I have not made any purchases of the Black Rock or Invesco target date ETF funds, but the products seem reasonable. What I couldn't figure out from the literature was how PAR value at maturity was calculated. I called Black Rock and they said all their iShares products have a target NAV of about $25 at maturity. Apparently it is difficult to normalize the price of the basket of bonds in the fund to exactly $25. My other observation is that excepting Treasuries, the funds do not have products that extend much beyond 5 years - including TIPS, corporate, municipals and high yield. I will probably test drive one of the products later in the year.
1) Will Fidelity do an electronic transfer from your Fidelity 403B into a Fidelity Rollover?
2) Will Schwab do a electronic transfer from the Fidelity Rollover to a Schwab Rollover? Might avoid the check dance. The company receiving the money generally has more favorable policies for transfers. I am investing my wife's funds from selling her house in a modified dollar cost averaging. 4 installments of investing this year - Jan., Apr., July and at year end. Caught the April low, but looks like a July high. We are both retired for over 10 years and got married about 4 years ago. Her money will stay her money.
OK, I am not completely sold on these products, but I also have not read any coverage in Humble Dollar about them. They are unfortunately named iShares iBonds (I think there's another version called BulletShares by Invesco). They are built for laddering bonds. For example, IBDV targets Dec. 2030 maturity with Investment Grade Corporate bonds. You can also use US Treasuries, US TIPS, Municipals and High Yield baskets. IBDV has a 0.10% net expense ratio with 668 bond holdings. Current NAV is about 21.82 and the target NAV is approximately 25 in Dec. 2030. This target NAV is the same for all iShares iBonds. The large basket of bonds protects against any one bond defaulting. Interest payments occur throughout the life of the bond (monthly?). In principle, one could readily build a ladder knowing what the expected maturity payout is and when it is. ETFs and Mutual Funds have this constantly moving payout date as bonds fall into and out of their target windows. This has been my greatest source of heart burn (e.g. 2022 capital loss) with bond baskets. Choosing bonds, other than US government issued, is a tricky business - not one I wish to learn. The net expense ratio is quite reasonable. Does anyone have any first hand experience with these instruments?
I spent 33 years in oil and gas exploration, so I have a completely different set of prejudices than you. I doubt a discussion between us would prove to be fruitful, so let's try AI I asked ChatGPT, "Why does the price of gas go up faster than it goes down?" The reply follows: The price of gasoline tends to rise quickly but fall slowly due to a combination of market dynamics, psychology, and industry practices. This phenomenon is often referred to as “rockets and feathers” pricing: prices shoot up like rockets and drift down like feathers.
Here’s why that happens:
⛽ 1. Wholesale vs. Retail Price Lag
When oil prices rise, gas stations pay more for their next shipment of fuel. To protect their slim margins, they raise prices immediately.
When oil prices fall, stations typically sell through their more expensive inventory first, delaying price cuts to avoid losses.
🏪 2. Station Competition & Pricing Behavior
When prices rise, all stations tend to move up together to match wholesale increases.
But when prices fall, competition among stations is weaker: no one wants to start a price war by cutting prices too early or too much.
💼 3. Market Power & Retail Strategy
Refineries and wholesalers may increase wholesale prices rapidly when crude oil goes up, but they’re slower to pass along savings.
Gas stations, especially branded ones (Shell, Exxon, etc.), may have less flexibility due to contracts or supply agreements.
🧠 4. Consumer Perception & Inelastic Demand
Gas is a necessity for most drivers. Demand doesn’t drop much when prices rise, so companies know they can raise prices without losing many customers.
But if prices drop, they gain no competitive advantage unless the drop is big enough to attract attention.
🌎 5. Global Factors & Speculation
Crude oil markets react instantly to news, like geopolitical tensions or supply cuts.
That speculation immediately spikes prices, but removing uncertainty doesn’t always create an equal downward push.
In Short:
Gasoline prices go up faster than they go down because:
Sellers respond proactively to costs and cautiously to savings,
There’s asymmetry in competition and consumer behavior,
And global market volatility often pushes prices up faster than market stability brings them down.
Longtime follower of Jonathon Clements, but rarely contribute. Always enjoy reading 'mytimetotravel' posts. I admire how well you have navigated through retirement. It is not particularly relevant to my situation, but I appreciate how you solve problems. Rick Connor offered an excellent example of his mother-in-law's finances. Spending $56k per year with savings of $675k or a burn rate of 8.3% per year. He used Excel to solve the problem using real return rates of 1% and 0%, 13 and 12 years respectively. I would simply divide $675 by $56 and get 12 years. I studied physics in college and worked for 33 years as a geophysicist. In physics, we always make simplifying assumptions to make the math easy, e.g. frictionless surfaces or spherical cows. The trick is to make it as simple as possible, but no simpler. We really have no idea what our return rate or inflation rate will be, but use recent data as estimates. Using a real return rate of 0 makes the problem simple and is possible. The rate of inflation will about equal our investment return rate. A 1% burn rate should last 100 years, given these assumptions. A 2% burn rate will last 50 years, etc. I think you should take a vacation.
Another alternative: Ask your plumber if there is a resale market for used water heaters. Also check the internet for buying or selling used heaters in your area. You could replace your unit with a used heater, which would also save money. The used market may be robust in a large city market. I recently built a new house in Houston, which has different hot water requirements than Philadelphia. In the summer months, there is no cold water. I installed a tankless gas water heater outside the house and of course, the small heating tank froze and burst before we even occupied the house. Most heating units are installed in the attic in our area. This may seem incredibly stupid to some, but just requires proper monitoring and maintenance. I attempted to relocate the heater to inside the house, but rerouting the gas line proved problematic. The electric version drew 117 amps when heating which clashed with the solar panel / battery system I also had in place. I settled on the outside location with a gas unit. It was not chosen to minimize total cost, but my monthly utility bills are lower.
Kristine, always enjoy your articles. I thought you might like to know of a sister program to Meals on Wheels that we have in Houston. Animeals on Wheels delivers pet food to the disabled adults and homebound elderly clients that Meals on Wheels serves, so they do not feel compelled to share their limited food and resources with their pets.Thanks again for all your posts.
Thank you for sharing your fears, victories and hopes. It makes your journey more real and more inspiring. I will find a way to contribute to your legacy, which has already begun.
From Scott Burns website, posted 9/23/24: In his book “Enough,” John Bogle tells an anecdote. Novelists Kurt Vonnegut and Joseph Heller attended a wealthy hedge fund manager’s party.
Vonnegut told Heller their host had made more money in a single day than Heller had made from “Catch-22.”
Heller said, “Yes, but I have something he will never have… enough.” https://scottburns.com/index-investing-the-long-haul-and-your-life/
My grandfather (an attorney) filled out paperwork in VA to transfer trailer ownership to my father circa 1968. For the year of manufacture, he filled in ‘circa 1962’. The application was denied because they had no record of the manufacturer ‘Circa.’
Comments
I have not made any purchases of the Black Rock or Invesco target date ETF funds, but the products seem reasonable. What I couldn't figure out from the literature was how PAR value at maturity was calculated. I called Black Rock and they said all their iShares products have a target NAV of about $25 at maturity. Apparently it is difficult to normalize the price of the basket of bonds in the fund to exactly $25. My other observation is that excepting Treasuries, the funds do not have products that extend much beyond 5 years - including TIPS, corporate, municipals and high yield. I will probably test drive one of the products later in the year.
Post: The Bond Fund Crash: What I Learned When “Safe” Investments Tanked
Link to comment from July 25, 2025
1) Will Fidelity do an electronic transfer from your Fidelity 403B into a Fidelity Rollover? 2) Will Schwab do a electronic transfer from the Fidelity Rollover to a Schwab Rollover? Might avoid the check dance. The company receiving the money generally has more favorable policies for transfers. I am investing my wife's funds from selling her house in a modified dollar cost averaging. 4 installments of investing this year - Jan., Apr., July and at year end. Caught the April low, but looks like a July high. We are both retired for over 10 years and got married about 4 years ago. Her money will stay her money.
Post: In Short-Term Limbo
Link to comment from July 23, 2025
OK, I am not completely sold on these products, but I also have not read any coverage in Humble Dollar about them. They are unfortunately named iShares iBonds (I think there's another version called BulletShares by Invesco). They are built for laddering bonds. For example, IBDV targets Dec. 2030 maturity with Investment Grade Corporate bonds. You can also use US Treasuries, US TIPS, Municipals and High Yield baskets. IBDV has a 0.10% net expense ratio with 668 bond holdings. Current NAV is about 21.82 and the target NAV is approximately 25 in Dec. 2030. This target NAV is the same for all iShares iBonds. The large basket of bonds protects against any one bond defaulting. Interest payments occur throughout the life of the bond (monthly?). In principle, one could readily build a ladder knowing what the expected maturity payout is and when it is. ETFs and Mutual Funds have this constantly moving payout date as bonds fall into and out of their target windows. This has been my greatest source of heart burn (e.g. 2022 capital loss) with bond baskets. Choosing bonds, other than US government issued, is a tricky business - not one I wish to learn. The net expense ratio is quite reasonable. Does anyone have any first hand experience with these instruments?
Post: Bond Conundrum
Link to comment from July 11, 2025
I spent 33 years in oil and gas exploration, so I have a completely different set of prejudices than you. I doubt a discussion between us would prove to be fruitful, so let's try AI I asked ChatGPT, "Why does the price of gas go up faster than it goes down?" The reply follows: The price of gasoline tends to rise quickly but fall slowly due to a combination of market dynamics, psychology, and industry practices. This phenomenon is often referred to as “rockets and feathers” pricing: prices shoot up like rockets and drift down like feathers. Here’s why that happens: ⛽ 1. Wholesale vs. Retail Price Lag
- When oil prices rise, gas stations pay more for their next shipment of fuel. To protect their slim margins, they raise prices immediately.
- When oil prices fall, stations typically sell through their more expensive inventory first, delaying price cuts to avoid losses.
🏪 2. Station Competition & Pricing Behavior- When prices rise, all stations tend to move up together to match wholesale increases.
- But when prices fall, competition among stations is weaker: no one wants to start a price war by cutting prices too early or too much.
💼 3. Market Power & Retail Strategy- Refineries and wholesalers may increase wholesale prices rapidly when crude oil goes up, but they’re slower to pass along savings.
- Gas stations, especially branded ones (Shell, Exxon, etc.), may have less flexibility due to contracts or supply agreements.
🧠 4. Consumer Perception & Inelastic Demand- Gas is a necessity for most drivers. Demand doesn’t drop much when prices rise, so companies know they can raise prices without losing many customers.
- But if prices drop, they gain no competitive advantage unless the drop is big enough to attract attention.
🌎 5. Global Factors & Speculation- Crude oil markets react instantly to news, like geopolitical tensions or supply cuts.
- That speculation immediately spikes prices, but removing uncertainty doesn’t always create an equal downward push.
In Short: Gasoline prices go up faster than they go down because:- Sellers respond proactively to costs and cautiously to savings,
- There’s asymmetry in competition and consumer behavior,
- And global market volatility often pushes prices up faster than market stability brings them down.
End ChatGPTPost: A Rant about the Price of Gas, Part II: Live Experiment
Link to comment from June 13, 2025
Longtime follower of Jonathon Clements, but rarely contribute. Always enjoy reading 'mytimetotravel' posts. I admire how well you have navigated through retirement. It is not particularly relevant to my situation, but I appreciate how you solve problems. Rick Connor offered an excellent example of his mother-in-law's finances. Spending $56k per year with savings of $675k or a burn rate of 8.3% per year. He used Excel to solve the problem using real return rates of 1% and 0%, 13 and 12 years respectively. I would simply divide $675 by $56 and get 12 years. I studied physics in college and worked for 33 years as a geophysicist. In physics, we always make simplifying assumptions to make the math easy, e.g. frictionless surfaces or spherical cows. The trick is to make it as simple as possible, but no simpler. We really have no idea what our return rate or inflation rate will be, but use recent data as estimates. Using a real return rate of 0 makes the problem simple and is possible. The rate of inflation will about equal our investment return rate. A 1% burn rate should last 100 years, given these assumptions. A 2% burn rate will last 50 years, etc. I think you should take a vacation.
Post: Mr. Quinn would be nervous. Would you be?
Link to comment from June 2, 2025
Another alternative: Ask your plumber if there is a resale market for used water heaters. Also check the internet for buying or selling used heaters in your area. You could replace your unit with a used heater, which would also save money. The used market may be robust in a large city market. I recently built a new house in Houston, which has different hot water requirements than Philadelphia. In the summer months, there is no cold water. I installed a tankless gas water heater outside the house and of course, the small heating tank froze and burst before we even occupied the house. Most heating units are installed in the attic in our area. This may seem incredibly stupid to some, but just requires proper monitoring and maintenance. I attempted to relocate the heater to inside the house, but rerouting the gas line proved problematic. The electric version drew 117 amps when heating which clashed with the solar panel / battery system I also had in place. I settled on the outside location with a gas unit. It was not chosen to minimize total cost, but my monthly utility bills are lower.
Post: Replacing the Replacement
Link to comment from March 8, 2025
Kristine, always enjoy your articles. I thought you might like to know of a sister program to Meals on Wheels that we have in Houston. Animeals on Wheels delivers pet food to the disabled adults and homebound elderly clients that Meals on Wheels serves, so they do not feel compelled to share their limited food and resources with their pets. Thanks again for all your posts.
Post: Helping Our Neighbors
Link to comment from December 26, 2024
Thank you for sharing your fears, victories and hopes. It makes your journey more real and more inspiring. I will find a way to contribute to your legacy, which has already begun.
Post: Staying Alive
Link to comment from December 21, 2024
From Scott Burns website, posted 9/23/24: In his book “Enough,” John Bogle tells an anecdote. Novelists Kurt Vonnegut and Joseph Heller attended a wealthy hedge fund manager’s party. Vonnegut told Heller their host had made more money in a single day than Heller had made from “Catch-22.” Heller said, “Yes, but I have something he will never have… enough.” https://scottburns.com/index-investing-the-long-haul-and-your-life/
Post: In defense of billionaires
Link to comment from September 25, 2024
My grandfather (an attorney) filled out paperwork in VA to transfer trailer ownership to my father circa 1968. For the year of manufacture, he filled in ‘circa 1962’. The application was denied because they had no record of the manufacturer ‘Circa.’
Post: Wrong Number
Link to comment from May 22, 2024