Search found 657 matches

by welderwannabe
Sat Jul 21, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

Spirit Rider wrote:
Sat Jul 21, 2018 8:21 pm
Then I would call Fidelity and ask why explicitly documented limits for FZDXX are not followed.
My 401k has the same issue. $10K minimum.
by welderwannabe
Sat Jul 21, 2018 8:18 pm
Forum: Investing - Help with Personal Investments
Topic: Parking $$ for future tax payment
Replies: 11
Views: 603

Re: Parking $$ for future tax payment

Tbills. A six month bill (or bills) will mature in January of 2019.
by welderwannabe
Sun Jul 15, 2018 10:41 am
Forum: Investing - Theory, News & General
Topic: [How do I transfer money from Vanguard New York Municipal Money Market Fund?]
Replies: 14
Views: 632

Re: Logistics of VYFXX

I can’t speak to that particular muni fund but the national muni fund (Int med term tax exempt) has a frequent trading policy where you can sell but you cannot buy for a period of time. It is bypassed by automatic exchanges on a schedule. Otherwise - yes, you just sell what you want, when you want ...
by welderwannabe
Sun Jul 15, 2018 8:09 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22995

Re: Vanguard Municipal Money Market VMSXX 1.39%

gmaynardkrebs wrote:
Sun Jul 15, 2018 8:02 am
There's no lazier idiot than myself, but even I don't find hitting a few keystroke to transfer to Prime excessively taxing (no pun intended).
Then I am proof there is a lazier idiot than you! :sharebeer
by welderwannabe
Sun Jul 15, 2018 7:52 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22995

Re: Vanguard Municipal Money Market VMSXX 1.39%

Based on the previous two cycles and the rate of increase on the most recent upswing, I expected the muni MM fund TEYs to go above Prime MM sometime in July, but it peaked before that happened, and now is well into the downswing of whatever the heck cycle we're in now. I thought the same thing. I n...
by welderwannabe
Sat Jul 14, 2018 9:00 pm
Forum: Investing - Help with Personal Investments
Topic: How to buy T-Bills
Replies: 33
Views: 2652

Re: How to buy T-Bills

You mention the word "auction" for Tbills can you explain, doing a TON of reading on Tbills but confused on how they work. It sounds worse than it is. It isn't like bidding on a Teddy Ruxpin on Ebay where you have to constantly bid, raise your bid, and watch. You go to your brokerage and put in an ...
by welderwannabe
Sat Jul 14, 2018 11:06 am
Forum: Investing - Theory, News & General
Topic: 1-year Treasury Bill auction
Replies: 50
Views: 3949

Re: 1-year Treasury Bill auction

Kevin M wrote:
Sat Jul 14, 2018 11:05 am
I would prefer the Treasury over the CD, as it would have a higher TEY for me.

Kevin
Makes sense. I live in a no income tax state so that benefit of Treasuries is meaningless to me. Thanks for sharing though.
by welderwannabe
Sat Jul 14, 2018 7:50 am
Forum: Investing - Theory, News & General
Topic: Which Brokerage to use strictly for Brokered CDs
Replies: 18
Views: 1422

Re: Which Brokerage to use strictly for Brokered CDs

I have no experience with Schwabb. Between Vanguard and Fidelity I would go with Fidelity for this. Their auto-roll for both CDs and Treasuries makes maintaining this pretty low hassle. By auto-roll, you mean buy another brokered CD from the same bank automatically? Personally, I'd want to check th...
by welderwannabe
Sat Jul 14, 2018 7:17 am
Forum: Investing - Theory, News & General
Topic: 1-year Treasury Bill auction
Replies: 50
Views: 3949

Re: 1-year Treasury Bill auction

Since I now have a savings account with an APY of 2.50% guaranteed until 12/31/2019, this bill doesn't look particularly attractive, offering only 17 basis points of additional yield for extending maturity from 0 years to 1 year. The savings account has no term risk and no reinvestment risk over th...
by welderwannabe
Sat Jul 14, 2018 7:11 am
Forum: Investing - Help with Personal Investments
Topic: How to buy T-Bills
Replies: 33
Views: 2652

Re: How to buy T-Bills

i have never bought T bills.. but i was thought of buying from vanguard.. they have a link under investing CD .. there is an option to buy t bills. I buy CD's from there.. has anyone had any issues? While I usually buy my bills at Treasury Direct or Fidelity, I have bought bills at Vanguard. No iss...
by welderwannabe
Sat Jul 14, 2018 7:10 am
Forum: Investing - Theory, News & General
Topic: Which Brokerage to use strictly for Brokered CDs
Replies: 18
Views: 1422

Re: Which Brokerage to use strictly for Brokered CDs

I have no experience with Schwabb. Between Vanguard and Fidelity I would go with Fidelity for this. Their auto-roll for both CDs and Treasuries makes maintaining this pretty low hassle.
by welderwannabe
Fri Jul 13, 2018 11:59 am
Forum: Investing - Help with Personal Investments
Topic: Bond Portfolio
Replies: 11
Views: 1202

Re: Bond Portfolio

Does that seem OK ? Should I have more in a total bond ETF like AGG (iShares) or BND (Vanguard). I am 75/20/5 right now (stocks, bonds, cash). My bonds are broken up half treasuries (intermediate term and some notes I purchased at auction) and half corporates (all via the ETF LQD). My cash is mainl...
by welderwannabe
Wed Jul 11, 2018 5:20 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8601

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

AAA rated bond is relatively safe. Mortgage backed security. If you buy US backed 10 year treasure, you would be safe unless US default its treasure bond. Of course, but I assumed your comment was regarding AAA bonds in general...not just treasuries. I consider treasuries a different class entirely...
by welderwannabe
Wed Jul 11, 2018 5:11 pm
Forum: Investing - Theory, News & General
Topic: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters
Replies: 108
Views: 8601

Re: Are Bonds Always Safe? — A Second Look at U.S. Portfolio Disasters

WhiteMaxima wrote:
Wed Jul 11, 2018 3:38 pm
AAA rated bond is relatively safe.
So thought a lot of people in 2008/2009 with their CDOs. A lot were AAA rated by ratings agencies who wernt looking too hard under the hood.
by welderwannabe
Tue Jul 10, 2018 7:02 am
Forum: Investing - Help with Personal Investments
Topic: Should I move all my investments to Vanguard?
Replies: 31
Views: 2253

Re: Should I move all my investments to Vanguard?

The Fidelity support leaves much to be desired and I am think of moving all my investments to Vanguard. What would you say are the pros and cons of this move? Thanks Dennis Interesting I am about 60% Fidelity and 40% Vanguard. My experience has been the opposite...I find Fidelity's support better t...
by welderwannabe
Mon Jul 09, 2018 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Should I exchange total bond market for stable value fund
Replies: 13
Views: 1086

Re: Should I exchange total bond market for stable value fund

The annualized returns are not great either: ytd 0.40. 1 yr 1.54. 3 yrs 1.38. 5 yrs 1.28. 10 yrs 1.90. So basically the return is similar to money market account. I'm concerned that the total bond market is going to continue to lose money in the short to mid term due to interest rates increasing. S...
by welderwannabe
Mon Jul 09, 2018 9:27 am
Forum: Investing - Help with Personal Investments
Topic: Bond portion of taxable
Replies: 4
Views: 535

Re: Bond portion of taxable

Unless one is in a high federal tax bracket, why bother with municipal bonds? Would it be a poor choice to use solely short term and intermediate term treasury bonds as the sole building block of the bond portion? I have trouble justifying additional risk for a greater reward on the bond portion of...
by welderwannabe
Mon Jul 09, 2018 7:21 am
Forum: Investing - Theory, News & General
Topic: Why 3-funds and not 4-funds or even 2-funds?
Replies: 56
Views: 4400

Re: Why 3-funds and not 4-funds or even 2-funds?

I look at it as an overall goal not to make things too complicated. 3 is a nice starting point. You could make it work with 2 as you state, or 4. It also depends on the constraints within your plan or brokerage house. At Fidelity I have 5 funds. At Vanguard I have 4. At MegaCorp 401k I am 5 mainly b...
by welderwannabe
Sun Jul 08, 2018 4:59 pm
Forum: Investing - Help with Personal Investments
Topic: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction
Replies: 40
Views: 5893

Re: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction

4. A friend told me that if I paid more than 10% of last year's taxes, I could skip quarterly estimated taxes on the windfall and instead make a payment at the end of the year, thus allowing me to invest the tax liability over the next ~6 months to realize some float gains. If anyone has experience...
by welderwannabe
Sun Jul 08, 2018 4:56 pm
Forum: Investing - Help with Personal Investments
Topic: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction
Replies: 40
Views: 5893

Re: Received $1m windfall with additional upside; looking for feedback on plan to hedge against market correction

radiowave wrote:
Sat Jul 07, 2018 8:41 pm
Re asset allocation, agree with above 30/70 is very conservative for your age, perhaps 60/40 (stock/bonds) ratio would give you reasonable returns and have enough bonds to stabilize your portfolio in the next few decades.
+1. 60/40 or 50/50.

I am not sure 30/70 is as safe as you think it is...
by welderwannabe
Sun Jul 08, 2018 3:54 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

tax rate of 28% and wondering if FZEXX is AMT exempt too Yes, the fund strives to avoid the AMT. Most funds that have 'tax exempt' in the title do. Ones that say 'municipal' instead you have to pay more attention. Not a hard and fast rule, more of a rule of thumb :) There is no longer a 28% tax rat...
by welderwannabe
Sat Jul 07, 2018 11:45 am
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

logat2 wrote:
Fri Jul 06, 2018 7:10 pm
How does FZEXX compare to FZDXX - seems like FZEXX may be the better option?
That answer all depends on what your tax rate is.
by welderwannabe
Fri Jul 06, 2018 3:37 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

mattsm wrote:
Fri Jul 06, 2018 2:50 pm
Does Fidelity automatically liquidate this to cover expenses?
All your Fidelity money markets are treated like cash and show up as money available to trade. They will pull from the core first, and then start to sell money market funds to handle your trade.
by welderwannabe
Fri Jul 06, 2018 3:36 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

I just started using iShares SHV (Ultra short term treasury ETF) in my taxable and 401K brokerage accounts. Its average maturity is ~.45 years, has an SEC yield currently of 1.89%, and expense ratio of .15%. It's a no transaction fee fund through Fidelity. You gotta watch this at Fidelity. While th...
by welderwannabe
Fri Jul 06, 2018 1:11 pm
Forum: Investing - Help with Personal Investments
Topic: STIP or High Yield Money Market
Replies: 6
Views: 538

Re: STIP or High Yield Money Market

I don't have a lot of use for short term bonds at the moment. Most of my short term bond money has been moved to money markets.
by welderwannabe
Fri Jul 06, 2018 12:10 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

Is there any sort of short term trading fee or frequent-trading restriction on Fidelity's SPRXX money market fund? I don't see in mentioned on the fact sheet for it, but there is an odd footnote about the possibility of short term trading issues. It says in footnote 3 under the Fees + Distributions...
by welderwannabe
Fri Jul 06, 2018 12:08 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

linenfort wrote:
Thu Jul 05, 2018 10:17 am
I guess it's already built into the yield figure they provide, but wow, that is some expense ratio. 0.42%
Yup. We are spoiled by Vanguard's MM funds...
by welderwannabe
Wed Jul 04, 2018 2:27 pm
Forum: Investing - Theory, News & General
Topic: Fidelity cash position
Replies: 50
Views: 5366

Re: Fidelity cash position

folks - I keep a certain amount of cash for equity trades when I find good opportunities in the market. The cash makes very little interest because Fidelity only offers SPAXX or FZFXX as your cash position. Any other liquid asset that will get me better yield of about 0.5% but be fairly liquid and ...
by welderwannabe
Sat Jun 30, 2018 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22995

Re: Vanguard Municipal Money Market VMSXX 1.39%

Under the new regs my understanding is that municipal MM funds (and other MM funds apart from federal/treasury funds) are only open to individual investors. Hedge funds (along with other institutional investors) are limited to the federal/treasury MM funds. Not an expert though, perhaps I misunders...
by welderwannabe
Sat Jun 30, 2018 10:44 am
Forum: Investing - Help with Personal Investments
Topic: Taking $1M+ Long Term Capital Gains
Replies: 73
Views: 7753

Re: Taking $1M+ Long Term Capital Gains

I am looking for an enrolled agent. An EA is certified (a two day exam) to represent clients to the IRS. They are specialized in tax issues. Here is a website to find EAs in your area: taxexperts.NAEA.org There were at least 100 EAs in my area, but only one of them also offered financial planning a...
by welderwannabe
Fri Jun 29, 2018 10:24 am
Forum: Investing - Help with Personal Investments
Topic: Using the Total Bond Fund in a rising rate environment
Replies: 72
Views: 8637

Re: Using the Total Bond Fund in a rising rate environment

No one knows for absolute certainty what is going to happen with interest rates over the next few years. Anyone who does is certainly going to be able to cash in and not need to be a 'plan administrator'. He/she is correct in that rising rates can cause the NAV of bond funds to lower, but that is no...
by welderwannabe
Thu Jun 28, 2018 4:12 pm
Forum: Investing - Help with Personal Investments
Topic: Found Bond Question
Replies: 8
Views: 773

Re: Found Bond Question

Not an expert but it looks like a zero coupon bond to me. Those are bought at a discount to face value. The interest earned is the difference between what it was originally sold for and it's face value that is paid at maturity. Yes, it could be sold early but the Muni bond market is one of the least...
by welderwannabe
Wed Jun 27, 2018 11:42 am
Forum: Investing - Theory, News & General
Topic: Keeping up with inflation
Replies: 24
Views: 1853

Re: Keeping up with inflation

dbr wrote:
Wed Jun 27, 2018 11:40 am
I don't think so as they have to be purchased at Treasury Direct and TD does offer tax advantaged accounts. Also I bonds are not marketable so there is no way for a broker to transact them.
I assume you meant Treasury Direct does not offer tax advantaged accounts?
by welderwannabe
Wed Jun 27, 2018 11:32 am
Forum: Investing - Help with Personal Investments
Topic: >$250,000 portfolios with Vanguard? Insurance?
Replies: 42
Views: 7982

Re: >$250,000 portfolios with Vanguard? Insurance?

It's worth noting that you "need" deposit insurance with a bank deposit account because you are loaning that money to the bank. If the bank goes bankrupt, you become a creditor - though with FDIC insurance the FDIC will make you whole the next day (up to the maximum coverage). A money market fund i...
by welderwannabe
Wed Jun 27, 2018 8:51 am
Forum: Investing - Theory, News & General
Topic: Keeping up with inflation
Replies: 24
Views: 1853

Re: Keeping up with inflation

I was wondering if anyone knows, Are Vanguard's treasury funds treated the same tax-wise as buying individual treasuries? Let's say I want the tax break of buying treasuries. Can I just buy one of the funds and it will be treated the same? You will have to check on the rules in your specific state,...
by welderwannabe
Wed Jun 27, 2018 7:53 am
Forum: Investing - Help with Personal Investments
Topic: Money Market Preference and Tax Question
Replies: 11
Views: 747

Re: Money Market Preference and Tax Question

2) Is there a difference in the tax percentage for capital gains for the interest earned per year let's say between Vanguard Prime vs. Ally's online MM? Money Markets don't really pay a lot of capital gains. It does happen, but it doesn't usually amount to much. Ally's online MM is only paying .9% ...
by welderwannabe
Tue Jun 26, 2018 8:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 234
Views: 41462

Re: VMMXX at 2%

Just wanted to share my happiness that we have a profitable place to park cash again! Even though online banks are insured, I never felt comfortable dealing with them, and it was a pain to have yet another waiting period before transactions completed. Where has everyone been placing cash for the la...
by welderwannabe
Tue Jun 26, 2018 8:31 pm
Forum: Investing - Theory, News & General
Topic: Expected reward for risk of Corp bond over CD?
Replies: 8
Views: 620

Re: Expected reward for risk of Corp bond over CD?

You definitely are not getting compensated for your risk. You have no fdic protection and you have no diversification as we are talking about 1 bond. I dont care if it was rated A++. Remember Enron? In 2000 it was one of the top 10 largest companys in the US and had a good credit rating. Experts th...
by welderwannabe
Tue Jun 26, 2018 8:28 pm
Forum: Investing - Theory, News & General
Topic: Expected reward for risk of Corp bond over CD?
Replies: 8
Views: 620

Re: Expected reward for risk of Corp bond over CD?

I know the term is different, but I just bought a 2 year Treasury note at 2.54% today at auction. It is state tax exempt.

So no, I don't think that bond is compensating you for your risk.
by welderwannabe
Sun Jun 24, 2018 3:57 pm
Forum: Investing - Theory, News & General
Topic: I-bonds look pretty bad right now
Replies: 92
Views: 10782

Re: I-bonds look pretty bad right now

How are we valuing the tax deferred nature of the IBond? This is something you don't get with bank CDs.
by welderwannabe
Sun Jun 24, 2018 1:56 pm
Forum: Investing - Help with Personal Investments
Topic: >$250,000 portfolios with Vanguard? Insurance?
Replies: 42
Views: 7982

Re: >$250,000 portfolios with Vanguard? Insurance?

So, how then do billionaires insure their money? 500k insurance is nothing. TBills, money markets that invest in TBills, Vanguard Prime Money Market admiral ($5M minimum). I am not a billionaire so I don't know for sure, but my guess is that they don't hold as much cash as we may think. Thats how t...
by welderwannabe
Thu Jun 21, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 23
Views: 2458

Re: Treasury Direct Question

#Cruncher wrote:
Wed Jun 20, 2018 10:36 am

The "Price" and "Investment Rate" are determined using the formulas on this TreasuryDirect PDF File.
Nice find on that PDF. I never could find that data on Treasury Direct!
by welderwannabe
Wed Jun 20, 2018 4:02 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term Treasury ETF vs just buying Treasuries
Replies: 41
Views: 2985

Re: Short-term Treasury ETF vs just buying Treasuries

Yes. The spread on treasuries is typically miniscule, so buying/selling in the secondary market isn't a big deal. If you plan to ladder, you can buy at auction and set up the "autoroll." Fidelity will automatically re-buy the same term at maturity. I haven't utilized this feature, but others on the...
by welderwannabe
Wed Jun 20, 2018 2:37 pm
Forum: Investing - Help with Personal Investments
Topic: Short-term Treasury ETF vs just buying Treasuries
Replies: 41
Views: 2985

Re: Short-term Treasury ETF vs just buying Treasuries

Hello, The iShares Short Treasury ETF (SHV) has an SEC yield of 1.84% and a duration of 0.39 yr. But apparently I can get a 3-month Treasury with an SEC yield of 1.97%. If I wanted to match the duration of the iShares ETF I could make a ladder of 9-month treasuries and that would give me an SEC yie...
by welderwannabe
Wed Jun 20, 2018 11:20 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 208
Views: 22995

Re: Vanguard Municipal Money Market VMSXX 1.39%

Leif wrote:
Tue Jun 19, 2018 11:02 am
Looking at the Portfolio composition of Prime, VMMXX, the bulk of the holdings is in "Yankee/Foreign" (42.8%). Does anyone know what this is?
Yankee bonds are bonds issued by foreign companies in US dollars.
by welderwannabe
Wed Jun 20, 2018 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Advice - Parking cash before it gets paid in taxes
Replies: 8
Views: 1128

Re: Advice - Parking cash before it gets paid in taxes

I had a similar situation, though a far lesser amount. I stuck mine in a TBill that matures the next Tax year before taxes are due.
by welderwannabe
Tue Jun 19, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Treasury Direct Question
Replies: 23
Views: 2458

Re: Treasury Direct Question

You get the high rate. The difference between the high rate and the investment rate is how it is annualized. I don't recall exactly, but if I remember it has to do with how many days it is annualized over. The blurb from Treasury Direct is below Discount rate. An annualized rate of return based on t...