Search found 441 matches

by pezblanco
Sat May 12, 2018 4:43 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

Baird fund as of March 31st has exposure to Puerto Rico bonds. I thought this was supposed to be the best quality muni fund out there? Mostly aaa, and aa? Illinois and Puerto Rico don’t mix? Edited. I think you have the wrong fund. It’s bmbix. I give up ... this one has a lot of Illinois bonds also...
by pezblanco
Sat May 12, 2018 4:27 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

Detroit was in big trouble without the pension issues. So what if there are some defaults? It’ll be a short term shock. The thousands of bonds that don’t default will keep paying. The market prices those risks in. It’s not.a black swan. I don't think that anyone has been raising that much alarm. No...
by pezblanco
Sat May 12, 2018 4:18 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

Good point. It’s actively managed and has independent credit analysis. I think this is fear mongering. My int. Muni fund at vanguard holds thousands of investment grade bonds. I don’t think multiple municipal defaults will have much of an effect on returns for long term investors. I personally don’...
by pezblanco
Sat May 12, 2018 2:58 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

golfCaddy wrote:
Sat May 12, 2018 2:50 pm
How does anyone come up with a meaningful default risk for a state? There's only been one state that defaulted on its bonds since the civil war era.
That's the problem with rare events ... they are hard to estimate.
by pezblanco
Sat May 12, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

This link has a list of percentages of the various Vanguard bond funds and their state muni holding by percentage: https://www.vanguard.com/pdf/ASBST_012018.pdf For example, the Intermediate Term fund has 6.52% of it's assets in Illinois bonds .... It's the type of bonds that matter. Let's say the ...
by pezblanco
Sat May 12, 2018 2:02 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

This link has a list of percentages of the various Vanguard bond funds and their state muni holding by percentage: https://www.vanguard.com/pdf/ASBST_012018.pdf For example, the Intermediate Term fund has 6.52% of it's assets in Illinois bonds .... It's the type of bonds that matter. Let's say the ...
by pezblanco
Sat May 12, 2018 1:58 pm
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

This link has a list of percentages of the various Vanguard bond funds and their state muni holding by percentage: https://www.vanguard.com/pdf/ASBST_012018.pdf For example, the Intermediate Term fund has 6.52% of it's assets in Illinois bonds .... It's the type of bonds that matter. Let's say the ...
by pezblanco
Sat May 12, 2018 9:07 am
Forum: Investing - Theory, News & General
Topic: Muni bondholders vs. pensions
Replies: 50
Views: 2926

Re: Muni bondholders vs. pensions

This link has a list of percentages of the various Vanguard bond funds and their state muni holding by percentage:

https://www.vanguard.com/pdf/ASBST_012018.pdf

For example, the Intermediate Term fund has 6.52% of it's assets in Illinois bonds ....
by pezblanco
Wed May 09, 2018 7:32 pm
Forum: Personal Consumer Issues
Topic: Do we spend too much on food?
Replies: 71
Views: 5928

Re: Do we spend too much on food?

2 adults and one baby eating baby foods spends $300 a month. My wife stays home with our baby so she is able to go to different stores for different items where they are priced better. Alcohol is purchased out of our entertainment budget as it isn't necessary to a healthy lifestyle. I hunt successf...
by pezblanco
Mon May 07, 2018 4:42 pm
Forum: Investing - Help with Personal Investments
Topic: Small Cap Blend vs Small Cap Value
Replies: 12
Views: 1199

Re: Small Cap Blend vs Small Cap Value

In my 401k I am fortunate enough to have a few Vanguard funds on offering - enough to build a portfolio I'm happy with. Right now my equities are in VFIAX and VGTSX. I don't have Vanguard small cap value offered as an option, but I DO have Vanguard small cap blend - VSMAX. Given the fairly consiste...
by pezblanco
Mon May 07, 2018 9:21 am
Forum: Investing - Help with Personal Investments
Topic: New Investor
Replies: 14
Views: 770

Re: New Investor

I'm not sure what your ages are but I'm assuming something like in your 30"s? I think that with your future pensions and your ages that you would be be perfectly justified if you can withstand the volatility of going 100% stocks. Two excellent funds to consider would be Vanguard's Total Stock Market...
by pezblanco
Sun May 06, 2018 9:35 am
Forum: Personal Finance (Not Investing)
Topic: Does it make sense to rent as a retiree?
Replies: 83
Views: 8667

Re: Does it make sense to rent as a retiree?

Another factor would be whether you can rent the type of home you are looking for in your desired location. If neighbors on all sides and shared laundry doesn't bother you renting will be easy to fo d a good deal but if you want to live in a wooded lot with nobody for miles around so you can shoot ...
by pezblanco
Sat May 05, 2018 8:41 pm
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3836

Re: Paying down your mortgage as a way to balance your portfolio?

Perhaps I'm missing something, but I don't see how paying off a mortgage has any connection with balancing a stock-heavy portfolio. Would you end up with no mortgage plus 100% stocks? Is that "balance"? It is if you think of debt as a negative bond. Having stocks and a mortgage w no bonds is, finan...
by pezblanco
Sat May 05, 2018 7:10 pm
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3836

Re: Paying down your mortgage as a way to balance your portfolio?

could you look at putting extra cash toward your mortgage as a way to balance a stock heavy portfolio? Perhaps I'm missing something, but I don't see how paying off a mortgage has any connection with balancing a stock-heavy portfolio. Would you end up with no mortgage plus 100% stocks? Is that "bal...
by pezblanco
Sat May 05, 2018 3:29 pm
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3836

Re: Paying down your mortgage as a way to balance your portfolio?

So let's talk examples, as you want to include things in the asset allocation. A young person is starting out, has a good job. She also bought a house that has 40k equity from the down-payment, and a loan of 160k. She can save exactly enough to invest 18.5k in 401(k) and $5500 in Roth. She decides ...
by pezblanco
Sat May 05, 2018 2:40 pm
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3836

Re: Paying down your mortgage as a way to balance your portfolio?

My dear Lemongrab ... your cash flows (positive and/or negative) have absolutely no impact on your asset allocation???? Really??? Why would it? Do you count your income from the job as part of your asset allocation? Do we even have the same definition of "asset allocation"? For me that's allocation...
by pezblanco
Sat May 05, 2018 8:38 am
Forum: Investing - Theory, News & General
Topic: Paying down your mortgage as a way to balance your portfolio?
Replies: 72
Views: 3836

Re: Paying down your mortgage as a way to balance your portfolio?

Pro Arguments: 1) If you aren't itemizing, paying off the mortgage is the same as a guaranteed TAX-FREE 3% bond over the span of the mortgage. In today's rate environment, that is pretty darn good. Vanguard's tax-exempt intermediate term bond fund is currently 2.42% (and you have to pay state taxes ...
by pezblanco
Fri May 04, 2018 8:53 am
Forum: Investing - Theory, News & General
Topic: Investing is more like poker than chess
Replies: 91
Views: 6070

Re: Investing is more like poker than chess

I don't really think it is like either one .... At least if you are a buy and hold investor (and not for example a day trader). In the face of stochastic uncertainty, we take a deterministic stance of owning a certain percentage of various identifiable asset classes and we hold them and rebalance. P...
by pezblanco
Tue May 01, 2018 11:31 am
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 2914

Re: Avocado Timing

the delicate flavor of the avocados. I upgraded my food processor and quickly made some guac this morning. I was totally missing out on the delicacy of the avocado whipped to perfection. Awesome! You really need to puree it good to "smooth it out". Avocados are so darn hard to mash without a blende...
by pezblanco
Tue May 01, 2018 9:22 am
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 2914

Re: Avocado Timing

Everyone has their recipe for guacamole .... this isn't bad. Major mistakes usually are (1) putting in mayonnaise (2) blending the mixture to a disgusting smooth puree (3) putting in weird spices ... god help me cumin being used most often ... black pepper is very seldom used in most latin american...
by pezblanco
Mon Apr 30, 2018 8:48 pm
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 2914

Re: Avocado Timing

I usually don't click on cooking-related threads because they annoy me. But this one has "avocado" in the title, and so it's fair to ask: Why do you waste time on guacamole if you can just eat avocados? Victoria Why do you waste time on salad when you can just eat lettuce??? 8-) I don't spend any m...
by pezblanco
Mon Apr 30, 2018 7:40 pm
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 2914

Re: Avocado Timing

VictoriaF wrote:
Mon Apr 30, 2018 1:16 pm
I usually don't click on cooking-related threads because they annoy me. But this one has "avocado" in the title, and so it's fair to ask:
Why do you waste time on guacamole if you can just eat avocados?

Victoria
Why do you waste time on salad when you can just eat lettuce??? 8-)
by pezblanco
Mon Apr 30, 2018 7:39 pm
Forum: Personal Consumer Issues
Topic: Avocado Timing
Replies: 40
Views: 2914

Re: Avocado Timing

Buy them hard and 3 days left out on the counter should do it. I use about 4 avocados for a party size guacamole, buying 5-6 to make sure I have enough good ripe ones. My riff of traditional guacamole that gets decent reviews... Slice and roughly mash the avocados. Add some finely diced onion, 1-2 ...
by pezblanco
Wed Apr 18, 2018 9:05 am
Forum: Investing - Help with Personal Investments
Topic: I want to pay off my mortgage. Am I crazy?
Replies: 54
Views: 5569

Re: I want to pay off my mortgage. Am I crazy?

Vanguard Intermediate Term Tax Free has SEC yield of 2.34% Depending on your state you might be able to find one that is exempt from your state taxes also. You state your effective mortgage rate is 1.4%. If you are into compartmentalizing, you could take the money for the payoff ... put it aside in ...
by pezblanco
Sat Apr 07, 2018 9:07 am
Forum: Personal Consumer Issues
Topic: Is it very hard to learn Spanish?
Replies: 65
Views: 4299

Re: Is it very hard to learn Spanish?

I think people are exaggerating a bit the difficulties encountered with the different accents/dialects of Spanish. To say that you learning peninsular Spanish precludes your being understood by Latin Americans or visa versa is just false (I'm sorry, there is no way to soften that). Yes, it is true t...
by pezblanco
Thu Apr 05, 2018 7:19 pm
Forum: Personal Consumer Issues
Topic: Tequila and Magaritas
Replies: 59
Views: 4613

Re: Tequila and Magaritas

Lots of clueless comments so far in this thread. :D As an inhabitant of a part of the country where margaritas are a way of life .... Recipe for an high quality margarita: 1) slice a lime in half 2) wet rim of glass with lime and touch to the sal gorda (rock salt) (half rim ... full rim whatever you...
by pezblanco
Tue Apr 03, 2018 6:36 pm
Forum: Personal Consumer Issues
Topic: Cleaning up new house before move in—getting rid of “cat smell”
Replies: 42
Views: 3425

Re: Cleaning up new house before move in—getting rid of “cat smell”

I have a friend who has rental units. He has a strict no-cat clause (dogs are OK). There have been a couple of times where tenants have had a cat against the rules and said cat sprayed around the litter box and in other areas. There evidently is no way to get that very penetrating odor out short of ...
by pezblanco
Fri Mar 23, 2018 9:14 am
Forum: Investing - Theory, News & General
Topic: Skin In The Game [new N. Taleb book]
Replies: 23
Views: 3860

Re: Skin In The Game [new N. Taleb book]

I still have not read "Skin in the Game," but I consider Taleb one of the smartest people ever. Smarter than Steve Jobs. Smarter than other modern "luminaries." Not only Taleb is smart, he's direct. He calls a spade a spade. Taleb is incredibly insightful and he is right to emphasize his insights s...
by pezblanco
Sun Mar 18, 2018 9:24 am
Forum: Investing - Help with Personal Investments
Topic: Maxed out Roth space - how to meet rest of fixed income AA?
Replies: 4
Views: 334

Re: Maxed out Roth space - how to meet rest of fixed income AA?

3funder is giving you great advice. 1) Balance your portfolio as a whole .... don't try to balance the separate components of Roth, 401(k), and the taxable .... You might need to make a rough guess as to the value of the dollars in each component .... the 401(k) dollars are not worth as much as the ...
by pezblanco
Sat Mar 17, 2018 9:16 pm
Forum: Personal Consumer Issues
Topic: Best places to buy board shorts and sunglasses
Replies: 13
Views: 1184

Re: Best places to buy board shorts and sunglasses

I like Oakley. I've heard nothing but good things about Maui Jim. At the upper end, Luxottica has a quasi-monopoly on sunglasses. Costa Del Mar is what you see most fisherman wearing. I mostly hang out with fishermen, so I see a lot of Costa's. I wouldn't have anything else. $1-200 bucks will get y...
by pezblanco
Sat Mar 17, 2018 9:18 am
Forum: Investing - Theory, News & General
Topic: Distribution Yield vs. SEC Yield
Replies: 3
Views: 835

Re: Distribution Yield vs. SEC Yield

^^^ Great post, longinvest. Thank you!
by pezblanco
Mon Mar 12, 2018 9:09 pm
Forum: Personal Consumer Issues
Topic: Men's Cologne
Replies: 59
Views: 4600

Re: Men's Cologne

Another triumph for Madison Avenue ... convincing men that they need to wear perfume so that they smell "manly".
by pezblanco
Tue Mar 06, 2018 9:36 am
Forum: Personal Finance (Not Investing)
Topic: Should I agree to have my driving monitored in exchange for lower rates?
Replies: 65
Views: 5093

Re: Should I agree to have my driving monitored in exchange for lower rates?

Those that give up essential privacy to obtain a little temporary discount, deserve neither privacy nor discount. :D
by pezblanco
Thu Mar 01, 2018 11:39 am
Forum: Investing - Help with Personal Investments
Topic: Young person wonders about Bonds
Replies: 19
Views: 2430

Re: Young person wonders about Bonds

I see. So do you put bonds in taxable? Tax deferred or both? I think this question is eerily similar to whether you should do a 401k ROTH or 401k. I guess I am assuming taxes may be higher in 30 years . . . I have no idea . . . just a guess. So I am thinking my taxes may be 5 -10% higher when I pul...
by pezblanco
Thu Mar 01, 2018 9:29 am
Forum: Investing - Help with Personal Investments
Topic: Young person wonders about Bonds
Replies: 19
Views: 2430

Re: Young person wonders about Bonds

For the argument for Bonds in Taxable, you can start with: https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ Many of the recommendations for Bonds in Tax Deferred were from the days of 6% returns on bonds .... we're still not there yet! SEC yield on Intermediate Term Muni is 2.2...
by pezblanco
Wed Feb 28, 2018 6:04 pm
Forum: Investing - Help with Personal Investments
Topic: Young person wonders about Bonds
Replies: 19
Views: 2430

Re: Young person wonders about Bonds

For the argument for Bonds in Taxable, you can start with: https://www.whitecoatinvestor.com/asset-location-bonds-go-in-taxable/ Many of the recommendations for Bonds in Tax Deferred were from the days of 6% returns on bonds .... we're still not there yet! SEC yield on Intermediate Term Muni is 2.2%...
by pezblanco
Tue Feb 27, 2018 6:16 pm
Forum: Investing - Help with Personal Investments
Topic: Young person wonders about Bonds
Replies: 19
Views: 2430

Re: Young person wonders about Bonds

There is a lot of controversy on BH about where to hold bonds. Right now with the current SEC yields of total bond fund, intermediate term municipal bonds, and of the total stock market ... it is still slightly more advantageous to hold your bonds as muni's in taxable than to hold the total bond fun...
by pezblanco
Thu Feb 22, 2018 4:28 pm
Forum: Personal Finance (Not Investing)
Topic: Is a prenup required to establish a list of separate property before marriage?
Replies: 67
Views: 2654

Re: Is a prenup required to establish a list of separate property before marriage?

In the event a divorce happened, as long as you both agree to who gets what and what was pre-marital all would be fine. If one of you got greedy and wanted more, what would be there for the courts to enforce? If you're both willing to to a pre-nup and the only reason not to is you don't want to spe...
by pezblanco
Thu Feb 22, 2018 11:02 am
Forum: Personal Finance (Not Investing)
Topic: Is a prenup required to establish a list of separate property before marriage?
Replies: 67
Views: 2654

Re: Is a prenup required to establish a list of separate property before marriage?

Why can't you just give her 500 dollars so that she will obtain her own legal counsel to look over the pre-nup drafted by your lawyer? I learned a very hard lesson once in life .... don't think that not bothering with a prenup is going to "save you money".
by pezblanco
Wed Feb 07, 2018 10:01 am
Forum: Investing - Help with Personal Investments
Topic: New to site and looking for some guidance
Replies: 8
Views: 361

Re: New to site and looking for some guidance

Hello, I am about as green to this as i could be but here is my scenario. Im 37 No mortgage and house appraised at 325k Self-employed excavating contractor My wife inherited an IRA from her dad she split with siblings and left it with axa in ira about 70k I have a couple rentals that i am keeping b...
by pezblanco
Mon Feb 05, 2018 7:09 pm
Forum: Investing - Theory, News & General
Topic: Recovering from a "draw down" on 7-10 year US Treasuries
Replies: 15
Views: 1669

Re: Recovering from a "draw down" on 7-10 year US Treasuries

The statement that there is roll yield if the yield curve has a positive slope and remains unchanged I don't think is correct. What must be checked is if the implied forward rates are above or below the yield curve. "Riding the yield curve" does not guarantee an additional yield even if the yield c...
by pezblanco
Mon Feb 05, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: Recovering from a "draw down" on 7-10 year US Treasuries
Replies: 15
Views: 1669

Re: Recovering from a "draw down" on 7-10 year US Treasuries

Selling the bonds in a bond fund before maturity will LENGTHEN the duration of the fund. That's misleading. Selling before maturity does not lengthen the maturity because you are changing the definition of the fund. Simple example: A 10-0 fund designed as a ladder has a "duration" of about 5. A 10-...
by pezblanco
Sun Feb 04, 2018 10:43 pm
Forum: Investing - Theory, News & General
Topic: Recovering from a "draw down" on 7-10 year US Treasuries
Replies: 15
Views: 1669

Re: Recovering from a "draw down" on 7-10 year US Treasuries

Here's a previous discussion on roll return: https://www.bogleheads.org/forum/viewtopic.php?t=205138 Thanks again. I [think I] understand the concept of the Roll Yield; and that works better the steeper the yield curve is [my understanding]. The roll yield could be a factor with the 7-year bonds as...
by pezblanco
Sat Feb 03, 2018 8:29 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 33
Views: 5191

Re: Total Bond Market Index Fund vs. CDs?

Does duration increase in line with interest rates? For example, rate today is 2.72% with duration of 6.1. If rates were at 4.72%, all other things being equal , would duration still be roughly 6.1? No. The duration goes down as interest rates rise. Duration is basically a time average of the cash ...
by pezblanco
Sat Feb 03, 2018 7:48 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index Fund vs. CDs?
Replies: 33
Views: 5191

Re: Total Bond Market Index Fund vs. CDs?

Does duration increase in line with interest rates? For example, rate today is 2.72% with duration of 6.1. If rates were at 4.72%, all other things being equal , would duration still be roughly 6.1? No. The duration goes down as interest rates rise. Duration is basically a time average of the cash ...
by pezblanco
Thu Feb 01, 2018 9:52 am
Forum: Investing - Theory, News & General
Topic: Simulated bond fund, actual interest rates
Replies: 20
Views: 1955

Re: Simulated bond fund, actual interest rates

PIMCO has a paper modeling the effects on the Barclays US Aggregate Bond Index: Bond Investing in a Rising Rate Environment (June 2014) Bookmarked and downloaded, but kinda disappointing. Could you make much out of it? Seems like weirdly overprecise and detailed analyses of unrealistic special case...
by pezblanco
Wed Jan 31, 2018 9:30 pm
Forum: Investing - Theory, News & General
Topic: Simulated bond fund, actual interest rates
Replies: 20
Views: 1955

Re: Simulated bond fund, actual interest rates

Doc, I've heard this a lot, but why? Why do the funds not hold to maturity. In the reference to the Longinvest thread, they held 10 year bonds to ONE YEAR SHORT of maturity and said that is what bond funds do. I don't know. But they don't. Maybe because when bonds/notes get to only one year left th...
by pezblanco
Wed Jan 31, 2018 6:12 pm
Forum: Investing - Theory, News & General
Topic: Simulated bond fund, actual interest rates
Replies: 20
Views: 1955

Re: Simulated bond fund, actual interest rates

So, here's what I've done. The simulation is of a rolling bond ladder, of Treasury-like bonds, assumed to be bought at par, held to maturity, and replaced with other bonds at maturity. In the total return or growth chart, the bond interest payments are assumed to be reinvested in the bond ladder it...
by pezblanco
Sun Jan 28, 2018 11:12 pm
Forum: Investing - Theory, News & General
Topic: US vs International stocks
Replies: 1
Views: 476

Re: US vs International stocks

I generally try to follow Merriman's style of allocating equal amounts across various equity segments (growth/value, large cap/small cap etc). At current valuations, does it makes sense to weight international stocks more heavily rather than weight all asset segments equally? Or is it part of the d...