Search found 8072 matches

by Doc
Thu Mar 01, 2018 2:49 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 540

Re: Tax loss harvesting Treasuries?

However, I'm a bit surprised by your question. Wouldn't a capital loss just be a capital loss for tax purposes, regardless of whether it comes from stocks or bonds? Perhaps there are some subtle total return considerations with bond tax loss harvesting that I'm missing? I've always thought tax loss...
by Doc
Thu Mar 01, 2018 2:10 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 540

Re: Tax loss harvesting Treasuries?

The trouble with Treasury Bond funds is that it is going to be hard to find a TLH partner that is not substantially identical unless you are willing to change your investment for 30 days Hard? Piece of cake. :D TREASURY NOTES & BONDS Maturity Coupon Bid Asked Chg Asked yield 9/15/2020 1.375 97.6016...
by Doc
Thu Mar 01, 2018 12:25 pm
Forum: Investing - Theory, News & General
Topic: Tax loss harvesting Treasuries?
Replies: 9
Views: 540

Tax loss harvesting Treasuries?

Does it make sense to tax loss harvest bonds? If we restrict the discussion to Treasuries we can limit the analysis to term effects but the credit effect may may also have meaning if we widen the discussion. For Treasuries I have an unrealized capital loss because interest rates have risen. I can ha...
by Doc
Thu Mar 01, 2018 9:09 am
Forum: Investing - Theory, News & General
Topic: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???
Replies: 27
Views: 2084

Re: Vanguard Short-Term Investment Grade Bond Fund - Gamesmanship???

Nobody seems to have commented at least directly that coupon by itself is not indicative of very much at all. A high coupon bond selling at a large discount may have the exact same characteristics as a low coupon bond selling near prime. Think about it. As an example compare a bond with a compound o...
by Doc
Wed Feb 28, 2018 5:51 pm
Forum: Investing - Theory, News & General
Topic: "Where Do IRAs Fit in Your Retirement Distribution Plan?"
Replies: 6
Views: 836

Re: "Where Do IRAs Fit in Your Retirement Distribution Plan?"

However, I don't anticipate that our spending needs will ever push us out of the 12% bracket apart from some aberrant situation. Do you consider receiving Social Security benefits to be "some aberrant situation"? The phasein of taxation for Social Security benefits will make your effective marginal...
by Doc
Wed Feb 28, 2018 5:35 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1884

Re: International funds: Tax-deferred or Roth?

Fair enough. Let's try this: An investor will maximize their overall after-tax rate of return on dollars invested in a given portfolio if the most growth occurs in the account taxed at the lowest rate. Commonly, the account taxed at the lowest rate is a traditional tax-deferred account. Fair enough...
by Doc
Wed Feb 28, 2018 3:55 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1884

Re: International funds: Tax-deferred or Roth?

The disagreement on tax rates. This has been adjudicated a long time ago. The basis concept is to put all your different types of accounts on a similar tax basis. It easier and probably better to put them all on an after tax basis. So you wind up with the following adjustments: (To make the presenta...
by Doc
Wed Feb 28, 2018 1:22 pm
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1884

Re: International funds: Tax-deferred or Roth?

If we set: withdrawal_tax_rate = 22% contribution_tax_rate = 25% What am I missing? You are trying to calculate the results to a higher precision than you can possible know. (25/22)^(1/10) = 1.01, (25/22)^(1/30) = 1.004. Do you really know the pretax rate of return on your investment to this kind o...
by Doc
Wed Feb 28, 2018 11:14 am
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1884

Re: International funds: Tax-deferred or Roth?

... a significant savings in taxes by placing all international funds ... You may have a misconception here. The intent is not to minimize taxes but to maximize after tax returns. It's not always the same thing. From the little chart you showed it appears that you may be equating an amount of preta...
by Doc
Wed Feb 28, 2018 11:04 am
Forum: Investing - Theory, News & General
Topic: typical tbill duration which keeps up with inflation??
Replies: 26
Views: 1854

Re: typical tbill duration which keeps up with inflation??

It takes less time to roll a T bill than to download your monthly statement. Have you ever rolled a Treasury? Why yes I have and currently do. I roll at Fidelity and Treasury direct. Vanguard doesn't have an auto-roll (or at least they didn't used to). Its just not something that is worth any effor...
by Doc
Wed Feb 28, 2018 8:14 am
Forum: Investing - Theory, News & General
Topic: typical tbill duration which keeps up with inflation??
Replies: 26
Views: 1854

Re: typical tbill duration which keeps up with inflation??

The whole premise of a rolling 52 week T-Bill ladder for an emergency fund makes me laugh a bit, but to each their own. Never understood all the desires to eek an extra 3 bucks a year out of an emergency fund. It's not the 3 bucks. It's the inflation protection. The return on the the ladder will ke...
by Doc
Tue Feb 27, 2018 8:12 pm
Forum: Investing - Theory, News & General
Topic: typical tbill duration which keeps up with inflation??
Replies: 26
Views: 1854

Re: typical tbill duration which keeps up with inflation??

That is keeping it simple? Seems A LOT more work then what is needed Rolling a T- note once a month is no more difficult than investing one's monthly dividends or new contributions. What's being described is just a liability matching portfolio for short term needs just in case. If some month you ne...
by Doc
Tue Feb 27, 2018 3:33 pm
Forum: Investing - Theory, News & General
Topic: typical tbill duration which keeps up with inflation??
Replies: 26
Views: 1854

Re: typical tbill duration which keeps up with inflation??

I clicked on a T-bill arbitrarily and here's what shows up (bill due 2018-08-16): Before reading lack_ey's post I clicked on the bill previously referenced at another broker. https://s10.postimg.org/ygq60z7yh/t-bills_Capture.png It's unusual to see onesies at the top of the list. But the prices are...
by Doc
Tue Feb 27, 2018 10:35 am
Forum: Investing - Theory, News & General
Topic: typical tbill duration which keeps up with inflation??
Replies: 26
Views: 1854

Re: typical tbill duration which keeps up with inflation??

jacoavlu wrote:
Mon Feb 26, 2018 11:04 pm
If you need the funds, do you sell the bills on the secondary market?
Bid/Ask spreads are only about 2 bps. Instant cash. (OK I can't get it into the bank until next business day but other than cash under the mattress that's hard to beat. And cash doesn't keep up with inflation.)
by Doc
Mon Feb 26, 2018 9:06 am
Forum: Investing - Theory, News & General
Topic: Total Bond Market [how to allocate bond portion of AA]
Replies: 23
Views: 2843

Re: Total Bond Market [how to allocate bond portion of AA]

Consider determining a personal core bond fund, and discuss it in your IPS. In my DFA accounts, the DFA five-year global bond fund (3.8 years duration) is my core fund. I also have access to the DFA short-term fixed income fund (0.9 years duration) for use in reducing inflation risk, but I'm not us...
by Doc
Mon Feb 26, 2018 8:48 am
Forum: Investing - Theory, News & General
Topic: International funds: Tax-deferred or Roth?
Replies: 32
Views: 1884

Re: International funds: Tax-deferred or Roth?

Since the Foreign Tax Credit is not available for the foreign taxes in these accounts, it seems that it would be better to pay those taxes out of tax-deferred because the lowered account value means less taxes on withdrawal from tax-deferred. See the Wiki. Tax advantaged placement between two choic...
by Doc
Sat Feb 24, 2018 1:33 pm
Forum: Investing - Theory, News & General
Topic: Just how safe is a short-term corporate bond fund?
Replies: 53
Views: 5979

Re: Just how safe is a short-term corporate bond fund?

Actually I believe Mitchell777 is correct that the active Vanguard Short Term Investment Grade use to be Short-Term Corporate Fund (before the Short-Term Corporate Bond Index Fund (VSCSX) was started in November 2010). From the Chairman's Letter on Page 2 of Corporate Bond Fund January 31, 2005 Ann...
by Doc
Fri Feb 23, 2018 12:11 pm
Forum: Investing - Theory, News & General
Topic: Does Vanguard brokerage culture represent the underlying Vanguard fund?
Replies: 11
Views: 1491

Re: Does Vanguard brokerage culture represent the underlying Vanguard fund?

Part of the issue with Vanguard Brokerage Services has to do with the very high inflows and the fact that most of the customers aren't churning or otherwise generating high revenue through transactions or other services offered. And most people are there for the Vanguard funds, not for their broker...
by Doc
Thu Feb 22, 2018 6:15 pm
Forum: Investing - Theory, News & General
Topic: Question on Treasury Fund VS Individual Bond Yields
Replies: 2
Views: 318

Re: Question on Treasury Fund VS Individual Bond Yields

The 30 day and SEC yields are the recent past and the individual Treasury yield forward looking. Bonds have taken a price hit on the last few weeks which is distorting the fund' s reported yields. That means the funds price has dropped. If you buy the fund today at the now lower price you would expe...
by Doc
Thu Feb 22, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

And this is less of a liquidity concern than a ten year TIPS (even in a once in a lifetime great recession)??? I use different "piles" for different things. I use short Treasuries for liquidity purposes in case I have an unanticipated need or opportunity. I use equities and a core bond portfolio fo...
by Doc
Wed Feb 21, 2018 6:18 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

We are well into retirement and have maybe 1/3 to 1/2 of our assets in inflation protected assets other than TIPS. Present value of social security? Inflation adjusted pension? Inflation adjusted annuity? I bonds? Something else? Don't hold out on us Doc! Investment real estate. Want to buy in? PM ...
by Doc
Wed Feb 21, 2018 5:31 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

but the point is that one tenth of the purchasing power of this bucket will be readily available each year without any concerns for liquiidity or loss of purchasing power. It may not be available next week. The price of a ten nominal dropped 0.5% today and 3% in the last month. And that's a nominal...
by Doc
Wed Feb 21, 2018 11:05 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

"Probably not as good?" Well, that doesn't mean anything. They are "probably a lot better" if we are hit with a decade of unexpected inflation! The fact that you can look in the rear view mirror and draw conclusions about what to expect in the future (especially when you appear fixated on the great...
by Doc
Wed Feb 21, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Inflation has been next to nothing for the past decade and it poised to stay that way. If real interest rates were to rise to say the historical average of around 5 or 6 % and you are tied up for 30 years in a 1% vehicle you will never be able to sell it early unless you want a 30 or 40% haircut. I...
by Doc
Tue Feb 20, 2018 5:04 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

You don't get my point at all. We are in almost complete agreement on TIPS for a LMP. The question becomes how good are TIPS for unforeseen needs. One where you don't know what liability you want to match. What happens if you need to sell before the planned liability occurs. In that case TIPS are pr...
by Doc
Tue Feb 20, 2018 10:08 am
Forum: Investing - Theory, News & General
Topic: "The Effects of Social Security Benefits and RMDs on Tax-Efficient Withdrawal Strategies"
Replies: 10
Views: 2282

Re: "The Effects of Social Security Benefits and RMDs on Tax-Efficient Withdrawal Strategies"

For those like me with a long time horizon, this ironically means that there is a two or three their effective marginal taxation on money we accumulate in traditional tax-deferred vehicles when we take distributions: X: at zero bracket prior to SS taxation Y: at inflated brackets due to SS taxation...
by Doc
Tue Feb 20, 2018 9:35 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Since then I have decided that TIPS are only good for Grok's LMP and little else . So does utilizing a consecutive TIPs ladder to someone trying to fund a retirement 31, 32, 33, 34.....years away contradict that sentiment? (Shorter term bonds would be a smarter short term play vs using TIPS or TIPs...
by Doc
Tue Feb 20, 2018 8:18 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Hopefully you guys are being sarcastic. Otherwise, it just sounds like crazy talk. TIPS are great for anybody who wants to preserve purchasing power for any future date for any purpose . There ain't nothing else that will do this. That's a LMP. TIPS are good for guarantying the ability to financial...
by Doc
Mon Feb 19, 2018 7:20 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Hmm... sorry Doc, but it looks to me like you've charted ST Treasury vs. ST TIPS - no Intermediate Term here. I don't traffic in those items, although your results are interesting to see. We can't blame Lehman for it! My bad. A was trying to find a comparison from Lehman to today and was going to f...
by Doc
Mon Feb 19, 2018 5:28 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Btw, it might be worth adding that I don't think that one can get any "safer" in the fixed income side of their portfolio than with TIPS, so one might feel able to hold a small bit more of their portfolio in equity than otherwise. (Yes, in the 2008 crash TIPS briefly misbehaved; there are some expl...
by Doc
Mon Feb 19, 2018 10:17 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

As far as what to do if the 30-yr is discontinued? I dunno. I think I'd just not worry about it. But if you had a lot of extra tax-deferred/sheltered space, I suppose you could simultaneously purchase 10-yr TIPS. Extra space? If it's time to buy a new thirty and it doesn't exist just buy a ten inst...
by Doc
Sun Feb 18, 2018 7:56 pm
Forum: Investing - Theory, News & General
Topic: Switching to Gov't Bonds as you get closer to retirement?
Replies: 6
Views: 769

Re: Switching to Gov't Bonds as you get closer to retirement?

So I wouldn't design my portfolio to do well in 2008, and I haven't. I would and I do. But I do it by splitting the Total Bond Index into its components so I always have "dry powder". (I model my overall portfolio on a 1-10 Government/credit index not TBM following somewhat on my neighbor's ideas. 😀)
by Doc
Fri Feb 16, 2018 7:47 am
Forum: Investing - Theory, News & General
Topic: Best Treasury Bond Fund/ETF for Taxable Accounts
Replies: 17
Views: 2272

Re: Best Treasury Bond Fund/ETF for Taxable Accounts

Anyway, since that thread the two funds have converged even more, as VGIT is now a pure treasury fund. I would expect that the move to all Treasuries would reduce the performance slightly before expenses. Without looking I think the durations may be different. You could also have a roll yield effect.
by Doc
Thu Feb 15, 2018 3:31 pm
Forum: Investing - Theory, News & General
Topic: Do you currency hedge Int'l?
Replies: 18
Views: 915

Re: Do you currency hedge Int'l?

Intuitively it makes sense that you can get better results, since you can take advantage of mean reversion when you sell the asset that has gone up more to buy the one that has lagged (though it depends on the frequency of rebalancing) Asset "A" has an annualized growth rate of 10%. Asset "B" has a...
by Doc
Thu Feb 15, 2018 2:19 pm
Forum: Investing - Theory, News & General
Topic: Do you currency hedge Int'l?
Replies: 18
Views: 915

Re: Do you currency hedge Int'l?

But that isn't necessarily true for rebalancing between non-correlated assets with similar long term risk/reward expectations. If two assets are non-correlated and have similar long term risk/reward expectations it doesn't matter which one you chose or what the mix is. In the long run you will wind...
by Doc
Thu Feb 15, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: Do you currency hedge Int'l?
Replies: 18
Views: 915

Re: Do you currency hedge Int'l?

... could help to provide a rebalancing bonus, through selling high and/or buying low. Rebalancing is about risk control not about achieving some kind of "bonus". In the long run rebalncing is going to reduce your return not give you a bonus. This is pretty clear when we are talking stocks and bond...
by Doc
Thu Feb 15, 2018 11:35 am
Forum: Investing - Theory, News & General
Topic: Do you currency hedge Int'l?
Replies: 18
Views: 915

Re: Do you currency hedge Int'l?

Ok, I understand the diversification benefit, but there's also a currency risk, particularly if you are retired say and you are withdrawing from your portfolio: if a big chunk of it has foreign currency exposure you might be in trouble in case the dollar appreciates a lot. That's what investing is ...
by Doc
Thu Feb 15, 2018 9:39 am
Forum: Investing - Theory, News & General
Topic: Do you currency hedge Int'l?
Replies: 18
Views: 915

Re: Do you currency hedge Int'l?

I do not currency hedge international because it defeats the purpose of reducing correlation with domestic. Similarly I overweight foreign small on the theory that a large multinational firm that's headquartered in Europe plays in the same market as it's US counterparts. So they both behave similarl...
by Doc
Wed Feb 14, 2018 7:20 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Question for those who are buying TIPS in large amounts, do you buy them in regular taxable? If you cannot buy them in 401 k, then is it efficient to buy them in taxable? I have my REIT allocation that takes a good portion of my Roth. TIPs have the same tax efficiency as nominals of similar maturit...
by Doc
Wed Feb 14, 2018 6:37 pm
Forum: Investing - Theory, News & General
Topic: The S&P and the Ten
Replies: 7
Views: 879

Re: The S&P and the Ten

This is why John Cochrane's point that this correction was due to changes in real yields and real growth rates resonated with me. That would explain both the S&P decline and the yields increasing in tandem. Briefly: changes in the discount rate should result in a readjustment of stock prices Right....
by Doc
Wed Feb 14, 2018 5:30 pm
Forum: Investing - Theory, News & General
Topic: The S&P and the Ten
Replies: 7
Views: 879

Re: The S&P and the Ten

Are percentage changes in yields really meaningful? Isn't it the absolute (what is the proper math term?) change that matters. It's a ten. Don't forget to multiply the yield increase by 10 to get the dollars. But that's not the point as far as I'm concerned. I think of market corrections as often l...
by Doc
Wed Feb 14, 2018 5:23 pm
Forum: Investing - Theory, News & General
Topic: How are 401k withdrawals taxed when you retire?
Replies: 15
Views: 2494

Re: How are 401k withdrawals taxed when you retire?

mattshwink wrote:
Wed Feb 14, 2018 4:58 pm
This keeps you at a 12% marginal rate but with your $120,000.
If you are taking your social security your marginal rate could be 22% not 12%.
by Doc
Wed Feb 14, 2018 5:12 pm
Forum: Investing - Theory, News & General
Topic: The S&P and the Ten
Replies: 7
Views: 879

Re: The S&P and the Ten

The line looks orange to me. The bars look red. Sienna orange to be more specific. So, what's up, Doc? There was all this talk the last few weeks about interest rates and the stock market and I yawned. I was just killing time fooling around with Yahoo finance charts and put this together. My yawn w...
by Doc
Wed Feb 14, 2018 4:49 pm
Forum: Investing - Theory, News & General
Topic: The S&P and the Ten
Replies: 7
Views: 879

The S&P and the Ten

For the last 6 weeks or so. https://s10.postimg.org/a6pqsszs9/SPY_and_the_Ten_Capture.png https://finance.yahoo.com/chart/SPY?p=SPY#eyJpbnRlcnZhbCI6ImRheSIsInBlcmlvZGljaXR5IjoxLCJ0aW1lVW5pdCI6bnVsbCwiY2FuZGxlV2lkdGgiOjE4LjQxMjY5ODQxMjY5ODQxLCJ2b2x1bWVVbmRlcmxheSI6dHJ1ZSwiY3Jvc3NoYWlyIjp0cnVlLCJjaGFy...
by Doc
Wed Feb 14, 2018 4:22 pm
Forum: Investing - Theory, News & General
Topic: Best Treasury Bond Fund/ETF for Taxable Accounts
Replies: 17
Views: 2272

Re: Best Treasury Bond Fund/ETF for Taxable Accounts

They are all very similar. The active Vanguard fund is not necessarily all treasuries all the time. My records show that it was only 90% Treasuries last June (M*) data with an average credit rating of AA. It's now 99.9% T's with a credit rating of AAA. I use all of them in different accounts except ...
by Doc
Tue Feb 13, 2018 8:26 am
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Re: 30's not available. Secondary market folks. :wink:
by Doc
Mon Feb 12, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: 30 yr tips auction 2/15: 1.0% yield?
Replies: 172
Views: 15329

Re: 30 yr tips auction 2/15: 1.0% yield?

Since there are some new posters here I will restate what I have said before. First, I have no disagreement with a 30 year inflation adjusted LMP. But, with long term real rates at only about 1% compared to historical 2% to 3% I think that thirty year TIPS are too expensive. Instead of buying a thir...
by Doc
Mon Feb 12, 2018 11:21 am
Forum: Investing - Theory, News & General
Topic: Paying 1 tax payment on a Roth conversion--using IRS Direct.
Replies: 5
Views: 563

Re: Paying 1 tax payment on a Roth conversion--using IRS Direct.

Clearly, you do not want to withhold taxes on a Roth conversion because that would be less money going into the converted Roth. You want to pay the potential taxes from another account such as your checking account. I was thinking Required Minimum Distribution not ROTH conversion. Nevertheless if y...
by Doc
Mon Feb 12, 2018 8:46 am
Forum: Investing - Theory, News & General
Topic: Paying 1 tax payment on a Roth conversion--using IRS Direct.
Replies: 5
Views: 563

Re: Paying 1 tax payment on a Roth conversion--using IRS Direct.

Your broker will probably withhold taxes on the conversion at a rate you specify. Withholding does not get divided by quarters.I use this for one transaction in December after I've done a preliminary return for the then current year.
by Doc
Mon Feb 12, 2018 8:40 am
Forum: Investing - Theory, News & General
Topic: Orders for Selling ETFs
Replies: 16
Views: 1325

Re: Orders for Selling ETFs

SlowMovingInvestor wrote:
Sun Feb 11, 2018 7:17 pm
Good suggestion, but it doesn't help much for emerging markets ETFs since 80% or so are in Asia.
One of the reasons I don't do EM.

The other is that would be such a small position that it doesn't matter even at market weights which I don't use.