Search found 995 matches

by eurowizard
Sun Oct 11, 2009 11:15 pm
Forum: Investing - Theory, News & General
Topic: Total Bond Market Index as interest rates rise?
Replies: 32
Views: 7160

Why not use 20% equities to 80% TBM to smooth out your returns? When the bond fund drops the rise in equities should compensate.
by eurowizard
Thu Oct 08, 2009 9:11 pm
Forum: Investing - Theory, News & General
Topic: CD strategy article
Replies: 174
Views: 53177

Isnt this already priced into CD yields? Banks know they are at risk of being callable for 1 year penalty and thus consequently offer a reduced yield on the CDs they issue.
by eurowizard
Wed Oct 07, 2009 1:10 am
Forum: Investing - Theory, News & General
Topic: Investing in Diamonds?- Ouch! 2008 Crash
Replies: 59
Views: 7685

Humans can make industrial diamonds. We may be able to make jewelry diamonds eventually too. Alchemists have tried to make gold for hundreds of years with no luck.
by eurowizard
Tue Oct 06, 2009 9:51 pm
Forum: Investing - Theory, News & General
Topic: Aussies raise int rate 0.25% to 3.25%
Replies: 7
Views: 1595

"Aussies raise int rate 0.25% to 3.25%"

The title made me think that they raised rates by 3%.
by eurowizard
Tue Oct 06, 2009 8:46 pm
Forum: Investing - Theory, News & General
Topic: Investing in Diamonds?- Ouch! 2008 Crash
Replies: 59
Views: 7685

Diamond price is artificially raised through monopolistic controls.

Gold has no such monopoly and is much more of a free market economy.

Diamonds have never been used as a form of currency, gold has always been used as a form of currency.

I see big differences between gold and diamonds.
by eurowizard
Tue Oct 06, 2009 4:04 pm
Forum: Investing - Theory, News & General
Topic: Possiblilty to Avoid Taxable Investing Forever
Replies: 54
Views: 8917

if we had taken full advantage of the allowed contributions from day one in 1998, we would have invested $39,500 each ($79,000 total). Nothing to sneeze at. However if it had been invested in the TSM, it would be about the same amount today. How would you have been able to get all $79k in 10 years ...
by eurowizard
Tue Oct 06, 2009 4:00 pm
Forum: Investing - Theory, News & General
Topic: Foreign Bonds
Replies: 37
Views: 6648

Jack Bogle says - skip foreign bonds. He earns his money in dollars, he spends his money in dollars, and he invests his money in dollars. The contrarian position would be that even if you spend your money in dollars, the things you buy are weighted against international currency values thus you may ...
by eurowizard
Tue Oct 06, 2009 8:54 am
Forum: Investing - Theory, News & General
Topic: *****
Replies: 12
Views: 3224

If you only invest in "good" companies then of course your returns will be higher :)
by eurowizard
Mon Oct 05, 2009 8:48 am
Forum: Investing - Theory, News & General
Topic: WSJ: Put your emergency money in blue-chip stocks
Replies: 109
Views: 11036

neverknow wrote:I have to think of it as a band aid company and not a pharmaceutical company or else it makes me mad.
JnJ is far more than either a bandaid or pharma company. They make everything from HIV assays to mouth wash.
by eurowizard
Mon Oct 05, 2009 8:32 am
Forum: Personal Investments
Topic: Poor Vanguard Customer Service
Replies: 66
Views: 8719

... the situation should have immediately been escalated to a manager who has authority to grant a reprieve to RedRock if warranted by that manager's training and experience. Why? If corp policy has been carefully and thoroughly spelled out in advance...the why in the world would anyone up to and i...
by eurowizard
Mon Oct 05, 2009 12:15 am
Forum: Personal Investments
Topic: How protected is an IRA?
Replies: 24
Views: 9737

Why dont you just pay the creditors the money you owe them out of your IRA/401k?
by eurowizard
Mon Oct 05, 2009 12:01 am
Forum: Personal Investments
Topic: Poor Vanguard Customer Service
Replies: 66
Views: 8719

Good evening, I have to agree with RedRock on this one. VG has setup the rules blocking certain types of short term trading. I see NO PROBLEM if I want to buy $10k of A then tomorrow trade it for $10k of B and then the next day trade it for $5k of C and $5k of D. If VG has a problem with that, then ...
by eurowizard
Sun Oct 04, 2009 11:50 pm
Forum: Investing - Theory, News & General
Topic: Possiblilty to Avoid Taxable Investing Forever
Replies: 54
Views: 8917

OK. So this is one of those cases where I applaud your savings rate but think that, in my opinion, this is a little too cute to be worthwhile. My current position is that I cannot max out my 401k and Roth IRA. Thus to save my emergency fund in taxable would mean to abdicate my annual allowable cont...
by eurowizard
Sun Oct 04, 2009 5:04 pm
Forum: Investing - Theory, News & General
Topic: Possiblilty to Avoid Taxable Investing Forever
Replies: 54
Views: 8917

To the OP: How do you plan to avoid taxes on your emergency fund? Sorry I missed this question. The emergency fund is in the Roth - of which it can be taken out tax and penalty free. Also one of the main reasons for avoiding taxable investing is that when I retire, I have zero income and will have ...
by eurowizard
Thu Oct 01, 2009 10:33 pm
Forum: Investing - Theory, News & General
Topic: April 08 IBonds Yielding 0% as of Today?
Replies: 11
Views: 2221

Dick,

Great point!

Thanks
by eurowizard
Thu Oct 01, 2009 6:32 pm
Forum: Investing - Theory, News & General
Topic: April 08 IBonds Yielding 0% as of Today?
Replies: 11
Views: 2221

April 08 IBonds Yielding 0% as of Today?

I read that as of Oct 1st th IBonds issued in April 2008 that were talked about a lot on here are now going to yield 0% for the next 6 months.

I dont have the security card here to log in and check. Can anyone confirm or deny whether the 0% rate is now in effect?

Thanks!
by eurowizard
Mon Sep 28, 2009 7:08 pm
Forum: Investing - Theory, News & General
Topic: Stodgy ol' Vanguard leading technological innovation?
Replies: 8
Views: 2282

"Kelton noted that just 1 percent of the 300,000 daily Vanguard.com visitors are using mobile phones." If you build it, they will come. The reason why 1% of the visitors are from mobile phones is because their website sucks for use on a mobile phone. Release the iPhone app and within a week that nu...
by eurowizard
Mon Sep 28, 2009 7:05 pm
Forum: Investing - Theory, News & General
Topic: Another stock market myth - "cash on the sidelines"
Replies: 32
Views: 5384

I dont think the liquidity trap scenario is plausible in todays world of e-commerce. It's not like a corporation is just going to withdraw $500 Million in cash and stuff it under a mattress. Even at rates of negative 1% I imagine most large institutions would find it cheaper to pay a bank 1% to stor...
by eurowizard
Mon Sep 28, 2009 8:50 am
Forum: Investing - Theory, News & General
Topic: Utilities Sector
Replies: 14
Views: 2563

Would it be reasonable to say that one could construct a modified version of the permanent portfolio (See our 50 page thread!) that included both utilities and long term treasury bonds in the "Deflation-protection" section. Then perhaps find a sector that does great during inflation and combine that...
by eurowizard
Sun Sep 27, 2009 4:16 pm
Forum: Investing - Theory, News & General
Topic: Utilities Sector
Replies: 14
Views: 2563

Utilities Sector

The utilities sector interests me. They seem to be companies that have a government-regulated monopoly with fixed profit margins. If the utility loses money, then the government allows them to raise rates. The government also keeps competitors out of the market. If a utility were to go BK, then the ...
by eurowizard
Sun Sep 27, 2009 1:25 pm
Forum: Investing - Theory, News & General
Topic: Another stock market myth - "cash on the sidelines"
Replies: 32
Views: 5384

Re: Another stock market myth - "cash on the sidelines&

And when you go to put your “cash on the sidelines” to work, what really happens is that your money market securities (T-bills, commercial paper, etc) now have to be sold to someone else. And at that moment, the cash on the sidelines that you had suddenly becomes somebody else's cash on the sidelin...
by eurowizard
Thu Sep 24, 2009 8:00 pm
Forum: Personal Finance (Not Investing)
Topic: Get $150 to open a checking account
Replies: 21
Views: 4542

This goes on at fatwallet forums all the time. Just open the account, and typically you can use a PayPal transfer to count as direct deposit. Or ACH money from one bank into your checking account. Or have Vanguard spit the dividends from a taxable MMF/Bond fund into your checking. All count as direc...
by eurowizard
Sun Sep 20, 2009 5:11 pm
Forum: Investing - Theory, News & General
Topic: Why does small cap value outperform?
Replies: 48
Views: 10224

"risk" is not necessarily equated to volatility, like it so often is.) That's interesting how you take a mathematical concept such as "risk" which is based on the mathematical variance and choose to redefine it contrary to the way that experts have chosen to use it. In the business world, risk = va...
by eurowizard
Sun Sep 20, 2009 5:06 pm
Forum: Investing - Theory, News & General
Topic: Cash for Clunkers bill charged to social security and TIPS
Replies: 10
Views: 2315

I wish everyone would stop the antigovernment bashing. They are here to help and would never falsify CPI numbers to avoid SS and TIPS payouts.
by eurowizard
Sun Sep 20, 2009 5:04 pm
Forum: Investing - Theory, News & General
Topic: Using index funds to support oneself through med school
Replies: 20
Views: 2658

The initial premise is false. Dividends need to be re-invested or you are invading the principal. If the SP500 index fund is giving 2% dividends per year, it means the principal is dropping 2% to pay the dividend according to the accounting balance sheets. There is no way to avoid dipping into the p...
by eurowizard
Sun Sep 20, 2009 12:21 pm
Forum: Investing - Theory, News & General
Topic: Buybacks vs dividends
Replies: 31
Views: 3822

If you reinvest dividends in the same company or fund, then effectively you did the same thing as a "buyback" would have except now you have paid taxes twice on the money so you end up net-negative as compared to a stock buyback. Dont confuse causation with correlation. Just because high dividend pa...
by eurowizard
Sat Sep 19, 2009 4:10 pm
Forum: Investing - Theory, News & General
Topic: News re "flash"
Replies: 10
Views: 2049

Chaz, Love the stories you post, but it would be helpful if you post a summary or some thought comments in the first post with the link to decide if I want to click. Sometimes I already read the article.
Thanks!
by eurowizard
Sat Sep 19, 2009 1:13 am
Forum: Personal Investments
Topic: Can I Partially Redeem an IBond?
Replies: 2
Views: 705

Thanks! I am assuming $100 increments are OK or is there a different requrement?

Also if I redeem $1k will I forgo the interest of last 3 months on the $1k only?
by eurowizard
Sat Sep 19, 2009 12:19 am
Forum: Personal Investments
Topic: Can I Partially Redeem an IBond?
Replies: 2
Views: 705

Can I Partially Redeem an IBond?

I have a $5k IBond that I bought in April 2008 with the "deal of the year" and is currently yielding a little over 6%. It should switch to 0% in October and then I can theoretically redeem on Jan 1st 2010 by forgoing 3 months of 0% interest. Is it possible to partially redeem $1k at a time and keep ...
by eurowizard
Fri Sep 18, 2009 10:29 am
Forum: Investing - Theory, News & General
Topic: Vanguard Removed Outside Linked Accounts?
Replies: 11
Views: 4342

I googled this last night and found that VG is ONLY allowing this service to the $100k+ investors.
by eurowizard
Fri Sep 18, 2009 12:52 am
Forum: Personal Finance (Not Investing)
Topic: Vending Machine Business
Replies: 25
Views: 5421

I believe in EMH with respect to businesses. If it was really profitably, why are you the first person to think to do it? Unless you have something that is non-imitable such as being related to dean of college who will never let anyone else put vending machines until you came along, I dont see how i...
by eurowizard
Thu Sep 17, 2009 8:10 pm
Forum: Investing - Theory, News & General
Topic: Vanguard FTSE All-World ex-US Small-Cap Index Fund (VFSVX)
Replies: 27
Views: 5710

Thanks - this is helpful. Even though I have been trying to tilt towards value per the IFA website, any intl small cap is better than nothing. 1. Any more thoughts on the 0.75% purchase fee? Is this a ripoff or not a big deal since it goes to the fund? 2. Any more thoughts on taxable vs. tax-shelte...
by eurowizard
Thu Sep 17, 2009 8:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Removed Outside Linked Accounts?
Replies: 11
Views: 4342

Vanguard Removed Outside Linked Accounts?

I used to have VG linked to online accounts at other banks and it would refresh automatically so I could see my 401k holdings and checking account holdings on my VG page. There was frequently errors that bothered me, so I deleted all of them. Now I decided I want to add just my 401k holdings back so...
by eurowizard
Thu Sep 17, 2009 7:34 pm
Forum: Investing - Theory, News & General
Topic: Cramer calls top in 10, 30 year Treasuries
Replies: 26
Views: 4239

Gekko wrote:this morning i just moved $150K from VG TE MM at .23% yield to ING Direct Savings at 1.4% yield.
You should have moved this over one year ago to Alliant CU - currently yielding 2% .
by eurowizard
Tue Sep 15, 2009 10:47 am
Forum: Investing - Theory, News & General
Topic: Windfall and Tax-Deferred Space
Replies: 7
Views: 1505

This somewhat happened to me and I elected to max out my 401k and IRA and then use the windfall money for my day to day living expenses for a few years to effectively funnel the windfall money into tax deferred space.
by eurowizard
Mon Sep 14, 2009 10:54 am
Forum: Personal Finance (Not Investing)
Topic: How do you set aside money for your Roth?
Replies: 51
Views: 6001

Re: Why

What is the government's thinking on not allowing pension money to qualify for Roth purchases. It seems the gov't get the taxes on the pension payment to us - so why can't we buy Roths then. The law seems strange. Earned income only - blah - blah. None of the rest of the tax laws make any sense so ...
by eurowizard
Mon Sep 14, 2009 10:49 am
Forum: Personal Finance (Not Investing)
Topic: How do you set aside money for your Roth?
Replies: 51
Views: 6001

I have a question for the people putting money in January 1. How do you know you are going to have enough income to qualify for funding the IRA? To contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year. You, and/or your spouse if you file a joint return, must have...
by eurowizard
Sun Sep 13, 2009 4:18 pm
Forum: Investing - Theory, News & General
Topic: Wave of the Future: Invest in Debit cards!
Replies: 17
Views: 3346

I'll stick with my CC. If you exceed your credit limit on the CC, the bank will be all too happy to hit you with fees here as well. Jeff Its much much much harder to exceed the credit limit on the CC than the debit card. Especially for a responsible person with good credit, high limits, and is smar...
by eurowizard
Sat Sep 12, 2009 11:29 am
Forum: Investing - Theory, News & General
Topic: Has VG Changed $100k Admiral Share requirement historically?
Replies: 2
Views: 1301

Has VG Changed $100k Admiral Share requirement historically?

Has VG ever increased the admiral share requirement minimum? I am curious to estimate whether they will increase it in the future based on inflation to a higher min requirement and looking for any precedents.
by eurowizard
Fri Sep 11, 2009 8:46 am
Forum: Personal Finance (Not Investing)
Topic: How much income can I take from my 750K portfolio each year?
Replies: 54
Views: 12549

At the risk of sounding simplistic without rules and numbers, why not just withdraw what you need? If you need more after the $90k pension/annuity then take it from the 401k. If you have excess, then save left over pension money.
by eurowizard
Fri Sep 11, 2009 8:38 am
Forum: Investing - Theory, News & General
Topic: Can You Deduct Investing in a Business Venture?
Replies: 8
Views: 1121

Re: Can You Deduct Investing in a Business Venture?

Alisha wrote:If your business invests in another business (provides seed money for a startup), is it possible to deduct that money invested for tax purposes?
When you sell all your holdings in the new business, you should be able to write off the cost basis of your purchase against any earnings from the sale.
by eurowizard
Thu Sep 10, 2009 10:43 pm
Forum: Investing - Theory, News & General
Topic: Holding Gold in an IRA
Replies: 30
Views: 10135

Since my IRA is only with Vanguard mutual funds VGPMX seems the only option, but there's a difference for sure between holding gold/mining stocks and owning the metal - although in the fund info they can allocate up to 20% to the metal. They can allocate up to 20% but how much do they allocate and ...
by eurowizard
Wed Sep 09, 2009 11:33 pm
Forum: Investing - Theory, News & General
Topic: Holding Gold in an IRA
Replies: 30
Views: 10135

I wound up deciding I really dont need to hold gold in my IRA with current options. I eventually want to hold gold in my portfolio but I am willing to market-time it in a few years when i think gold prices will substantially drop. More importantly than market timing, I am doing this because I curren...
by eurowizard
Wed Sep 09, 2009 10:54 am
Forum: Investing - Theory, News & General
Topic: TSM should be more expensive than SP500 Fund Costs
Replies: 9
Views: 1530

Re: TSM should be more expensive than SP500 Fund Costs

Not only are trading costs higher, but I imagine that keeping track of daily flucations in market cap of each stock would require that all new daily purchases be made at different ratios. That is why market cap weighted indexes are beneficial. Fluctuations of stock prices do not require any rebalan...
by eurowizard
Tue Sep 08, 2009 8:46 pm
Forum: Investing - Theory, News & General
Topic: TSM should be more expensive than SP500 Fund Costs
Replies: 9
Views: 1530

TSM should be more expensive than SP500 Fund Costs

It seems to me that TSM should have a higher ER than the SP500 fund at VG. Consider that TSM has a little over 5000 stocks, with about 4500 of them making up around 20% of the fund, and the SP500 making up 80%. So if one were to manage an SP500 fund, and $100k were (inflowed) invested, then 500 trad...
by eurowizard
Tue Sep 08, 2009 8:42 pm
Forum: Investing - Theory, News & General
Topic: Sector - Tilting
Replies: 18
Views: 2999

Sector - Tilting

Anyone here do any sector-tilting? Perhaps towards Utilities or Consumer Staples? When I look at the TSM and SCV breakdown and Financials are 20% to 30% of the indexes, it scares me. Not just in a hindsight way, but in a forward looking way. I dont see how banks can be profitable in the future. I do...
by eurowizard
Tue Sep 08, 2009 4:51 pm
Forum: Investing - Theory, News & General
Topic: Tax Exempt Bond Funds/Expenses
Replies: 13
Views: 2183

No Offense, but why do you want to avoid paying taxes to the state? Just get a tax-exempt MMF/bond fund that is federal tax exempt and pay state taxes on it.

If you dont like the way your state handles tax dollars, then move to a different state.
by eurowizard
Sun Aug 30, 2009 11:55 pm
Forum: Personal Investments
Topic: Buying A House With Family Partnership
Replies: 0
Views: 563

Buying A House With Family Partnership

Does anyone know about Family Partnerships for buying homes? My current situation is I am in the first year of a grad school program to last 2 years that will likely get me $80k to $110k starting salary. Unfortunately I will be $100k in debt at graduation. My parents offered me a 0% loan and I decli...
by eurowizard
Sat Aug 29, 2009 7:52 pm
Forum: Investing - Theory, News & General
Topic: What percentage of people underperform the market?
Replies: 14
Views: 2898

Re: What percentage of people underperform the market?

Does anyone know of any data giving an idea of how many Americans underperform the market after expenses and fees? Some of this data might be hard to come by since I've heard financial advisors often don't calculate their client's returns (or at least show them without being asked), but maybe there...
by eurowizard
Sat Aug 29, 2009 1:43 am
Forum: Investing - Theory, News & General
Topic: Betting on the losers
Replies: 7
Views: 1394

Betting on the losers

I have an idea for a speculation strategy. It is betting on reversion to the mean. What if I look at the list of VG index funds (filtering out active funds) and picked the worst bond fund (1 year) and the 2 worst equity funds and invested equally across all 3. Then in one year exactly, if they are s...