Search found 1631 matches

by welderwannabe
Sun Mar 24, 2024 6:21 pm
Forum: Personal Investments
Topic: Feeling dissatisfied with Fidelity cash yield compared to VG?
Replies: 51
Views: 5968

Re: Feeling dissatisfied with Fidelity cash yield compared to VG?

Hi there, I will be keeping some cash in case of emergency at Fidelity since I use it as a checking account. However, the yield, albeit much better than Schwab or Merrill at 2.57% is still way lower than Vanguard default sweep VMFXX's 5%. Yet I can't keep this small emergency fund cash in Vanguard because you have to ACH the money out from VG to Fidelity in order to use it in a checking account or spend it on the debit card. If money is in the Fido you wouldn't have to wait for the ACH and can just use it as a checking account. Basically, Fidelity has good checking account features, bill pay, Debit Card, but less yield. Vanguard has no checking account conveniences, but the best cash sweep program there is. How do I mitigate this issue? I ...
by welderwannabe
Sun Mar 24, 2024 11:04 am
Forum: Personal Investments
Topic: How to best source money for down payment
Replies: 4
Views: 425

Re: How to best source money for down payment

Thanks for the response! Downpayment aside, I would much prefer to have the $82k currently in VBR, VOE, and VTV switched to VTI. I had a portfolio with Betterment for several years before transferring in kind to Vanguard. That's why there's money in those ETFs. Is there a smart way to approach that objective? I figured it would be better to liquidate and realign sooner rather than later. Would it be better to keep the money where it is indefinitely? I've already redirected dividends to a settlement account. Appreciate the help Based on your income, youre in the 15% capital gains bracket so youre talking $4,500 in taxes...its not like you're in the 20% LTCG bracket. Your tax rate is unlikely to improve in the near term assuming your job is ...
by welderwannabe
Sun Mar 24, 2024 10:56 am
Forum: Investing - Theory, News & General
Topic: Silly TLH games
Replies: 40
Views: 3814

Re: Silly TLH games

Have two designated holdings for each asset class in your taxable account, either of which you'd be fine with long term. And swap as needed. Can't stress this enough. You need to be fine with staying in the fund you TLH into. I was in VTSAX back in March of 2020 and I TLH'd into VFIAX (S&P500) and VEXAX (extended market). I was lucky enough to do it almost on the market low of the pandemic, and since everything roared back within 30 days I've been stuck in these funds since...and probably will be forever. Ive been dragging along the losses ever since (and have added more). Its handy having losses to carry over as sometimes you NEED to make an investment change that has a gain whether U want to or not, and being able to apply the losses...
by welderwannabe
Sun Mar 24, 2024 10:51 am
Forum: Investing - Theory, News & General
Topic: Anyone holds VTMFX (Vanguard Tax-Managed Balanced Fund)
Replies: 16
Views: 2376

Re: Anyone holds VTMFX (Vanguard Tax-Managed Balanced Fund)

Certainly more simple to hold this fund than break it out in Taxable. But like Grabiner, I think holding the stocks and munis separately makes sense. You don't want to miss out on any tax loss harvesting opportunity.

That said, if the alternative is doing nothing or analysis paralysis like a lot of people get with investing decisions, just go with the tax managed balanced fund and don't look back. Don't let perfect be the enemy of good.

In a tax advantage account, I think the all in ones make a lot of sense. One of the life strategy funds. Set and forget like a ronco rotisserie.
by welderwannabe
Sun Mar 24, 2024 10:42 am
Forum: Investing - Theory, News & General
Topic: It is really that simple to do it the Bogleheads way?
Replies: 87
Views: 8161

Re: It is really that simple to do it the Bogleheads way?

yes, Bogleheads keep it super simple until you ask about tax efficiency.
by welderwannabe
Sun Mar 24, 2024 9:56 am
Forum: Personal Investments
Topic: Is there a way to get different yield curves of bonds?
Replies: 6
Views: 419

Re: Is there a way to get different yield curves of bonds?

They won't track STRIPS. STRIPS are a manufactured product where a financial house buys a bond, and then sells the 6 month interest payments to people (as well as the final principal payment) creating a STRIP. A 10 year bond would would have 20 different STRIPS created from it.

STRIPS are very volatile as they are effectively a 0 coupon bond with a duration equal to the maturity date of the STRIP.

I don't know anywhere that tracks a yield curve of STRIPS across all maturity dates, but you can search on VG or Fidelity for STRIPS, plug in the date you want, and see whats for sale.

If you want easy access to STRIPS, you can look at Vanguard's ETF with the ticker of EDV. It is all STRIPS.
by welderwannabe
Fri Mar 22, 2024 8:01 am
Forum: Personal Investments
Topic: VWIAX [Vanguard Wellesley Admiral Shares] for 80+ inlaws?
Replies: 16
Views: 1443

Re: VWIAX [Vanguard Wellesley Admiral Shares] for 80+ inlaws?

.16% is a low ER. You could roll your own for a bit less, but its pennies in the scheme of things. If you like the fund invest in it.
by welderwannabe
Fri Mar 22, 2024 7:49 am
Forum: Personal Investments
Topic: Direct Indexing - Morgan Stanley
Replies: 25
Views: 1953

Re: Direct Indexing - Morgan Stanley

skeptical wrote: Fri Mar 22, 2024 6:20 am Maybe things have changed. I went through the public/RSU/vesting route, and was forced to pay ordinary taxes at time of vest, and sold as I vested.
My RSUs work the same way, but many people don't sell as they vest in my company. This can result in large capital gains over time.

For me, I sell each year. I dont need more risk in my life than dragging a bunch of stock along from the company I work for. Didn't work out well for Enron employees, or Lehman.

If you're in that spot, I can see where the exchange fund may make some sense, but at what cost?
by welderwannabe
Fri Mar 22, 2024 7:08 am
Forum: Personal Investments
Topic: When one is ready to retire and pull out of the market.
Replies: 44
Views: 4876

Re: When one is ready to retire and pull out of the market.

Dumping bonds and going to cash is loaded with risk. When/if short term rates fall (and they are more likely to than not IMHO), then you're left with a low yielding instrument. Bonds are likely to follow at the same time, so your choice at that point is to stay in close to 0% cash, or buy bonds at very low rates.

Its the best time to push duration out in the last 15+ years. Definitely keep a good cash cushion, but give up on bonds at your own peril.

I also agree with the above posters that you should keep a good equity allocation. Personally 50%-60% stocks makes sense to me for retirees.
by welderwannabe
Fri Mar 08, 2024 8:40 am
Forum: Personal Investments
Topic: Vgd Bond Page Nth Complaint
Replies: 12
Views: 1161

Re: Vgd Bond Page Nth Complaint

The easiest way to solve for bond buying problems at vanguard is to buy them at fidelity and use their autoroll feature. Works well.
by welderwannabe
Fri Mar 08, 2024 8:35 am
Forum: Personal Investments
Topic: what to do with I Bonds
Replies: 24
Views: 3060

Re: what to do with I Bonds

They are extra tax deferred space. Thats hard to get.

If you're not maxxing out your 401k/IRA options, maybe I'd consider selling them to help offset increasing your 401k/IRA contributions. If those are maxxed out, then I'd hold onto the iBonds.
by welderwannabe
Fri Feb 23, 2024 11:07 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2933

Re: 401k fund choices (make sure you're sitting down)

Thanks everyone for the feedback, I'm glad I asked. I post a lot of advice on here myself and have attended a few BH conferences so you start to think like you know everything, but clearly I don't as your suggestions are vastly different from what I was going to do.

I had not really factored in the tax benefits (we vary between 32% and 35% depending on year) and I should have, and I was also thinking of going with the fund that beat its benchmark the most to try to take advantage of the active mgmt we are forced to pay for, versus using the lowest cost funds (bonds).

We will swing more of our bond allocation to this account from my low fee 401k and she will go with bonds in her high ER 401k and max it out.

Thanks as always for the advice.
by welderwannabe
Fri Feb 23, 2024 11:01 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2933

Re: 401k fund choices (make sure you're sitting down)

mikejuss wrote: Thu Feb 22, 2024 12:09 pm Are you quite sure these are all of the options in your wife's 401(k)?
Yes, I am. Its all of the options in both their portal and the PDF plan documents they provided.
by welderwannabe
Thu Feb 22, 2024 5:56 pm
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2933

Re: 401k fund choices (make sure you're sitting down)

retired@50 wrote: Thu Feb 22, 2024 11:55 am The selling point is the benefit to the company, not the plan participants. The company probably doesn't have to cough up much (if any) money for a plan like this one with high ERs. The people on the 401k committee are probably choosing the lowest fee structure, for the company, they can find.

Regards,

Absolutely correct in this case.
by welderwannabe
Thu Feb 22, 2024 11:23 am
Forum: Personal Investments
Topic: 401k fund choices (make sure you're sitting down)
Replies: 32
Views: 2933

401k fund choices (make sure you're sitting down)

My wife's company has just switched from a simple to a 401k. The following fund choices are available. With this, im thinking she should just contribute up to the match (100% of the first 4%) and not bother with anymore. Which of these not so great choices should she go with? There is no plan fee on top of these expense ratios at least. This will be a very small % of our assets, so the rest of our allocation isn't important. Just looking for the best bang for our expense ratio buck. Leaning towards the smallcap world as I feel small caps, especially international, may have some value from active management and it is one of the funds that has outperformed its benchmark over the last 10 years. Thoughts? American Funds 2010 TD R3 .93%ER Americ...
by welderwannabe
Wed Feb 21, 2024 8:54 am
Forum: Personal Investments
Topic: Help - Can Marcus Lock Our Savings Account Willy-nilly?
Replies: 44
Views: 6264

Re: Help - Can Marcus Lock Our Savings Account Willy-nilly?

Just wanted to add my voice to the chorus here. My account was restricted in December for transferring funds to a Fidelity brokerage account from my Marcus HYSA. I speculated that it had to do with the fact that Fidelity uses a partner bank. Marcus wanted to verify account ownership and required a three-way call with a representative from Fidelity. I had to intervene to let both representatives know that Fidelity uses a partner bank and that prefixes are added to the account numbers, since the Marcus representative was confused that the account didn't have "Z" and was all numbers. That was stressful, and I didn't want to risk any feathers being ruffled and locking up my entire savings. It was resolved, and I'm assured by Marcus t...
by welderwannabe
Sun Feb 18, 2024 11:48 am
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18646

Re: Vanguard Wellesley

I'll respectfully disagree only to the extent that the target date income funds at Vanguard (and most target date funds) get to 30/70 around 7 years past the target date and stay there the rest of one's life. Vanguard has determined that a 30/70 portfolio can at least keep with inflation And Vanguard and other advisors positions on what a proper AA, including the allocation to international stocks and bonds, have changed throughout the years. Some I suspect is to add money into new funds so they can look successful and give them a launch pad. The target retirement income fund, which is the fund all these target dates turn into in retirement has changed quite a bit. It used to be 5% cash (specifically in their prime money market fund if you...
by welderwannabe
Sun Feb 18, 2024 9:24 am
Forum: Personal Investments
Topic: Vanguard Wellesley
Replies: 125
Views: 18646

Re: Vanguard Wellesley

Tough crowd here. I think all of the responses above this post were respectful, educational, and also correct. If you're looking for educated opinions you came to the right place. If you're looking for pompoms and cheerleaders that will validate your past decisions you didn't. As to your question, I do not think Welsey is appropriate for a 62 year old. I believe 65% bonds is too many bonds for any age bracket. I may be in the minority in that thinking, but you asked. I vastly prefer something closer to a 60% stocks 40% bonds allocation for ones entire life. Its a single AA that can take you from cradle to grave. So something like this: VBIAX Vanguard Balanced Index Fund Admiral Shares or this: VSMGX Vanguard LifeStrategy Moderate Growth Fund
by welderwannabe
Mon Feb 05, 2024 3:01 pm
Forum: Personal Investments
Topic: VUSXX = 80.6% U.S. Treasury for 2023
Replies: 67
Views: 10115

Re: VUSXX to be 100% government obligations in 2024?

In 2022, the "Fidelity Treasury Only Money Market Fund" had 93.63% of its income from US Government Obligations. Well that just sounds like false advertising! Should be called the Cash and Treasury Only money market fund. The main difference between it and VUSXX is FDLXX doesn't seem to do repos, which can have a small but non zero counterparty risk. Although its important to note that VUSXX sticks with repos at the Fed Reserve only. What is the Cash invested in? In February 2023, FDLXX had $182 million in what it vaguely called “Net other assets”. This can’t be $100 bills. What can it be other than repos? No idea, and I've never been able to figure it out by spelunking through the annual report and prospectus https://www.boglehe...
by welderwannabe
Fri Feb 02, 2024 8:28 am
Forum: Personal Investments
Topic: Vanguard/Fidelity Funds - Splitting the Difference
Replies: 22
Views: 2260

Re: Vanguard/Fidelity Funds - Splitting the Difference

I think the bigger risk is losing access to your funds due to a security issue, account lockout etc. That, in my mind, is the primary advantage to splitting up funds. Not financial failure/corruption at a given firm.
by welderwannabe
Fri Feb 02, 2024 8:21 am
Forum: Personal Investments
Topic: VUSXX = 80.6% U.S. Treasury for 2023
Replies: 67
Views: 10115

Re: VUSXX to be 100% government obligations in 2024?

toddthebod wrote: Thu Feb 01, 2024 7:46 pm
Geologist wrote: Thu Feb 01, 2024 7:38 pm In 2022, the "Fidelity Treasury Only Money Market Fund" had 93.63% of its income from US Government Obligations.
Well that just sounds like false advertising!
Should be called the Cash and Treasury Only money market fund. The main difference between it and VUSXX is FDLXX doesn't seem to do repos, which can have a small but non zero counterparty risk. Although its important to note that VUSXX sticks with repos at the Fed Reserve only.
by welderwannabe
Sun Jan 28, 2024 2:06 pm
Forum: Personal Investments
Topic: Thinking of Slowing Down in a Couple of Years?
Replies: 5
Views: 1604

Re: Thinking of Slowing Down in a Couple of Years?

While I don't have your assets I am considering the same thing. Im getting burned out.

For health insurance, a part time job (or even full time) that doesn't require me to use my brain and when I clock out i'm out can provide health insurance. Its not that I don't want to work, just that I don't want to continue to destroy my mental health with the stress.
by welderwannabe
Thu Jan 25, 2024 8:55 am
Forum: Personal Investments
Topic: moving $400k from Fed. MMKT
Replies: 9
Views: 955

Re: moving $400k from Fed. MMKT

Is the target date fund in taxable? If so, thats not ideal however if it has a lot of gains U may not be able to sell w/o tax implications.

Regarding the MM money, my suggestion is to invest it according to your AA. I'd put the stock allocation in S&P500 index or Total market index fund. You can also layer in a international index fund if desire, as in taxable you will also get a tax credit for the foreign taxes paid.

For the bond portion, I generally suggest Treasury funds in taxable since they are state tax free and especially considering your retired your fed tax rate is probably low enough that municipals wont make sense.
by welderwannabe
Tue Jan 23, 2024 2:15 pm
Forum: Personal Investments
Topic: At Vanguard is VUSXX the safest money market fund?
Replies: 2
Views: 636

Re: At Vanguard is VUSXX the safest money market fund?

Yes. One of the safest anywhere.
by welderwannabe
Mon Jan 22, 2024 10:56 pm
Forum: Personal Investments
Topic: Fidelity FDIC Core Account - CMA
Replies: 21
Views: 1856

Re: Fidelity FDIC Core Account - CMA

I use CMA but buy a money market position there
by welderwannabe
Thu Jan 04, 2024 12:33 pm
Forum: Personal Investments
Topic: The Traditional vs. Roth Split Decision: As Insanely Complex as It Seems?
Replies: 156
Views: 23093

Re: The Traditional vs. Roth Split Decision: As Insanely Complex as It Seems?

I max out the $$$$ in my megacorp 401k before the percentage because I'm well compensated. I do around 3% as if I do any higher I'll max it out earlier in the year and miss out on the match.

Therefore, since I am limited to such a small percentage, I go all Roth. In my mind, doing Roth allows me to contribute 'more' since I'm putting in pre-tax dollars.

I also gave up on the backdoor Roth routine as I got tired of managing a solo 401k. The annual 401k paperwork needs to be filed and there are huge fines if you miss it and it would stress me out every year remembering to do it. So my megacorp 401k is my only roth opportunity, so I take advantage of it.
by welderwannabe
Thu Jan 04, 2024 10:29 am
Forum: Personal Investments
Topic: With VMFXX yielding 5.3%, why not stay in cash for now?
Replies: 61
Views: 12587

Re: With VMFXX yielding 5.3%, why not stay in cash for now?

Because by the time you realize you shouldn't be in cash any longer you've already missed the move.
by welderwannabe
Wed Jan 03, 2024 2:27 pm
Forum: Personal Investments
Topic: Unsure about bond fund
Replies: 4
Views: 709

Re: Unsure about bond fund

Carver143 wrote: Tue Jan 02, 2024 5:35 pm I am retired and want to increase my allocation to bonds. Before rebalancing I was thinking of combing the 2 bond funds I own into Total Bond Index. Currently have 101,000 in VFIDX - Intermediate Investment Grade Corporate, and 71,000 in VFSUX - Short Term investment Grade on a portfolio of a million. After research I found that Total Bond Market (VBTLX) has an average maturity of over 9 years with earning less than the corporate bonds. That seems long to me. VBILX - Intermediate Bond Index seems like a possibility but that keeps me in one segment of the bond market. This is a rollover IRA which I won't be using for 6 more years.
I don't think there is anything wrong with your current plan. I'd stick with it.
by welderwannabe
Wed Jan 03, 2024 12:04 pm
Forum: Personal Investments
Topic: What are some good bond funds in taxable accounts
Replies: 9
Views: 1036

Re: What are some good bond funds in taxable accounts

You will definitely want some tax exempt funds then. At the very least funds that hold only US treasuries will be exempt from your state taxes, but you may even do better with NY municipal bond funds. So for simplicity sake, a short-term US treasury fund would be a much better choice than CDs because it will save you from state taxes. I agree with toddthebod here on US Treasurys. I would stay away from the Fidelity bond fund you're in, its not a great performer in taxable. As for munis, when you compare to check for TEY make sure you look at an year period. Some of the shorter muni funds and especially money markets are very cyclical with yield and if you pick a single 7/30 day SEC yield to make a comparison against your math may be off. F...
by welderwannabe
Tue Jan 02, 2024 12:27 pm
Forum: Personal Investments
Topic: Muni funds instead of "cash?"
Replies: 7
Views: 1387

Re: Muni funds instead of "cash?"

Look at your state tax too. You can do Treasurys (or a Treasury MM) and have most of the interest be state tax free. May come out ahead of bank money markets/HYSA.
by welderwannabe
Tue Jan 02, 2024 11:49 am
Forum: Personal Investments
Topic: BND or Stable fund
Replies: 106
Views: 10938

Re: BND or Stable fund

tibbitts wrote: Tue Jan 02, 2024 10:24 am BND is "universal" partly because many people don't have access to a Stable Value fund; you can't just run out and buy one in a brokerage account.
And for the last 15 years or so money markets have paid almost nothing...until very recently.
by welderwannabe
Mon Jan 01, 2024 3:11 pm
Forum: Personal Investments
Topic: Port Review for upcoming Job Loss
Replies: 18
Views: 2480

Re: Port Review for upcoming Job Loss

If I were in your shoes I'd reduce the cash dramatically, but still keep 2-3 years of expenses in cash until you can figure out where your income will really end up. You may need to pull from the cash to fund your lifestyle if your new income doesn't meet your needs. I'd invest the remainder into the Fidelity stock fund, FSKAX, you already have. Its a fine low expense fund. As to the bonds, reassess weathers muni's make sense based on your new income. If they don't make sense, I'd invest it in Fidelity's intermediate treasury fund FUAMX and you'll still get state tax benefits at least. If you discover you don't need 2-3 years expenses because your able to find a better job than you think, or you just aren't spending as much you can slowly s...
by welderwannabe
Sat Dec 30, 2023 3:01 pm
Forum: Investing - Theory, News & General
Topic: VWELX vs. VTMFX
Replies: 18
Views: 1786

Re: VWELX vs. VTMFX

35% tax bracket is on the bubble for munis when I've looked into it before (im in the same bracket), which VTMFX is loaded with. VTMFX is also > 50% bonds as thats some sort of requirement to get the tax advantage. Thats significantly more conservative than the fund you're in now.

If you want to do munis, maybe do 60% VTSAX and 40% VWITX Intermediate Muni fund.

Another one to look at is 60% VTSAX and 40% VSIGX Vanguard Intermediate-Term Treasury Index Fund. You'll get the state tax advantage of the Treasurys.
by welderwannabe
Wed Dec 27, 2023 12:20 pm
Forum: Personal Investments
Topic: Backdoor Roth / Treasuries in Taxable / Start SS ?'s
Replies: 8
Views: 528

Re: Backdoor Roth / Treasuries in Taxable / Start SS ?'s

Its fine to hold Treasurys in taxable. I don't see you'll have any other choice with a TIRA of only 900K, unless you are going to have a very very high stock percentage in retirement. If you filled up the entire TIRA with bonds, you would only have 20% of your assets in bonds. 80/20 is a little high for a retiree,

Keeping Treasurys in your TIRA has the advantage of tax sheltering the income...you won't pay taxes until you withdraw. However, it also has the drawback of losing the state tax exemption for them, as you pay state tax on IRA withdraws regardless weather the withdraw came from a stock or a Treasury.
by welderwannabe
Wed Dec 27, 2023 12:13 pm
Forum: Personal Investments
Topic: The Myth of "Owning the Market"
Replies: 84
Views: 12578

Re: The Myth of "Owning the Market"

You can always get an equal weight mutual fund/etf. Invesco has one, with an ER of only .2% (yes thats more than VFIAX/VOO but historically still a cheap ETF).

https://www.invesco.com/us/financial-pr ... ticker=rsp
by welderwannabe
Tue Dec 26, 2023 7:31 pm
Forum: Personal Investments
Topic: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.
Replies: 76
Views: 14366

Re: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.

edge wrote: Tue Dec 26, 2023 7:13 pm Shouldn’t worry. Fidelity is fine.

I had this happen once where I am stuck in ftse based total intl fund instead of msci. Minor inconvenience.
The ftse is a broader index versus msci. Gets down into smaller companies. Aside from a slightly higher fee at vanguard versus total international it's a fine choice. Some prefer it.
by welderwannabe
Tue Dec 26, 2023 3:01 pm
Forum: Personal Investments
Topic: How Safe Is Fidelity Treasury Money Market?
Replies: 32
Views: 4585

Re: How Safe Is Fidelity Treasury Money Market?

1. Institutional money market funds do not have a fixed NAV and are required to float. 2. Retail money market funds have a fixed NAV but they do not invest only in very safe assets. They also invest in commercial paper which is higher risk than government assets. These are often called "prime" funds. 3. Government money market funds have a fixed NAV but may only invest in government assets. These are the safest assets. All of the Vanguard money market funds are in this third category. #3 needs to be revised to state 'Federal government assets'. Municipal MM's are retail funds, but invest in state and local government debt. I'd also add that a government money market fund can invest in some non government transactions, such as com...
by welderwannabe
Tue Dec 26, 2023 12:51 pm
Forum: Personal Investments
Topic: Opening Joint Brokerage Account with Canadian Spouse
Replies: 3
Views: 288

Re: Opening Joint Brokerage Account with Canadian Spouse

Hi everyone, Long time lurker, first time posting. Thank you for all the valuable information over the years! I’m wondering if anyone has insight into tax implications when a US citizen opens a joint brokerage account with a Canadian spouse. Most information I find is vague and relates to a standard tax on dividends, and I’m unsure if this applies in our case. For context, my spouse is Canadian but does not hold any property or investments in Canada. They also do not have any Canadian income. We both are full-time US employees and have no plan to move to Canada in the future. Are you aware of how a joint account would be tax treated in this situation? Thank you so much There should not be any. I'm a canadian american dual citizen myself li...
by welderwannabe
Tue Dec 26, 2023 12:44 pm
Forum: Personal Investments
Topic: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.
Replies: 76
Views: 14366

Re: I am stuck with Fidelity Zero in brokage account with over 1.2M and 50% gain.

I had a similar issue except I TLH'd into the VG S&P500 and extended market funds. Then I had a 50%+ gain, so I'm stuck there now.VTSAX would be easier than the 2 individual funds, but no biggue. Always TLH into something you can live with forever.
by welderwannabe
Tue Dec 26, 2023 12:34 pm
Forum: Personal Investments
Topic: How Safe Is Fidelity Treasury Money Market?
Replies: 32
Views: 4585

Re: How Safe Is Fidelity Treasury Money Market?

I usually keep 12 month emergency fund. Maybe excessive, I know, but brings me a lot of peace of mind with low job security and a lot of financial commitment (spouse, children, mortgage). In the past, I didn't think much of interest rates because it's been near 0 for most of my investment life, but with rates where they are now, I want to make sure I'm getting a good yield on my cash. I'm looking at Fidelity Treasury Money Market Fund (FZFXX), the current yield is 4.98%. How safe is this fund? In my case, the alternative would be Capital One 360 Savings at 4.35% because that's where I bank and I don't want to have more than 2 accounts (Fidelity and Capital One), so I don't want to keep making new savings accounts to keep up with high rates...
by welderwannabe
Tue Dec 19, 2023 4:03 pm
Forum: Personal Investments
Topic: Long term fixed income. Is it time?
Replies: 30
Views: 4367

Re: Long term fixed income. Is it time?

Im heavy into long bonds (30 year) and have been for quite sometime. Its part of my standard AA. I rode them on the way down, im gonna ride them on the way back up.

Not suggesting that in your case, but going into 10 year Treasurys (nominal or TIPS) is a good idea to get some income protection.
by welderwannabe
Tue Dec 19, 2023 3:37 pm
Forum: Investing - Theory, News & General
Topic: Disadvantages of Using SGOV as a savings account
Replies: 64
Views: 13845

Re: Disadvantages of Using SGOV as a savings account

whereskyle wrote: Sun Jan 15, 2023 8:21 am I've had my eye on SGOV for quite a while. It's a 1-3 month treasury bill ETF for 5 basis points (net). It's currently yielding more than 4%, and it seems like my convenient HYS account is sticking at 3.3%, so it seems I'm leaving 1% on the table. I'm wondering if I can realistically treat SGOV as my savings account.
Lots of tax entries on the forms for buy/sales. Possible loss when you sell (albeit small). Plenty of money markets investing in treasurys paying close to the same without those headaches.

However, nothing wrong with using it as a savings vehicle. I roll bills myself, same thing just not in an ETF.
by welderwannabe
Tue Dec 19, 2023 3:20 pm
Forum: Personal Investments
Topic: How would you define ‘cash’ ?
Replies: 60
Views: 7387

Re: How would you define ‘cash’ ?

Is "cash" an asset class? The return on cash (e.g. VUSXX, or a HYSA) can differ from, exceed, and be described in terms of correlation with assets in other classes (like bonds or bond funds) that you might consider "investments." If "cash" is an asset class, why are these assets not investments? If "cash" is not an asset class, why not and what is it? Webster's defines an investment as something you commit money to in order to earn a return. If Money=Cash, and I put that in a checking account, is it committed? Is it committed if in a money market? Does that make me an investor? When someone's says they are 'fully invested', whom would define that as being 100% in their checking account or HYSA? Not m...
by welderwannabe
Sun Dec 17, 2023 5:24 pm
Forum: Personal Investments
Topic: How would you define ‘cash’ ?
Replies: 60
Views: 7387

Re: How would you define ‘cash’ ?

VUSXX is cash, its a money market. In my portfolio I consider any fixed income that matures < 1 year cash.

Cash is not an investment.

The purpose of cash for me is to prevent me from selling my investments.

Everyone looks at things differently, but this is how I look at it.
by welderwannabe
Sun Dec 17, 2023 5:12 pm
Forum: Personal Investments
Topic: "One pot" vs. Retirement / Taxable split
Replies: 23
Views: 4137

Re: "One pot" vs. Retirement / Taxable split

After reading the last reply and thinking about it a bit more ... in my 401k there is no life strategy fund. So the target retirement fund feels fine. Instead of being 60/40 it seems like in my age group it is 40 + <your age - 40> as a percentage in stock, which is really fine. It represents 13% of my total portfolio, so if it has 15% more stocks than every other account then I don't think it will have a major impact on how my portfolio responds to market events. But in my various IRAs LifeStrategy 60/40 *is* an option. I suppose that this is what people mean when they talk about "mirroring" your AA between accounts. Should I consider doing that instead of using a target date retiremetn fund? It's probably too late to do that in ...
by welderwannabe
Sun Dec 17, 2023 1:07 pm
Forum: Personal Investments
Topic: "One pot" vs. Retirement / Taxable split
Replies: 23
Views: 4137

Re: "One pot" vs. Retirement / Taxable split

Im not a fan of Total Bond in taxable. I'd stick with either a muni fund or a treasury fund, that way you're getting either federal or state tax free money. Personally I stick with Treasurys in Taxable. While munis are slightly better for me, it only ends up being 10-20 basis points for my tax bracket...not worth it. This is especially true for muni money markets where their returns looks like a sine wave. There are times its better than a Treasury for me, times they are worse. I also do not look at my accounts as 'one big pot' as I'm planning on also drawing from taxable prior to 59 1/2. I keep my 'retirement' accounts 70/30, and my taxable 60/40. Yes, I realize I can sell bonds in my 401k and buy stocks in my taxable, or visa versa, to ke...
by welderwannabe
Mon Dec 11, 2023 7:05 am
Forum: Personal Investments
Topic: Christmas present = forced retirement
Replies: 128
Views: 20510

Re: Christmas present = forced retirement

My wife's 3,000+ employee fintech employer laid off ~25% of its staff last Monday, this was after laying off ~5% of its staff just last month. It shook her up a bit. My wife's team has gone from ~35 to 11 in the last month, and they are revenue generators. My employer (health products megacorp) quietly laid off ~5% of its staff (including several people I have worked closely with for years, at least 2 of whom were my employees in my previous position) in the last few weeks and we are the most financially healthy company in our industry. I have my end-of-year review with my boss tomorrow; not going to lie, there's a small pit in my stomach although there's about zero chance they'd let me go (so I assume). My mom does contract work on the si...
by welderwannabe
Mon Dec 11, 2023 6:57 am
Forum: Personal Investments
Topic: $250K to invest – SP500 vs. SPAXX vs. CD rates
Replies: 8
Views: 2155

Re: $250K to invest – SP500 vs. SPAXX vs. CD rates

I think 50/50 could make sense, but I like 60/40 better. I consider it an all weather set-and-forget asset allocation. Cash is fine for the 40% at the moment, but if we revert to the recent mean it won't yield much. I'd suggest putting the 40% at minimum in a treasury index fund. Generally I'd recommend Intermediate term fund such as FUAMX - Fidelity ® Intermediate Treasury Bond Index Fund, but if you're thinking if needing some of the money in 3-5 years, FUMBX Fidelity® Short-Term Treasury Bond Index Fund can also work. The former has a duration of about 6 years, the latter about 2.5-3 years. They both yield a bit less than SPAXX right now, but are 100% state tax exempt and you're also 'locking in' longer term rates than cash. If you do de...
by welderwannabe
Sun Dec 10, 2023 10:14 am
Forum: Personal Investments
Topic: VBTLX - Am I looking at this fund incorrectly for long term investing?
Replies: 60
Views: 8659

Re: VBTLX - Am I looking at this fund incorrectly for long term investing?

"an international fund that I dropped after a decade of negative returns. So, down to just VTSAX and VBTLX." Not for OP. Based on OP's record, he will drop VBTLX too after a decade of negative returns. My point is all we do on here is look at past performance. I see post after post on here of people dumping bonds and jumping into money markets due to the performance of the last 2 years. I see forum veterans suggesting people sell their other funds and jump into Vanguard funds because the ones they are in are higher ER or actively managed, and 'past performance' suggests that managed funds don't out perform passive over time. What we're really saying is we just don't want people to look at past performance for reasons that aren't ...
by welderwannabe
Sun Dec 10, 2023 9:11 am
Forum: Personal Investments
Topic: MMF vs. HYSA based on current interest rates?
Replies: 13
Views: 2470

Re: MMF vs. HYSA based on current interest rates?

Agree VG has the better money market funds. However if you have interest in a MMF that you can use like a checking account, have ATM/debit card access, Fidelity is the place to be. You will pay a small yield premium however.