Search found 4871 matches

by Northern Flicker
Sat Nov 09, 2019 2:18 am
Forum: Personal Investments
Topic: Fidelity vs Vanguard
Replies: 54
Views: 7343

Re: Fidelity vs Vanguard

Because there are expenses not accounted for in expense ratios, it is not easy to know which funds are actually cheaper. But if the assets are in a taxable account, there is no question that Vanguard stock index funds are more tax-efficient than Fidelity stock index funds.
by Northern Flicker
Fri Nov 08, 2019 8:15 pm
Forum: Personal Investments
Topic: Talk Me Off the Active Investing Ledge!
Replies: 34
Views: 2041

Re: Talk Me Off the Active Investing Ledge!

If I had to guess, he was overweight Apple and was lucky in 2019. Sound active management at reasonable cost is not something I automatically rule out, but a portfolio run by a single individual does not pass a basic due diligence test. Other due diligence questions would be of a nature to avoid fra...
by Northern Flicker
Thu Nov 07, 2019 7:38 pm
Forum: Personal Investments
Topic: large stake in VNQ [Vanguard Real Estate ETF]
Replies: 17
Views: 1296

Re: large stake in VNQ [Vanguard Real Estate ETF]

So, a little more info... I have around $90k in individual stocks that my grandfather gave me. I can't sell them without paying significant taxes. My Roth has $3k in VGT (Vanguard tech sector), $2k in VTI (total stock market), $1k in VO (mid caps), and $12k in VNQ (reits). I have one 200k rental pr...
by Northern Flicker
Wed Nov 06, 2019 11:35 pm
Forum: Investing - Theory, News & General
Topic: Nominal or inflation-protected bonds?
Replies: 42
Views: 2768

Re: Nominal or inflation-protected bonds?

have you read this article: https://www.nytimes.com/2009/04/26/your-money/stocks-and-bonds/26stra.html It took 4 1/2 years to bounce back from the 1929 crash (not 25 years as commonly assumed) I don’t think that is quite correct. Stocks bottomed out in 1932, had recovered by 1935, reaching nominal ...
by Northern Flicker
Wed Nov 06, 2019 8:56 pm
Forum: Investing - Theory, News & General
Topic: The hidden cost of Fidelity’s ZERO funds
Replies: 66
Views: 5574

Re: The hidden cost of Fidelity’s ZERO funds

Only a short time frame, but what is the total return of FZROX vs VTSAX since inception of FZROX? Mutual fund providers can take more securities lending risk by doing more lending to generate additional revenue, or take less securities lending risk by doing less lending to generate less revenue. Yo...
by Northern Flicker
Wed Nov 06, 2019 7:54 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17664

Re: Will we be OK at 3% WR?

You could put your life savings under the mattress and 3% will still last you 33 years until age 87 without a single dime of earnings. It will cover 3% nominal spending for 33 years, but planning for retirement spending is usually done in real terms. The withdrawal rate is adjusted for inflation an...
by Northern Flicker
Wed Nov 06, 2019 7:49 pm
Forum: Personal Finance (Not Investing)
Topic: Kaiser HMO
Replies: 4
Views: 292

Re: Kaiser HMO

Out of network costs will not contribute to meeting an in-network out-of-pocket maximum for any plan I’ve ever seen. Kaiser does not cover out-of-network care. They may authorize out-of-network providers to provide in-network care at times, such as if having an emergency while traveling and requirin...
by Northern Flicker
Wed Nov 06, 2019 4:12 pm
Forum: Personal Investments
Topic: Will we be OK at 3% WR?
Replies: 273
Views: 17664

Re: Will we be OK at 3% WR?

For some perspective, I ran lifetime income annuity quotes at immediateannuities.com. With no COLA features, the payout rate was about 4.5%. With COLA by CPI it was 2.2%. CPI COLA’d annuities are overpriced at present, with the historical reduction of payout rates vs non-COLA’d of about 30% vs over ...
by Northern Flicker
Wed Nov 06, 2019 1:32 pm
Forum: Personal Finance (Not Investing)
Topic: Health Insurance Options For FIRE Newly Diagnosed with Cancer
Replies: 22
Views: 2461

Re: Health Insurance Options For FIRE Newly Diagnosed with Cancer

In our state, the HSA bronze plans have the lowest out-of-pocket maximums and lowest premiums of all plans. If you expect to hit the individual out-of-pocket max then you can just add premium and out of pocket max, and subtract the tax benefit of an HSA contribution for HSA plans, to get your total ...
by Northern Flicker
Wed Nov 06, 2019 1:11 pm
Forum: Personal Consumer Issues
Topic: What car fits comfortably 3 adults with luggages?
Replies: 63
Views: 1854

Re: What car fits comfortably 3 adults with luggages?

Rent the vehicle from a local car dealership instead of from a rental car company. Then you can select the exact model and look at it to assess suitability before renting it.
by Northern Flicker
Wed Nov 06, 2019 1:08 pm
Forum: Personal Investments
Topic: [Why is VMMXX (Prime Money Market) ER so high?]
Replies: 27
Views: 3267

Re: [Why is VMMXX (Prime Money Market) ER so high?]

One pays a lower rate because its investments are limited to those that are exempt from state income tax. This also is not correct. The effect of retail investors on the treasury market is microscopic at best. The rates are slightly lower because there is no credit risk for treasuries or repurchase...
by Northern Flicker
Wed Nov 06, 2019 1:01 pm
Forum: Personal Investments
Topic: choosing between VTSAX and VTI
Replies: 17
Views: 1188

Re: choosing between VTSAX and VTI

If this is an RMD coming out of VTSAX in the IRA, and the IRA is at Vanguard, have Vanguard convert the VTSAX shares in the IRA to VTI and then do in-kind transfers of VTI shares out of the IRA to satisfy the RMD. For the current RMD, just take $1000 out of the taxable Target date fund to meet the $...
by Northern Flicker
Tue Nov 05, 2019 11:35 pm
Forum: Personal Investments
Topic: [Why is VMMXX (Prime Money Market) ER so high?]
Replies: 27
Views: 3267

Re: [Why is VMMXX (Prime Money Market) ER so high?]

VMMXX holds paper that has credit risk. There just is no currently conceivable state of the world where those are as safe as treasuries of similar duration, which is what VUSXX holds.
by Northern Flicker
Tue Nov 05, 2019 7:38 pm
Forum: Personal Finance (Not Investing)
Topic: How common is ACH fraud on checking accounts?
Replies: 55
Views: 10244

Re: How common is ACH fraud on checking accounts?

I’m not an attorney, but this is my understanding: In the court case cited above the bank’s customer was a business, so had to sue under the Uniform Commercial Code (UCC). Consumer protection is stronger (Federal Reserve Regulation E). However, if you initiate an ACH or wire transfer using a paper f...
by Northern Flicker
Tue Nov 05, 2019 2:03 pm
Forum: Personal Investments
Topic: [Why is VMMXX (Prime Money Market) ER so high?]
Replies: 27
Views: 3267

Re: [Why is VMMXX (Prime Money Market) ER so high?]

“I thus don’t think Prime MMF is the optimal choice of a MMF for individual Vanguard investors, but it is not a bad choice” If VUSXX is a better choice than VMMXX why does it only have $30bb in it vs $125bb for VMMXX? The gates etc that apply to VMMXX are not bad things — they prevent a run on the ...
by Northern Flicker
Tue Nov 05, 2019 12:25 am
Forum: Personal Investments
Topic: [Why is VMMXX (Prime Money Market) ER so high?]
Replies: 27
Views: 3267

Re: [Why is VMMXX (Prime Money Market) ER so high?]

If you have a Vanguard brokerage account, the Federal Money Market fund will be the settlement account and there will be no minimum. As noted above, Vanguard has the institutional class for Prime Money Market set up as Admiral shares with a $5M minimum. The retail version of this fund has a higher E...
by Northern Flicker
Mon Nov 04, 2019 9:01 pm
Forum: Personal Consumer Issues
Topic: Do Semi-Dry, Delicious, Complex But < $15 Wines Exist?
Replies: 29
Views: 2658

Re: Do Semi-Dry, Delicious, Complex But < $15 Wines Exist?

Most Willamette Valley Pinot Noirs are over $15. Here are some enjoyable wines that are under $15: Reds: —Duck Pond Cellars Pinot Noir Willamette Valley —Columbia Crest H3 Cabernet Sauvignon Whites: —Duck Pond Cellars Pinot Gris —Chateau St. Michelle Horseheaven Vineyard Sauvignon Blanc —Chateau Pav...
by Northern Flicker
Mon Nov 04, 2019 7:22 pm
Forum: Investing - Theory, News & General
Topic: Modeling Bitcoin Value with Scarcity
Replies: 13
Views: 1063

Re: Modeling Bitcoin Value with Scarcity

There may be a limit to how many bitcoins there can be in existence, but there is no limit to how many different crypto “currencies” can be in existence. Scarcity is an illusion.
by Northern Flicker
Mon Nov 04, 2019 4:56 pm
Forum: Personal Consumer Issues
Topic: Paying a contractor in cash
Replies: 48
Views: 1594

Re: Paying a contractor in cash

This is a major red flag. Don’t pay in greenbacks or check. Find another contractor. We have a contractor that we use frequently that we always pay by check. Credit cards are not an option, nor do they offer financing. My point was to say not to pay this contractor by any method, but to find anothe...
by Northern Flicker
Mon Nov 04, 2019 4:53 pm
Forum: Personal Investments
Topic: VTSMX —> VTI
Replies: 3
Views: 720

Re: VTSMX —> VTI

If you are holding this at Vanguard in a brokerage account, Vanguard will convert VTSMX shares to VTI. It is not a taxable event. It saves you having to exchange out of one and buy the other. The wash sale rules refer to harvesting a tax loss. If that is what you are trying to do, then you would use...
by Northern Flicker
Mon Nov 04, 2019 2:04 pm
Forum: Personal Consumer Issues
Topic: Paying a contractor in cash
Replies: 48
Views: 1594

Re: Paying a contractor in cash

This is a major red flag. Don’t pay in greenbacks or check. Find another contractor.
by Northern Flicker
Mon Nov 04, 2019 1:07 am
Forum: Personal Investments
Topic: Help me pull the trigger on rolling over two TIAA Retirement Accounts to Vanguard Rollover IRA
Replies: 23
Views: 1191

Re: Help me pull the trigger on rolling over two TIAA Retirement Accounts to Vanguard Rollover IRA

One point to consider is whether it is possible you will want a lifetime income annuity when you retire. You can buy a SPIA with funds outside of TIAA. If you get it using Vanguard or immediateannuities.com my understanding is that you will pay a 2% commission, but it will be built into the payout r...
by Northern Flicker
Sun Nov 03, 2019 10:27 pm
Forum: Personal Investments
Topic: Worried I am getting addicted to individual stocks.
Replies: 113
Views: 7324

Re: Worried I am getting addicted to individual stocks.

Perhaps you don't need THAT many individual stocks. Why not just stick to five or so and buy aggressively when opportunity strikes? You are limiting your gains, and increasing chances of losses by holding so many, albeit blue chips. Holding fewer stocks increases the chances of losses and increases...
by Northern Flicker
Sun Nov 03, 2019 10:23 pm
Forum: Investing - Theory, News & General
Topic: Vanguard without Jack Bogle - Allan Roth
Replies: 28
Views: 4376

Re: Vanguard without Jack Bogle - Allan Roth

CULater wrote:
Sat Nov 02, 2019 2:43 pm
Will it change without the watchful eye of our mentor?

https://www.financial-planning.com/opin ... jack-bogle
I would discount the reliability of opinions of Vanguard outsiders on how much influence Mr. Bogle still had on the organization.
by Northern Flicker
Sun Nov 03, 2019 7:01 pm
Forum: Personal Investments
Topic: HDHP/HSA vs. PPO - Second Opinion
Replies: 18
Views: 1137

Re: HSA vs. PPO - Second Opinion

HSA and PPO are not opposing features. A PPO can be an HSA-eligible plan. The choice is PPO vs EPO. EPO’s have narrower networks and no out-of-network care except for emergency care. PPO’s have a broader network, and out-of-network care, but with a separate deductible and separate out of pocket max...
by Northern Flicker
Sun Nov 03, 2019 6:51 pm
Forum: Investing - Theory, News & General
Topic: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive way?
Replies: 21
Views: 1203

Re: How do you explain individual stock risk (idiosyncratic) vs. stock market risk (systematic) in a simple, intuitive w

Idiosyncratic risk does not have to be a big blowup. It is just the risks unique to a particular company. Examples: An oil company stock tanks by 10% because a major oil spill is publicized, despite the market as a whole, and the oil sector as well doing well. Management of a tech chooses a bad stra...
by Northern Flicker
Sun Nov 03, 2019 2:07 pm
Forum: Personal Consumer Issues
Topic: Man’s life savings stolen from hijacked cellphone number
Replies: 241
Views: 28583

Re: You get hacked, lost a lot of money. What can you do?

- For websites where SMS 2FA can't be disabled (Vanguard, Chase, etc) use a Google Voice number - For your Google account and other websites where you can remove SMS 2FA, disable SMS 2FA and use authenticator+backup codes or hardware tokens like Yubikey - On your mobile phone, make sure SIM PIN is ...
by Northern Flicker
Sun Nov 03, 2019 1:26 pm
Forum: Personal Investments
Topic: HDHP/HSA vs. PPO - Second Opinion
Replies: 18
Views: 1137

Re: HSA vs. PPO - Second Opinion

HSA and PPO are not opposing features. A PPO can be an HSA-eligible plan. The choice is PPO vs EPO. EPO’s have narrower networks and no out-of-network care except for emergency care. PPO’s have a broader network, and out-of-network care, but with a separate deductible and separate out of pocket maxi...
by Northern Flicker
Sun Nov 03, 2019 3:05 am
Forum: Personal Consumer Issues
Topic: Man’s life savings stolen from hijacked cellphone number
Replies: 241
Views: 28583

Re: You get hacked, lost a lot of money. What can you do?

I’m not an attorney, but this is my understanding. Deposit accounts at banks and credit unions are protected against wire fraud conducted by electronic access by Federal Reserve Regulation E, which limits consumer liability to $50/incident. With non-banking institutions, I think the protection is ba...
by Northern Flicker
Sun Nov 03, 2019 1:01 am
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4242

Re: Hidden liquidity risk with I-bonds

It’s not novel in the professional investment community. This represents a diversification opportunity with TIPS. If you have assets intended to provide portfolio liquidity, such as if you are retired or using it for an emergency fund if not retired, instead of holding cash, hold such funds as a 50-...
by Northern Flicker
Sun Nov 03, 2019 12:38 am
Forum: Investing - Theory, News & General
Topic: Hidden liquidity risk with I-bonds
Replies: 43
Views: 4242

Re: Hidden liquidity risk with I-bonds

For example, I have a difficult time understanding how a U.S. savings bond, which is a non-marketable security, can be liquidated below market value. They have no market value. They have a redemption value. Liquidity risk is the risk that the value received by liquidating an investment is significa...
by Northern Flicker
Sun Nov 03, 2019 12:24 am
Forum: Personal Investments
Topic: Worried I am getting addicted to individual stocks.
Replies: 113
Views: 7324

Re: Worried I am getting addicted to individual stocks.

Perhaps you don't need THAT many individual stocks. Why not just stick to five or so and buy aggressively when opportunity strikes? You are limiting your gains, and increasing chances of losses by holding so many, albeit blue chips. Holding fewer stocks increases the chances of losses and increases...
by Northern Flicker
Sun Nov 03, 2019 12:21 am
Forum: Personal Finance (Not Investing)
Topic: how does Personal Umbrella Insurance work?
Replies: 28
Views: 2649

Re: how does Personal Umbrella Insurance work?

Rental property can be covered on a personal umbrella policy up to a limit on number of units. Commercial umbrella policies are available when number of units exceeds the limit for a personal umbrella.
by Northern Flicker
Sat Nov 02, 2019 6:40 pm
Forum: Personal Finance (Not Investing)
Topic: EverSafe and cognitive decline study
Replies: 13
Views: 1622

Re: EverSafe and cognitive decline study

Be sure to get a power of attorney while he's able. My father did the same with me. But sadly, many older folks think they can still handle it themselves when they have lost the capacity. Right. My father designated me as his DPOA when he asked me to begin doing his taxes. He had previously designa...
by Northern Flicker
Sat Nov 02, 2019 5:42 pm
Forum: Investing - Theory, News & General
Topic: Justifying Non World Market Cap
Replies: 38
Views: 2326

Re: Justifying Non World Market Cap

Vanguard will go from 40% international to world market cap when the older generation moves on. There is still quite a bit of the old ideology. You see it on this board in the international debate threads. Vanguard knows this. There is a lot of money still around within the older crowd so Vanguard ...
by Northern Flicker
Sat Nov 02, 2019 1:49 pm
Forum: Personal Finance (Not Investing)
Topic: how does Personal Umbrella Insurance work?
Replies: 28
Views: 2649

Re: how does Personal Umbrella Insurance work?

Your personal umbrella policy might cover some things not covered by home or auto but surely does not cover all possible personal liabilities. Some, if not all, actually work like an ultra-high deductible policy where the home and auto serve to lower the deductible to a low level. This means that th...
by Northern Flicker
Fri Nov 01, 2019 10:58 pm
Forum: Personal Investments
Topic: Still don’t understand Bond Index Funds..
Replies: 10
Views: 2137

Re: Still don’t understand Bond Index Funds..

I think I have an intuitive understanding of stock index funds, it makes sense to me how the individual companies within the stock index portfolio affect the overall price of the stock index fund (i.e. VTSAX or VTIAX). However, when it comes to bond funds I don’t really have a clue. For example, I ...
by Northern Flicker
Fri Nov 01, 2019 9:00 pm
Forum: Personal Investments
Topic: Reduce oil/coal investments seeing as they are doomed
Replies: 16
Views: 1453

Re: Reduce oil/coal investments seeing as they are doomed

Just curious if anyone has some BH advice for someone who basically is a three funder. But at the same time I can see a political and economic future that is less reliant on coal and oil. Natural gas is a possible transition fuel in the near to long term. I know we don’t market time or try to see t...
by Northern Flicker
Fri Nov 01, 2019 4:09 pm
Forum: Personal Investments
Topic: Vanguard Information Technology - VGT or VITAX
Replies: 61
Views: 15134

Re: Vanguard Information Technology - VGT or VITAX

The largest companies by market capitalization in the United States are Apple, Alphabet, and Microsoft. You can't escape them if you already have the total stock index fund. No need to buy VGT or VITAX. Some people tilt to small cap or small cap value, so why not sector tilt in things like Technolo...
by Northern Flicker
Fri Nov 01, 2019 2:56 pm
Forum: Investing - Theory, News & General
Topic: Does minimum volatility give better returns?
Replies: 31
Views: 3555

Re: Does minimum volatility give better returns?

Does minimum volatility give better returns?
So far, yes, but no one knows the future.
Not in the 1970’s. Low beta stocks significantly underperformed the market then.
by Northern Flicker
Fri Nov 01, 2019 2:54 pm
Forum: Investing - Theory, News & General
Topic: Does minimum volatility give better returns?
Replies: 31
Views: 3555

Re: Does minimum volatility give better returns?

Don't you find paradoxical that you need 2-3 factors to explain one anomaly, yet the latter is quickly dismissed. No, quite the opposite. I would be surprised if all alpha under CAPM were explainable by one additional factor. Why is it paradoxical that you may need 2-3 (or more) factors to explain ...
by Northern Flicker
Fri Nov 01, 2019 1:15 pm
Forum: Investing - Theory, News & General
Topic: CMBS: a bond class often ignored by individual investors
Replies: 10
Views: 1011

Re: CMBS: a bond class often ignored by individual investors

there are "mortgage REITs" which I believe invest in CMBS? They have markedly underperformed the REIT asset class as a whole, Mortgage REITs may focus on commercial or residential mortgages or both. I would expect them to underperform REITs as a whole as real property has a higher expected return t...
by Northern Flicker
Fri Nov 01, 2019 12:48 pm
Forum: Investing - Theory, News & General
Topic: Does minimum volatility give better returns?
Replies: 31
Views: 3555

Re: Does minimum volatility give better returns?

Some things to unpack here. First, the so-called low beta anomaly is a question of whether high beta stocks have lower alpha than low beta stocks under CAPM. It would not be an anomaly if the lower alpha is explained by less exposure to other risk factors. Second, minimum volatility portfolios (at l...
by Northern Flicker
Fri Nov 01, 2019 1:42 am
Forum: Personal Investments
Topic: Replicating the 3 Vanguard fund portfolio with 401K options
Replies: 16
Views: 915

Re: Replicating the 3 Vanguard fund portfolio with 401K options

Those may not be your most tax-efficient fund choices and location mappings.
by Northern Flicker
Thu Oct 31, 2019 11:36 pm
Forum: Investing - Theory, News & General
Topic: CMBS: a bond class often ignored by individual investors
Replies: 10
Views: 1011

Re: CMBS: a bond class often ignored by individual investors

Can't see low interest rate environment why this would work Diversification of credit risk is independent of overall interest rates. Credit diversification is in fact a way to increase bond yield a little without increasing risk commensurately. Suppose you hold intermediate treasuries and intermedi...
by Northern Flicker
Thu Oct 31, 2019 10:51 pm
Forum: Personal Consumer Issues
Topic: Upright Piano, cross country move
Replies: 8
Views: 672

Re: Upright Piano, cross country move

A standard flat upright piano dolly would be the preferred tool for rolling on flat surfaces and ramps. The main issue is if moving from a damper climate to a drier climate. Midwest to New England should be fine. By the time you factor in the moving cost and a tuning or two after arrival, the piano ...
by Northern Flicker
Thu Oct 31, 2019 4:28 pm
Forum: Investing - Theory, News & General
Topic: CMBS: a bond class often ignored by individual investors
Replies: 10
Views: 1011

Re: CMBS: a bond class often ignored by individual investors

To me it seems important to diversify equities, but there's probably much less benefit in diversifying our fixed income, as long as we use high quality. Even placing the entire fixed income portfolio into a single 5 year Treasury is probably fine. Agreed. But if you do hold diversified investment g...
by Northern Flicker
Thu Oct 31, 2019 4:20 pm
Forum: Personal Investments
Topic: Worried I am getting addicted to individual stocks.
Replies: 113
Views: 7324

Re: Worried I am getting addicted to individual stocks.

The problem is that you are taking on uncompensated risk. Do some reading about non-systematic or idiosyncratic or security-specific risk. Uncompensated risk lowers your risk-adjusted return. ETFs and Vanguard index mutual funds are so tax efficient that there is no need to hold individual stocks in...
by Northern Flicker
Thu Oct 31, 2019 3:28 pm
Forum: Personal Finance (Not Investing)
Topic: Amica Vs Travelers Home Insurance
Replies: 18
Views: 1076

Re: Amica Vs Travelers Home Insurance

Geico is an auto insurance company and does not issue homeowner's insurance policies. Geico has an insurance agency, which it uses to sell homeowner's insurance policies offered by other companies, in which case Geico is in the same position as an independent insurance agent (Geico rebates a small ...
by Northern Flicker
Thu Oct 31, 2019 3:16 pm
Forum: Investing - Theory, News & General
Topic: CMBS: a bond class often ignored by individual investors
Replies: 10
Views: 1011

Re: CMBS: a bond class often ignored by individual investors

Most of the mortgages in the total bond index are residential MBS. Fannie/Freddie MBS are majority, followed by GNMAs. CMBS are 2.1% of the total bond market index. CMBS usually have prepayment penalties so prepayments options are different from corporate credit or residential MBS. Some CMBS require...