Search found 8579 matches

by Doc
Thu Sep 06, 2018 7:38 am
Forum: Investing - Theory, News & General
Topic: Where to reinvest interest payments in bond ladder
Replies: 5
Views: 509

Re: Where to reinvest interest payments in bond ladder

I'm building a ladder of treasury notes from 2 to 10 years maturity. I would want to reinvest all interest payments and I'm just curious: Where in the ladder is it advisable to reinvest the interest payments? (I know there's a lot of debate about bonds vs bond funds but I'd prefer to not get into t...
by Doc
Wed Sep 05, 2018 9:00 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

Sure, but that's easily adjusted. As I'm too lazy to look up the month of the benchmark change, I only changed the year to 2013. The problem with a tool like Portfolio Visualizer or Total Return charts for that matter is that it ignores or hides cyclic performance as is illustrated with the followi...
by Doc
Wed Sep 05, 2018 8:47 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 592

Re: Wash sale question

Here's my opinion: If you sell the same day, then you are in trouble. You cannot prove that the IRA shares were sold first, so when you sold in taxable, that's a wash sale. The loss is applied to your IRA sales, then you sell them moments later. The loss is thus applied to you IRA shares which mean...
by Doc
Wed Sep 05, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 592

Re: Wash sale question

looking wrote:
Wed Sep 05, 2018 7:35 am
i want to learn how it works the wash sale
See Fairmark Wash Sales 101
http://fairmark.com/capgain/wash/ws101.htm
by Doc
Wed Sep 05, 2018 7:00 am
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 592

Re: Wash sale question

That's my understanding as well, you no longer own the "replacement" shares; I believe you are correct (others, please chime in). However, I would wait a day after the IRA shares are sold before selling the taxable account shares, just to be safe. In my case, Schwab's trade confirmations only carry...
by Doc
Tue Sep 04, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Tue Sep 04, 2018 6:55 pm
Forum: Investing - Theory, News & General
Topic: Wash sale question
Replies: 11
Views: 592

Re: Wash sale question

If the shares you sell in taxable are at a loss you will have a wash sales. The loss is disallowed and the cost basis of the replacement shares should be adjusted accordingly. However since the buy and sell are in separate accounts the broker is relived from making/reporting the adjustment. That lac...
by Doc
Tue Sep 04, 2018 10:07 am
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

For any holding period, the YIELD function will slightly understate the magnitude of the return if semi-annual coupons are are reinvested at the original yield. The YIELD function syntax has the following arguments: Settlement Required. The security's settlement date. The security settlement date i...
by Doc
Tue Sep 04, 2018 7:30 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Mon Sep 03, 2018 8:45 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

. According to the porfoliovisualizer data, in fact, for the 2013-2018 data small and value premiums were negative: higher loadings on SMB and HML over this period reduced returns. So either there is no SMB premium or the data set is too short. I chose to use the smaller fund JIC it is the recent d...
by Doc
Sun Sep 02, 2018 11:51 am
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

Oddly, most of the rest of the shortfall (~$100) in the M* growth chart for SLYV vs VIOV and IJS seems to have occurred on December 16, 2016, a day when SLYV made a large capital gains distribution. Nope, look at the S&P Small Cap Value index at the time: https://www.etf.com/SLYV#overview https://s...
by Doc
Sun Sep 02, 2018 11:03 am
Forum: Investing - Theory, News & General
Topic: Rebalancing Frequency? Daily vs annually?
Replies: 34
Views: 2438

Re: Rebalancing Frequency? Daily vs annually?

Question for all of you that rebalnce on a calendar basis of some type.

What do you do it the stock market drops 20% in a week? Do you just wait until your next rebalance date or do you it then?
by Doc
Sun Sep 02, 2018 8:05 am
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

The last column on the alphas is for typical investor's post. For the entire interval there was a noticeable, but not statistically significant, difference in the alphas. For the latest interval that difference has disappeared, and both remain indistinguishable from zero. I am not fluent in alpha s...
by Doc
Sat Sep 01, 2018 7:44 pm
Forum: Investing - Theory, News & General
Topic: Small-cap exposure in VBR, ie CRSP small-cap value index fund
Replies: 64
Views: 5106

Re: Small-cap exposure in VBR, ie CRSP small-cap value index fund

A link to portfolio visualizer for VBR, IJS comparision, https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1&symbols=VBR+IJS&startDate=02%2F01%2F2004&endDate=06%2F19%2F2018&factorDataSet=2&marketArea=0&factorModel=3&useHMLDevFactor=false&includeQualityFactor=true&includeLowBeta...
by Doc
Sat Sep 01, 2018 7:24 pm
Forum: Investing - Theory, News & General
Topic: Withdrawals to Couch Potato Portfolio During Bear Market
Replies: 5
Views: 735

Re: Withdrawals to Couch Potato Portfolio During Bear Market

FIREchief wrote:
Sat Sep 01, 2018 7:00 pm
How are we defining "bear market?"
Definition of bear market: Period in which prices of securities or commodities fall by 20 percent or more.
Yhttp://www.businessdictionary.com/definition/bear-market.html
by Doc
Sat Sep 01, 2018 4:47 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

As you imply for a very short period an approximation is likely sufficient. And for a very long period, the reinvestment rate is quite uncertain, so your realized return could deviate from the initial yield to maturity by a fair amount, even if you hold to maturity. Of course a zero-coupon bond eli...
by Doc
Sat Sep 01, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

Seems to me that this is more a function of the assumed reinvestment rate on the coupons over the long holding period, rather than the amount of premium or discount to par. I wouldn't use the simplified calculation that I used for a 1-year holding period for a 30-year holding period. For the 1-year...
by Doc
Fri Aug 31, 2018 6:29 am
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1272

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

kaneohe wrote:
Fri Aug 31, 2018 12:18 am
not very arcane............right there at the beginning of the ST and LT sections of the 8949
https://www.irs.gov/pub/irs-pdf/f8949.pdf
I never even looked at that section of the code until the link was posted yesterday. it's arcane to me. :D
by Doc
Thu Aug 30, 2018 7:11 pm
Forum: Investing - Theory, News & General
Topic: Tax consequence of BND really that bad in taxable?
Replies: 24
Views: 2178

Re: Tax consequence of BND really that bad in taxable?

Treasuries might have a better diversification benefit than munis, but that is at a significant cost; the two funds I chose for example purposes have about the same yield in a 25% tax bracket My point was do not compare a Total Bond Market fund with Treasuries but to break up that TBM fund into say...
by Doc
Thu Aug 30, 2018 6:52 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1272

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

Even easier, if the basis is reported to the IRS, and you don’t need to make any adjustments, you can aggregate the numbers right on Schedule D without using an 8949 at all. https://www.irs.gov/pub/irs-pdf/i8949.pdf TurboTax made me do it. :D :( Having been through at least eight IRS or state audit...
by Doc
Thu Aug 30, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1272

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

"If you sell a block of stock ..." I don't sell a "block" of stock. I sell individual lots in order to minimize the tax bite. If you were to import your data from Vanguard (assuming TurboTax), wouldn't it do this for you automatically? Even if you're doing it manually, is it really that big of a de...
by Doc
Thu Aug 30, 2018 2:50 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1272

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

"If you sell a block of stock ..."

I don't sell a "block" of stock. I sell individual lots in order to minimize the tax bite.
by Doc
Thu Aug 30, 2018 2:47 pm
Forum: Investing - Theory, News & General
Topic: Tax consequence of BND really that bad in taxable?
Replies: 24
Views: 2178

Re: Tax consequence of BND really that bad in taxable?

Definitely munis, preferring munis from your state if Vanguard has a fund. Your tax rate on taxable bonds is 40.8% federal, and 6% state if they aren't Treasuries. You pay no federal tax on munis. The OP specified an 80/20 AA. With that high an equity component the main purpose of the FI is to offs...
by Doc
Thu Aug 30, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?
Replies: 29
Views: 2462

Re: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?

ETFs allow a fund to avoid capital gains distributions to an extent. The Vanguard system makes the ETFs and mutual funds identical as far as that goes. However, any ETF can have distributions depending on circumstances. VSS and its equivalent traditional fund VFSVX had short-term capital gains dist...
by Doc
Thu Aug 30, 2018 2:33 pm
Forum: Investing - Theory, News & General
Topic: Taxable account cost basis. Specific ID, FIFO or average cost?
Replies: 18
Views: 1272

Re: Taxable account cost basis. Specific ID, FIFO or average cost?

SpecID and reinvest dividends. SpecID because it provides the most flexibility when selling. Reinvest dividends because computers make dealing with multiple lots trivial, and it's just easier. Others may have different perceptions. I have a different perception. Reinvesting monthly dividends are go...
by Doc
Wed Aug 29, 2018 6:40 pm
Forum: Investing - Theory, News & General
Topic: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?
Replies: 29
Views: 2462

Re: Why do people buy ETFs in taxable with Vanguard when the ETF tracks an equivalent index fund?

The other nice thing is that they allow tax-gain harvesting into the same fund; the mechanism is a sell and immediate re-buy to reset the basis. This is not possible with mutual funds without a change of asset allocation. Whoa. It is my understanding that brokers are only required to report wash sa...
by Doc
Tue Aug 28, 2018 11:13 am
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

triceratop wrote:
Tue Aug 28, 2018 11:08 am
This reminds me of my mostly-unanswered question "What is the market structure rationale for prevalence of minimum size orders in bond markets but not in equities?"
Equities trade on exchanges. Bonds are over the counter.
by Doc
Tue Aug 28, 2018 10:44 am
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

When bid and ask for q10 are not both best offers at Schwab in the middle of the day for a particular issue, it sort of tells you that their bond desk is preferentially buying or selling the issue against inventory rather than purely market-making for mom and pop clientele. And the width of the spr...
by Doc
Mon Aug 27, 2018 12:34 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

When bid and ask for q10 are not both best offers at Schwab in the middle of the day for a particular issue, it sort of tells you that their bond desk is preferentially buying or selling the issue against inventory rather than purely market-making for mom and pop clientele. And the width of the spr...
by Doc
Mon Aug 27, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2327

Re: Which bond index fund best in taxable acct?

With 80% in equities your FI portfolio should be probably ( arguably long ) Treasuries to give you the best result if equities tank. With only 20% in FI does it really make that much difference that you are going to have a high tax cost for that insurance? Think about it. Insurance is not free. Wha...
by Doc
Mon Aug 27, 2018 10:09 am
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

Fidelity and Schwab during market hours. Note the bid/ask for Qty 10 at or very near the top of the list at Schwab.

Fidelity:

Image

Schwab:

Imagephotoupload
by Doc
Sun Aug 26, 2018 6:44 pm
Forum: Investing - Theory, News & General
Topic: Which bond index fund best in taxable acct?
Replies: 22
Views: 2327

Re: Which bond index fund best in taxable acct?

With 80% in equities your FI portfolio should be probably (arguably long) Treasuries to give you the best result if equities tank. With only 20% in FI does it really make that much difference that you are going to have a high tax cost for that insurance? Think about it. Insurance is not free.
by Doc
Sun Aug 26, 2018 5:09 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 1006

Re: Bond Fund Redemptions

Rising rates lead to falling bond prices and a retiree may need to finance a new roof now rather than years later when the fund recovers both principal and previous gains. Right but a short term bond fund is very unlikely to drop enough to make his roof continue to leak. The problem here is best so...
by Doc
Sun Aug 26, 2018 3:18 pm
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

jhfenton wrote:
Sun Aug 26, 2018 3:02 pm
It's Vanguard's job to do the bookkeeping.
Unfortunately sometimes Vanguard is not very good at their job.
by Doc
Sun Aug 26, 2018 2:43 pm
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

@jhfenton Thanks for the ETF.com link. Was it a market order? A marketable limit order? A non-marketable limit order? Don't know. Can't find it. VIOV does often go minutes between trades. Sometimes a bit longer. I would get ulcers. :( The quantities of VIOV I buy in taxable are tiny (usually 7 share...
by Doc
Sun Aug 26, 2018 12:03 pm
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

Volume has been 26.7x higher for IJS ($43.31 MM vs $1.62 MM), but the spreads are almost identical. The TTM average spread for VIOV was $0.14 (0.09%). The TTM average spread for IJS was $0.13 (0.08%). 1) Where are you getting the spread data from? I looked for it about an hour ago and couldn't find...
by Doc
Sun Aug 26, 2018 11:31 am
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 1006

Re: Bond Fund Redemptions

You should not hold a bond fund with a duration longer than the time you need to cash it in. I have no idea when I am going to "cash it in". If you are using your bonds strictly for some future liability matching the duration match may be important but that's not the only reason to hold bonds. Do t...
by Doc
Sun Aug 26, 2018 11:18 am
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

jalbert wrote:
Sun Aug 26, 2018 12:44 am
iShares only returns 72% of securities lending revenue for IJS to the fund investors vs. 100% by Vanguard or State Street for VIOV or SLYV respectively.
Total Return on $10k 9/8/10 to present:

IJS $33,059.27
VIOV $33,043.33

$16 advantage of IJS for 8 years. :mrgreen:
by Doc
Sat Aug 25, 2018 4:15 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 1006

Re: Bond Fund Redemptions

sport wrote:
Sat Aug 25, 2018 4:06 pm
You should not hold a bond fund with a duration longer than the time you need to cash it in.
I have no idea when I am going to "cash it in". If you are using your bonds strictly for some future liability matching the duration match may be important but that's not the only reason to hold bonds.
by Doc
Sat Aug 25, 2018 4:10 pm
Forum: Investing - Theory, News & General
Topic: Bond Fund Redemptions
Replies: 14
Views: 1006

Re: Bond Fund Redemptions

Does anyone else have substantial investments in bond funds where you have no guarantee of having the full value of your principal returned? I have substantial investment in both bond funds and in individual Treasuries. I rarely hold bonds to maturity and neither does a bond fund. I don't care if I...
by Doc
Sat Aug 25, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: bond fund yield relates to risk - comparing two treasury funds
Replies: 6
Views: 395

Re: bond fund yield relates to risk - comparing two treasury funds

I'm not saying that buying bonds at the top of the steepest part of the yield curve isn't a good strategy, but it is still tweaking the portfolio based on interest rate predictions. Our difference is about the word "prediction". You can obtain the roll down effect by assuming that the yield curve d...
by Doc
Sat Aug 25, 2018 2:15 pm
Forum: Investing - Theory, News & General
Topic: bond fund yield relates to risk - comparing two treasury funds
Replies: 6
Views: 395

Re: bond fund yield relates to risk - comparing two treasury funds

I don't why they keep they the old active treasury funds at this point. Where exactly is an active manager supposed to add value in the treasury market? Making tweaks based on interest rate predictions? I think they should just merge the active funds into the index funds. Absolutely not. It's not a...
by Doc
Sat Aug 25, 2018 12:31 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: TIPS Versus Nominal Bonds
Replies: 46
Views: 4102

Re: Larry Swedroe: TIPS Versus Nominal Bonds

Over the last 18 years it does look like TIPs have done better than treasuries but if you look at problem years like 2007/2008/, 2013, and 2015 it seems treasuries do better during crises . Yep, just look at the max drawdown and market correlation from your Backtest Drawdown: TIPS vs Nominal -12.50...
by Doc
Sat Aug 25, 2018 11:43 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction: june 21: 1.0% yield?
Replies: 40
Views: 4949

Re: 30 yr tips auction: june 21: 1.0% yield?

grok87 wrote:
Sat Aug 25, 2018 2:36 am
Now at o.84%
Grok what broker do you use that will give you actual market quotes at 2 am on a Saturday morning? :D
by Doc
Sat Aug 25, 2018 11:27 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: TIPS Versus Nominal Bonds
Replies: 46
Views: 4102

Re: Larry Swedroe: TIPS Versus Nominal Bonds

Brokered 2-3 year CDs are paying about 2.8-3.0%, 2-3 year treasuries are paying 2.63-2.68%. In an IRA, why not earn the extra ~0.2% to 0.3%? Assuming state IT is not an issue: Liquidity is still worth something. How much that is worth depends on our individual needs. If one's portfolio is such that...
by Doc
Fri Aug 24, 2018 6:11 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

Do brokerages put in gigantic, competitive bids with the Treasury, then sell them to customers at the non-competitive price/yield? You are strecting my knowledge here. There is an auction concept called " authorized participants". I'm not sure what that means but I think it refers to major banks et...
by Doc
Fri Aug 24, 2018 4:32 pm
Forum: Investing - Theory, News & General
Topic: 2-Year Treasury Note Auction
Replies: 102
Views: 9375

Re: 2-Year Treasury Note Auction

General question: is there really a difference in price paid / coupon when buying from your brokerage versus submitting a non-competitive bid with Treasury Direct? If you are buying at auction there should be no difference between TD and a broker. I have not looked at TD for years but IIRC the prob...
by Doc
Fri Aug 24, 2018 1:59 pm
Forum: Investing - Theory, News & General
Topic: Treasury Bonds are the Only Bonds You Need
Replies: 195
Views: 21376

Re: Treasury Bonds are the Only Bonds You Need

Kevin M wrote:
Fri Aug 24, 2018 1:15 pm
If grok is planning on the 30-year bond ...
I think that Grok is using a 30 year TIPS ladder as one leg of a three legged stool. But I never looked into his plan details.
by Doc
Fri Aug 24, 2018 11:07 am
Forum: Investing - Theory, News & General
Topic: What non-Vanguard ETFs will you be looking to buy?
Replies: 62
Views: 6647

Re: What non-Vanguard ETFs will you be looking to buy?

If I were still at Vanguard I would be looking to buy iShares, Schwab, Wisdom tree index funds that were not offered by Vanguard or are suboptimal at Vanguard for whatever reason. Some tickers: IJS, DGS, FALN, FNDE, FNDF, IVLU. The list is very short. If you don't tilt away from the market portfoli...
by Doc
Thu Aug 23, 2018 5:52 pm
Forum: Investing - Theory, News & General
Topic: Buying non-Vanguard ETFs Vanguard on Vanguard brokerage. Dividend reinvestment?
Replies: 27
Views: 1667

Re: Buying non-Vanguard ETFs Vanguard on Vanguard brokerage. Dividend reinvestment?

VSS is not so great if you worry about the stability of emerging market countries. Maybe there is a reason for all the other index funds to avoid combining EM and Developed. Unless you greatly overweight foreign small cap the amount of EM in VSS is not enough to notice even if EM outperforms develo...