Search found 932 matches

by welderwannabe
Tue Jun 18, 2019 1:19 pm
Forum: Personal Investments
Topic: Should we go CD ladder or bond fund?
Replies: 17
Views: 2082

Re: Should we go CD ladder or bond fund?

I want to echo what the above posters are saying. A little stocks is smart. However if you are stuck on fixed income and want to consider a CD ladder, then I would consider rolling to Fidelity. They have an automated CD ladder setup. You can also enroll in what they call 'auto-roll' where they will ...
by welderwannabe
Tue Jun 11, 2019 8:07 pm
Forum: Personal Investments
Topic: How to invest $10,000 for 3 years
Replies: 20
Views: 2226

Re: How to invest $10,000 for 3 years

Look at ICSH or something equivalent.
by welderwannabe
Mon Jun 10, 2019 6:11 pm
Forum: Investing - Theory, News & General
Topic: Prime Money Market Fund 7 day yield change
Replies: 7
Views: 1871

Re: Prime Money Market Fund 7 day yield change

The prospect is presumably for continued lower MM yields if the economy is slowing. Stock market is marching to diffrent drummer than the Bond market, and some people are wondering if the Bond market is smarter. Could be true, but its also the same bond market that had the 10-Year at over 3.2% not ...
by welderwannabe
Mon Jun 10, 2019 8:58 am
Forum: Personal Investments
Topic: Does an Advisors AUM fee also include assets in your 401k that they advise on?
Replies: 24
Views: 2049

Re: Does an Advisors AUM fee also include assets in your 401k that they advise on?

I have a business partner who signed up to work with an advisor who charges him a 0.75% of his NET WORTH. That $50k car he bought costs him an extra $375 just for owning it... Add $50,000 car minus $50,000 cash or new $50,000 car loan = $0 change in net worth. There are wealth managers who will ove...
by welderwannabe
Sun Jun 09, 2019 8:41 pm
Forum: Investing - Theory, News & General
Topic: Why is Vanguard Treasury Money Market yield so high?
Replies: 28
Views: 6586

Re: Why is Vanguard Treasury Money Market yield so high?

Electron wrote:
Sun Jun 09, 2019 4:47 pm
An interesting question is how Money Market funds account for small gains and losses when selling securities before maturity.
They try not to. Goal is to keep the daily liquidity of the fund such that it can handle any withdrawals without forced selling of securities.
by welderwannabe
Sun Jun 09, 2019 10:50 am
Forum: Personal Investments
Topic: New ADP 401k just dropped. Which funds? Portfolio shuffle?
Replies: 15
Views: 1509

Re: New ADP 401k just dropped. Which funds? Portfolio shuffle?

welderwannabe: NorCalGaal wrote: MetLife Wilmington Stable Value Fund Series 25554 Class J. Benchmark: US Treasury T-Bill Constant Maturity Rate 3 year ER 0.49% welderwannabe wrote : Any detail on what the Stable Value is paying now? ERs on a stable value arent super important. The info we have fro...
by welderwannabe
Sun Jun 09, 2019 10:10 am
Forum: Personal Investments
Topic: House fund and emergency savings fund
Replies: 4
Views: 450

Re: House fund and emergency savings fund

I would keep it separate. If you combine it into one allocation, then, when you make a down payment on a house, you will need to sell stocks to buy bonds. It might not be a good time to be selling stocks. There is nothing wrong with having a separate allocation for money with different time frames....
by welderwannabe
Sat Jun 08, 2019 5:16 pm
Forum: Personal Investments
Topic: New ADP 401k just dropped. Which funds? Portfolio shuffle?
Replies: 15
Views: 1509

Re: New ADP 401k just dropped. Which funds? Portfolio shuffle?

NorCalGaal wrote:
Tue Jun 04, 2019 10:19 pm
MetLife Wilmington Stable Value Fund Series 25554 Class J. Benchmark: US Treasury T-Bill Constant Maturity Rate 3 year ER 0.49%
Any detail on what the Stable Value is paying now? ERs on a stable value arent super important.
by welderwannabe
Sat Jun 08, 2019 4:47 pm
Forum: Investing - Theory, News & General
Topic: indexers buying negative interest bonds
Replies: 26
Views: 2469

Re: indexers buying negative interest bonds

I have not been excited about the rapid fall of the 10-Year, but reading this article I can see it could always be worse.
by welderwannabe
Tue Jun 04, 2019 10:44 am
Forum: Personal Investments
Topic: Best Fidelity Funds for "Fixed"? Best Fidelity Funds for "Cash"??
Replies: 3
Views: 407

Re: Best Fidelity Funds for "Fixed"? Best Fidelity Funds for "Cash"??

For cash, I use FZDXX (their premium prime money market). I also use ICSH iShares Ultra Short-Term Bond ETF (duration about 5 months). I have no fixed ratio for these two. It fluctuates. Basically depends on how much cash I want accessible via debit card/checkbook and how much I can lock up with a f...
by welderwannabe
Tue Jun 04, 2019 10:01 am
Forum: Personal Investments
Topic: pay off an ARM mortgage or not?
Replies: 58
Views: 3366

Re: pay off an ARM mortgage or not?

At 5.125% I would pay it off immediately.
by welderwannabe
Mon Jun 03, 2019 10:05 am
Forum: Personal Investments
Topic: Would you pay off car loan early?
Replies: 46
Views: 2214

Re: Would you pay off car loan early?

So to be clear I wasn't saying buy 5-year bills, and I wasn't saying wait 5 years to pay it off. I did say "stockpile cash as fast as possible in that ear-marked account for the car payoff" In theory I would want to pay off the car in < 2 years. I just think he shouldn't pre-pay the loan when the m...
by welderwannabe
Mon Jun 03, 2019 8:53 am
Forum: Personal Investments
Topic: Would you pay off car loan early?
Replies: 46
Views: 2214

Re: Would you pay off car loan early?

I understand this is not optimal mathematically however from a risk perspective I think it minimizes the risk. I would continue to stockpile cash as fast as possible in that ear-marked account for the car payoff however. You should also factor into that interest rate the fact that you may forced to...
by welderwannabe
Mon Jun 03, 2019 8:41 am
Forum: Personal Investments
Topic: Safety of treasury bonds vs treasury money market
Replies: 42
Views: 4832

Re: Safety of treasury bonds vs treasury money market

If NAV differs from the price, it's the NAV that's probably incorrect. There are a number of technical reasons that this small mismatch occurs, but during hours when the bond and stock markets are open you can be 100% confident that the actual NAV is within the bid/ask spread regardless of what the...
by welderwannabe
Sun Jun 02, 2019 5:19 pm
Forum: Personal Investments
Topic: Safety of treasury bonds vs treasury money market
Replies: 42
Views: 4832

Re: Safety of treasury bonds vs treasury money market

- It is currently selling for a 14% premium - above the NAV! And this reminds me why I don't like ETFs in general. Selling higher than the nav makes no sense to me! When the fund 'closes' I assume all they distribute is the NAV, not the premium? That would be a HUGE loss, no? You sure your not off ...
by welderwannabe
Sun Jun 02, 2019 10:22 am
Forum: Personal Investments
Topic: Safety of treasury bonds vs treasury money market
Replies: 42
Views: 4832

Re: Safety of treasury bonds vs treasury money market

If you have a date you know you need the money, I would not rely on a constant average duration bond fund for that. As other posters have said, you dont know what interest rates will do between now and then. Rates could rise in the months before you were planning on cashing out the fund and you coul...
by welderwannabe
Fri May 31, 2019 5:38 am
Forum: Personal Investments
Topic: Buying treasuries other than ultra short term?
Replies: 45
Views: 2969

Re: Buying treasuries other than ultra short term?

Zero coupon long term bond is sort of double edged sword. You can't reinvest coupon at higher rate when interest rate is going up because there is no coupon. Long term zeroes are more volatile/risky. They effective duration is equal to the maturity. They have some value if you have a known expense ...
by welderwannabe
Tue May 28, 2019 10:11 am
Forum: Personal Investments
Topic: Holding cash
Replies: 8
Views: 1856

Re: Holding cash

I will have a decent amount of extra cash early next month. I read a recent thread about paying off mortgage. I have 11 years left in my mortgage, with 3% interest. I read a recent thread about paying off mortgage. I may split cash that I will receive half into mortgage, and the other half stay in ...
by welderwannabe
Sun May 26, 2019 11:27 am
Forum: Personal Investments
Topic: i-bonds
Replies: 5
Views: 1482

Re: i-bonds

The fixed rate portion may stay at .5% move up, or go back down (it's been to zero before) no one knows what the fixed rate will do. If you want to roll the dice, but $5K now, and $5K in November. If you think the .5% fixed rate looks attractive, buy $10K now. this link has the ibond fixed rate his...
by welderwannabe
Sat May 25, 2019 2:48 pm
Forum: Personal Investments
Topic: Bond Fund for new investor
Replies: 17
Views: 864

Re: Bond Fund for new investor

My understanding is my SEP must be kept separate as it is my IRA linked to my LLC which I did not have when my other two accounts were created 20 and 10 years ago respectively. So for tax purposes I don't think I can bring those to rollovers INTO a SEP. I may be wrong though? Can anyone else verify...
by welderwannabe
Fri May 24, 2019 11:11 am
Forum: Personal Investments
Topic: Bond Fund for new investor
Replies: 17
Views: 864

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: 527

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: 527

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: 1383

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: 41
Views: 3529

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: 41
Views: 3529

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: 3098

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: 2488

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: 37
Views: 3957

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: 1949

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: 3276

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: 800

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: 956

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: 867

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: 742

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: 28
Views: 3298

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: 28
Views: 3298

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: 5436

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: 521

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: 501

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: 9808

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: 4404

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: 5436

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: 5436

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: 1298

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: 2214

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: 3828

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: 569

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.