Search found 1776 matches

by Chip
Wed Jul 11, 2007 8:59 am
Forum: Investing - Theory, News & General
Topic: Foreign Taxes
Replies: 9
Views: 2467

VT, It appears you're correct about Canada. I based my post on my ownership of BCE (the old Bell Canada). As far as I could tell, there wasn't any withholding from the dividend payments. However, I held it in an IRA at BrownCo, and they may have reported the dividend net of withholding, rather than ...
by Chip
Wed Jul 11, 2007 5:36 am
Forum: Investing - Theory, News & General
Topic: Foreign Taxes
Replies: 9
Views: 2467

Jason, I've owned quite a few ADRs over the last 3 years. Based on my experience with them, here's a very incomplete list of countries that either withhold or don't. Withhold: Korea, Netherlands, Brazil, Germany, Italy, Switzerland, France, Finland, Portugal, Sweden, Hungary, Russia. Don't withhold:...
by Chip
Sun Jul 01, 2007 5:48 am
Forum: Investing - Theory, News & General
Topic: Different personal savings rates, which one is standard?
Replies: 26
Views: 9635

(nonkeogh savings+keogh savings)/(w2-tax+keogh savings)=46.06 percent saved. That way makes the most sense to me as a "standard". Using the W2 alone when different people have different deferral opportunities would make comparisons problematic. FWIW, I wouldn't count property and car taxe...
by Chip
Sat Jun 30, 2007 7:10 am
Forum: Investing - Theory, News & General
Topic: Your Checking Account~How do you manage it?
Replies: 20
Views: 6345

I write all my checks and do ebillpay out of a brokerage sweep account. Currently in Fido's national muni fund earning 3.37%. Not great, but okay. I move money in and out via EFT or fund purchases/sales to keep it around a 3K balance. I also keep 1K in a local brick & mortar bank. No interest, b...
by Chip
Wed Jun 27, 2007 6:32 am
Forum: Investing - Theory, News & General
Topic: How much of your portfolio is in index funds?
Replies: 35
Views: 13616

6% here. Though the rest of it has a really low expense ratio. :)
by Chip
Tue Jun 26, 2007 5:35 am
Forum: Investing - Theory, News & General
Topic: How to track performance
Replies: 22
Views: 8810

Robert T, TWR (when done precisely) removes the effect of portfolio additions/subtractions from the return calculation. I've seen TWR described as the "fund manager's return", while MWR (money weighted return, or XIRR) is described as the "investor's return". TWR makes sense for ...
by Chip
Tue Jun 19, 2007 5:23 am
Forum: Investing - Theory, News & General
Topic: Has anyone here retired in their 40's or aspires to?
Replies: 90
Views: 39422

What would you tell your friends and neighbors when they ask you what you do? I really like Scott Burns' response: In the event of what? It's too flip to actually use, but I'm occasionally tempted. I just say I'm retired. Most people then immediately move to "what DID you do?" If someone ...
by Chip
Thu Jun 14, 2007 5:55 am
Forum: Investing - Theory, News & General
Topic: Your worst investing mistake
Replies: 145
Views: 36199

Mine was letting the allure of lower taxes and a deft smoke & mirrors presentation by a Pru-Bache broker team convince me to buy into real estate limited partnerships in 1983. How does a front end load of 8.5% grab you? These partnerships were truly the gift that kept on giving. Negative nominal...
by Chip
Wed Jun 13, 2007 8:03 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rates allowing for upside investment results
Replies: 67
Views: 21712

daryl40, I agree with your position completely. 2.5% seems extremely conservative & "safe" to me. Especially since I'm only five years older and am using 3.5% . Heck, you could go to something like 80% TIPS at the current 2.8% real yield and not really have to worry about stock market ...
by Chip
Wed Jun 13, 2007 6:38 am
Forum: Investing - Theory, News & General
Topic: Safe Withdrawal Rates allowing for upside investment results
Replies: 67
Views: 21712

daryl40, I'm also "re-retiring" as my portfolio grows. It's up 60% since a 2001 retirement (net of withdrawals). I interpret Trinity & Bengen the same way you do, that the safe withdrawal rate was safe at any market level. The risk we face is that we will be taking a full withdrawal (e...
by Chip
Tue Jun 12, 2007 6:57 am
Forum: Investing - Help with Personal Investments
Topic: Stable Value Funds vs. TIPS
Replies: 40
Views: 16883

larryswedroe wrote:I am glad that we agree that people should not care about volatility of real return instruments if they hold to maturity


Larry,

If this is the case, shouldn't it also be true that people shouldn't care about the volatility of nominal bonds if they hold to maturity?
by Chip
Mon Jun 11, 2007 7:55 am
Forum: Investing - Theory, News & General
Topic: How much to save for retirement?
Replies: 32
Views: 12019

Chuck, I think there's a problem with your #4 assumption. If someone is saving 29% of their gross salary, clearly they need at most 71% of it to live on, since they've been doing so their entire career. Unless you're projecting an increase in spending post-retirement. Next, they won't be paying FICA...
by Chip
Mon Jun 11, 2007 6:33 am
Forum: Investing - Theory, News & General
Topic: Has anyone here retired in their 40's or aspires to?
Replies: 90
Views: 39422

We retired in our late 40s in 2001. There was mix of skill and luck in getting there. The skill was mostly in living well below our means (partly via having no kids) and choosing lucrative places to work. Though I suppose the work choices could be counted as luck. The rest of the luck was having 90%...
by Chip
Sat Jun 09, 2007 8:40 am
Forum: Investing - Help with Personal Investments
Topic: 4.3% tax surcharge may replace AMT
Replies: 24
Views: 7995

Thanks for the edit! I'm not in favor of any AMT "reform" that means that the AMT still exists. If it does, many taxpayers will still have to figure tax both ways. So it does nothing to reduce complexity. So I like the option where the AMT is completely eliminated, with rates raised to com...
by Chip
Sat Jun 09, 2007 5:43 am
Forum: Investing - Help with Personal Investments
Topic: 4.3% tax surcharge may replace AMT
Replies: 24
Views: 7995

Springwater,

You might want to look at the admin note in your post here.

IMO you're over the "fair use" line with your quotation here as well.
by Chip
Sat Jun 09, 2007 5:34 am
Forum: Investing - Theory, News & General
Topic: What is the best way to value tilt a portfolio?
Replies: 41
Views: 24917

Is it correct to assume that the Fama-French US benchmark portfolios include ADRs from the US exchanges? I've skimmed French's web site and haven't found anything definitive, though it appears he includes all NYSE, AMEX and NASDAQ stocks. I would think ADRs would be caught in that net. My portfolio ...
by Chip
Sat Jun 09, 2007 5:08 am
Forum: Investing - Help with Personal Investments
Topic: [Poll] How important is a budget?
Replies: 46
Views: 16853

I didn't really know how to vote in the poll. Like many here, we have always lived beneath our means without a detailed budget & associated enforcement mechanisms. I track expenses now at a fairly detailed level. At first it wasn't easy to bring my wife on board. She was concerned I would compla...
by Chip
Fri Jun 08, 2007 5:33 am
Forum: Investing - Theory, News & General
Topic: Historical Stock Prices
Replies: 1
Views: 1110

I would start at Yahoo Finance . Get a quote on the stock, then click the link for historical prices. Depending on the issue, you might get all the way back to 1986. Be sure and check for stock splits and make the appropriate adjustments. If the stock is the result of an acquisition, or the ticker s...
by Chip
Thu Jun 07, 2007 1:52 pm
Forum: Investing - Theory, News & General
Topic: Why not a 115% Equity Portfolio?
Replies: 60
Views: 22938

I just realized that this is a great reason not to have a mortgage: no need to try to twist one's brain around all the possibilities being discussed in this thread! :twisted:
by Chip
Thu Jun 07, 2007 6:35 am
Forum: Investing - Help with Personal Investments
Topic: Question on Bond Ladders
Replies: 8
Views: 2480

I have a two year ladder with notes maturing quarterly. It's set up that way mainly to suit my cash flow needs. I suspect that over the long haul the rates you'll get at auction will balance out. Sometimes you'll hit a spike in rates, sometimes a low point. I doubt if going to twice a year purchases...
by Chip
Wed Jun 06, 2007 11:36 am
Forum: Investing - Help with Personal Investments
Topic: Why so many hurdles to gift shares?
Replies: 6
Views: 1612

Just speculating, but it's probably pretty costly for Vanguard to handle those kinds of requests. At least when compared to the usual sorts of account activities, as there is probably quite a bit of "hand work" involved. So by making the process very difficult they can cut down on the numb...
by Chip
Mon Jun 04, 2007 10:08 am
Forum: Investing - Help with Personal Investments
Topic: trying to get info on stock-questions
Replies: 11
Views: 3108

bonnie, The reason you can't find any historical stock data going back to 1985 is that First Energy (FE) didn't exist before 1997. It was the result of the 1997 merger between Ohio Edison and Centerior. Ohio Edison shareholders received one share of the new company for each share of Ohio Edison; Cen...
by Chip
Thu May 31, 2007 6:37 am
Forum: Investing - Help with Personal Investments
Topic: newbie AA/transition-to-earlyish retirement questions
Replies: 25
Views: 6506

magpiejst,

Are you able to buy individual stocks with your brokerage link? If so, another option would be to buy the new ETF versions of Vanguard's bond funds (ticker symbols BND, BSV, BIV, BLV). Those all have ERs of .11%.
by Chip
Mon May 28, 2007 2:45 pm
Forum: Investing - Theory, News & General
Topic: TIPS
Replies: 79
Views: 33476

It doesn't need to be accurate. The only interesting thing here is the VG spread is 1/2 the size of Fidos I honestly don't believe you can count on that being an accurate conclusion based on data that's available after the close, because you don't know how the different feeds were updated (if at al...
by Chip
Mon May 28, 2007 9:55 am
Forum: Investing - Theory, News & General
Topic: TIPS
Replies: 79
Views: 33476

Stratton,

I'm with Les. I wouldn't be at all confident that figuring the spread via bid/ask prices available after the market close is accurate. It certainly isn't for stock prices.
by Chip
Sat May 26, 2007 10:00 am
Forum: Investing - Theory, News & General
Topic: TIPS
Replies: 79
Views: 33476

Stratton, I've not purchased TIPS on the secondary market, but I have bought regular Treasury notes that way from Fido. I've had no luck at all getting a fill inside the spread. Unfortunately the Fido web site only takes "fill or kill" orders for Treasuries (maybe all bonds?), so putting i...
by Chip
Tue May 15, 2007 1:09 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Pickers
Replies: 41
Views: 14485

Allan, I'm pretty sure that posting here took more guts than plunking down the cash . The screening parameters aren't anything I invented -- they're straight out of O'Shaughnessy's book. There are actually 2 screens, one "growth" and one "value". 25 stocks are picked by each one....
by Chip
Tue May 15, 2007 12:02 pm
Forum: Investing - Help with Personal Investments
Topic: Stock Pickers
Replies: 41
Views: 14485

Hi Taylor, This strategy requires two days a year to implement. I do spend quite a bit of additional time tracking performance, which is a bit of a hobby for me. My fallback position, should I choose not to do this anymore, is a passive portfolio of index ETFs. I recently bought your book. Nice work...
by Chip
Tue May 15, 2007 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Stock Pickers
Replies: 41
Views: 14485

Ok Allan, here they are. These are from my March rebalancing. Only 4 stocks were holdovers from last year. I don't think it's particularly brave of me to post these, since I don't have any emotional investment in any of these positions. All I care about is the bottom line result of this strategy. So...
by Chip
Tue May 15, 2007 11:11 am
Forum: Investing - Help with Personal Investments
Topic: Stock Pickers
Replies: 41
Views: 14485

Dick & Christian, I'm all for saving taxes, but I'm not sure how to implement a loss harvesting strategy in my situation. First, I'm committed to holding each position for a year. 364 days is fine, but selling in December is not, as it's only a nine month hold (I rebalance in March). Second, I'm...
by Chip
Mon May 14, 2007 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Stock Pickers
Replies: 41
Views: 14485

What the heck, I'll bite on the stock picking challenge as well. I'm using O'Shaughnessy's Cornerstone strategies from What Works on Wall Street. It's a mechanical strategy that screens stocks based on several fundamental factors. 50 stocks are bought, then held for a year. The screen is then run ag...
by Chip
Wed May 09, 2007 7:07 am
Forum: Investing - Help with Personal Investments
Topic: What is your age and AA?
Replies: 219
Views: 65001

Age: 52/55
Retired, no pension, no SS, no nuttin'

Equities: 74%
Int'l 8%
Domestic 66%

Fixed Income: 26%
TIPS 15%
ST 6%
Cash 5%
by Chip
Fri Apr 27, 2007 2:23 pm
Forum: Investing - Theory, News & General
Topic: Boundary between upper-middle-class and rich
Replies: 26
Views: 11702

Shelanman,

Nicely written and illuminating post.

Now I fully understand why I won't buy a $5 cup of coffee at Starbucks. :)
by Chip
Thu Apr 26, 2007 10:40 am
Forum: Investing - Theory, News & General
Topic: Poll: Expense Ratio
Replies: 43
Views: 17432

I calculate my weighted average at .06%. I predominately hold individual stocks, with no expense ratio except for commissions (yes, I know about bid/ask spreads, but they're not shown in fund expense ratios either). My fund holdings all raise my ER, with TIP (.2%) and FDRXX (.45%) being the largest ...
by Chip
Thu Apr 26, 2007 9:51 am
Forum: Investing - Help with Personal Investments
Topic: Early Retirement Asset Allocation
Replies: 31
Views: 15288

Hydroman, I also retired early, five years ago. I'm now 52, wife is 54. I based our WR on Bengen's studies and came up with a 3.5% target. Our portfolio is up about 60% since retirement so we've been ratcheting up our withdrawals accordingly. We're at 75/25 stocks/bonds. I think we all tend to belie...
by Chip
Thu Apr 26, 2007 9:15 am
Forum: Investing - Theory, News & General
Topic: Vanguard Brokerage Service - !#%^&
Replies: 3
Views: 1738

Doc,

It was just that kind of "service" that caused me to move my Mom's accounts from VBS 3 years ago. It's not any fun to have to deal with that. Fido has been much better for me in all respects, FWIW.
by Chip
Fri Apr 20, 2007 8:33 am
Forum: Investing - Help with Personal Investments
Topic: Value of a Roth $ vs. a Taxable $
Replies: 4
Views: 1791

I've spent a good bit more time on the problem and have come to a conclusion for my particular situation. Given my expected tax rates, asset growth rates & yields, portfolio turnover & time horizon, a Roth $ is worth somewhere between 20% and 50% more than a $ in a taxable account. The exact...
by Chip
Thu Apr 19, 2007 1:44 pm
Forum: Investing - Help with Personal Investments
Topic: Value of a Roth $ vs. a Taxable $
Replies: 4
Views: 1791

Thanks very much, Al. The formula is exactly what I was looking for. Good point about the unsystematic risk. I'll have to think a while on how to factor that in. I had forgotten about the earlier option discussion . Thanks for reminding me. There was a link to a paper that was worth a read.
by Chip
Thu Apr 19, 2007 12:35 pm
Forum: Investing - Theory, News & General
Topic: Is there an error in annual report for TIPS fund?
Replies: 12
Views: 3574

TIPS do payout more than inflation. If a TIP says it will pay 2.5% above inflation, then you will get a dividend twice a year for inflation plus 2.5%. Period. End of story. Sorry, but that's not correct for individual TIPS. The semi-annual payment is .5*coupon rate*inflation-adjusted principal. One...
by Chip
Thu Apr 19, 2007 8:34 am
Forum: Personal Finance (Not Investing)
Topic: The Yankee Or Dixie Quiz
Replies: 51
Views: 24967

That was fun! 73% Dixie here, y'all. I guess living in the South for all but 2 years between ages 14 and 38 was a strong influence, despite having been away for the first and last 14 years.
by Chip
Thu Apr 19, 2007 8:16 am
Forum: Investing - Help with Personal Investments
Topic: Value of a Roth $ vs. a Taxable $
Replies: 4
Views: 1791

Value of a Roth $ vs. a Taxable $

It's clear that being able to take a dollar out of a taxable account and put it into a Roth has some value because it eliminates tax drag. I'd like to figure out how much it's worth, in terms like "a dollar in a Roth is worth $X in a taxable account", where X>1. I'm considering an early ex...
by Chip
Wed Apr 18, 2007 3:17 pm
Forum: Personal Finance (Not Investing)
Topic: OT- going to Dublin
Replies: 4
Views: 2118

That's hilarious.

They must have some descendants of Aquaman working at Google Maps. The time works out to about a 5 mph swimming speed.
by Chip
Wed Apr 18, 2007 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Pruning and weeding my portfolio
Replies: 9
Views: 3522

Sumo, The plan seems reasonable to me, though there is something to be said for getting something like this done as quickly as possible so you can quit worrying about it. Some random thoughts: You didn't mention your capital gain exposure. You might want to consider that when deciding which funds to...
by Chip
Wed Apr 18, 2007 8:07 am
Forum: Investing - Theory, News & General
Topic: Portfolio Shift - from Accumulate to Withdrawl
Replies: 19
Views: 7819

Dale, Thanks for the link. It's another good article. I read a lot of these things as well -- Bengen's writings from the mid-90s became the foundation of my retirement withdrawal plan. Did you notice that the authors assumed a 1% advisor fee/expense ratio for the assets? Though I didn't study the ar...
by Chip
Mon Apr 16, 2007 5:50 am
Forum: Investing - Theory, News & General
Topic: Quick SWR question
Replies: 12
Views: 3869

EmergDoc, I think one issue is that most of us may be less flexible in our spending than we think when it actually comes time to bite the bullet. After 6 years of retirement I'm seeing that at my house, though I classify about a third of our spending as discretionary. I would suggest that someone wh...
by Chip
Sat Apr 14, 2007 9:19 am
Forum: Investing - Help with Personal Investments
Topic: Investing a Windfall
Replies: 11
Views: 4435

Gretchen, As Sidney said, you might consider a Treasury ladder if you're willing to put in a few minutes every few months to make the purchases. There's no commission at Fidelity if you use the web site to place the order. I've been doing this at Fido for a few years, using two year notes spaced eve...
by Chip
Sat Apr 14, 2007 4:41 am
Forum: Personal Finance (Not Investing)
Topic: More Computing Nostalgia - Slide Rules
Replies: 62
Views: 25735

Great story about the TI, vickie. That must have been one heckuva letter you wrote :) .
by Chip
Thu Apr 12, 2007 9:08 am
Forum: Investing - Theory, News & General
Topic: Admiral Shares through E*Trade
Replies: 4
Views: 1722

Bob, A bit off topic, but I can confirm that if you already have Admiral shares at Vanguard, you can move them to another firm without losing Admiral status. I did this with a couple of my Mom's Vanguard bond funds 3 years ago. They still have Admiral status, and she is able to reinvest dividends in...
by Chip
Thu Apr 12, 2007 7:39 am
Forum: Personal Finance (Not Investing)
Topic: More Computing Nostalgia - Slide Rules
Replies: 62
Views: 25735

Bylo, Thanks for the links! I had a good friend who spent his career in engineering and management at HP. He used to tell the HP-35 "fit in a shirt pocket" story with a little embellishment. According to him, the HP engineers worked their butts off to get a working prototype into a small f...
by Chip
Wed Apr 11, 2007 12:58 pm
Forum: Personal Finance (Not Investing)
Topic: More Computing Nostalgia - Slide Rules
Replies: 62
Views: 25735

Wow, some great memories here. IIRC the metal vs. bamboo debates were occasionally as intense as the PC vs. Mac debates of today. I had a Dietzgen bamboo rule in high school, complete with belt case. Surprisingly, even at that age, I knew wearing it on the belt was nerdy. Unfortunately I didn't real...