Search found 2353 matches

by saltycaper
Wed Jan 17, 2018 5:03 pm
Forum: Investing - Theory, News & General
Topic: Amazing how much your IPS can de-stress your life
Replies: 29
Views: 3765

Re: Amazing how much your IPS can de-stress your life

Yes. We hope that is what we will do, which implies we hope that is what have the ability to do.

Alternative plans are possible, and perhaps even necessary for those with very high equity allocations.
by saltycaper
Wed Jan 17, 2018 4:31 pm
Forum: Investing - Theory, News & General
Topic: Amazing how much your IPS can de-stress your life
Replies: 29
Views: 3765

Re: Amazing how much your IPS can de-stress your life

simple man wrote:
Wed Jan 17, 2018 4:17 pm

Rule of thumb is you would be ok if the market falls 50%.
And what if the market falls more than that? I would plan for that too.
by saltycaper
Wed Jan 17, 2018 6:20 am
Forum: Investing - Theory, News & General
Topic: Case study Broker trade executions
Replies: 212
Views: 21629

Re: Case study Broker trade executions

From another thread: I need to sell a few dozen shares of an ETF in one account and buy the same number of shares in another account, and I need to place the orders while the market is closed. Just place market orders for regular hours while the market is closed. Both orders will execute at the nex...
by saltycaper
Wed Jan 17, 2018 12:02 am
Forum: Investing - Help with Personal Investments
Topic: I am 23 years old and I just transferred my PepsiCo stock from Edward Jones to Vanguard! What's next?
Replies: 27
Views: 1965

Re: I am 23 years old and I just transferred my PepsiCo stock from Edward Jones to Vanguard! What's next?

When you say there is no change in AA, what do you mean? Sorry im just trying to understand what you are saying Here's a for instance... If you hold VASGX in taxable and later decide to sell it and buy it back in, say, a Roth IRA, then there is no change in your asset allocation . There is a change...
by saltycaper
Tue Jan 16, 2018 11:01 pm
Forum: Investing - Help with Personal Investments
Topic: I am 23 years old and I just transferred my PepsiCo stock from Edward Jones to Vanguard! What's next?
Replies: 27
Views: 1965

Re: I am 23 years old and I just transferred my PepsiCo stock from Edward Jones to Vanguard! What's next?

It sounded like you were planning on selling pepsi now and vanguard lifestrategy growth index fund in 1-2 years and I think if you plan to sell that in that short a period of time you can't afford to take risk in the short term. If I understand the situation correctly, we actually don't know if the...
by saltycaper
Mon Jan 15, 2018 2:52 pm
Forum: Investing - Help with Personal Investments
Topic: how to figure out the assest allocation that you can sleep well with
Replies: 22
Views: 1862

Re: how to figure out the assest allocation that you can sleep well with

Sleep with a few different ones and see how it goes. Things change though, so just because you sleep well with one today doesn't mean it will last forever.
by saltycaper
Mon Jan 15, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Do people in the forum hold foreign bonds?
Replies: 42
Views: 2532

Re: Do people in the forum hold foreign bonds?

No, but I wouldn't avoid them either. Backtesting a few portfolios, in the short time since Vanguard launched their fund, substituting it for some of Total Bond seems to have increased return slightly, increased standard deviation slightly, and improved the Sharpe ratio slightly. None of the differe...
by saltycaper
Mon Jan 15, 2018 1:45 pm
Forum: Investing - Help with Personal Investments
Topic: “Better Buy” Total US or International ?
Replies: 30
Views: 3102

Re: “Better Buy” Total US or International ?

I don't have any idea about how accounting and financial reporting are done outside the U.S. and it's important to be aware that it is not as the world had two countries, "the United States" and "the rest of the world" and the rest of the world all did it the same way. Japan and China may be two la...
by saltycaper
Mon Jan 15, 2018 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: “Better Buy” Total US or International ?
Replies: 30
Views: 3102

Re: “Better Buy” Total US or International ?

Very interesting discussion. The Vanguard Target funds seem to all be around 40% international for their stock allocations. Within a taxable account, are there pros or cons from a tax standpoint with regards to total US (VTSAX) vs total international (VTIAX)? Thanks! You can look at triceratop 's s...
by saltycaper
Mon Jan 15, 2018 7:59 am
Forum: Investing - Help with Personal Investments
Topic: Best way to sell ETF in one account, buy it in another
Replies: 10
Views: 833

Re: Best way to sell ETF in one account, buy it in another

Just place market orders for regular hours while the market is closed. Both orders will execute at the next opening cross for the exact same price. There will not be any spread at the opening cross, by definition. This is convenient and described in the Case study Broker trade executions thread. I ...
by saltycaper
Mon Jan 15, 2018 7:52 am
Forum: Investing - Help with Personal Investments
Topic: Best way to sell ETF in one account, buy it in another
Replies: 10
Views: 833

Re: Best way to sell ETF in one account, buy it in another

TropikThunder wrote:
Mon Jan 15, 2018 2:34 am
One of the benefits of ETFs vs. mutual funds is being able to move the ETFs to other brokers when desired. Could you just do an in-kind transfer of the shares? Or is something else going on that I don’t see.
In this case, there are two accounts (Roth and taxable) with the same broker.
by saltycaper
Mon Jan 15, 2018 12:54 am
Forum: Investing - Help with Personal Investments
Topic: Best way to sell ETF in one account, buy it in another
Replies: 10
Views: 833

Best way to sell ETF in one account, buy it in another

The outcome of this decision will not matter much, as the dollar amount is small, but I am nevertheless interested in opinions. I need to sell a few dozen shares of an ETF in one account and buy the same number of shares in another account, and I need to place the orders while the market is closed. ...
by saltycaper
Sun Jan 14, 2018 2:56 pm
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1716

Re: Jan 2018 TIPS Auction

I do have another question. When the term "break even inflation rate " is used is that referring to the CPI . I am assume its not Chained CPI. Yes, currently, the principal of a TIPS is adjusted by the Consumer Price Index for All Urban Consumers (CPI-U), not the chained CPI-U (C-CPI-U). You can re...
by saltycaper
Sun Jan 14, 2018 1:21 am
Forum: Investing - Theory, News & General
Topic: Jan 2018 TIPS Auction
Replies: 17
Views: 1716

Re: Jan 2018 TIPS Auction

As a follow up to my original question, will someone explain to me how the "break even " inflation rate is determined. I know determining the break even inflation rate should be simple, but for some reason I have trouble with the concept. Thanks The breakeven inflation rate is just the rate of infl...
by saltycaper
Sun Jan 14, 2018 1:05 am
Forum: Investing - Theory, News & General
Topic: Nostalgic about old online brokerages that no longer exist
Replies: 43
Views: 4668

Re: Nostalgic about old online brokerages that no longer exist

I opened my first brokerage account with DLJ Direct. I chose them over over TD Waterhouse (where the "TD" came from in "TD Ameritrade"), but I don't remember why. I want to say stock trades were $19.99. Wasn't there a premium for limit orders? Thanks for making me look for my first trade confirmatio...
by saltycaper
Sat Jan 13, 2018 5:13 pm
Forum: Personal Finance (Not Investing)
Topic: why do banks bother offering lousy CD rates?
Replies: 49
Views: 4686

Re: why do banks bother offering lousy CD rates?

Prior to the financial crisis, I remember my CU and big banks offering long term CDs (5 year) that were at least competitive with the rate offered by online savings accounts. After the crisis, they dropped the rates to abysmal levels and they have not moved at all despite all the recent fed rate in...
by saltycaper
Sat Jan 13, 2018 11:54 am
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1254

Re: What is the long term average nominal yield of the total bond market index fund ?

Which yield? Distribution yield? Yield to maturity of the securities held by the fund?
by saltycaper
Sat Jan 13, 2018 3:04 am
Forum: Investing - Theory, News & General
Topic: Small cap value vs. total market?
Replies: 103
Views: 10222

Re: Small cap value vs. total market?

Will someone please show me performance statistics that show that retail small cap value mutual funds have outperformed retail small cap blend mutual funds over periods of time more than 15 years. I tilt toward small caps, but don't buy the small cap value argument. I think that the key is small ca...
by saltycaper
Sat Jan 13, 2018 1:53 am
Forum: Investing - Theory, News & General
Topic: Skating where the puck was; e.g., commodities. Factors next?
Replies: 35
Views: 2439

Re: Skating where the puck was; e.g., commodities. Factors next?

I regard myself as a bozo. By the time I hear about anything, I am already late to the party. I accept this. There is absolutely no percentage in it for me to kid myself. I can't un-bozo myself just by reading a few articles. Better sell your stocks. You're late to the party. Every bozo knows they ...
by saltycaper
Sat Jan 13, 2018 1:21 am
Forum: Investing - Theory, News & General
Topic: Is holding bonds now dangerous?
Replies: 162
Views: 17080

Re: Is holding bonds now dangerous?

How can there be a 30 - 40 year bull market in securities which mature in no more than 30 years, with many issues maturing in less time than that? As investment-grade bonds approach maturity their market prices must of necessity approach their face values. If they were at a premium before, the decl...
by saltycaper
Sat Jan 13, 2018 1:03 am
Forum: Investing - Theory, News & General
Topic: Profiles Of Some Successful Investors
Replies: 26
Views: 3559

Re: Profiles Of Some Successful Investors

Perhaps it should be more what you "understand" as opposed to what you "know". http://www.dividendgrowthinvestor.com/2017/06/successful-dividend-investor-turned.html • Invest in what you know • Keep it simple • Buy companies with competitive advantages • Be a patient long-term investor • Live withi...
by saltycaper
Fri Jan 12, 2018 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1575

Re: question about VBTLX

Also, contrary to popular commentary here, just because the "consensus" is 3 or 4 hikes, that does not mean the number of hikes that actually will occur are "priced in." There are probabilistic and time elements here that are not considered. What elements are you talking about? Just because somethi...
by saltycaper
Fri Jan 12, 2018 4:50 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1575

Re: question about VBTLX

lack_ey wrote:
Fri Jan 12, 2018 4:44 pm

No, that's what "priced in" means.
Sorry. Let me re-phrase. Just because the rate hikes are "priced in" doesn't mean prices won't change even if the outcome is as expected. That is what some posters seem to be conveying when they use the phrase "priced in."
by saltycaper
Fri Jan 12, 2018 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: question about VBTLX
Replies: 27
Views: 1575

Re: question about VBTLX

so to my second question.. the Fed is planning 3 or 4 .25 basis point hikes during this year. How would that affect this fund. I read a bit about it and noticed that the current yield is 2.6% and duration is 5.6 yrs so a .25 basis upward change in rates would reduce the NAV by 5.6 x .25 = 1.4%? If ...
by saltycaper
Fri Jan 12, 2018 3:59 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Vs CIT- Seeking advice
Replies: 9
Views: 648

Re: Ally Vs CIT- Seeking advice

CIT does not automatically adjust your rate as their rate increases. If you open an account and receive 1.05% they keep you at that even as they raise the rates for others. Not sure if that's true. I opened my account when it was 1.35% late last year, clicked on my account info just now, it says it...
by saltycaper
Fri Jan 12, 2018 12:33 am
Forum: Investing - Theory, News & General
Topic: Profiles Of Some Successful Investors
Replies: 26
Views: 3559

Re: Profiles Of Some Successful Investors

You make your money by investing in what you know.
Bad advice, IMO.

People think they know, but they do not know.
by saltycaper
Thu Jan 11, 2018 11:30 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 47
Views: 4812

Re: Brokered CDs - often better return secondary market

This should not be an issue for tax-exempt municipal bonds, at least at the federal level, since no federal tax is paid on the interest. I guess it will be a small consideration for non-CA muni bonds (as a CA resident) for state tax purposes, but I assume my tax software or tax accountant will hand...
by saltycaper
Thu Jan 11, 2018 11:15 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3918

Re: "Emergency Fund" Strategy

You should not be investing if you don't have an adequate emergency fund. Fill up the emergency fund, then turn to investing at whatever allocation fits your ability, need, and willingness to take risk. Part of the problem with this approach is there is no definition of "adequate." Once you stop bu...
by saltycaper
Thu Jan 11, 2018 3:14 pm
Forum: Investing - Help with Personal Investments
Topic: How often should my AA adjust?
Replies: 17
Views: 985

Re: How often should my AA adjust?

You should be adjusting your AA as frequent as is practical. Doing otherwise is using an AA other than what you want to use.
by saltycaper
Thu Jan 11, 2018 3:11 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3918

Re: "Emergency Fund" Strategy

Also, I would not count my EF in my asset allocation because it could really skew it when your assets are small. I only started counting it this year because I am retiring and all my assets are now essentially an EF. It should be skewed if your assets are small, as you shouldn't be taking a lot of ...
by saltycaper
Thu Jan 11, 2018 3:02 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 47
Views: 4812

Re: Brokered CDs - often better return secondary market

jimishooch wrote:
Thu Jan 11, 2018 9:34 am
how are you keeping accrued interest as low as possible?
If you are concerned about paying taxes on interest you didn't receive, your broker should report accrued interest on your 1099, and on your Schedule B, you should be able to subtract it from interest received.
by saltycaper
Thu Jan 11, 2018 1:35 pm
Forum: Investing - Help with Personal Investments
Topic: Bond component of AA
Replies: 5
Views: 340

Re: Bond component of AA

It depends on what else is in your portfolio. If you have a decent sized stock allocation, I would not use VTC as my only fixed income choice. You'll get more well-reasoned answers if you post some portfolio details.
by saltycaper
Thu Jan 11, 2018 1:15 pm
Forum: Investing - Help with Personal Investments
Topic: Invest in multiple ETFs vs. Target Fund
Replies: 5
Views: 268

Re: Invest in multiple ETFs vs. Target Fund

If you want to maintain control over your asset allocation, it is easier to select the individual funds yourself IMO. If you want to leave it up to someone else, use the TD fund. The only exception for me would be if the expense ratios were significantly different between the two options. Then that ...
by saltycaper
Thu Jan 11, 2018 8:12 am
Forum: Investing - Help with Personal Investments
Topic: WSJ: Discount Brokers Win Bonuses to Push Costlier Products
Replies: 38
Views: 3130

Re: WSJ: Discount Brokers Win Bonuses to Push Costlier Products

Vanguard does not want to make money. Of course Vanguard wants to make money. The people running the company want to be paid, and they want to invest in their operations and expand their reach. They want to make money so they can lower the cost of their funds, attract more investors, and in that wa...
by saltycaper
Thu Jan 11, 2018 12:16 am
Forum: Investing - Help with Personal Investments
Topic: Taxable Investment Advice - ETF vs. Admiral Shares?
Replies: 15
Views: 1169

Re: Taxable Investment Advice - ETF vs. Admiral Shares?

I am leaning toward ETFs simply because they seem to be a bit more liquid and trade similar to that of a stock, both of which are preferable qualities for me. If anything, one could argue the mutual fund is more liquid, as the trade will settle more quickly--one day versus two I believe. So then th...
by saltycaper
Thu Jan 11, 2018 12:02 am
Forum: Investing - Help with Personal Investments
Topic: Thoughts on investing in Bond Funds
Replies: 6
Views: 527

Re: Thoughts on investing in Bond Funds

Is it purely for psychological reasons? It's also because you don't really know what your time horizon will be. Things may work out according to plan, or they may not. There also is the possibility stocks will not outperform bonds during your time horizon. If long enough, that's highly unlikely, bu...
by saltycaper
Wed Jan 10, 2018 11:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help me stop my addiction to stock market peeping!
Replies: 66
Views: 4448

Re: Help me stop my addiction to stock market peeping!

You could try a schedule, or you could try to indulge by following the markets very closely. Stay up late and watch Bloomberg if you get that channel. Watch CNBC in the daytime. Read all the posts you can on this board. Then you'll probably get bored with it all soon enough and move on. Just don't d...
by saltycaper
Wed Jan 10, 2018 3:49 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

I certainly that agree buying and selling repeatedly is not a good strategy. If someone needs to use DCA and buy and hold to prevent themselves from making such mistakes, just like the person who needs to sleep in a shelter within a shelter within a shelter to get some rest, building themselves a sm...
by saltycaper
Wed Jan 10, 2018 3:37 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

I never said you had to buy and sell and buy and sell. I said you could buy and sell at any time. The implementation of DCA I see (buy once and hold) denies this fact.
by saltycaper
Wed Jan 10, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: Three-fund portfolio without 401k?
Replies: 9
Views: 840

Re: Three-fund portfolio without 401k?

I haven't done the math, and maybe it's not the optimal solution, but would it make sense to open a traditional IRA and put bonds there? Or is that just needless complexity? We've fallen pretty far into the "put bonds in tax-deferred accounts" hole when someone contemplates opening a tax-deferred a...
by saltycaper
Wed Jan 10, 2018 3:15 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

So the point is that you believe you can guess the future. Selling and buying when it is more convenient. Of course you have to make certain assumptions. I do expect market returns will be positive. I do expect a T-note yielding 5% nominal to actually earn 5% nominal. There's no avoiding guessing c...
by saltycaper
Wed Jan 10, 2018 3:00 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

^Yes. The expected return should be positive. Otherwise you should not invest, lump sum or DCA.

Yes. You would have to "disinvest." Which you can do. That's the point.

You don't have to wait indefinitely to see if things change because you can buy/sell at any time. Again, that's the point.
by saltycaper
Wed Jan 10, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: Why bother with corporate bond funds instead of just U.S. Treasuries + Stock Index Fund/ETF?
Replies: 16
Views: 808

Re: Why bother with corporate bond funds instead of just U.S. Treasuries + Stock Index Fund/ETF?

Don't treasuries have a little more interest rate sensitivity than corporate bonds of equal duration? If so, that may be a reason to add some corporates if you are of the opinion that interest rates will increase. Maybe you mean of equal maturity? In that case, yes, as they have higher yields, but ...
by saltycaper
Wed Jan 10, 2018 2:46 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

OK, but I don't want to rebalance. I want to invest all of my money in stocks. Or, if you prefer, I want to invest my money 60/40 and rebalance, as you suggest, but have the problem of how to acquire that 60% stocks position. All at once, or gradually over a couple of years ? Whether you do it all ...
by saltycaper
Wed Jan 10, 2018 2:28 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

Sure! If I can guess right market prices I don't need DCA; I can simply buy the winning lottery ticket. This is a false dilemma. You don't need to guess correctly on what market prices will be just because you don't DCA. You sure do to take advantage of "the ability to buy/sell at any time". Of cou...
by saltycaper
Wed Jan 10, 2018 2:21 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

Thesaints wrote:
Wed Jan 10, 2018 2:02 pm

Sure! If I can guess right market prices I don't need DCA; I can simply buy the winning lottery ticket.
This is a false dilemma. You don't need to guess correctly on what market prices will be just because you don't DCA.
by saltycaper
Wed Jan 10, 2018 2:16 pm
Forum: Investing - Help with Personal Investments
Topic: Inflation Protected Bonds - Short or Longer Term Duration?
Replies: 11
Views: 898

Re: Inflation Protected Bonds - Short or Longer Term Duration?

I don't find either fund compelling for myself, and I wish there was a 5-10 year TIPS fund. Paltry yields at the very short end, often negative in recent years, but not now. If I recall, Vanguard Short-Term Inflation-Protected Securities Index Fund, which correlates better with inflation, still does...
by saltycaper
Wed Jan 10, 2018 1:13 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3918

Re: "Emergency Fund" Strategy

I don't understand what you mean by "Tax Advantaged" accounts for tiers 3 and 4. Most tax advantaged accounts are non-accessible for emergencies. Those holdings could be sold and used to purchase stocks while stocks are simultaneously sold in taxable. Then they would effectively function as emergen...
by saltycaper
Wed Jan 10, 2018 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: An economist dismisses the idea of dollar cost averaging
Replies: 71
Views: 5330

Re: An economist dismisses the idea of dollar cost averaging

The key to avoiding the mental trap of DCA is to first avoid the mental trap of buy and hold. You have the ability to buy/sell at any time, within the constraints of the market system, liquidity, etc. Once you forget the idea of being a "buy and hold" investor, DCA will no longer seem relevant. Ther...
by saltycaper
Wed Jan 10, 2018 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: "Emergency Fund" Strategy
Replies: 39
Views: 3918

Re: "Emergency Fund" Strategy

I've rejected the idea of a AA plus an emergency fund and have instead incorporated the EF into the AA. If you are starting out or require a large emergency fund, this may mean shifting the AA significantly. If you've amassed a large portfolio, then it means the EF is insignificant in the context of...