Search found 4653 matches

by alex_686
Tue Jul 16, 2019 12:50 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

Everything you said is true of an ETF and Vanguard can do it in 2 days....... Vanguard’s ETFs are all in “book” - that is electronic. Verizon has physical certificates circulating about so they have to actually cut paper checks as well as their “book” shares. I used to hold PEG in paper certificate...
by alex_686
Tue Jul 16, 2019 12:34 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

The price drops because "market specialists" reduce the price of the share by the dividend. The company has nothing to do with the reduction in price. That is the simple answer I was looking for. Sadly no. This is a technical adjustment to the ticker tape so the price data looks smoother. They are ...
by alex_686
Tue Jul 16, 2019 11:54 am
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

retiringwhen wrote:
Tue Jul 16, 2019 11:50 am
Everything you said is true of an ETF and Vanguard can do it in 2 days.......
Vanguard’s ETFs are all in “book” - that is electronic. Verizon has physical certificates circulating about so they have to actually cut paper checks as well as their “book” shares.
by alex_686
Tue Jul 16, 2019 10:52 am
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

Let me rephrase the question. How does a company take value out of a stock to pay a dividend without selling stock? It might help your thinking about this to consider how buyers regard a company. When you buy a share of stock, you own that company forever. When a company pays a dividend, you still ...
by alex_686
Tue Jul 16, 2019 6:25 am
Forum: Personal Investments
Topic: REITs
Replies: 5
Views: 738

Re: REITs

I don't think the increase in correlations is important - I think it is a statistical artifact. I think the fact that it ever looked uncorrelated might be the statistical artifact :). This sector has not been around that long to tell the difference. Direct real estate holdings have been around much...
by alex_686
Mon Jul 15, 2019 9:53 pm
Forum: Personal Investments
Topic: REITs
Replies: 5
Views: 738

Re: REITs

I am in favor of REITs. I think it is a diversifying asset, and I think it is the best of the simple diversifying assets. I don't think the increase in correlations is important - I think it is a statistical artifact. However I do think that more money is piling into the space, increasing its equity...
by alex_686
Mon Jul 15, 2019 5:56 pm
Forum: Personal Investments
Topic: Poor financial advisor performance
Replies: 71
Views: 3750

Re: Poor financial advisor performance

Wow. Thanks for all the replies. First, I’d like to say that the performance number (5.2%) is NET of all fees. Secondly, my portfolio DOES include foreign stock mutual funds (DFA) and they’ve been dogs. The 60/40 benchmark does not. It is 60% S&P 500 and 40% Barclays Aggregate Bond. I don't think i...
by alex_686
Mon Jul 15, 2019 3:01 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

is SPY an operating company? If so, they have no obligation to pay a dividend at all. SPY is la Registered Investment Company, and RICs have to pay out their income as dividends each year. There seems to be a mixing in the discussion between RICs and operating companies that is causing a lot of con...
by alex_686
Mon Jul 15, 2019 1:19 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

jebmke wrote:
Mon Jul 15, 2019 1:08 pm
is SPY an operating company? If so, they have no obligation to pay a dividend at all.
SPY is la Registered Investment Company, and RICs have to pay out their income as dividends each year.
by alex_686
Mon Jul 15, 2019 12:13 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

Walkure wrote:
Mon Jul 15, 2019 11:50 am
Or does Vanguard include a sort of "dividends receivable" in its NAV calculation?
Former fund accountant here. Funds are required to work off accural accounting, not cash. When the stock goes ex-div the fund records this as an asset.
by alex_686
Mon Jul 15, 2019 7:17 am
Forum: Non-US Investing
Topic: SIPC coverage for Irish-domiciled ETFs
Replies: 20
Views: 1422

Re: SIPC coverage for Irish-domiciled ETFs

I am not sure what the tax impact of a UAE resident holding Irish Domiciled ETFs in the US would be, but it would be somewhere between complex and bad. Not sure I follow. Did you mean a UAE resident holding Ireland domiciled ETFs in a US based broker? If that, then US tax doesn't come into things. ...
by alex_686
Mon Jul 15, 2019 7:13 am
Forum: Non-US Investing
Topic: SIPC coverage for Irish-domiciled ETFs
Replies: 20
Views: 1422

Re: SIPC coverage for Irish-domiciled ETFs

So it seems Ireland-domiciled ETFs held at US broker would be covered by SIPC. There is no mention of SEC registered securities. For clarification, I was working off a statement in a earlier part of this thread, where there was a definitive statement that foreign ETFs. If that is not true, then I d...
by alex_686
Sun Jul 14, 2019 8:17 pm
Forum: Investing - Theory, News & General
Topic: Insights From a Long Call With Vanguard Reps Today
Replies: 86
Views: 15631

Re: Insights from Vanguard

If using ETFs takes the average expense ratio down 4 basis points on $300 Billion (a conservative assumption) would be $120 Million that would need to be charged to other fund assets or made up in fees. That is not a "peanuts" amount and, moreover, excludes moving the Life Strategy funds to ETFs. I...
by alex_686
Sun Jul 14, 2019 10:57 am
Forum: Non-US Investing
Topic: SIPC coverage for Irish-domiciled ETFs
Replies: 20
Views: 1422

Re: SIPC coverage for Irish-domiciled ETFs

Nowhere yet but it would fall under US if I would open it being UAE resident. I am still contemplating whether IB is actually the safest choice (as it initially looks) for non-US person investing in Irish domiciled ETFs or not really, as it may turn out that non-US securities do not fall under SIPC...
by alex_686
Sun Jul 14, 2019 10:30 am
Forum: Personal Investments
Topic: Grandparent 529s
Replies: 29
Views: 2061

Re: Grandparent 529s

I keep reading on here that 529s are “too restrictive.” My question is should we stop contributing to these? What restrictions are you talking about? It would help to know. From my limited perspective on your situation, I am not seeing any. For myself, I fund my Roth IRA over my child's 529 plan be...
by alex_686
Sun Jul 14, 2019 10:14 am
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

Because it lowers the income Verizon made, not unlike a REIT not paying tax on the distribution of income to the share holders. [/quote] First, paying out a dividend does not lower a company's income. Earnings are on the income sheet, while dividends impact the balance sheet. Second, REITs have to ...
by alex_686
Sun Jul 14, 2019 9:59 am
Forum: Non-US Investing
Topic: SIPC coverage for Irish-domiciled ETFs
Replies: 20
Views: 1422

Re: SIPC coverage for Irish-domiciled ETFs

Also by what they write https://brokerchooser.com/broker-reviews/interactive-brokers-review#review-part-safety, it seems that for europeans (residents or citizens as they don't define?...) the IB UK protection may apply for non-US stocks... I don't think citizenship matters. Where is your brokerage...
by alex_686
Sun Jul 14, 2019 9:34 am
Forum: Non-US Investing
Topic: SIPC coverage for Irish-domiciled ETFs
Replies: 20
Views: 1422

Re: SIPC coverage for Irish-domiciled ETFs

I think it was posted in this thread that only securities that file with the SEC are covered by SPIC. This kind of makes sense. One has to draw the line someplace. I would not think that Irish domiciled would file with the SEC. The is a expense in preparing the required reports, the audits, etc. So...
by alex_686
Sun Jul 14, 2019 9:22 am
Forum: Personal Investments
Topic: How do most advisors produce client returns?
Replies: 57
Views: 4000

Re: How do most advisors produce client returns?

Taylor and Alex: both comments are very insightful and helpful. Just to clarify, in general, how do the fiduciary advisors then produce returns for their clients. Are there many ways or just a few? Well, to restate what I posted: You can't say higher returns. I think they would produce better retur...
by alex_686
Sun Jul 14, 2019 6:17 am
Forum: Investing - Theory, News & General
Topic: Fixed Income ETF Liquidity questioned in Bloomberg Article
Replies: 9
Views: 771

Re: Fixed Income ETF Liquidity questioned in Bloomberg Article

I guess I’m defining failure as, in panic selling, the ETF dives far under NAV and circuit breakers repeatedly kick in. I would not. If you are referring to 2008, which do you think generates a more accurate price of illiquid assets? The market price of a ETF or an accountants estimate of the NAV. ...
by alex_686
Sat Jul 13, 2019 8:04 pm
Forum: Investing - Theory, News & General
Topic: From ex-dividend to distrubution where is my money?
Replies: 78
Views: 3437

Re: From ex-dividend to distrubution where is my money?

Two and a half billion dollars every quarter is a considerable sum even for Verizon. I assume Verizon gets a tax write off as I pay tax on the dividend. The stock price drops the amount of the dividend; I assume the worth of the company drops by the amount of the dividend is the reason. No - Why wo...
by alex_686
Sat Jul 13, 2019 5:49 pm
Forum: Personal Investments
Topic: How do most advisors produce client returns?
Replies: 57
Views: 4000

Re: How do most advisors produce client returns?

Would you expect advisors who are held to fiduciary standards likely, on average, to return higher gains to clients? Converely non fiduciary advisors are less likely to produce higher gains. You can't say higher returns. I think they would produce better returns. About 80% of the work that that FA ...
by alex_686
Fri Jul 12, 2019 1:16 pm
Forum: Personal Investments
Topic: Mutual of America target date fund / management fee
Replies: 9
Views: 362

Re: Mutual of America target date fund / management fee

How sure are you about this? Among the five largest target date fund managers, none of them (Vanguard, Fidelity, American Funds, T. Rowe Price, and JPMorgan) layers on a separate management fee according to their prospectus. Different share classes of funds will obviously and definitely have other ...
by alex_686
Fri Jul 12, 2019 11:56 am
Forum: Personal Investments
Topic: Mutual of America target date fund / management fee
Replies: 9
Views: 362

Re: Mutual of America target date fund / management fee

:shock: Thankfully, you don't pay anything for the "system" to manage the portfolio: pretty much universally, the expense ratio of both target date funds and asset allocation funds is just the weighted average of the underlying fund ERs. It says the management fee is .06% in the target date prospec...
by alex_686
Thu Jul 11, 2019 4:07 pm
Forum: Investing - Theory, News & General
Topic: Help me understand factor ETFs
Replies: 6
Views: 551

Re: Help me understand factor ETFs

It would be interesting historical perspective (if anyone happens to know the answer!) how many small cap stocks from say 10 years ago: - No longer exist today - Remain small cap stocks today - Are mid cap stocks today - Are large cap stocks today My guess would be that a small cap stock becoming a...
by alex_686
Thu Jul 11, 2019 8:41 am
Forum: Personal Investments
Topic: How do most advisors produce client returns?
Replies: 57
Views: 4000

Re: How do most advisors produce thier returns?

No - if they have a shed of financial knowledge, ethics, or follow their dictates from the back office. Compliance is supposed to monitor this and squish this particular tatic hard. They can use their superior skill to juice returns- either by stock selection or market timing- which we know us very ...
by alex_686
Wed Jul 10, 2019 10:20 pm
Forum: Investing - Theory, News & General
Topic: Teleport into Roth IRA using offsetting leveraged positions?
Replies: 17
Views: 964

Re: Teleport into Roth IRA using offsetting leveraged positions?

In theory no. However, there are a fair number of rules that limit leverage inside a IRA (Trad or Roth). Some brokers interpreted this as forbiding leveraged ETFs. Often use of futures and options are curtailed. So this is going to be a modest effort at best. TDA lets you do futures/options in IRAs...
by alex_686
Wed Jul 10, 2019 9:03 pm
Forum: Personal Finance (Not Investing)
Topic: What, if any, advisors do I need?
Replies: 13
Views: 1067

Re: What, if any, advisors do I need?

Bogleheads exists to help you do it yourself for $0. Ask questions here. As many as you need. Most don’t need a suite of advisors. I will modestly disagree. Not everybody is it a DIY. It is ok to ask a objective 3rd party fot impartially advice. For a free site Bogleheads offer decent advice, but I...
by alex_686
Wed Jul 10, 2019 8:18 pm
Forum: Investing - Theory, News & General
Topic: Teleport into Roth IRA using offsetting leveraged positions?
Replies: 17
Views: 964

Re: Teleport into Roth IRA using offsetting leveraged positions?

In theory no. However, there are a fair number of rules that limit leverage inside a IRA (Trad or Roth). Some brokers interpreted this as forbiding leveraged ETFs. Often use of futures and options are curtailed. So this is going to be a modest effort at best.
by alex_686
Wed Jul 10, 2019 6:02 pm
Forum: Personal Finance (Not Investing)
Topic: What, if any, advisors do I need?
Replies: 13
Views: 1067

Re: What, if any, advisors do I need?

A CFP should be able to answer you spreadsheet / math questions. Some will build plans for a one time fee. Expect to pay +$500. Well worth it for many.

Lawyers for estate planning / living wills, etc. CPA for the tax questions. There are people who combine 2 out of the 3.
by alex_686
Wed Jul 10, 2019 6:34 am
Forum: Personal Investments
Topic: Yet another ETF premium/discount discussion
Replies: 28
Views: 985

Re: Yet another ETF premium/discount discussion

I’m fine with that but where is the actual data to back up the switch from MFs to ETFs. Not a finance guy, but I get queasy hearing things like “wash”. The bid/ask spread is a tangible cost. A cost of greater liquidity for the investor. My point is what benefit are you actually getting from that li...
by alex_686
Tue Jul 09, 2019 4:38 pm
Forum: Personal Investments
Topic: Yet another ETF premium/discount discussion
Replies: 28
Views: 985

Re: Yet another ETF premium/discount discussion

My hunch is they are the same and the difference in expense ratio reflects that. But I do know that market returns during the day have been nil, while virtually all of the market return has occurred overnight. Why risk open market transactions with an ETFs when you can just purchase a MF at NAV? No...
by alex_686
Mon Jul 08, 2019 3:13 pm
Forum: Investing - Theory, News & General
Topic: What does the "i" in iShares stand for?
Replies: 9
Views: 785

Re: What does the "i" in iShares stand for?

I think it is for “individual” - the hint being that a retail investor could get the same low fers as investing in “institutional” I- share class mutual funds.
by alex_686
Mon Jul 08, 2019 11:29 am
Forum: Personal Investments
Topic: Concerned about my stocks in dws
Replies: 9
Views: 765

Re: Concerned about my stocks in dws

Not much. I saw first hand a small regional brokerage and a large national “prime” brokerage blow up. Accounts were frozen for a day or two, the retail brokerage accounts were sold to a new firm, and that was about it. And this is about as bad as it gets. Retail accounts are valuable and somebody wi...
by alex_686
Sat Jul 06, 2019 9:59 am
Forum: Personal Finance (Not Investing)
Topic: Wealthfront Cash Account Application Asking too many personal questions?
Replies: 39
Views: 3358

Re: Wealthfront Cash Account Application Asking too many personal questions?

Do you have a link to the government agency that requires that information from a "retail" investor? Of course not - This stuff is handled on the civil side under common law. Vauge regulations ate issued by the SEC, lawsuits are filed, precedence is set, rulings are analyzed, the process evolves. Y...
by alex_686
Fri Jul 05, 2019 7:03 pm
Forum: Personal Finance (Not Investing)
Topic: Wealthfront Cash Account Application Asking too many personal questions?
Replies: 39
Views: 3358

Re: Wealthfront Cash Account Application Asking too many personal questions?

Do you have a link to the government agency that requires that information from a "retail" investor? Of course not - This stuff is handled on the civil side under common law. Vauge regulations ate issued by the SEC, lawsuits are filed, precedence is set, rulings are analyzed, the process evolves. Y...
by alex_686
Thu Jul 04, 2019 7:10 pm
Forum: Personal Investments
Topic: [ETF vs. Mutual Fund questions]
Replies: 53
Views: 1768

Re: which is better schwab or fedelity ???

looking wrote:
Sun Jun 23, 2019 7:24 pm
I have vanguard account now and like to have another one,, which is better Schwab or fidelity ???

thank you
Why do you want another brokage account? I can’t think of a strong reason to do so.
by alex_686
Thu Jul 04, 2019 7:34 am
Forum: Investing - Theory, News & General
Topic: Misbehaviour of markets and the Black Swan
Replies: 86
Views: 7298

Re: Misbehaviour of markets and the Black Swan

Carol88888 All I need to know is that an index strategy will probably do better than other strategy I could reasonably execute. Suits me. I think you might be missing the thrust behind this thread. There are a couple of questions being asked here which tie directly into the above strategy. 1. What ...
by alex_686
Wed Jul 03, 2019 11:05 pm
Forum: Personal Investments
Topic: Mutual Fund Exchange and Yearly Dividends
Replies: 1
Views: 164

Re: Mutual Fund Exchange and Yearly Dividends

I would not worry about this. You know your find drops by thousands of dollars when it pays dividends of thousands of dollars. To the penny. Take it from somebody who worked in mutual fund accounting and did dividend distributions- it is strictly a tac thing and has no economic impact.
by alex_686
Wed Jul 03, 2019 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Wealthfront Cash Account Application Asking too many personal questions?
Replies: 39
Views: 3358

Re: Wealthfront Cash Account Application Asking too many personal questions?

"Liquid Net worth (required by regulators) Pre-tax annual income (required by regulators)" That sounds like marketing B.S. Every hack money changer (Wells Fargo) uses that line now. OP if you weren't applying for accredited investor status they were lying. How did they get your information if you d...
by alex_686
Wed Jul 03, 2019 3:28 pm
Forum: Investing - Theory, News & General
Topic: Bond yield too low, how about high yield stock?
Replies: 10
Views: 764

Re: Bond yield too low, how about high yield stock?

Sigh, divided yield - no matter how you cut it - is a poor indicator. There is no theory behind it. The statistical power behind it is low, and what evidence it does have suggests that you are taking on above average market risk. It blows up during tines of stress. Returns and risk are linked, no ge...
by alex_686
Wed Jul 03, 2019 8:58 am
Forum: Personal Finance (Not Investing)
Topic: Question on PMI
Replies: 3
Views: 375

Re: Question on PMI

The $380 is a expense.

The 2,185 is a transfer of a asset from your checking account to your equity in your home. Yeah, it is from a liquid asset to a illiquid one, but I think that is what you are missing.

Is that extra liquidity worth $380? Up to you.
by alex_686
Tue Jul 02, 2019 8:11 am
Forum: Investing - Theory, News & General
Topic: Misbehaviour of markets and the Black Swan
Replies: 86
Views: 7298

Re: Misbehaviour of markets and the Black Swan

A note on correlations and crisis. Yes, correlations increase during tines of volitility. This might be significant, or maybe not. Correlation calculations assume constant volatility. If you don’t have constant volatility you are goyto get garbage numbers. I can get a strong correlation with fair di...
by alex_686
Mon Jul 01, 2019 9:03 pm
Forum: Personal Investments
Topic: Diversification of asset classes or correlations
Replies: 5
Views: 438

Re: Diversification of asset classes or correlations

80% correlation is better than you think. There have been long chunks of time where bonds had a 60% correlation. Sometimes you have to take what you can get. Next, you have to understand 2 things. First, that correlation is not the same as causation. Second, the correlations are not stable. For the ...
by alex_686
Mon Jul 01, 2019 8:35 pm
Forum: Investing - Theory, News & General
Topic: Misbehaviour of markets and the Black Swan
Replies: 86
Views: 7298

Re: Misbehaviour of markets and the Black Swan

i think it is unfair to criticize taleb for "not providing solutions." if i understand him correctly, one of his main points is that there IS NO SOLUTION to financial markets. financial markets are not simple math problems, i.e., portfolios cannot be optimized. he rails against modern financial the...
by alex_686
Sun Jun 30, 2019 7:00 pm
Forum: Investing - Theory, News & General
Topic: Misbehaviour of markets and the Black Swan
Replies: 86
Views: 7298

Re: Misbehaviour of markets and the Black Swan

So, let me modestly take the other side. When it comes to standard deviations, I am a "glass half full" type of guy - or to be precise, 95% full. It provides a robust framework, independent of asset time and time horizon. It is simple and robust. And it is good out to 2 to 3 standard deviations. And...
by alex_686
Sun Jun 30, 2019 12:12 pm
Forum: Personal Finance (Not Investing)
Topic: Are advertised mortgage interest rates [fiction]?
Replies: 20
Views: 1737

Re: Are advertised mortgage interest rates [fiction]?

Why is it so surprising that banks prefer to make larger loans over smaller loans? They make less money from the latter. More risk exposure. This is not the right answer. I am in a similar situation as the OP. In my long experience, the reason that has been quoted to me is that making loans has a f...
by alex_686
Sun Jun 30, 2019 9:19 am
Forum: Investing - Theory, News & General
Topic: What caused bond prices to explode in November of 2008?
Replies: 9
Views: 1093

Re: What caused bond prices to explode in November of 2008?

Quantitative Easing. There is a bit of a discount between short term and long term rates. In November the Fed decided it would be better if long term rates were low so they started buying long bonds to push down rates. Obviously, this increased the prices. https://en.wikipedia.org/wiki/Quantitative_...
by alex_686
Sun Jun 30, 2019 8:26 am
Forum: Investing - Theory, News & General
Topic: Vanguard Advertising Mutual Fund to ETF Conversion
Replies: 128
Views: 8044

Re: Vanguard Advertising Mutual Fund to ETF Conversion

To me, it sounds like mutual funds are automatics in your analogy (less efficient, more convenient). 2 modest points. First, it is a analogy. You can only push a analogy so far. The thrust is no matter how much you like one thing, be it mutual funds or manual transmissions, if the market moves away...
by alex_686
Sat Jun 29, 2019 9:07 am
Forum: Investing - Theory, News & General
Topic: Vanguard Advertising Mutual Fund to ETF Conversion
Replies: 128
Views: 8044

Re: Vanguard Advertising Mutual Fund to ETF Conversion

An interesting analogy. ... So are ETFs manual or automatic in your analogy? ETFs and automatics are the future. For cars, automatic transmissions are more complex, more expensive to produce, more prone to breakdown, and more expensive to repair, and have lower gas millage. There is a fair amount o...