credit problems; equity problems. Gold up; oil up. Time to stock up on equities while they're on sale. No hurry; I think this sale will go on for at least 6 months. Look for the Wizards in Washington to reach deep into t...
by dougpnca
Mon Mar 10, 2008 10:32 pm
Forum: Investing - Theory, News & General
Topic: Are TIPS a buy?
Replies: 7
Views: 2592

The USD could go to .5 Euros; .25 Euros, .1 Euros. It could also bounce back to over par & then some. That's why currency traders either drive luxury cars or scramble for a job. They know all there is to know & it's still not enough. Tough game; not for me.

dougP
by dougpnca
Mon Mar 10, 2008 10:26 pm
Forum: Investing - Theory, News & General
Topic: Buffet bets billions that SP500 will be up in 20 years
Replies: 13
Views: 4200

allenmickers: You've used the term "bet" to describe your proposed action. If that's truly the case, don't bother with the financial markets. Go straight to the source - Las Vegas. I'm not being sarcastic here. Somewhere in Clark County, NV, you will find a bookmaker who'll give you odds on just abo...
by dougpnca
Sun Mar 02, 2008 10:34 pm
Forum: Investing - Theory, News & General
Topic: Is a 5% allocation worthwhile?
Replies: 18
Views: 4235

Snowman:

My personal lower limit is 5%. Anything less is just portfolio clutter. An investment of 5% of your portfolio has to net a 20% return to add 1% to portfolio performance. Worth it? Your call; you manage it.

dougP
by dougpnca
Sun Mar 02, 2008 10:30 pm
Forum: Investing - Theory, News & General
Topic: Indian (or other) offshore CDs?
Replies: 22
Views: 4543

What about Euro denominated CDs? For instance, does anyone know of a convenient & legal way for a US citizen to purchase a CD from a French bank? Sure, you'll take a hit on the initial exchange but if the dollar continues to slide it may have a better return than US. The key words are convenient & l...
by dougpnca
Sat Mar 01, 2008 8:43 pm
Forum: Personal Finance (Not Investing)
Topic: Buying Property in NYC
Replies: 79
Views: 18824

You're also competing with overseas buyers. My wife's from NYC & our nephew lives there. Her father was an investor in Brooklyn RE. So the family has a lot of experience in the area. Our nephew is currently shopping & has found that one unusual factor supporting prices in the City is the dollar /Eur...
by dougpnca
Sat Mar 01, 2008 8:33 pm
Forum: Personal Finance (Not Investing)
Topic: Checking Account at Large Banks.
Replies: 6
Views: 2061

Look into smaller banks in your area. The services you list are not unique to the big guys. My experience with large national banks is that they are not particularly interested in the smaller customer. My best experiences have been with smaller regional banks. Unfortunately, the tend to got gobbled ...
by dougpnca
Sat Mar 01, 2008 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Vehicle for newly licensed daughter
Replies: 25
Views: 6047

We've been thru this twice with daughters & it's not as onerous as a lot of publications make it. With #1, we purchased a well used Chevy Lumina 4 door with the understanding that she would also ferry around daughter #2 as her part of the deal. She put gas in the car out of pocket money but we handl...
by dougpnca
Fri Feb 29, 2008 10:49 pm
Forum: Investing - Theory, News & General
Topic: Things that make you go HMMMMMMMM.....
Replies: 12
Views: 3862

Hope they don't come calling for that negative $862K!
by dougpnca
Fri Feb 29, 2008 10:47 pm
Forum: Investing - Theory, News & General
Topic: SIGN OF THE TIMES
Replies: 2
Views: 1073

Whenever I think I understand the fixed income market, something happens to remind me I'm not as smart as thought I was.

Go figure.

dougP
by dougpnca
Fri Feb 29, 2008 10:44 pm
Forum: Investing - Theory, News & General
Topic: There Will Be Blood
Replies: 58
Views: 12210

gekko: Nowhere to hide happens fairly often. Sheepdog's got it right. That's the reality of the investing world. At your age, 17% cash may be on the high side. Don't forget the old quote about the time to buy is when there's blood on the streets & fear in the hearts. If it was me, some of that cash ...
by dougpnca
Fri Feb 29, 2008 10:16 pm
Forum: Investing - Theory, News & General
Topic: Why are you Fixed Income Market Timers?
Replies: 42
Views: 11339

Market timing will drive you crazy. Too many variables pulling in too many directions. Bonds, either individual or funds, have so many forces driving the prices that I can't imagine a retail investor being able to sort it all out with any degree of consistency. My bonds & funds provide stability & i...
by dougpnca
Fri Feb 29, 2008 12:53 pm
Forum: Investing - Theory, News & General
Topic: Muni Bond Fund Declines
Replies: 72
Views: 16210

California will auction $1.7 billion in G.O. bonds next week. They have a new program wherein individuals get first crack (thru brokers & VG handles thru Pershing) and then the institutions. I believe the previous issue attracted roughly half it's subscriiptions from individuals. It will be interest...
by dougpnca
Fri Feb 29, 2008 12:26 pm
Forum: Investing - Theory, News & General
Topic: A genuine question about the Boglehead investing philosophy
Replies: 36
Views: 7437

Rose: As posed, your question is an intriguing paradox. However, the answer may be along the lines of "good judgment comes from experience; experience comes from bad judgment". Few of us started our investing lives doing systematic research before investing. Only once we had a stake, and hence an in...
by dougpnca
Thu Feb 28, 2008 9:03 pm
Forum: Investing - Theory, News & General
Topic: Why are you Fixed Income Market Timers?
Replies: 42
Views: 11339

To make money in bonds, you have be really good, really quick & really tough. And 2 out of 3 won't cut it. Remember, as an individual you are competing with pros who live this stuff. Tough to time that market.

dougP
by dougpnca
Thu Feb 28, 2008 8:52 pm
Forum: Investing - Theory, News & General
Topic: Why Estate Taxes Don't Matter
Replies: 65
Views: 11919

Funny how large amounts of money can keep all those cousins in close touch over the generations. Here in So Cal, the Chandler family of LA Times fame had several hundred people drawing on the trust that owned the Times Mirror Co. One of the main reasons for selling to Tribune was a lack of interest ...