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Hank said ; Good grief. This stuff is complicated!
So complicated that the Fidelity rep got it wrong. It wouldn't be the first time. Recently in passing I commented to a rep that QCDs are available once one is 70½. He immediately "corrected" …
I’ll continue to learn. Experience is a great teacher - but it can be expensive.
I've found that the more expensive the lesson, the more likely one is to remember it in the future :-)
Umm … Just to clarify … Fido doesn’t appear to call those “short…
Based on what you were told, I may have misunderstood Fidelity's response. There are three ways fees could be imposed:
1) LIFO - if you purchased any shares within the past 30 days, a sale, even of different shares, would trigger a fee. Fideli…
1. Anticipating your question, I called Fidelity a couple of weeks ago. While I have nothing in writing, the front line support person checked with someone in the back and verified that NTF short term trading fees apply FIFO. (The policy could …
Schwab's platform fee discsloure to 403(b) plans includes:
Transaction-Fee Funds (“Fee Funds”)
As set forth in the Commissions and Transaction Fees section of the Charles Schwab Pricing Guide for Individual Investors, Schwab charges clients a trans…
So long as one has an open position in a taxable account, I feel it is important to retain some proof of purchase price. One may need all the monthly statements because there are no trade confirmations for reinvested divs.
If one has been reporti…
There were about a dozen separate accounts because TRP created an account for each mutual fund, for some odd reason.
My understanding (read: no citations, I could be in mistaken) is that until sometime in the 80s(?), each mutual fund investment at …
Schwab seems to have the clearest description of violations and how they can/must be treated by the broker ("creditor" in the regs). The rules come from Regulation T, and in particular §220.8 covering cash accounts.
https://www.schwab.com/resourc…
I must not have been paying attention. While Schroder has been submanaging several Hartford funds for some time, it looks like they have also been moving out of the retail business. They currently have just two US funds still marketed under thei…
Here's a little more info:
Freeriding
In a cash account, an investor must pay for the purchase of a security before selling it. If an investor buys and sells a security before paying for it, the investor is “freeriding” which is not permitted unde…
Certainly RPEIX is not the primary driver, even if we take its 1/6 naively at face value. (I had considered posting a link to an explanation of notional value somewhere else in this thread.)
RPIEX (retail class of RPEIX) serves as starting point f…
The largest single holding (1/6 of the portfolio) is T. Rowe Price Dynamic Global Bond (RPEIX / RPIEX). That's where the magic may be be coming from.
A simple 18/82 blend of VTSAX and RPIEX produces a portfolio with
- lower standard deviatio…
On an every-day experience level we just came back from Safeway having purchased a favorite flavor of Hagen-Daz ice cream. I thought that the cartons looked a bit smaller than before. Sure enough, down from 1 pint (16 oz) to 14 oz. We have no idea w…
The best I was able to do (helping someone else with their account) was to liquidate, rollover cash electronically to an IRA run by the same institution, buy ETFs (no commission), then transfer the IRA in-kind to the place where the friend really wa…
Is this the same calculation used to determine the new IRMAA brackets for Medicare premiums?
DavidSeveral differences. Whether the numeric difference is significant I leave for you to decide.
SS: based on CPU-W
IRMAA: based on CPI-U
SS: Y/Y comp…
In theory, bank loans are not subject to interest rate risk because they are floating rate loans. Their theoretic effective duration should be zero. Their actual duration is not zero, but it is close.
Still, as you point out, they are junk bond…
"Does Zero coupon bonds behave differently from other bonds in rising rate environment?"
Yes and no. Like all vanilla bonds, their price moves opposite to interest rate changes, and their longer the duration the more they move. So qualitatively…
One recommendation that troubled me was to own long dated zero coupon bonds. He may, of course, be proven correct. But these are dangerous in the hands of unsophisticated investors. The way they’re issued has the effect of creating enormous leverage…
While I don't think I'll be buying ZROZ any time soon (long term Treasuries and zeros suggested: 19:30 mark, 20:30 mark), I do agree with Kessler's characterization of savings bonds as savings, not investing (21:20 mark).
There was a difference betw…
I do happen to know that when it comes to health care, Ireland's system provides diabetics anything and everything they need, for free to the individual. Of course, taxpayers ultimately "foot the bill." No surprise there. And I don't have the figur…
" Capitalism does not care about people, only profit. Capitalism, well-oiled, maximizes profit."
Just two words, and they aren't "Milton Friedman". Hobby Lobby. A company is free to act on its religious beliefs. Didn't you know that companies h…
If I'm reading comments correctly, @crash is positing that by the nature of capitalism employers must maximize profits to the exclusion of all else. @carew388 doesn't seem to be disagreeing with this premise. Rather he is adding the observation th…
I understand that neither DFA nor Adventis ETFs are index based funds. Some elements of factor based are used, and thus they are considered actively managed. Just want to learn more information on their strategies. Loaded terminology, "index base…
I should have said: the magnitude of the relative underperformance of value with respect to growth in the past three years is unprecedented. This is clear from DFA's bar chart reproduced above. Also evident from that chart is value's relative b…
DFA's value proposition, no pun intended, is that value performs better over the long term. Further, that the relative underperformance of value with respect to growth in the past three years is unprecedented.
https://www.dimensional.com/us-en/i…
Also, even if the Fed decides development and installation of CBDC technology is adviseable, it appears that additional authority will need to be provided by Congress (See Link 1, Link 2, and Link 3).
The BPI write ups are quite informative, but…
Makes sense. Using the MMA as a buffer reduces the number of transactions with RPHIX. That not only cuts down on transaction fees, but reduces the headache of keeping track of cap gains. And over the period of a year or so, you should not lose m…
The "unbanked" would have an incentive to open an alternative type of bank account if it could be designed to provide them with rapid, low cost access to benefits such as the recent stimulus payments. And, having the unbanked open those accounts ma…
Keep in mind that the magnitude of the final difference over ten years is affected by the volatility of the returns and by the magnitude of the returns. Just a way of saying that past performance is not a guarantee of future results.
I prefer i…
From the St. Louis Fed (reporting BLS data), using 1967 as baseline, the estimated CPI for 2021 is 792.5. The CPI for 1861 was 27.
https://www.minneapolisfed.org/about-us/monetary-policy/inflation-calculator/consumer-price-index-1800-
That would…
Thanks for the links. Lots to wade through.
Just looking at the first part of the BPI report helps to explain some of my confusion. It notes that "digital money includes commercial bank money, central bank money, and any future CBDC [central…
Now we're reaching well into the realm of diversions.
You cannot spend unrealized gains.
What's being taxed is what we get in, i.e. income, regardless of whether it is spent or saved. If you want to switch what's being taxed from what we get in…
ProPublica did its usual thorough job in crunching numbers, with thoughtful and transparent methodology. See, e.g. https://www.propublica.org/article/how-we-calculated-the-true-tax-rates-of-the-wealthiest
That said, I agree that the press release…
Call me dense on this subject, but ISTM we already have virtual dollars. Years ago, when the government printed money, it really printed it. Now the Fed just adds virtual dollars electronically to banks' reserves. Voila, instant, albeit virtual,…
Yes, candidates for comptroller. There's one name (and face) that should be familiar to people here. See if you can pick that candidate out from the crowd:
One can be very conservative, or very liberal, and also be intelligent.
When I see elected officials like this, I'm reminded of a comment made of Nixon nominee G. Harrold Carswell at his confirmation hearing: "Even if he is mediocre, there are …
Unfortunately, users “exhibit a staggering lack of imagination and select very predictable numbers,” reports The Guardian. Three very simple combinations — 1234, 1111 and 0000 — account for 18.6 percent of all PINs in use.
Thinking about the original question, I've tried to take a step back and reformulate the question a bit: what is a bond, and why would one own a bond (or in the aggregate a bond fund)?
From a business finance perspective, a bond is a way to raise c…
When a fund's performance suddenly takes a nosedive or soars into the stratosphere, there are a few things I check before even delving into the fund's details:
- Is the performance naturally volatile, bouncing from top quintile to bottom? Not here…
