Search found 22219 matches

by dbr
Wed Jun 28, 2017 9:06 am
Forum: Investing - Theory, News & General
Topic: Tracking Error vs Low Correlation
Replies: 3
Views: 223

Re: Tracking Error vs Low Correlation

Honestly, I think tracking error is overused and misapplied. The most appropriate application of the term is evaluation of how well an index fund in fact delivers the index. As mentioned, departures, especially constant short fall, are a concern. A different application is comparing portfolio A to p...
by dbr
Wed Jun 28, 2017 8:42 am
Forum: Personal Finance (Not Investing)
Topic: Happy Meeting with CPA Tax Preparer
Replies: 14
Views: 1043

Re: Happy Meeting with CPA Tax Preparer

I'm not sure why the OP's husband needs life insurance at age 65+. Is he receiving a good-sized pension that vanishes upon his death? I questioned that as well. My view on insurance is only buy it when you actually need it. I had access to cheap supplemental coverage (my company paid for a very gen...
by dbr
Wed Jun 28, 2017 8:39 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1099

Re: Incorrect IRS notice, should I worry?

How did you determine that this business is registered at your address? That is very different from the IRS simply having a wrong mailing address. If the business is really improperly registered you should go to the proper office in your state and talk to them. The IRS may be not responsive but a st...
by dbr
Tue Jun 27, 2017 1:23 pm
Forum: Investing - Help with Personal Investments
Topic: Why do Vanguard Target Retirement funds have no REIT?
Replies: 6
Views: 391

Re: Why do Vanguard Target Retirement funds have no REIT?

Vanguard TR funds don't have a lot of things as well as not REITs. There could be tilts to small and value and to emerging markets. There could be commodities. There could be gold and other precious metals. There could be pipeline MLPs. I don't think they are including much in TIPS but maybe end up ...
by dbr
Tue Jun 27, 2017 1:16 pm
Forum: Personal Finance (Not Investing)
Topic: Annuities
Replies: 12
Views: 836

Re: Annuities

There is no annuity you should be interested in now. Annuity decisions can be made when you get there in 40 or 50 years. The use of single premium immediate annuities in retirement is discussed by Jim Otar in his book (Google JIm Otar).
by dbr
Tue Jun 27, 2017 1:02 pm
Forum: Investing - Help with Personal Investments
Topic: SP500 vs High Dividend Yeld Global Stocks
Replies: 19
Views: 1385

Re: SP500 vs High Dividend Yeld Global Stocks

Here's what I don't understand. Say I have a valid, a well known in some circles, study of stock performance in hand. This study includes data history from reliable sources and displays that over a 50 year period a dividend index has a total return of 12%, while the 500 index has a total return of ...
by dbr
Tue Jun 27, 2017 12:52 pm
Forum: Personal Finance (Not Investing)
Topic: Any Reason to Stay With USAA?
Replies: 16
Views: 997

Re: Any Reason to Stay With USAA?

What you invest in and where you invest are two different things. You can buy and hold Vanguard ETFs and funds at USAA. There will be transaction costs. Logically, a person holding Vanguard mutual funds would choose to do that at Vanguard. USAA does not offer the most advantageous investments. It is...
by dbr
Tue Jun 27, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: Elderly Relative Reluctant to give POA
Replies: 29
Views: 2012

Re: Elderly Relative Reluctant to give POA

Yes, we could all walk away, but then who/how/when would his bills get paid? I mentioned walking away as a logically possible alternative rather than urging anyone to actually do it, but the answer to the above question is that if you do walk away you also don't have to deal with that question any ...
by dbr
Tue Jun 27, 2017 12:42 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing gains in retirement accounts
Replies: 10
Views: 474

Re: Realizing gains in retirement accounts

It's very aggressive in growth funds, and was thinking of lowering the allocation to 60/40 stocks/bonds. If you have a good thought process on what the AA should be, then you should shift to that AA without any thoughts of "locking in gains." A good thought process does not include "...
by dbr
Tue Jun 27, 2017 12:38 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing gains in retirement accounts
Replies: 10
Views: 474

Re: Realizing gains in retirement accounts

Shows a modest five figure gain. Just thought it might be worth locking in the gains and then re-diversify. This sounds a bit more like "some holdings have large gains", but not others? If so, the would "re-diversifying" be more like "rebalancing"? RM Yes, of course re...
by dbr
Tue Jun 27, 2017 12:37 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing gains in retirement accounts
Replies: 10
Views: 474

Re: Realizing gains in retirement accounts

Shows a modest five figure gain. Just thought it might be worth locking in the gains and then re-diversify. By re-diversify I assume you mean change your asset allocation. Is there a good reason for that? If so, what the market is doesn't affect the decision. It really sounds like you are selling (...
by dbr
Tue Jun 27, 2017 12:30 pm
Forum: Investing - Help with Personal Investments
Topic: Realizing gains in retirement accounts
Replies: 10
Views: 474

Re: Realizing gains in retirement accounts

There is no point in "locking in gains." What would you do with the money? Now the weasel context on this is that if your situation now seems to be different regarding your need/ability/willingness to take risk then it might be you should be at a different asset allocation. It is unlikely ...
by dbr
Tue Jun 27, 2017 12:28 pm
Forum: Investing - Help with Personal Investments
Topic: SP500 vs High Dividend Yeld Global Stocks
Replies: 19
Views: 1385

Re: SP500 vs High Dividend Yeld Global Stocks

Is it fair to compare the results from Jan 2007 to May 2017 of iSahres Core SP500 and Vanguard Dividend Appreciation ETF or SPDR S&P Dividend ETF with both reinvesting dividends ? If you mean do you have to reinvest the dividends to get a correct comparison, the answer is yes. If you mean is it...
by dbr
Tue Jun 27, 2017 9:00 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard 401k admin fees
Replies: 13
Views: 473

Re: Vanguard 401k admin fees

The fee is not for your benefit. It is for your employer's benefit. A more sensible complaint would be with your employer requesting that they subsidize the fee for you as an employee benefit. $100 a year is not onerous as an administrative fee. It is 1% of $10k, but it is 0.1% of $100K and 0.01% of...
by dbr
Tue Jun 27, 2017 8:57 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1099

Re: Incorrect IRS notice, should I worry?

I'll hijack this thread to ask a similar question: Every year, a tax time, we are blessed with a bolus of 10-15 tax letters (some federal, some state) from a previous occupant of our house, with business apparently registered at our address. Based on property tax and home sales payment history, the...
by dbr
Tue Jun 27, 2017 8:40 am
Forum: Investing - Help with Personal Investments
Topic: Time Horizon
Replies: 6
Views: 324

Re: Time Horizon

I think time horizon is a bad concept as it suggests that everything is aimed at an end point whereas in fact it is a continuous process, an extended plain for example. (I say plain, not plane, for better visualization having rejected the Vanguard image of cruising on an infinite sea.) That plain do...
by dbr
Tue Jun 27, 2017 8:35 am
Forum: Investing - Help with Personal Investments
Topic: Lump sum investing in stocks vs. DCA
Replies: 55
Views: 3034

Re: Lump sum investing in stocks vs. DCA

However, DCA is not illogical under market conditions where similar investors would be prudent to sell off some off some of their holdings and DCA them back into the market. Note that DCA on a fixed schedule would be illogical. But selling out and reinvesting over time based on market conditions wo...
by dbr
Tue Jun 27, 2017 8:32 am
Forum: Personal Finance (Not Investing)
Topic: Elderly Relative Reluctant to give POA
Replies: 29
Views: 2012

Re: Elderly Relative Reluctant to give POA

An option is for everyone to just walk away. You don't need the problems. A different alternative is you or someone might have to petition to have him declared incompetent and have a conservator appointed. There are several variations of this. Serving as guardian or conservator is an onerous task. G...
by dbr
Tue Jun 27, 2017 8:26 am
Forum: Investing - Help with Personal Investments
Topic: SP500 vs High Dividend Yeld Global Stocks
Replies: 19
Views: 1385

Re: SP500 vs High Dividend Yeld Global Stocks

Is it fair to compare the results from Jan 2007 to May 2017 of iSahres Core SP500 and Vanguard Dividend Appreciation ETF or SPDR S&P Dividend ETF with both reinvesting dividends ? If you mean do you have to reinvest the dividends to get a correct comparison, the answer is yes. If you mean is it...
by dbr
Mon Jun 26, 2017 12:27 pm
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4046

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

FelixTheCat wrote:Fidelity makes money with the transaction fees you pay to get Vanguard funds. Why don't you use the equivalent Fidelity funds and pay nothing at all.


I have so few transactions it adds up to nothing worth taking into account.
by dbr
Mon Jun 26, 2017 11:52 am
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4046

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

Isn't it true that a mutual fund such as VTSMX might loan shares of the stocks held by the fund even though I, as an owner of shares of VTSMX and not being in a margin account, would not see my shares of VTSMX loaned. That is what I am referring to. One thing that I think that you are missing is th...
by dbr
Mon Jun 26, 2017 11:15 am
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4046

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

Also this is different from stock lending by a mutual fund itself. I am not sure what you mean by this. The mechanics and channels are the same. Are you referring that the rules are slightly different for individual investors? This dates back to the 50s and 60s. Firms would co-mingle client's stock...
by dbr
Mon Jun 26, 2017 10:40 am
Forum: Personal Finance (Not Investing)
Topic: Where to find a financially like-minded significant other?
Replies: 140
Views: 7173

Re: Where to find a financially like-minded significant other?

Barefootgirl wrote:
I agree there should be a dating group. I have found we are a minority. :)


On a purely mathematical basis the odds are not favorable.
by dbr
Mon Jun 26, 2017 10:30 am
Forum: Personal Finance (Not Investing)
Topic: A TIPS is maturing in Fidelity. What to do?
Replies: 29
Views: 1017

Re: A TIPS is maturing in Fidelity. What to do?

Dottie57 wrote:

Hi Victoria,

Why would you go with. A 15+ year maturity TIPS fund? Does it not have a lot of risk if the fed improves rates? NAV will go down.?


Probably the most common choice would be intermediate durations such as VIPSX, and there is an intermediate TIPS ETF.
by dbr
Mon Jun 26, 2017 10:27 am
Forum: Personal Finance (Not Investing)
Topic: Bank Account - Payable on Death or Account Co-Owner
Replies: 14
Views: 963

Re: Bank Account - Payable on Death or Account Co-Owner

You can also get a Power of Attorney that allows your wife access to and power over the account. A difference is that POA terminates on death. Of course, both a POA and POD could exist. Another difference with POA is that your wife would be obligated to do everything in the interests of the principa...
by dbr
Mon Jun 26, 2017 10:21 am
Forum: Personal Finance (Not Investing)
Topic: Where to find a financially like-minded significant other?
Replies: 140
Views: 7173

Re: Where to find a financially like-minded significant other?

Before we were married I found out from my wife to be that she had traveled Europe reading the Europe on $5 a Day book but did it on $2.50 a day. In that context the more important information was the traveled Europe part than the $2.50 a day. But she is the person who taught me how to ride trains i...
by dbr
Mon Jun 26, 2017 10:15 am
Forum: Investing - Help with Personal Investments
Topic: TIPS or no TIPS again
Replies: 36
Views: 2034

Re: TIPS or no TIPS again

There is an argument that all of the bond allocation should be in TIPS because it is irrational to choose inflation risk in fixed income. A counter argument is that all TIPS is a very narrow allocation to a very specific type of bond that has not been around that long (as others point out). A compro...
by dbr
Mon Jun 26, 2017 9:56 am
Forum: Personal Finance (Not Investing)
Topic: Incorrect IRS notice, should I worry?
Replies: 13
Views: 1099

Re: Incorrect IRS notice, should I worry?

As suggested send everything back with a letter of explanation.

The other person has a bigger problem than you do because the IRS now has the wrong address for them.

I agree about Googling for this person. It might do them a big favor if you come up with something meaningful.
by dbr
Mon Jun 26, 2017 9:52 am
Forum: Investing - Help with Personal Investments
Topic: TIPS or no TIPS again
Replies: 36
Views: 2034

Re: TIPS or no TIPS again

There is no investment that anyone "needs." You are asking an unanswerable question. If you want to put half your bonds in TIPS that would not be some kind of fatal mistake. It would be mildly helpful at offsetting some impact of inflation. It will make little difference in the prospective...
by dbr
Mon Jun 26, 2017 9:49 am
Forum: Investing - Help with Personal Investments
Topic: How do you calculate "enough" for retirement accounts?
Replies: 14
Views: 1964

Re: How do you calculate "enough" for retirement accounts?

Have you checked out Firecalc ? Not to be Debbie Downer here, but I'm almost 50. When I first started saving for retirement I went in thinking that all I had to do was invest, and I would see my money double and then triple, etc. (Granted I understood there would be ups and downs). That's the way t...
by dbr
Mon Jun 26, 2017 9:47 am
Forum: Personal Finance (Not Investing)
Topic: Survivor benefits (SSI & Pension)
Replies: 4
Views: 333

Re: Survivor benefits (SSI & Pension)

You have to tabulate the numbers for the yes and no cases before you die and after you die. There might be several choices for when you die. Then you and your wife look at how much income you both or one of you is going to have in the different scenarios. You then compare those income numbers to wha...
by dbr
Mon Jun 26, 2017 9:29 am
Forum: Investing - Theory, News & General
Topic: Your Favorite Vanguard Fund
Replies: 53
Views: 5185

Re: Your Favorite Vanguard Fund

Vanguard Total Universe (includes emerging star systems and planets) is my number one pick, Seems like currency exchange rates would be a major problem, and fund transfer and admin fees would make it prohibitively expensive. And we don't have exchange and commerce agreements with all that many othe...
by dbr
Mon Jun 26, 2017 9:23 am
Forum: Personal Finance (Not Investing)
Topic: What's Your Credit Card Rewards Strategy?
Replies: 1875
Views: 297552

Re: What's Your Credit Card Rewards Strategy?

A week or so ago my wife received a mailer from Citi/AA for the AAdvantage Platinum Select Mastercard offer for 65,000 miles after $4k in spending within the first 4 months. Today she received another mailer from Citi. The offer is identical to the previous one but they have different invitation nu...
by dbr
Mon Jun 26, 2017 9:21 am
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4046

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

(Yes feeling lazy to google :oops: or easy to type or helps others as well ) if I have Fidelity account, how does, Fidelity, makes money when I hold all Vanguard funds and ETFs, in a buy and hold fashion, with minimal transaction fees. I do the same. I also use a whole raft of other Fidelity servic...
by dbr
Mon Jun 26, 2017 8:50 am
Forum: Investing - Help with Personal Investments
Topic: How does Fidelity makes money, if I own all Vanguard funds or ETFs
Replies: 56
Views: 4046

Re: How does Fidelity makes money, if I own all Vanguard funds or ETFs

Thanks a lot. I got the answers I was looking for, seems like they lend the securities and make money and use the assets for their calculations to show their assets under management. I think a fund can engage in securities lending and a broker can lend stocks. I am not sure you can lend an ETF and ...
by dbr
Sun Jun 25, 2017 1:18 pm
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 73
Views: 4157

Re: International Stocks - New thoughts

MindBogler wrote:I haven't seen any compelling reason to hold bonds denominated in another currency.


More to the point, is there a compelling reason to avoid such bonds?
by dbr
Sun Jun 25, 2017 1:16 pm
Forum: Investing - Theory, News & General
Topic: Why bonds when one's investment horizon is long?
Replies: 59
Views: 3898

Re: Why bonds when one's investment horizon is long?

I guess if you buy a 30 year bond exactly at the top of an extreme outlier in over 100 years of US interest rates and compute the growth factor to maturity of the bond, then you have a pretty good chance of outperforming just about anything. I wonder if people appreciate how extreme and uncharacteri...
by dbr
Sun Jun 25, 2017 12:36 pm
Forum: Personal Finance (Not Investing)
Topic: Leave a good boss for career advancement?
Replies: 12
Views: 1208

Re: Leave a good boss for career advancement?

Your current boss can just as easily move on himself (whether or not he really wants to). You would be a fool to eschew an opportunity assuming that everything is going to stay good and happy where you are. At Megacorp my average tenure for bosses was probably about two years, and for bosses bosses ...
by dbr
Sun Jun 25, 2017 12:33 pm
Forum: Personal Finance (Not Investing)
Topic: Mediator for ownership division of primary home
Replies: 46
Views: 1444

Re: Mediator for ownership division of primary home

OP said this conversation was prompted by Mom working on her trust. In this type of blended situation, I would think there should be an attorney involved for the trust issues. I would be directing the question of the current legal ownership of the house and where to find mediation services if desir...
by dbr
Sun Jun 25, 2017 12:20 pm
Forum: Personal Finance (Not Investing)
Topic: Credit cards' credit lines - pros/cons of requesting reduction?
Replies: 19
Views: 1225

Re: Credit cards' credit lines - pros/cons of requesting reduction?

You can SMS or chat online and have credit lines reduced. Yes, your total credit limits could high enough to mess up some application or another.
by dbr
Sun Jun 25, 2017 12:03 pm
Forum: Investing - Theory, News & General
Topic: International Stocks - New thoughts
Replies: 73
Views: 4157

Re: International Stocks - New thoughts

I have 20% of my stock portion in foreign. It’s a Goldilocks number for me. Not too hot (much) not too cold (little). It’s kind of a middle number in the debate that’s now going on. I figure in the grand scheme of things it can’t hurt me much one way or the other. I think the "it can't hurt me...
by dbr
Sun Jun 25, 2017 11:53 am
Forum: Investing - Help with Personal Investments
Topic: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?
Replies: 48
Views: 5833

Re: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?

I was responding to this argument: "Dividends are not some magic free money. They come out of the total return and are paid to you." This argument is misguided. Dividends dont "come out of total return". Total return just means the increase in the market price of your stock plus...
by dbr
Sun Jun 25, 2017 11:42 am
Forum: Personal Finance (Not Investing)
Topic: Mediator for ownership division of primary home
Replies: 46
Views: 1444

Re: Mediator for ownership division of primary home

I may have been reading between the lines, and incorrectly, but I somehow got the impression that what was desired was something that the two of them could agree with, and not necessarily what a court would decide based upon local property law. Based upon the numbers above, that calculation may be ...
by dbr
Sun Jun 25, 2017 11:38 am
Forum: Investing - Theory, News & General
Topic: The "angle" at Schwab
Replies: 21
Views: 2364

Re: The "angle" at Schwab

I have never had an "adviser" at any of several brokerage firms including Fidelity and Schwab. I tend to regard ending up with an "adviser" as something of a mistake on the part of the investor. I have found all the firms I have done business with to be very good at customer serv...
by dbr
Sun Jun 25, 2017 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Aging parents
Replies: 13
Views: 1614

Re: Aging parents

Are you on the on the account as an "authorized signatory" or as a joint owner? My understanding from going this process myself is that an authorized signatory has access to the account but there are no liability, credit or tax consequences. For example, interest paid would be on a 1099 t...
by dbr
Sun Jun 25, 2017 11:28 am
Forum: Investing - Help with Personal Investments
Topic: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?
Replies: 48
Views: 5833

Re: Am I being unrealistic about my expectations of dividend income? Is there a better alternative?

The argument above is based on the premise that you know what would have happened to a stock's price if cash that was paid out in a dividend was instead held in the company. That cannot be known. I do not accept the claim that keeping cash in a company always increases the market cap of a company b...
by dbr
Sun Jun 25, 2017 11:04 am
Forum: Personal Finance (Not Investing)
Topic: Aging parents
Replies: 13
Views: 1614

Re: Aging parents

But aren't you concerned about you father having overdrafts for his sake? They might be an indication that he is having trouble managing his money or that someone is taking advantage if him. Maybe it is time for you to take over his bill paying, if he'll allow it. I agree. At my bank my POA on some...
by dbr
Sun Jun 25, 2017 10:53 am
Forum: Investing - Help with Personal Investments
Topic: 3 fund portfolio- ROI and impact of returns after taxes
Replies: 2
Views: 334

Re: 3 fund portfolio- ROI and impact of returns after taxes

I'm sure this is a newbie question but I don't understand a part of the Summary Prospectus for the Vanguard Total Bond Market Index Fund, Total International Stock Index Fund, and the Total Stock Market Index Fund. I specifically don't understand the impact of the " Average Annual Total Return...
by dbr
Sun Jun 25, 2017 10:42 am
Forum: Investing - Theory, News & General
Topic: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?
Replies: 27
Views: 2688

Re: 5% of portfolio balance a better SWR than 3-4% inflation-adjusted?

My "real life" income needs and wants seem to be pretty steady in retirement. A widely variable withdrawal rate doesn't seem to match my lifestyle. My coefficient of variation (standard deviation/mean) of annual expenses has been about 60%. In real numbers that means spending in the highe...

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