Search found 912 matches

by welderwannabe
Fri May 24, 2019 11:11 am
Forum: Personal Investments
Topic: Bond Fund for new investor
Replies: 16
Views: 562

Re: Bond Fund for new investor

You should be able to roll everything into a single IRA instead of 3. Inside of that single IRA you can then split it up into the various Vanguard funds as you wish.
by welderwannabe
Thu May 23, 2019 12:27 pm
Forum: Personal Investments
Topic: Why do treasury bills yielding more than notes in secondary market?
Replies: 7
Views: 499

Re: Why do treasury bills yielding more than notes in secondary market?

DaftInvestor wrote:
Thu May 23, 2019 12:26 pm
Probably similar reason to why many banks now have their 2 and 3 year CD rates now lower than their 1 year rates.
Except they all have roughly the same maturity dates. The notes he is showing are all old issues coming up on maturity with less than a month to term.
by welderwannabe
Thu May 23, 2019 12:22 pm
Forum: Personal Investments
Topic: Why do treasury bills yielding more than notes in secondary market?
Replies: 7
Views: 499

Re: Why do treasury bills yielding more than notes in secondary market?

Not sure, as the maturity dates are all similar...which I assume is why you are asking the question.

You are comparing 1 month tbills with notes with 1 month remaining.

Maybe someone else, like Doc, has an idea.
by welderwannabe
Mon May 20, 2019 7:58 am
Forum: Personal Investments
Topic: FDIC Coverage Limits
Replies: 22
Views: 1351

Re: FDIC Coverage Limits

Sure, but why? You can spread it out over multiple institutions yourself, but there are also services that will do it for you.
by welderwannabe
Mon May 20, 2019 7:09 am
Forum: Personal Investments
Topic: Individual treasuries vs treasury funds
Replies: 19
Views: 1374

Re: Individual treasuries vs treasury funds

Good to know, thanks! It doesn’t address the 2nd argument though, which is actually more important for me. Depends on the type of treasuries. A zero coupon bond, like a bill, doesn't have this problem. If you are buying notes or bonds, that throw off coupons every 6 months, then yes you need a way ...
by welderwannabe
Sun May 19, 2019 7:51 pm
Forum: Personal Investments
Topic: Individual treasuries vs treasury funds
Replies: 19
Views: 1374

Re: Individual treasuries vs treasury funds

Treasuries are highly liquid. I have sold several myself...usually sells in seconds.

A fund isn't any more or less liquid.
by welderwannabe
Sun May 19, 2019 1:52 pm
Forum: Personal Investments
Topic: why buy any bonds in your portfolio?
Replies: 24
Views: 3041

Re: why buy any bonds in your portfolio?

The yield curve is also partially inverted. The 6 month bill is yielding more than the 10 year. Under more 'normal' times, the short term investments would yield less than long ones.
by welderwannabe
Sun May 19, 2019 8:47 am
Forum: Investing - Theory, News & General
Topic: To invest in bnd for 2.5 years?
Replies: 17
Views: 1712

Re: To invest in bnd for 2.5 years?

I see that a bond fund offers better yield than individual b I assume you mean individual bonds? No, that is not correct. A bond fund's yield would be that of the individual bonds it purchases minus the expense ratio. You can do better buying individual bonds because you 'cut out the middle man' so...
by welderwannabe
Sat May 18, 2019 7:38 pm
Forum: Personal Investments
Topic: Good fund to accumulate for mortgage payoff
Replies: 29
Views: 2835

Re: Good fund to accumulate for mortgage payoff

The reason is that if you pay it off in bits, you still have your mortgage to pay. Also, the money I accumulate can provide additional liquidity if needed while I accumulate. If I pay it towards mortgage, I lose my liquidity. 6 month treasury is around 2.42% right now. I would roll bills. Keeps you...
by welderwannabe
Fri May 17, 2019 3:38 pm
Forum: Personal Finance (Not Investing)
Topic: Anyone use Treasury Direct ?
Replies: 34
Views: 1929

Re: Anyone use Treasury Direct ?

Not terribly bad for 27-day treasury yield at 2.4% compared to best FDIC insured bank accounts (yes, some pay 2.5% even today) Anyone use https://www.treasurydirect.gov/RS/UN-AccountCreate.do ? Experience ? I keep my cash at Fidelity in a money market. I take a good portion of that cash and put it ...
by welderwannabe
Fri May 17, 2019 11:10 am
Forum: Investing - Theory, News & General
Topic: Bond funds without mortgage backed part?
Replies: 26
Views: 1210

Re: Bond funds without mortgage backed part?

I'm looking to reduce the exposure to mortgage backed bonds which I owe via BND. Any diversified funds but without mortgage backed part? :confused In in the exact same boat as you. Don't want mortgages. I do 50% Intermediate Term Treasuries and 50% Short Term Corporates. At Vanguard that would be: ...
by welderwannabe
Fri May 17, 2019 6:53 am
Forum: Personal Investments
Topic: 401K Advice
Replies: 10
Views: 792

Re: 401K Advice

Fidelity's index bond funds are all decent with reasonable fees. You havent posted the exact funds, but if they are the common Fidelity index varieties you'll probably be fine.
by welderwannabe
Thu May 16, 2019 4:42 pm
Forum: Personal Investments
Topic: Money market vs. savings account for windfall
Replies: 8
Views: 939

Re: Money market vs. savings account for windfall

-We take home a combined 200k after tax income per year, in a state with no income tax Some of the states that have no income tax do have taxes on dividends/interest, so I would check that. VMRXX is a good choice. If you want a little more security, take a look at VUSXX - Vanguard Treasury Money Ma...
by welderwannabe
Wed May 15, 2019 8:18 am
Forum: Personal Investments
Topic: Trying to avoid tIRA CDs
Replies: 10
Views: 857

Re: Trying to avoid tIRA CDs

I'd probably buy treasuries instead. No harder than buying CDs and easier to sell with a lower spread. Commission free too usually...whereas selling a CD will usually involve a commission.
by welderwannabe
Mon May 13, 2019 4:45 pm
Forum: Personal Investments
Topic: Fixed income in taxable?
Replies: 6
Views: 738

Re: Fixed income in taxable?

Not sure TIPS are the best choice in taxable. In lieu of tips, are you maxxing out your IBond annual limit ($10K)? They give a lot of the same benefits as TIPS, without the annual tax issues. The 'principal'value of tips are adjusted up or down depending on inflation, and taxes on that adjustment ar...
by welderwannabe
Sun May 12, 2019 8:58 pm
Forum: Personal Investments
Topic: Best interest bearing savings account?
Replies: 26
Views: 2794

Re: Best interest bearing savings account?

gwrvmd wrote:
Sun May 12, 2019 7:49 pm
If you are eligible.......
I just renewed a 6mo CD at Pentagon Fed CU in my checking/savings account at 2.47%.......Gordon
6 Month TBill 2.44% state tax free...
by welderwannabe
Sun May 12, 2019 5:27 pm
Forum: Personal Investments
Topic: Best interest bearing savings account?
Replies: 26
Views: 2794

Re: Best interest bearing savings account?

If this is funds you do not need in a short time, I'd suggest Vanguard Treasury Money Market fund (VUSXX), it's yield is state tax free. lakpr - are you certain this fund distributions are state tax free? I am not sure... Vanguard website does not indicate that. I personally think you end up paying...
by welderwannabe
Sun May 12, 2019 5:17 pm
Forum: Personal Investments
Topic: VMMXX as cash
Replies: 38
Views: 5315

Re: VMMXX as cash

Also, if you are getting $14,000 a year of dividends from VMMXX, you certainly have the minimum for VUSXX (Treasury Money Market). $50,000 buy-in, but will be 100% state tax free versus VMFXX which is only a percentage tax free (albeit high).
by welderwannabe
Sun May 12, 2019 5:13 pm
Forum: Personal Investments
Topic: Help on Bond options
Replies: 6
Views: 511

Re: Help on Bond options

State Street Aggregate Bond Index Fund Class K (SSFEX), ER 0.265% Of the ones you listed, this is the one I would pick. +1 Nothing wrong with that bond fund choice. Follows the Barclays aggregate bond index, like AGG does and many others. Its a good choice. While expense is higher than Vanguard, it...
by welderwannabe
Sun May 12, 2019 5:08 pm
Forum: Personal Investments
Topic: Options for bond fund allocations
Replies: 5
Views: 495

Re: Options for bond fund allocations

So to maintain my desired asset allocation I have 3-4 choices (of which I would like your thoughts on which is best, if any): 1. Make non-deductible IRA contribution for the sole purpose of purchasing bonds. 2. Purchase the same bond funds in a taxable account to maintaining my asset class and allo...
by welderwannabe
Fri May 10, 2019 2:55 pm
Forum: Personal Investments
Topic: Long or medium bonds
Replies: 113
Views: 9390

Re: Long or medium bonds

When people say that the asset allocation should be 60/40 or 80/20 or 25/75 or any specific stock bond ratio they never really say what kind of bonds. The stock side is always SNP500/Total index or some approximation there of. The bond side is less talked about it seems and while I have a high risk...
by welderwannabe
Fri May 10, 2019 2:51 pm
Forum: Personal Investments
Topic: Money market vs Bond funds
Replies: 14
Views: 4247

Re: Money market vs Bond funds

What am I missing? Intermediate VG bond funds have lost from 1.25 to 1.50% YTD 9/2018. Short term funds have lost a small amount YTD. It would seem reasonable to expect interest rate to increase in future resulting in more loss of principal. VG Prime money market fund has a SEC yield of 2 %. Why sh...
by welderwannabe
Fri May 10, 2019 9:25 am
Forum: Personal Investments
Topic: VMMXX as cash
Replies: 38
Views: 5315

Re: VMMXX as cash

lostdog wrote:
Fri May 10, 2019 8:49 am
The Vanguard Federal Money market settlement account does the same. It treats it as cash and it's not a sell order.
Yes, but he/she was asking about prime. Fidelity does this for all MMs you have...not just the settlement fund.
by welderwannabe
Fri May 10, 2019 8:45 am
Forum: Personal Investments
Topic: VMMXX as cash
Replies: 38
Views: 5315

Re: VMMXX as cash

Also VMMXX is a mutual fund which means when I sell some today I have to wait one more day for settlement so I can now by equities. Is there an ETF similar to VMMXX where I would not have to deal with the lost day for settlement? This is one area where Fidelity is better. They treat all your MMs as...
by welderwannabe
Wed May 08, 2019 6:04 am
Forum: Personal Investments
Topic: Where to park college funds for 4 years?
Replies: 14
Views: 1268

Re: Where to park college funds for 4 years?

For 4 years I would either keep it in the moneymarket like you have done or maybe a short term bond fund if you want to reach for a little more yield.
by welderwannabe
Mon May 06, 2019 7:20 pm
Forum: Personal Investments
Topic: alternatives to 529 plans
Replies: 44
Views: 2109

Re: alternatives to 529 plans

Grt2bOutdoors wrote:
Mon May 06, 2019 11:46 am
Other saving vehicles exist, however none offer tax free withdrawals of capital gains when used for qualified educational expenses.
What about a coverdell?
by welderwannabe
Sun May 05, 2019 3:54 pm
Forum: Personal Investments
Topic: Update on Great Personal Loss
Replies: 12
Views: 3774

Re: Update on Great Personal Loss

An inherited IRA should not be part of the pro-rata rule and therefore should not cause any tax consequences in regards to a backdoor roth.

Sorry for your loss. That is terrible.
by welderwannabe
Sun May 05, 2019 2:45 pm
Forum: Personal Investments
Topic: Poor Bond fund choices in 401(K) - VFSUX and/or FTKFX
Replies: 7
Views: 538

Re: Poor Bond fund choices in 401(K) - VFSUX and/or FTKFX

Those options are decent choices.

I would lean towards the Fidelity bond fund. ER is slightly higher, but is still reasonable for an actively managed bond fund. I would pick it because its intermediate and isn't expensive enough over your short term option to favor it purely for ER.
by welderwannabe
Sun May 05, 2019 2:40 pm
Forum: Personal Investments
Topic: Saving for down payment - T-Bill Vs. Federal MM fund vs. NY Tax Exempt MM fund
Replies: 2
Views: 298

Re: Saving for down payment - T-Bill Vs. Federal MM fund vs. NY Tax Exempt MM fund

I would do either a national muni MM or the NY one. Personally, I would pay the state tax and put it in the national one, but thats because I am nervous about concentrated risk within one state...especially one like NY or CA.
by welderwannabe
Sun May 05, 2019 12:03 pm
Forum: Personal Investments
Topic: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?
Replies: 28
Views: 2267

Re: OH no, ANOTHER "Should I pay off my Mortgage with Taxable acct" question, with a bit of a twist?

I am a fan of paying off a mortgage, but I am not sure I would evaporate 75% of my taxable portfolio to do it. That is a big bite and I wouldn't want to lose that 'insurance' in my case. Maybe stop adding to it and focus on the mortgage.
by welderwannabe
Sun May 05, 2019 7:38 am
Forum: Personal Investments
Topic: Short Term Treasury Fund for Cash Savings?
Replies: 28
Views: 2546

Re: Short Term Treasury Fund for Cash Savings?

Very helpful. I'm gonna give this a try. Just as an aside, this might satisfy some of my trading urge, with no real damage to be done. :happy I've been much better at not moving assets around. This could be a way to scratch the itch harmlessly, and make a few bucks while I'm at it. This is one of t...
by welderwannabe
Sat May 04, 2019 6:36 pm
Forum: Personal Investments
Topic: Cash Solutions
Replies: 18
Views: 1322

Re: Cash Solutions

Hi! I'm looking for a Cash Solution, prioritized by these characteristics.... 1. Preservation of Capital: FDIC Insured. (non-negotiable). 2. Liquidity: On a ~Monthly basis. (could have other investment considerations, besides cash after each month). 3. Return: based on the Risk-free Rate. (Effectiv...
by welderwannabe
Sat May 04, 2019 6:35 pm
Forum: Personal Investments
Topic: Short Term Treasury Fund for Cash Savings?
Replies: 28
Views: 2546

Re: Short Term Treasury Fund for Cash Savings?

Fidelity is the only broker I know of that does the auto-roll, I’d start there but also search on here (I don’t have a good resource handy) but it’s quite easy. Thanks again MT! I keep most of my spare 'cash' at fidelity in a cash management account in FZDXX (Fidelity premium prime money market). I...
by welderwannabe
Sun Apr 28, 2019 4:02 pm
Forum: Personal Investments
Topic: Vanguard to Fidelity 401K
Replies: 23
Views: 1834

Re: Vanguard to Fidelity 401K

Depending on the expense ratios, reasonable funds to use in your onew employer's 401k might include: 1) FID 500 Index (FXAIX); and 2) DODGE AND COX INCOME (DODIX). +1. ER on the S&P500 fund is nice and low. DODIX is higher than I would like, but it is in the band of reasonableness for a bond fund. ...
by welderwannabe
Sun Apr 28, 2019 3:59 pm
Forum: Personal Investments
Topic: pay down mortgage vs. invest in taxable?
Replies: 30
Views: 3024

Re: pay down mortgage vs. invest in taxable?

j0nnyg1984 wrote:
Sun Apr 28, 2019 3:53 pm
I’m paying off the last 72k of my mortgage loan on Wednesday :sharebeer
Congratz! :beer
by welderwannabe
Fri Apr 26, 2019 2:48 pm
Forum: Personal Investments
Topic: Too much Fixed Income in Stable Value fund?
Replies: 11
Views: 1309

Re: Too much Fixed Income in Stable Value fund?

tpom16 wrote:
Thu Apr 25, 2019 4:53 pm
My fixed income portion split 50%/50% into VG total bond (old 401k account) and Stable Value fund with Prudential (current 401K). In the old 401k I also
I keep 50% stable value 50% bond fund myself. I just keep rebalancing to keep it that way.
by welderwannabe
Tue Apr 23, 2019 9:59 am
Forum: Personal Investments
Topic: Short Term Bond Index vs. Prime Money Market
Replies: 30
Views: 3412

Re: Short Term Bond Index vs. Prime Money Market

J G Bankerton wrote:
Tue Apr 16, 2019 9:39 am
It is the inverted yield curve.
+1
by welderwannabe
Thu Apr 18, 2019 11:55 am
Forum: Personal Investments
Topic: Adding Another Money Market?
Replies: 6
Views: 737

Re: Adding Another Money Market?

Like so many others here, my original Vanguard accounts included a holding in the Prime Money Market Fund. When I switched over to the brokerage account, and had to open the Federal Money Market Fund, I dropped the Prime Fund as I didn't see the need for two money market funds. As I now move deeper...
by welderwannabe
Sat Apr 13, 2019 1:17 pm
Forum: Personal Investments
Topic: VMMXX for emergency fund? tax implications?
Replies: 11
Views: 1511

Re: VMMXX for emergency fund? tax implications?

Not to get too far off track but is the Vanguard Federal Money Market Money Fund (VMFXX) with an expense ratio of 0.11% and compound yield of 2.38% provide any extra layer of safety in a market downturn in fixed income over VMMXX? Not a whole lot of difference in yield or expense ratios. Vanguard u...
by welderwannabe
Sat Apr 13, 2019 12:31 pm
Forum: Personal Investments
Topic: Taxable fixed-income options for investing a windfall
Replies: 11
Views: 1039

Re: Taxable fixed-income options for investing a windfall

I can say that Yes, paying off the mortgage will hurt your credit rating. I think mine dropped by 20 to 30 points from a high value to another high value that was lower. Same here. I was bounding between 820s and 830s before I paid off my house early last year. I still use credit cards and pay them...
by welderwannabe
Sat Mar 30, 2019 12:16 pm
Forum: Personal Finance (Not Investing)
Topic: Question about Cashiers Check for tentative car purchase
Replies: 34
Views: 1569

Re: Question about Cashiers Check for tentative car purchase

Tamales wrote:
Sat Mar 30, 2019 10:27 am
livesoft wrote:
Sat Mar 30, 2019 10:04 am
Since you are going to the bank, then why not ask the bank? You can even call the ahead of time.
Good point! Guess I haven't had enough coffee yet this morning.
I have returned a cashier's check back to the bank and they put the money back in my account. It was 20 years ago probably.
by welderwannabe
Wed Mar 27, 2019 2:53 pm
Forum: Personal Investments
Topic: All in with Balanced Index fund
Replies: 52
Views: 10190

Re: All in with Balanced Index fund

One reason might be that VBINX has no international holdings. If you don't want international, it's a good fund. But it seems to me that most folks here want at least some international exposure. Agreed. If you want International (stocks + bonds) then Vanguard LifeStrategy Moderate Growth Fund (VSM...
by welderwannabe
Wed Mar 27, 2019 2:35 pm
Forum: Personal Investments
Topic: 60/40 now or closer to retirement?
Replies: 32
Views: 3658

Re: 60/40 now or closer to retirement?

applejack123 wrote:
Tue Mar 26, 2019 11:41 am
When people say they go to 60/40, is that at any age, or closer to retirement?

Im confused with the "wealth building phase"

Basically, any pointers?

Thanks
There is nothing wrong with a 60/40 for your entire life.Its a little on the conservative side, but it works for many people.
by welderwannabe
Wed Mar 27, 2019 12:16 pm
Forum: Investing - Theory, News & General
Topic: I hate bonds
Replies: 116
Views: 13019

Re: I hate bonds

AkwardDoct@rd wrote:
Tue Mar 26, 2019 10:02 pm
I have decided that I give up and just go back to the Total bond fund with really no change Anyone have a similar experience?
A solid choice. Not my personal preference, but a solid choice nonetheless.
by welderwannabe
Sun Mar 17, 2019 10:56 am
Forum: Investing - Theory, News & General
Topic: Are I Bonds like cash or bonds?
Replies: 16
Views: 1165

Re: Are I Bonds like cash or bonds?

If your planning calls for a certain percentage (or dollar amount) in cash and a certain percentage of bonds, do you consider I Bonds cash or bonds? Some folks use it as their EF so that sounds like cash. They are bonds but with principal protection are like CDs also for the first 5 years. After th...
by welderwannabe
Fri Mar 15, 2019 11:43 am
Forum: Personal Investments
Topic: Is MM safer than ST Bond? If so, why/how?
Replies: 17
Views: 1443

Re: Is MM safer than ST Bond? If so, why/how?

I am trying to understand the risks of short-term government bond funds as I diversify short-term fixed income amongst CDs, money market funds, stable value, guaranteed and other low-risk investments. With Vanguard’s short-term bond funds looking more promising, I wonder what the risk difference is...
by welderwannabe
Sun Mar 10, 2019 3:36 pm
Forum: Personal Investments
Topic: Terminology: "Retirement" funds
Replies: 29
Views: 1557

Re: Terminology: "Retirement" funds

In my case it is funds that I have cordoned off for retirement. Not all are tax advantaged due to not having enough space.
by welderwannabe
Sat Mar 09, 2019 12:45 pm
Forum: Personal Investments
Topic: Help starting a T-bill ladder for EF.
Replies: 13
Views: 753

Re: Help starting a T-bill ladder for EF.

Nothing wrong with what you want to do. Is it a little more complicated? Yes...but we also have people chasing credit card bonuses, savings account bonuses etc. I buy bills off an on in my efund too. I only make a few extra bucks a month doing it, but what the heck. If you use an autoroll feature th...