Search found 1781 matches

by patrick
Thu Jul 01, 2010 10:50 pm
Forum: Investing - Theory, News & General
Topic: Retirement investing: the new normal?
Replies: 85
Views: 14201

- you never need any stocks to beat inflation; TIPS beat inflation; heck even short-term T-bills beat inflation, and they both give you a small real return above that; inflation "risk" pales in comparison to the much more serious risks embedded in stocks. T-bills don't always beat inflation. Over t...
by patrick
Tue Jun 29, 2010 12:39 am
Forum: Personal Investments
Topic: 90-24 transition to Vanguard, if possible
Replies: 6
Views: 1515

There seem to be new rules on this, according to the following site:

http://www.403bwise.com/wisemoves/newtransferrules.html
by patrick
Sat Jun 26, 2010 4:17 pm
Forum: Investing - Theory, News & General
Topic: Has gold outperformed everything (chart) ?
Replies: 62
Views: 8574

Re: Gold's return ?

If it were Germany, Argentina, Japan, Russia, Zimbabwe etc it would look like this: Gold $0.84 Bonds $0.00 Stocks $0.00 Siegel just cherry picked one of the markets that, by pure chance, did well. Why not the ones that did atrociously? No different to coin-flipping. How many of the countries you li...
by patrick
Fri Jun 25, 2010 8:15 pm
Forum: Personal Investments
Topic: Schwab ETFs
Replies: 15
Views: 3533

The Schwab ETFs tend to have larger bid ask spreads than the Vanguard equivalents. In the specific case of the international small cap ETF the Schwab fund is not as broad as Vanguard's since the Schwab ETF excludes emerging markets.
by patrick
Thu Jun 24, 2010 6:53 pm
Forum: Investing - Theory, News & General
Topic: Where is the big advantage in ETFs?
Replies: 58
Views: 19601

Average bid ask spreads of Vanguard ETFs can be found here: https://institutional.vanguard.com/VGApp/iip/site/institutional/investments/bidaskspread Note that total stock market averages 0.02% and total bond market 0.01%. Even the somewhat more exotic emerging markets ETF is only 0.03%. It does not ...
by patrick
Sun Jun 20, 2010 6:33 pm
Forum: Personal Investments
Topic: Emerging Markets ETFs-What Happens When Country Leaves Index
Replies: 10
Views: 1944

Israel is already out of EM and in EAFE, effective May 2010. According to the Vanguard site (see https://personal.vanguard.com/us/funds/snapshot?FundId=0964&FundIntExt=INT ) they have already completed most of their adjustments. For instance the emerging market ETF VWO used to have 2.9% in Israel an...
by patrick
Sat Jun 19, 2010 8:29 pm
Forum: Personal Investments
Topic: Help with 401K
Replies: 12
Views: 1562

If your IRA is at Fidelity note that you can also buy some iShares ETFs there without paying a commission. These are not the lowest cost ETFs available, but in the case of the bond ETFs, the costs aren't too bad.
by patrick
Fri Jun 18, 2010 9:27 pm
Forum: Personal Investments
Topic: Asset Allocation with Vanguard ETF
Replies: 6
Views: 1155

I am aware of Vanguard ETF offerings. I was just looking for some help from experts to help me plug the hole by using alternative Vanguard ETF to get as close to the desired allocation I am looking for. Unfortunately I already have an IRA at Vanguard and I want to switch to ETF from funds since Van...
by patrick
Tue Jun 01, 2010 10:42 pm
Forum: Investing - Theory, News & General
Topic: considering WIP
Replies: 9
Views: 1609

WIP is probably the best you can get for inflation indexed foreign bonds.

For nominal foreign government bonds ishares has ISHG (1-3 years) and IGOV (all maturities) for "only" 0.35%.
by patrick
Tue Jun 01, 2010 10:33 pm
Forum: Investing - Theory, News & General
Topic: [del]
Replies: 14
Views: 3043

Lets say you want to purchase a "basket of US TIPs"? Investigate Vanguards mutual fund investment policy (VIPSX) https://personal.vanguard.com/us/FundsStrategyAndPolicy?FundId=0119&FundIntExt=INT "The fund may invest up to 20% of its total assets in bond futures contracts, options, credit swaps, in...
by patrick
Tue May 25, 2010 1:38 am
Forum: Personal Investments
Topic: Expense ratio of FSIIX Fidelity Spartan International Index?
Replies: 2
Views: 935

Expense ratio of FSIIX Fidelity Spartan International Index?

I've seen the expense ratio of FSIIX (Fidelity Spartan International Index) variously listed as 0.10% and 0.20% -- could someone tell me which is correct?
by patrick
Sat May 22, 2010 3:18 pm
Forum: Personal Finance (Not Investing)
Topic: Is it worth investing in Equities?
Replies: 87
Views: 11975

Can you tell us the source of information where it is documented that equities held up well during that period? Here is one very interesting source showing stock and fixed income returns across many countries from 1900-2009: http://emagazine.credit-suisse.com/app/_customtags/download_tracker.cfm?lo...
by patrick
Sat May 22, 2010 12:11 am
Forum: Personal Finance (Not Investing)
Topic: Is it worth investing in Equities?
Replies: 87
Views: 11975

The notion that 1970's style inflation was good for equities - bad for bank CD's, I believe is a myth, probably marketed by the financial services industry. And I believed it also - right up to about 6 months ago when I looked up the facts. The negative is there is a loss to taxation ... but we hea...
by patrick
Sat May 08, 2010 7:47 pm
Forum: Investing - Theory, News & General
Topic: Rebalancing = market timing strategy based on tech analysis
Replies: 50
Views: 6902

You don't sell just for the fun of selling. You sell because you are implementing a strategy that you believe will lead to be better risk/return setup of your portfolio. There is a tendency to think of it as "I am just going back to what I had in terms of AA", and while this is true, it is just ano...
by patrick
Sat May 08, 2010 2:53 am
Forum: Investing - Theory, News & General
Topic: Rebalancing = market timing strategy based on tech analysis
Replies: 50
Views: 6902

I'd say rebalancing is an easy variation on market timing with technical analysis. You DO have to analize the moves within your portfolio to see that it's out of balance now and needs to be rebalanced, just like a technical analyst analyzes that some asset went up X% and should now be sold - which ...
by patrick
Sat May 08, 2010 2:14 am
Forum: Investing - Theory, News & General
Topic: Rebalancing = market timing strategy based on tech analysis
Replies: 50
Views: 6902

Say, I am technician who sees a head-and-shoulders pattern, so I sell. Yes, I sell because I think there is a greater chance of stocks going down then up based on a pattern I see. When you rebalance, you do so because you see a pattern where your stocks went down (for example) relative to your bond...
by patrick
Fri Apr 02, 2010 11:52 am
Forum: Personal Investments
Topic: Zecco trouble: margin interest charged when withdrawing cash
Replies: 9
Views: 1966

Re: Pursue the 20 Cents

There was a similar case recently with a broker in 2008. It is called penny shaving or salami slicing by crooks. Wiki discusses it here: http://en.wikipedia.org/wiki/Salami_slicing Have you uncovered a similar situation with your broker? I think this is a little different. The balance did not just ...
by patrick
Fri Apr 02, 2010 11:47 am
Forum: Personal Investments
Topic: Zecco trouble: margin interest charged when withdrawing cash
Replies: 9
Views: 1966

Re: 20 cents ?

Taylor Larimore wrote:Hi Patrick:

"20 cents?" Is this an April Fool's joke?
No, this really happened.
by patrick
Fri Apr 02, 2010 3:11 am
Forum: Personal Investments
Topic: Zecco trouble: margin interest charged when withdrawing cash
Replies: 9
Views: 1966

Zecco trouble: margin interest charged when withdrawing cash

I recently had Zecco subtract margin interest out of my account when I was withdrawing cash. My Zecco account is a cash account. This January I tried to withdraw $957.94 in cash from the account. This was money that had come in from dividend/capital gains distributions, all at least 6 days earlier. ...
by patrick
Sun Mar 21, 2010 5:06 am
Forum: Personal Finance (Not Investing)
Topic: Vanguard Customer Service -- Epic Failure Today
Replies: 17
Views: 4048

555, In this example, how can Matt pay taxes on $5,000 vs pay taxes on $6,000? Matt, Since a recharacterization means to "undo" a previous conversion , what previous conversion is it that you were trying to undo? One is a taxable event and one undoes the taxable event. Which of your transactions is...
by patrick
Sat Mar 20, 2010 12:08 am
Forum: Investing - Theory, News & General
Topic: Is your return since Oct 07 high now positive?
Replies: 132
Views: 18200

My XIRR comes to -1.22%. So close, yet so far!

I had over 80% in equities the whole time, but also large new contributions relative to the existing account size. My time-weighted return is -8.22% annualized so I'm definitely starting to like the XIRR formula more :D
by patrick
Fri Mar 19, 2010 4:34 am
Forum: Investing - Theory, News & General
Topic: Where did the money go? Who benefited?
Replies: 31
Views: 5190

Here is an example (perhaps a bit oversimplified) of how easily so much money can "disappear": There are about 3.72 billion shares of Exxon-Mobil stock (XOM) outstanding. On October 18, 2007, the closing price was $95.05 a share so all the shares combined were worth approximately $448.6 billion. On ...
by patrick
Sat Mar 06, 2010 3:11 am
Forum: Investing - Theory, News & General
Topic: Schwab Index ETFs vs Vanguard ETFs
Replies: 9
Views: 3538

Schwab isn't the lowest cost for everything -- Vanguard's emerging market ETF (VWO) only charges 27 basis points compared to 35 basis points for the Schwab equivalent (SCHE). Furthermore some of the funds and ETFs from Vanguard (and others) don't even have an equivalent from Schwab. [quote]You may l...
by patrick
Wed Mar 03, 2010 9:40 pm
Forum: Investing - Theory, News & General
Topic: #2 holding in Small Value Index: AIG
Replies: 12
Views: 1902

AIG's market cap has increased enough to get of the small cap index. It is now in the large-cap value index, where it accounts for a mere 0.04% of assets as even though it's not small anymore it's still no match for XOM. You don't have to look through every page of the portfolio listing to find it -...
by patrick
Tue Feb 09, 2010 11:46 pm
Forum: Personal Investments
Topic: Best Bond Funds of the Decade
Replies: 5
Views: 2149

Though they include bond funds with some foreign exposure, they skipped foreign-focused bond funds. For instance, Fidelity's own emerging market bond fund FNMIX returned about 12% annually over the past decade.
by patrick
Sun Jan 31, 2010 6:14 pm
Forum: Investing - Theory, News & General
Topic: When does BRIC become developed and not EM
Replies: 20
Views: 3965

Straight from the horse's mouth (so to speak) here is a page discussing classification from MSCI: [url]http://www.mscibarra.com/products/indices/international_equity_indices/market_classification.html[/url] The minimum GNI per capita is now set at 25% above the world bank high income threshold, whic...
by patrick
Wed Nov 25, 2009 9:18 am
Forum: Investing - Theory, News & General
Topic: Are stocks really less volatile in the long run? No
Replies: 33
Views: 3709

People are missing the Pastor/Stambaugh point that the US was especially blessed during this period. So looking at returns for the US (and even the West) is biased upwards unless you assume that people should have anticipated successful industrialization, democratic victory in WW1, WW2 and the Cold...
by patrick
Tue Nov 10, 2009 9:38 am
Forum: Personal Investments
Topic: requesting comments on my portfolio
Replies: 6
Views: 1906

livesoft wrote:If you are gonna bolt to Schwab, why not bolt to WellsFargo instead? If you want to save so little on expense ratios, it seems to me that you would want your ETF commissions to go to zero.
I'm actually using Zecco for the ETFs now, not trading them with Fidelity.
by patrick
Tue Nov 10, 2009 9:22 am
Forum: Personal Investments
Topic: requesting comments on my portfolio
Replies: 6
Views: 1906

Thanks to everyone who replied. Q2-With interest rates low as they are now, short term seems appropriate, if you want to step out on the risk scale then intermediate. I would steer clear of long term. I don't want more risk, just more returns! :D That said, in this case I suppose I'll keep it simple...
by patrick
Mon Sep 14, 2009 12:52 pm
Forum: Personal Investments
Topic: requesting comments on my portfolio
Replies: 6
Views: 1906

requesting comments on my portfolio

I'm 27 years old and have been investing a few years now. I believe my current job is reasonably stable. My main investment goal is to save for retirement, though I hope to retire well before the standard retirement age, and would also like at least some of the funds available sooner "just in case" ...
by patrick
Sat Sep 05, 2009 4:51 am
Forum: Investing - Theory, News & General
Topic: International REIT correlation with other assets
Replies: 5
Views: 2171

International REIT correlation with other assets

I have been playing around with a spreadsheet that calculates correlations between funds by grabbing quotes from yahoo finance. I've heard international REITs should have low correlations to other assets, but when looking at international REIT investments in the spreadsheet it seems to show they hav...