Comments on: Simplifying Finances: Recent Trades http://thefinancebuff.com/2007/03/simplifying-finances-recent-trades.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: TFB http://thefinancebuff.com/2007/03/simplifying-finances-recent-trades.html/comment-page-1#comment-122 TFB Sun, 29 Apr 2007 17:14:00 +0000 http://blog.thefinancebuff.com/?p=93#comment-122 Yoroku,<br/><br/>I'm glad you like my blog. As far as the cost of selling goes, I don't think it's going to be a big issue unless you *trade* bonds opportunistically. I've never sold Treasurys at Fidelity. I never had to because I'm a net buyer of everything. If I want to reduce my allocation to Treasurys, I just stop buying and direct my new investment elsewhere. Even if I must sell Treasurys though, I think Fidelity promises transparent pricing, which means it does not add a markup, but only charges the disclosed commission. The bid/ask spread on Treasurys is very small. For example here's a quote on a random Treasury note from Fidelity: CUSIP 912828FD7 4/30/2011 @ 4.875% bid 101.014 ask 101.088. The difference is 0.07%. Yoroku,

I'm glad you like my blog. As far as the cost of selling goes, I don't think it's going to be a big issue unless you *trade* bonds opportunistically. I've never sold Treasurys at Fidelity. I never had to because I'm a net buyer of everything. If I want to reduce my allocation to Treasurys, I just stop buying and direct my new investment elsewhere. Even if I must sell Treasurys though, I think Fidelity promises transparent pricing, which means it does not add a markup, but only charges the disclosed commission. The bid/ask spread on Treasurys is very small. For example here's a quote on a random Treasury note from Fidelity: CUSIP 912828FD7 4/30/2011 @ 4.875% bid 101.014 ask 101.088. The difference is 0.07%.

]]> By: 与六　Yoroku http://thefinancebuff.com/2007/03/simplifying-finances-recent-trades.html/comment-page-1#comment-121 与六　Yoroku Sun, 29 Apr 2007 09:10:00 +0000 http://blog.thefinancebuff.com/?p=93#comment-121 Hi tfb,<br/><br/>I enjoy reading your blog. I am curious under what circumstances bond ETFs are more advantageous than Treasuries. Do Treasuries cost more than bond ETFs in case they need to be sold? <br/><br/>My answer is no for Fidelity silver and bronze investors. Fidelity charges $19.95 for Treasuries ($0 for purchasing, $19.95 for selling) and $21.90 for ETFs ($10.95 each way if you are silver). Meanwhile, bond ETFs have an advantage at Zecco and other brokers where trading is free. Is this correct? <br/><br/>Have you ever sold Treasuries before maturity at Fidelity? Any widened bid/ask spread or hidden fees?<br/><br/>Thank you.<br/>Yoroku Hi tfb,

I enjoy reading your blog. I am curious under what circumstances bond ETFs are more advantageous than Treasuries. Do Treasuries cost more than bond ETFs in case they need to be sold?

My answer is no for Fidelity silver and bronze investors. Fidelity charges $19.95 for Treasuries ($0 for purchasing, $19.95 for selling) and $21.90 for ETFs ($10.95 each way if you are silver). Meanwhile, bond ETFs have an advantage at Zecco and other brokers where trading is free. Is this correct?

Have you ever sold Treasuries before maturity at Fidelity? Any widened bid/ask spread or hidden fees?

Thank you.
Yoroku

]]> By: TFB http://thefinancebuff.com/2007/03/simplifying-finances-recent-trades.html/comment-page-1#comment-97 TFB Fri, 30 Mar 2007 00:08:00 +0000 http://blog.thefinancebuff.com/?p=93#comment-97 All sales were from tax deferred accounts. EFV was bought in taxable account. You do get stuck with some holdings in taxable accounts. I have iShares Emerging Market Fund (EEM) in my taxable account. I would like to explore either switching to VWO or just bundling it into the new Vanguard FTSE Ex-US fund (VEU), but with 100%+ built-in appreciation, by my calculation it will take more than 30 years to break even if I sell it and pay tax now. Oh well ... I'm stuck, but not in a bad way. All sales were from tax deferred accounts. EFV was bought in taxable account. You do get stuck with some holdings in taxable accounts. I have iShares Emerging Market Fund (EEM) in my taxable account. I would like to explore either switching to VWO or just bundling it into the new Vanguard FTSE Ex-US fund (VEU), but with 100%+ built-in appreciation, by my calculation it will take more than 30 years to break even if I sell it and pay tax now. Oh well … I'm stuck, but not in a bad way.

]]> By: indexfundfan http://thefinancebuff.com/2007/03/simplifying-finances-recent-trades.html/comment-page-1#comment-96 indexfundfan Thu, 29 Mar 2007 20:34:00 +0000 http://blog.thefinancebuff.com/?p=93#comment-96 Are the trades in tax-deferred accounts or taxable accounts? For a taxable account, one would usually get stuck with some holdings due to tax reasons. Are the trades in tax-deferred accounts or taxable accounts? For a taxable account, one would usually get stuck with some holdings due to tax reasons.

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