Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
  • REITS moves in portfolio
    I had an order kick in for Builders Firstsource, BLDR, today after dropping ~18%. The stock had quite a drop. It's down ~24% from its recent high...fwiw.
  • "Our service is terrible but we'll charge you $100 to transfer your account."
    Update on account transfer from Vanguard.
    May 1st after market Close, I submitted the request at Schwab.
    On May 2nd, without any alert / notification, Vanguard promptly cancelled my buy order and did not allow me to cancel my sell order. Simultaneously, Vanguard liquidated my sweep account into cash.
    May 3rd Friday AM, my vanguard sell order settled and cash from settlement was added to the account.
    May 3rd Friday, around 10PM, I submitted a transfer request to Fidelity to transfer assets from TD that I consider potentially not permanent assets.
    May 7th (Tuesday) before market open, TD asset transfer complete and assets are in my Fidelity account.
    Vanguard is still sitting on my assets and cash (earning no interest) and no indication of when they would transfer those assets. How do you like the non-profit and customer owned company's service? You would not go to the lowest cost health care service provider, why would you keep touting how Vanguard are the lowest cost brokerage / investment company?
  • ⇒ All Things Boeing ... Machinist Union Accepts Latest Boeing Contract Offer
    For BA: Just another brick in the wall. One thing after another. After another. Ya, rockets are complicated. Oxygen relief valve. Yes, sounds dangerous.
    Reminds me of Apollo I, but after that horrible fire, NASA stopped using a pure oxygen atmosphere in their space vehicles. I don't suppose the scrubbed current mission was using pure oxygen, either.....
    https://en.wikipedia.org/wiki/Apollo_1
  • Fidelity raising fees on Vanguard and Dodge & Cox + several ETFs on 06-03-24

    I had always assumed that when they said "Fidelity charges a short-term trading fee each time you sell or exchange shares of a FundsNetwork NTF fund held less than 60 days." they meant actual share lots. Is there a Fidelity link where the FIFO logic you have outlined is spelled out or is this based on your experience / Fido CS information?
    Just personal conversations with Fidelity (I think I've covered this multiple times with Fidelity, though it's only the last conversation I remember for sure.)
    It makes sense. Fidelity wants to make sure it profits from holding shares (i.e. makes more in shelf-space fees from the fund than it cost them to execute the trade). So it only needs to hold a share for a couple of months. From this perspective, FIFO works fine. Suppose you buy 100 shares in each of Jan, Feb, and Mar. If you sell 100 in each of April, May, and June, you'll have held for an average of three months - enough time for Fidelity to recoup its costs.
    That's all that matters. Fidelity isn't trying to gouge the way some banks did with checking accounts - debiting your largest check first so that they could charge you multiple overdraft fees instead of debiting your smallest checks first so that only the last, big check generated an overdraft.
  • "Our service is terrible but we'll charge you $100 to transfer your account."
    FWIW: In 27 years, Schwab has never pushed anything on me, nor even hinting at it with one exception: They did when they came out with their "Robo Advisor" 8-10 years ago.
    I told them I was not at all interested, and they've never brought it up again.
  • Fidelity raising fees on Vanguard and Dodge & Cox + several ETFs on 06-03-24
    Yes. Your lot selection is for tax purposes only. STTFs at Fidelity are FIFO.
    For example, if you purchased lots on Jan 3 and Feb 22, and sold the Feb 22 lot on April 12, you would not incur a STTF even though you held those particular shares for less than 60 days.
  • "Our service is terrible but we'll charge you $100 to transfer your account."
    @yugo, "Incidentally, I was also told that one can trade against their mm fund balance at Merrill - the same way one can do, say, at Schwab - can anyone confirm this?)"
    That would be Fidelity, NOT Schwab.
    I have to move $s manually at Schwab as its m-mkt funds settle T+1.
  • "Our service is terrible but we'll charge you $100 to transfer your account."
    Merrill? 4.71%, but that's non-sweep and requires a $100K min.
    I think this is in reference to their
    Preferred Deposit account. If so, this is only an initial investment min, hence one would conceivably put in $100K then take them out leaving, say, $1 and then add/withdraw funds as needed - manually, as this is indeed a non-sweep account. I believe they also have several sweep accounts paying 5.17% atm, but these require a greater commitment shown here.
    The Preferred Deposit disclosure does not seem to require maintaining any particular balance. However, minimum additional deposits must be at least $1K and withdrawals must be in whole dollars. In addition, only whole dollars of interest are automatically deposited. The remaining cents go into your core ("Primary") account.
    https://olui2.fs.ml.com/Publish/Content/application/pdf/GWMOL/PreferredDepositDisclosure-446700PM.pdf
    The same is true of MMFs that accept only whole dollar amounts (that's based on experience). The MMFs that have this restriction are those that settle same-day. See here:
    https://olui2.fs.ml.com/Mutualfunds/MFBDCashManagement.aspx
    The "greater commitment" is paying Merrill to manage your money. Footnote (1):
    [Your account must be enrolled in] (1) the Merrill Lynch Investment Advisory Program, (2) the Merrill Lynch Strategic Portfolio Advisor Service; (3) the Merrill Lynch Managed Account Service; (4) the BlackRock Private Investors Service; (5) the Merrill Guided Investing Program; (6) the Merrill Guided Investing with Advisor Program; [or] (7) the Merrill Edge Advisory Account program.
    If you're going to make that sort of commitment, then you might as well pay Vanguard 0.30% for its hybrid advisory service - that will get you phone call service even if you're not calling about a transaction. And you won't have to pay extra for it. (Vanguard's announcements including restricting phone service to calls about trades and adding a $25 charge.)

    Incidentally, I was also told that one can trade against their mm fund balance at Merrill - the same way one can do, say, at Schwab - can anyone confirm this?)
    Was Schwab a guess or have you done this? Fidelity does this automatically, though I'm not clear on their order of precedence if one has multiple MMFs in the same account.
    If Merrill does offer this, it is not automatic. My account shows an available trading balance of essentially zero, even though I have several dollars in a MMF. A test trade for a share of stock costing less than my MMF balance returns:
    "This order entered exceeds the maximum trade value for this account."
    Here's an older (2016) disclosure that suggests automatic withdrawals may be possible.
    In addition to your Primary Money Account, you may be able to choose additional cash sweep options or “manual alternatives” that provide automatic withdrawal/redemption only. Depending on your account type, manual alternatives may include bank deposit programs, money market mutual funds or the Insured Savings Account (ISA®),1 a limited transaction deposit program.
    Note that I've not found any newer disclosure with this info, and the latest (2024) sweep program guide has no mention of this feature.
    https://olui2.fs.ml.com/publish/content/application/pdf/GWMOL/Sweep-Program.pdf
    Finally, you may find this thread on MyMoneyBlog helpful:
    https://www.mymoneyblog.com/merrill-edge-brokerage-cash-sweep-options.html
  • "Our service is terrible but we'll charge you $100 to transfer your account."
    But it also used to be that a Private Client customer at Fidelity was assigned a specific rep. No more at either brokerage.
    Fidelity still assigns you an individual Premier Services Advisor.
    @msf did they also used to assign another kind of "specific rep" as well?

    As a matter of fact, they've assigned a Private Access Account Executive, a Private Client Group Account Executive (same person, different title), a Senior Account Executive (same person), an Account Executive (same person), and a Financial Consultant (same person).
    Then the musical chairs began. No title changes, but in the span of three years, three different "Financial Consultants". Then a year later, when the last one left Fidelity, I was not assigned any specific rep, whatever title you wish to give to them.
    @msf I think you might want to consider calling Fido and just asking for one.
    In my case, I was offered an individual PSA several times, but declined because I thought it might lead to more marketing, to which I am quite averse. Finally, something made me try, so I just let them know and was promptly assigned one.
    Merrill? 4.71%, but that's non-sweep and requires a $100K min.
    I think this is in reference to their Preferred Deposit account. If so, this is only an initial investment min, hence one would conceivably put in $100K then take them out leaving, say, $1 and then add/withdraw funds as needed - manually, as this is indeed a non-sweep account. I believe they also have several sweep accounts paying 5.17% atm, but these require a greater commitment shown here.
    (To be clear, I've never had a Merrill account before but have recently decided to try them out and am in the process of transferring some funds over. The above information has been confirmed with a phone rep, but I have not had a chance to verify it myself.
    Btw, so far I have found their customer service to be surprisingly helpful and competent, though I have only had minor issues to address until now. One odd thing I've encountered with Merrill is that they do not allow you to ACAT in-kind any money market funds - even those that Merrill itself offers - which is a bit of a nuisance, iyam.
    Incidentally, I was also told that one can trade against their mm fund balance at Merrill - the same way one can do, say, at Schwab - can anyone confirm this?)
  • ⇒ All Things Boeing ... Machinist Union Accepts Latest Boeing Contract Offer
    10/18/24:
    Here are excerpts from a current report in The Guardian:
    The Federal Aviation Administration (FAA) said on Friday it will open a three-month review of Boeing’s compliance with safety regulations, continuing the agency’s closer oversight of the company since a panel blew off a Boeing jetliner during an Alaska Airlines flight in January.
    The FAA said its review will examine key areas of safety processes at Boeing to make sure that they “result in timely, accurate safety-related information for FAA use”.
    An FAA spokesperson said the review was not triggered by any particular event or concern but rather is part of the FAA’s oversight of safety culture at the huge aircraft maker.
    Boeing did not comment immediately on the new review.
    The FAA administrator, Mike Whitaker, has ordered special audits of Boeing and other steps to examine the safety culture at the company since a panel called a door plug blew off a 737 Max during the Alaska Airlines flight.
    However, the inspector general of the transportation department, the FAA’s parent agency, said last week that weaknesses in FAA oversight are limiting its ability to find and fix problems at Boeing.
    The auditor said the FAA has failed to ensure that Boeing and its suppliers make parts that meet engineering and design requirements and to investigate claims that Boeing puts improper pressure on employees who are authorized to conduct safety inspections. The FAA has closed only 14 of 34 reports of undue pressure, with the others remaining open for more than a year on average, according to the report.
    Last month, the National Transportation Safety Board issued an “urgent” recommendation to the FAA about a problem that surfaced in February with rudders that pilots use to steer certain Boeing 737s after landing. Two weeks later, the FAA later issued a safety alert to airlines about the matter.
  • New Rules Change by FDIC
    Until the FDIC stops protecting uninsured depositors, this change is largely form without substance.
    A few sentences from a NYTimes subscriber-only opinion piece (May 1, 2024)
    https://www.nytimes.com/2024/05/01/opinion/fdic-insurance-banks.html
    When Banks Fail, Why Do We Keep Bailing Out Uninsured Depositors?
    [Michael] Ohlrogge, an associate professor at New York University Law School, argues that when banks fail, the F.D.I.C. is not resolving them in the manner that is least costly to its Deposit Insurance Fund.
    ...
    It stands to reason that the cheapest way to resolve a bank failure in many cases — maybe most cases — would be to tell those uninsured depositors that their money is gone: “Sorry. See ya, Wouldn’t wanna be ya.”
    But in a vast majority of bank failures, the F.D.I.C. approves a resolution in which the uninsured depositors don’t lose a penny [at typically higher cost].
    ...
    Ohlrogge speculates that the F.D.I.C. is experiencing “mission creep,” taking on a responsibility for uninsured depositors that it was never assigned.
    This is a copywrited, paywalled piece. I'm not going to reproduce more here. Ohlrogge's paper, Why Have Uninsured Depositors Become De Facto Insured? (Nov 15, 2023) is freely available and covers the material in more detail.
    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624095
    I like to think that people here understand fair-use the way we understand that we are not offering investment advice; but I always enjoy reading your stuff because you do it so well. Thank you.
  • ⇒ All Things Boeing ... NASA may send Starliner home without its crew
    Betting on America, I bought BA stock in the after hours as I did not see the launch being cancelled yet.
    and then this -
    https://apnews.com/article/faa-boeing-787-inspection-investigation-4b6ac28d8ab0d7687112e2cbb7bf6e00
    This is how a culture problem looks like. The rot has gone to all the levels of the company. The company is operating like a mafia and it must be demoralizing to the few honest workers there and they probably fear for their safety everyday. May be it is time to force the sale of Boeing to another well run company (or group of companies), I know it is unAmerican to do that but the company is too important to our economy to wait for market forces to take effect. I forget it is election year and no one will want to do anything constructive.
  • Best Fund Managers?
    I remember Josh Peters, and mention of him sent me on a search. After leaving M* he went to Oppenheimer funds but that lasted only 19 months. After that he formed an advisory firm but now works for an outfit called Morgan Dempsey. Fair amount of moving around.
  • ⇒ All Things Boeing ... NASA may send Starliner home without its crew
    But the Shuttles used multiple, smaller rockets, eh?
    Umm … I wouldn’t put it that way. Very different vehicles. Probably the 5-engine first stage of the Saturn V had more thrust than the 3 onboard shuttle engines working alone. But the Saturn didn’t have the 2 solid rockets strapped to it. And the first stage of the Saturn dropped off into the ocean after only a couple minutes, while the shuttle’s engines propelled it all the way into earth orbit.
    The Saturn’s first stage had 5 engines. And the complete Saturn “stack” was a 3-stage monster (3 rockets stacked on top of one another vertically). Much different from how the shuttle operated.
    The space shuttle had awesome power. Leaped off the pad. The 2 strapped-on solid boosters really jacked it off the bad. Solid fueled. Not dissimilar to sitting on a keg of dynamite and lighting it. Problem is - you can’t throttle them back or shut them off once they are lit like you can a liquid fueled engine (like the shuttle’s main engines). That makes them inherently more dangerous for use on crewed flights.
    The space shuttle had 3 gigantic liquid fueled engines. Those returned to earth with the shuttle at mission’s end (but were not used in the landing process) Not only could they be throttled up or down, but they could be gimbled for steering control. Something those solids weren’t capable of. Yes. So much power. The Saturn 5 was much slower getting off the pad. Felt like watching a slow motion movie. If anybody hasn’t watched Apollo 13 with Tom Hanks please do so immediately. You won’t regret it.
    Oops. Sorry @Old_Joe. This rambling probably belongs in off-topic. Thanks for alerting us to the Starliner launch. Hope it works out well.
  • ⇒ All Things Boeing ... NASA may send Starliner home without its crew
    This "space stuff" fascinates me. I was interested to see that the Space Shuttles' liftoff thrust is a bit more powerful, in relative terms, even than the Saturn V, which brought men to the Moon in July of 1969. But the Shuttles used multiple, smaller rockets, eh?
    https://www.clickorlando.com/moon-landing/2019/07/08/heres-how-the-saturn-v-rocket-compares-to-todays-rockets/
  • Does Fidelity provide free M* Premium Access?
    @msf, intrigued by the WayBack (Time) Machine, I explored it some today. It's a fantastic tool for researching the web history.
    @hank noted in January that there weren’t many archives of MFO. But when one of the members visits the WayBack Machine, he/she can also archive with “Save Page Now” on that day.
    https://www.mutualfundobserver.com/discuss/discussion/61882/way-back-machine-mfo-pages-from-11-22-2-23-6-23/p1
    For example, I archived MFO TODAY, 5/6/24, at WayBack Machine,
    https://web.archive.org/web/20240506205524/https://www.mutualfundobserver.com/discuss/
  • New Rules Change by FDIC
    Until the FDIC stops protecting uninsured depositors, this change is largely form without substance.
    A few sentences from a NYTimes subscriber-only opinion piece (May 1, 2024)
    https://www.nytimes.com/2024/05/01/opinion/fdic-insurance-banks.html
    When Banks Fail, Why Do We Keep Bailing Out Uninsured Depositors?
    [Michael] Ohlrogge, an associate professor at New York University Law School, argues that when banks fail, the F.D.I.C. is not resolving them in the manner that is least costly to its Deposit Insurance Fund.
    ...
    It stands to reason that the cheapest way to resolve a bank failure in many cases — maybe most cases — would be to tell those uninsured depositors that their money is gone: “Sorry. See ya, Wouldn’t wanna be ya.”
    But in a vast majority of bank failures, the F.D.I.C. approves a resolution in which the uninsured depositors don’t lose a penny [at typically higher cost].
    ...
    Ohlrogge speculates that the F.D.I.C. is experiencing “mission creep,” taking on a responsibility for uninsured depositors that it was never assigned.
    This is a copywrited, paywalled piece. I'm not going to reproduce more here. Ohlrogge's paper, Why Have Uninsured Depositors Become De Facto Insured? (Nov 15, 2023) is freely available and covers the material in more detail.
    https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4624095
  • ⇒ All Things Boeing ... NASA may send Starliner home without its crew
    CAPE CANAVERAL, Florida (Reuters) -Boeing's new Starliner astronaut capsule was poised for launch on Monday night on a much-delayed first crewed test flight to orbit, as the company scrambles to compete with Elon Musk's SpaceX for a greater share of lucrative NASA business.
    The CST-100 Starliner with two astronauts aboard was due for liftoff at 10:34 p.m. from NASA's Kennedy Space Center in Florida, carried atop an Atlas V rocket furnished by the Boeing-Lockheed Martin joint venture United Launch Alliance (ULA).
    Hoping for the best on this one.
    Background Info from Wickipedia:
    Atlas V is an expendable launch system and the fifth major version in the Atlas launch vehicle family. It was originally designed by Lockheed Martin, now being operated by United Launch Alliance (ULA), a joint venture between Lockheed Martin and Boeing. It is used for DoD, NASA, and Commercial payloads. It is America's longest-serving active rocket. After 87 launches, in August 2021 ULA announced that Atlas V would be retired, and all 29 remaining launches had been sold. As of January 2024, 17 launches remain. Other future ULA launches will use the new Vulcan Centaur rocket.
    Each Atlas V launch vehicle consists of two main stages. The first stage is powered by a Russian engine manufactured by Energomash and burning kerosene and liquid oxygen. The Centaur upper stage is powered by one or two American RL10 engine(s) manufactured by Aerojet Rocketdyne and burns liquid hydrogen and liquid oxygen. Strap-on solid rocket boosters are used in most configurations.
  • Best Fund Managers?
    @bee - That's a fair question and one that I honestly can't answer with any degree of certainty. I can relate how it pertains to me but that's about it.
    1) Most of my DG portfolio holdings were bought at depressed valuations (on sale if you wish). I probably wouldn't buy most of them today because of stretched valuations but I would, and do, pick at them when the opportunities present themselves. I think stock selection is as important as the dividend growth potential.
    2) The current combined yield is 5.8% (at today's equity values) which easily funds my needs and then some without having to sell any shares.
    3) Selling shares at some point in the future would of course decrease the income generated or would it? The income from this portfolio has doubled since I established it and that's without the benefit of dividend reinvestment.
    4) Which leads me to this point * where would you be dummy (me) if you had reinvested those dividends!!!???* Ah, if only.
    I'm going to try to set up the portfolio in PV (Portfolio Vision) and see what it says. To be honest I never gave it much thought (silly right?) because I was focused on income generation and hopeful CG's.