Search found 4469 matches

by alex_686
Wed Apr 17, 2019 2:31 pm
Forum: Personal Investments
Topic: Valuing Individual Stock in Portfolio
Replies: 11
Views: 733

Re: Valuing Individual Stock in Portfolio

Realize that you are going to face cognitive and behavioral issues - and I use this strictly in the professional sense. Trained investment professionals often trip over these issues. So be as rational as possible, and know your own limits. So make sure your IPS includes exactly what you are doing a...
by alex_686
Mon Apr 15, 2019 11:21 pm
Forum: Personal Investments
Topic: Valuing Individual Stock in Portfolio
Replies: 11
Views: 733

Re: Valuing Individual Stock in Portfolio

Welcome to the forum! I want to hold on to this stock because I think it will do good in the long run. Realize that you are going to face cognitive and behavioral issues - and I use this strictly in the professional sense. Trained investment professionals often trip over these issues. So be as ratio...
by alex_686
Mon Apr 15, 2019 3:35 pm
Forum: Investing - Theory, News & General
Topic: Understanding using treasury futures for leverage to implement risk parity
Replies: 100
Views: 5583

Re: Understanding using treasury futures for leverage to implement risk parity

Are there any brokers that will "cross-margin" between an IRA account and a taxable account, considering the entire portfolio across the two accounts? Or is it always account-by-account? I guess that's the heart of the question I was asking. No. I used to work on the margin desk 20 years ago, but I...
by alex_686
Sun Apr 14, 2019 8:26 am
Forum: Personal Investments
Topic: Vanguard JUNK BOND FUND?
Replies: 4
Views: 486

Re: Vanguard JUNK BOND FUND?

I have between 20% to 30% in junk bonds and preferred stock. I would never go 100% junk. There is both value and risk in this direction, and I think a modest allocation offers a better risk adjusted returns, but the diversification benefits fall rapidly and so does the risk.
by alex_686
Fri Apr 12, 2019 8:39 pm
Forum: Personal Investments
Topic: Is ETF reinvestment inferior to Mutual Fund reinvestment?
Replies: 22
Views: 1051

Re: Is ETF reinvestment inferior to Mutual Fund reinvestment?

The biggest bonus of ETFs is that each initial investment spends up to 7.5 more hours in the market. I think a bigger problem with dividends could be the timing of when they are paid out. If dividends were reinvested continuously instead of quarterly could that boost total return? I'm asking becaus...
by alex_686
Fri Apr 12, 2019 3:22 pm
Forum: Personal Investments
Topic: Is ETF reinvestment inferior to Mutual Fund reinvestment?
Replies: 22
Views: 1051

Re: Is ETF reinvestment inferior to Mutual Fund reinvestment?

Gotcha. What I mean is that if you have reinvested 0.7 shares of VTI in April, and you get another 0.8 shares invested in July, Does Merrill automatically combine the 0.7 and 0.3 into 1 complete, non fractional share, leaving you with 1 complete share and 0.5 fractional share of VTI? do they also p...
by alex_686
Fri Apr 12, 2019 2:50 pm
Forum: Personal Investments
Topic: Is ETF reinvestment inferior to Mutual Fund reinvestment?
Replies: 22
Views: 1051

Re: Is ETF reinvestment inferior to Mutual Fund reinvestment?

To the OP - yeah - I think there is a little drag here, about a bias point or two. And this drag has been falling. On the flip side the lower cost structure of a ETF should offset that drag. If you look at the big picture it is more or less a wash. that is a fascinating way to think about it, maybe...
by alex_686
Fri Apr 12, 2019 2:11 pm
Forum: Personal Investments
Topic: Is ETF reinvestment inferior to Mutual Fund reinvestment?
Replies: 22
Views: 1051

Re: Is ETF reinvestment inferior to Mutual Fund reinvestment?

$375 dividend, share price $100. 3 shares are purchased, $75 sits. The various brokerage platforms I have been on have always allowed reinvestment to be partial shares, either for ETFs or just plain stocks. To the OP - yeah - I think there is a little drag here, about a bias point or two. And this ...
by alex_686
Thu Apr 11, 2019 9:07 am
Forum: Investing - Theory, News & General
Topic: Socially Responsible [Investing]
Replies: 54
Views: 3073

Re: Socially Responsible

If you believe in guns and tobacco, odds are you are not in favor of the Wall Street crowd. This must be a broad generalization. Do you have any data to support this assertion? Are guns or tobacco, as you say, a belief system? Help us all up on to your train of thought here. This is a personal anti...
by alex_686
Thu Apr 11, 2019 8:28 am
Forum: Personal Finance (Not Investing)
Topic: Good 3rd party to provide a put option and security backed loan?
Replies: 6
Views: 293

Re: Good 3rd party to provide a put option and security backed loan?

Full service brokers will do this as a stand-alone sale, so no 1% of your assets. That being said, what you are suggesting is going to be expensive. There is no way to hedge this for the bank, so it is going to have a pretty high risk weighted carrying cost for the bank. Next, when you enter into th...
by alex_686
Wed Apr 10, 2019 10:47 pm
Forum: Investing - Theory, News & General
Topic: BRK - thoughts on interesting stock
Replies: 73
Views: 9965

Re: BRK - thoughts on interesting stock

I hear this from time-to-time and I always react with a big question mark. How would breaking up BRK "unlock value for shareholders"? The vast majority of BRK shareholders are perfectly fine with value being "locked up" in the company. Otherwise why would they purchase a stock that pays no dividend...
by alex_686
Wed Apr 10, 2019 9:14 pm
Forum: Investing - Theory, News & General
Topic: Find out if QUALIFIED or NON QUALIFIED REIT stock
Replies: 14
Views: 767

Re: Find out if QUALIFIED or NON QUALIFIED REIT stock

I still find it hard to find out this info. I just bought it 2 weeks ago so cannot judge any of that at the moment. I just wish there was a way to actually KNOW that the 4.5% dividend makes sense, period. From what I have read, I still think there is no way to be really sure of this until dec 2019 ...
by alex_686
Wed Apr 10, 2019 12:57 pm
Forum: Investing - Theory, News & General
Topic: Did I read this correctly? SS and your AA
Replies: 36
Views: 4037

Re: Did I read this correctly? SS and your AA

Treating income like income and assets like assets. Recognizing that they are 2 different things. That's why businesses track both the balance sheet and the cash flow. First, that is now how accounting works - the 2 are very much tied together. Yes, the balance sheet is a stock variable - a point o...
by alex_686
Wed Apr 10, 2019 10:50 am
Forum: Personal Investments
Topic: Treating Home as Bonds?
Replies: 15
Views: 675

Re: Treating Home as Bonds?

Yeah, you can treat your home as a bond-like asset. But read below. Technically speaking, we can ignore if the home has a mortgage on it or not. The mortgage, a negative bond, is a separate liability from the home. Historically speaking, houses have the same level of risk and return as a BBB bond. H...
by alex_686
Tue Apr 09, 2019 1:32 pm
Forum: Investing - Theory, News & General
Topic: Lower Fees/ER vs Increased Transparency
Replies: 6
Views: 295

Re: Lower Fees/ER vs Increased Transparency

Thank you. Do I understand correct that you don’t think the difference in fees between the in plan and Schwab versions is meaningful in and of itself? I doubt it. If I recall correctly, CITs still have to produce a return of 10k chart. Line that chart up with the underlying index and they should be...
by alex_686
Tue Apr 09, 2019 1:28 pm
Forum: Personal Investments
Topic: dividends and interest
Replies: 13
Views: 1586

Re: dividends and interest

i thought maybe both ways were earning daily the only difference is distribution. but the vanguard rep said there is no daily accrual and the semi annual report says ETF's are not declared daily. so how exactly does the interest go in to the NAV for the ETF? For context, this was my day job for a f...
by alex_686
Tue Apr 09, 2019 1:11 pm
Forum: Investing - Theory, News & General
Topic: Did I read this correctly? SS and your AA
Replies: 36
Views: 4037

Re: Did I read this correctly? SS and your AA

It is the only rational, internally logically consistent, mathematical option out there. Well, then it's settled. Anyone who claims otherwise is illogical, inconsistent, and probably innumerate. Well, what would you suggest? In the academic and professional literature I review this is how it is pre...
by alex_686
Tue Apr 09, 2019 12:50 pm
Forum: Investing - Theory, News & General
Topic: Lower Fees/ER vs Increased Transparency
Replies: 6
Views: 295

Re: Lower Fees/ER vs Increased Transparency

Thanks....I'm not the sharpest tool in the shed, but think that because it is a CIT that I cannot be sure what benchmark it tracks? So is using a proxy the same? From reading the boards, I've learned that low fees are good, but not to forget about tracking error? This is all so complicated for me. ...
by alex_686
Tue Apr 09, 2019 10:24 am
Forum: Investing - Theory, News & General
Topic: Did I read this correctly? SS and your AA
Replies: 36
Views: 4037

Re: Did I read this correctly? SS and your AA

This point is off debated on this forum. It is certainly valid to treat SS as a bond-like asset. Bogle suggested this. I am in favor of this. It is the only rational, internally logically consistent, mathematical option out there. The other boglehead faction makes argue that SS is not a liquid asset...
by alex_686
Tue Apr 09, 2019 9:36 am
Forum: Investing - Theory, News & General
Topic: Socially Responsible [Investing]
Replies: 54
Views: 3073

Re: Socially Responsible

This overrides any other reason. "This fund is the anti-socially responsible fund. We've eliminated those low-performing, socially-responsible companies from it to maximize the returns." Yeah, that would work... There are some "Sin" funds out there - but honestly the crowd you are pitching too pref...
by alex_686
Tue Apr 09, 2019 9:32 am
Forum: Investing - Theory, News & General
Topic: Socially Responsible [Investing]
Replies: 54
Views: 3073

Re: Socially Responsible

For 2 reasons, I suspect. First, CSR is not a stable factor. What it is changes over time. There is a disconnect between stated policies and actual deeds. etc. Second, there are better factors. If I recall correctly, the small value factor has a high explanatory power for social responsible funds. I...
by alex_686
Tue Apr 09, 2019 9:20 am
Forum: Investing - Theory, News & General
Topic: Find out if QUALIFIED or NON QUALIFIED REIT stock
Replies: 14
Views: 767

Re: Find out if QUALIFIED or NON QUALIFIED REIT stock

So, a quick side bar on taxation. Note, there is a difference between ordinary income and qualified dividend income. All qualified dividend income is ordinary income, but not all ordinary income is dividend income. Corporate income is taxed twice. Once when the corporation earns income, i.e. corpora...
by alex_686
Mon Apr 08, 2019 8:18 pm
Forum: Investing - Theory, News & General
Topic: Find out if QUALIFIED or NON QUALIFIED REIT stock
Replies: 14
Views: 767

Re: Find out if QUALIFIED or NON QUALIFIED REIT stock

I did go to DIVIDEND history on the company website but all it gave was the amounts in the various quarters. I was trying to avoid trying to call and ask, thinking that there would be a place to find this type of information. https://welltower.com/investors/dividend-history/ The info was under the ...
by alex_686
Mon Apr 08, 2019 7:45 pm
Forum: Investing - Theory, News & General
Topic: Find out if QUALIFIED or NON QUALIFIED REIT stock
Replies: 14
Views: 767

Re: Find out if QUALIFIED or NON QUALIFIED REIT stock

Try the company’s web site, under investor relations.
by alex_686
Mon Apr 08, 2019 5:59 pm
Forum: Investing - Theory, News & General
Topic: Find out if QUALIFIED or NON QUALIFIED REIT stock
Replies: 14
Views: 767

Re: Find out if QUALIFIED or NON QUALIFIED REIT stock

The character of REIT dividends are declared after the fact - sometimes long after the fact. It is one of the reasons why you don’t hold REITs in taxable- you don’t get your 1099s until march. Heck, you don’t even know if your stock will elect to be a REIT until the following year. This is mostly hy...
by alex_686
Mon Apr 08, 2019 11:46 am
Forum: Investing - Theory, News & General
Topic: Pay down mortgage or rent to reduce housing expenses?
Replies: 15
Views: 1202

Re: Pay down mortgage or rent to reduce housing expenses?

... will leave him with pretty heavy weighting in real estate relative to equity/bond market exposure. I'm trying to help frame the decision for my friend. First, paying down his mortgage, which is a negative bond, will not change his real estate exposure. It is 400k. The financing of the house and...
by alex_686
Sun Apr 07, 2019 11:49 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 133
Views: 9820

Re: Vanguard Announces Plans to Launch Commodities Fund

Are commodities a good investment for the long haul in a world that is seeking to reduce carbon footprints, use less petroleum, do more recycling, and generally move to a more sustainable economy? Sure - why not? First, we are not investing in the producers, but rather the underlying commodities th...
by alex_686
Sun Apr 07, 2019 7:10 am
Forum: Investing - Theory, News & General
Topic: real estate vs commodities as inflation hedge
Replies: 22
Views: 1288

Re: real estate vs commodities as inflation hedge

I am a proponent of a house being a inflation hedge. The reason is not because it is a bundle of commodities. Rather, one critical way of pricing housing is the income stream from rent, and it is fairly easy to increase rent at the rate of inflation. Having a long dated fixed rate mortgage increases...
by alex_686
Sat Apr 06, 2019 6:13 pm
Forum: Investing - Theory, News & General
Topic: Mutual Funds Question
Replies: 2
Views: 355

Re: Mutual Funds Question

So, long run, ETFs are going to win. They have a lower cost structure. I don’t think you need to anything for a while - say 10 years. It is going to be a very gradual decline.
by alex_686
Fri Apr 05, 2019 1:46 pm
Forum: Investing - Theory, News & General
Topic: Is there a relatively stable junk bond fund?
Replies: 38
Views: 3604

Re: Is there a relatively stable junk bond fund?

Short answer is no. What is your goal?
by alex_686
Fri Apr 05, 2019 12:51 pm
Forum: Personal Investments
Topic: high dividend investments
Replies: 34
Views: 2452

Re: high dividend investments

As others have said, focus on Total Returns. This has solid foundations both in theory and practice. I understand the appeal and intuitive nature for dividend investing, but reality is just not there. High dividend stocks tend to offer higher returns and higher risks then the stock market as a whole...
by alex_686
Fri Apr 05, 2019 10:47 am
Forum: Investing - Theory, News & General
Topic: FIDO Zero Funds losing to Vanguard?
Replies: 58
Views: 6695

Re: FIDO Zero Funds losing to Vanguard?

Question (and I hope this isn't too pithy) - so what? So what if Fidelity is the only company tracking a given total stock market index? VTSAX is the only fund tracking the CRSP Total Stock Market index. Perhaps that is contractual and perhaps it isn't, but does it actually matter for the retail in...
by alex_686
Thu Apr 04, 2019 9:44 pm
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

You should be fine - see my earlier post. Most of the same safeguards, which should be enough for a plain vanilla index fund.
by alex_686
Thu Apr 04, 2019 4:14 pm
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

I may have misunderstood. Are you saying since this is a class K fund, it is a mutual fund, not a CIF? It’s odd, I called the custodian and asked for a prospectus and they don’t have one. A mutual fund can have share classes. They must offer a prospectus. I have never heard of a CIT having a share ...
by alex_686
Thu Apr 04, 2019 3:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 133
Views: 9820

Re: Vanguard Announces Plans to Launch Commodities Fund

Funny, I view commodities as as a no skill high luck/ speculation asset class. It has been that way since I first watched "Trading Places" in regards to soybeans. It definitely has he smell of the greater fool theory. ... Good luck. While I am skeptical of commodities funds, and I don't own any, I ...
by alex_686
Thu Apr 04, 2019 1:22 pm
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

With class K funds being a CIF, in your opinion, is there any reason to think a publicly traded, or SEC regulated fund, would be a safer or better option in any way? I think that's ultimately what I'm trying to determine..Thanks again for any feedback. I am assuming that you miss-typed - Mutual Cla...
by alex_686
Thu Apr 04, 2019 12:51 pm
Forum: Personal Investments
Topic: I bought a stock for the first time.
Replies: 66
Views: 3978

Re: I bought a stock for the first time.

J G Bankerton wrote:
Thu Apr 04, 2019 10:51 am
alex_686 wrote:
Wed Apr 03, 2019 2:19 pm
The rule back then was you could not margin or lend stock for the first 30 days.
I want to margin my stock. :sharebeer
Why? Unless you are a accredited investor, you are not going to get a cut of the securities lending. The SEC limits what crazy things the average retail investor can do.
by alex_686
Thu Apr 04, 2019 12:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 133
Views: 9820

Re: Vanguard Announces Plans to Launch Commodities Fund

I'll be interested to see how exactly they manage this. It seems "easy" enough to construct a passive commodity portion of a portfolio with a few ETFs, at least until there's some insistence upon holding physical assets. Knowing what commodities to put there might be something else. I am not follow...
by alex_686
Thu Apr 04, 2019 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Why not 100% World index fund?
Replies: 20
Views: 2242

Re: Why not 100% World index fund?

DIdn't look over the pat 100 years. Just the last decades Check any ETF investing in euros (like FXE) and you'll arrive to the same conclusion If you are so sure it' s going to be 1% in the next years, maybe you should write to Vanguard and ask them for an unhedged fund on international bonds. Why ...
by alex_686
Thu Apr 04, 2019 11:37 am
Forum: Investing - Theory, News & General
Topic: FIDO Zero Funds losing to Vanguard?
Replies: 58
Views: 6695

Re: FIDO Zero Funds losing to Vanguard?

So is it possible the Zero funds are producing inferior returns compared to Vanguard? Nope - they are not. They are following different indexes so you are going to get different returns. You have found a time frame where one index has preformed differently than another - which is not that surprisin...
by alex_686
Thu Apr 04, 2019 11:31 am
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

I don't know if Investopedia is a solid source for info, but I found this description of Class K funds. In part it states: How a Collective Investment Fund—CIF Works CIFs are funds are not regulated by the Securities Exchange Commission (SEC) or the Investment Act of 1940, but operate instead under...
by alex_686
Thu Apr 04, 2019 10:18 am
Forum: Personal Finance (Not Investing)
Topic: Landlord looking to buy out my lease. Whats a reasonable price?
Replies: 73
Views: 5012

Re: Landlord looking to buy out my lease. Whats a reasonable price?

Pickle11 wrote:
Thu Apr 04, 2019 10:08 am
Agree, but all it takes is the landlord realizing a month delay is very costly.
Maybe. You are assuming that the developer has all of their ducks in a row, and has demolition and redevelopment plans already approved by the planning board. I kind of doubt this, but it is pretty easy to check.
by alex_686
Thu Apr 04, 2019 10:09 am
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

c_is_for_cow wrote:
Thu Apr 04, 2019 10:02 am
The class K funds do not have a ticker symbol, so I wasn't sure if the class K fund is governed the same, prone to more hidden fees, is riskier due to different regulations, etc.
It might be SSSYX.

https://www.ssgafunds.com/product/fund. ... cker=SSSYX
by alex_686
Thu Apr 04, 2019 10:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard Announces Plans to Launch Commodities Fund
Replies: 133
Views: 9820

Re: Vanguard Announces Plans to Launch Commodities Fund

Choice is good. Diversification is even better. Low(er) cost also a good thing. Is it? To play devil's advocate, I will point out that there is a positive correlation between a commodities expense ratio and their net (i.e., after expense) returns. Or, at least that was true 5 years ago. There is a ...
by alex_686
Thu Apr 04, 2019 9:51 am
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

Maybe they are cheaper because that is what your employer and the fund family negotiated, possibly because the pool of money they manage is much higher than what an individual investor would usually invest. The first half of your sentence is false. If a mutual fund has a class, they have to offer t...
by alex_686
Thu Apr 04, 2019 9:48 am
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

I thought I read somewhere there were less reporting requirements to the SEC than those that are publicly traded. If I read that right, I guess that would make sense though since they aren't publicly traded. You might be thinking of CITs, which is regulated only by the Department Of Labor. Unlike m...
by alex_686
Thu Apr 04, 2019 9:13 am
Forum: Personal Investments
Topic: 401K - Using S&P 500 class K funds - Are those OK?
Replies: 28
Views: 1147

Re: 401K - Using S&P 500 class K funds - Are those OK?

Why do you think they are subject to lower SEC regulation? First, a mutual fund can offer multiple share classes from the same fund. So, same regulation, et. al. I don't know State Street's alphabet soup, but I am going to guess that the K shares are designed for 401k funds. i.e., how they are marke...
by alex_686
Wed Apr 03, 2019 5:44 pm
Forum: Personal Finance (Not Investing)
Topic: Why not 100% World index fund?
Replies: 20
Views: 2242

Re: Why not 100% World index fund?

I would say currency risk is another factor. Inflation adjusted currency risk is somewhere in the 1% standard deviation range, compared to the stock market in general which has a 15%. Currency risk is also bounded and mean reversion, one of the few equity risks that are. Equities are good hedge aga...
by alex_686
Wed Apr 03, 2019 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Why not 100% World index fund?
Replies: 20
Views: 2242

Re: Why not 100% World index fund?

I would say currency risk is another factor. Inflation adjusted currency risk is somewhere in the 1% standard deviation range, compared to the stock market in general which has a 15%. Currency risk is also bounded and mean reversion, one of the few equity risks that are. Equities are good hedge aga...
by alex_686
Wed Apr 03, 2019 3:56 pm
Forum: Investing - Theory, News & General
Topic: When income stream covers all expenses in retirement
Replies: 11
Views: 1537

Re: When income stream covers all expenses in retirement

I don't think there is any need for risk here. Isn't there? There are 2 sides to the coin. You have one side of the coin correct - with great wealth (which relativity speaking, your in-laws have) one has a low need to take risk. The other side of the coin, is that with great wealth they have a high...