Bogleheads.org

Zero coupon treasuries?

There's an asset class that we're not allowed to talk about on this forum that has a market cap of $1.16T.

busdriver11 wrote: ↑Sun Mar 19, 2023 11:23 pm

chinchin wrote: ↑Sun Mar 19, 2023 10:54 pm FDIC sweep at Fidelity or IBKR?

Don't know anything about IBKR, but seems like it would be easy enough to move to Fidelity. FDIC sweep doesn't pay so well, though, 2.32% isn't near as good as the 4.52% money market fund at the other brokerage firm. Wondering if that's worth the loss as far as diversifying.

The point of the FDIC sweep isn't to get more yield, it is to increase your coverage above the traditional $250k limit.

Per Fidelity: Assuming all the banks have available capacity, a customer could have up to $5 million of uninvested cash covered by FDIC insurance.

https://www.fidelity.com/why-fidelity/s ... r-accounts

rm wrote: ↑Mon Mar 20, 2023 12:03 am I am a little confused by this primer

Say I owe $50K taxes on federal

If I pay by credit card, I will pay some extra charges (~1.85%).

My credit card is chase freedom

It gives 1% back as $s and 5% on groceries. So this won't work right?

In which case I need to apply for another credit card and use that so that I can make money on the spread.

Did I get this right?

The basic idea is you buy pre-paid $500 Visa or Mastercard debit cards at a store that qualifies under a bonus category.

FDIC sweep at Fidelity or IBKR?

delete

-Why do some banks offer new CD's every day for the same rate? why wouldn't they just offer them all on one day, once a week?

How would that work? So if the bank only sells CDs on Mondays, and it's Tuesday, I have to wait until next Monday to buy a CD?

I would choose ASU just for the weather.

The only issues I had was TurboTax could not import my Vanguard 1099s and it also asked me to confirm every options sale (~48 transactions) manually.

ehh wrote: ↑Fri Mar 17, 2023 6:54 pm

Gort wrote: ↑Fri Mar 17, 2023 6:32 pm

CKMAN wrote: ↑Fri Mar 17, 2023 5:48 pm [Post merged into the ongoing discussion --admin LadyGeek]

Tried to open an account with Vanguard, and they are telling me it will be two weeks before they can fix the problem with creating an account.

Welcome to Bogleheads. What was the problem?

Or is Vanguard telling you all new account creation activity is shut down for two weeks? That seems unlikely - this board would be lit up like a Christmas Tree.

It's happened before though.

viewtopic.php?t=366025

I haven't used new bing, but I have used ChatGPT which is the same underlying technology. It's way better than Google. Google cannot innovate, they are basically the new IBM, they have been deprecated.

Wow, this is really a desperate move by T-Mobile. Not happy at all about this. Are they really trying to save on credit card fees?

By providing liquidity or facilitating transactions that would otherwise be cumbersome or more costly.

https://www.investopedia.com/articles/m ... -pools.asp

FDIC invests its reserves in T-bills.

I don't know but it seems like state taxes would also have to be factored in.

Gary gets it. Zero is cheaper.

Hyperchicken wrote: ↑Fri Mar 17, 2023 11:47 am That is exactly what puts "passive" into "passive index funds". Funds don't need to figure it out on their own what to invest in. They are passively following an index that someone else maintains. Hence lower costs.

But they have to pay the index provider for the license to use the index.

The Fed just pivoted, I'm going long.

QT is over. The Fed injected $160 billion this week through the discount window.

The Fed's reserves rose $252 billion last week.

roguewarrior0 wrote: ↑Fri Mar 17, 2023 8:42 am I still have this question. I would like to hold more cash but default is worrisome

Are you stocking up on food, water and ammo? And barter-able goods?

lgb wrote: ↑Fri Mar 17, 2023 1:06 am

chinchin wrote: ↑Fri Mar 17, 2023 12:39 am If you're holding a T-bill and the Fed cuts rates, the T-bill increases in market value.

and if they increase rates? .....which is why *I* thought T-Bills were being turned to as a place to put cash.........

If they increase rates, then the market value of the bond bill you hold goes down, but the good news is that you only have to hold it for 4 weeks for it to mature and then you get all your money back.

I pay lower fees at Fido, than I did at VG.

If you're holding a T-bill and the Fed cuts rates, the T-bill increases in market value.

TurboTax Premier Online is making me manually review every option I sold in 2022. My broker is Fidelity. For every option I sold that is marked as zero cost basis (which is pretty much all of them), the software is making me click through multiple pages to confirm it is correct. I had to fix about 48 trades.

I already have over 100 option sales this year. I'm not going to go through this again with TurboTax. Actually the IRS rejected my first submission with TT and I just finished re-submitting. If it's rejected again, I'm going to try another software provider.

Can someone please recommend me tax software that just works for active traders?

You only spent $140 on groceries over three months?

Sounds like a back end error.

Does not inspire confidence.

So, for my possible retirement at MRA of 57:
-Years of Service: 32

Now, for sake of comparison, consider if I was instead retiring at 62 (with the same 32 years of service):

Why are you calculating the years of service as the same when you actually worked 5 more years from 57-62?

I also don't get why you added inflation to your payouts from MRA, but you didn't add schedule increases to your high-3 from working until 62?

It may take a few days to settle.

511east wrote: ↑Wed Mar 15, 2023 6:08 pm What about the low-rate mortgages that a credit union or bank has given out? What happens to those, if a credit union or a bank needs to cash in their treasuries to pay out depositors? Are the mortgages safe? Are they sold to someone else?
Sorry for my lack of knowledge and the questions, but banking is not my niche.

It's common for mortgages to be securitized and sold off. For example, the Federal Reserve owns approximately 30% (~ $2 Trillion) of agency mortgage backed securities.

It's true that a lot of those MBS are now underwater due to the Fed raising rates.

https://www.msci.com/research-and-insig ... al-reserve

Credit cards will still have a place. Making payments directly on the FedNow payment rail would be like sending a wire transfer or using your debit card.

Maybe people will use it for P2P transactions, but sometimes you don't want things to settle instantly with no recourse. Like reserving a hotel, etc.

Define "safe."

Enabling margin has nothing to do with whether your broker can lend out your shares. They can do that to a cash account also.

LV Fold Me Pouch

https://us.louisvuitton.com/eng-us/prod ... 00v/M80874

clipso1 wrote: ↑Tue Mar 14, 2023 11:27 am Hi,

My Fidelity brokerage sweep account is Fidelity Government Money Market Fund (SPAXX). They are using UMB bank.

What do you mean by "using?" Can you clarify please? Is this cited anywhere?

Fidelity offers a Business Account that is a brokerage account with some cash features. Your business can hold funds in the account in T-Bills, money market funds, etc. You can link the account to your business bank account in order to transfer funds between the accounts. This seems like this is what would make the most sense, and then I can do as others have suggested and I guess look at T-Bills (not Treasury Bonds). My other half will probably just want to have me open up another business checking account at a local bank here, but since we have a lot of investment stuff consolidated into Fidelity personally at this point, it probably makes sense to look at Fidelity business brokerage account to resolve the initial concern. I don't think ...

nyc212 wrote: ↑Mon Mar 13, 2023 1:08 pm
I'm not familiar with sweep accounts, but googling indicates the same problem of maximum $250K FDIC insured.

Fidelity works with 27 FDIC banks which in theory could provide up to $6.75 million in coverage. IBKR provides up to $2.5 million in coverage.

https://accountopening.fidelity.com/ftg ... t?type=ira

https://www.interactivebrokers.com/en/a ... rogram.php

nyc212 wrote: ↑Mon Mar 13, 2023 12:19 pm
I think the sweep options (e.g. Fidelity) places funds in various FDIC insured BANK accounts which only pay .01%.

They pay 2.34%.

https://accountopening.fidelity.com/ftg ... ?type=fcma

Fidelity's FDIC sweep program works with 26 banks and in theory could provide up to $6.5 million in coverage. IBKR has a similar program offering up to $2.5 million.

deleted

JenniferW wrote: ↑Sat Mar 11, 2023 1:11 pm Maybe the banks will wisen up from this and start offering some decent interest rates and their savings accounts to keep people from leaving to invest it elsewhere. It’s ridiculous that they’re paying almost 0% still.

Paying people interest is what is making them broke. Customer deposits are a liability on their balance sheet. They don't want your money.

Yesterdaysnews wrote: ↑Sat Mar 11, 2023 2:04 pm Schwab ?

Bueller?

Fotodog wrote: ↑Wed Mar 08, 2023 6:56 pm Thanks, I might end up doing what DMW did, although I’m somewhat opposed to the idea on principle. Kind of like the infamous quote, “you just need to pass the bill to find out what’s in it”.

Please let us know what you think if you try it.

Makefile wrote: ↑Fri Mar 10, 2023 8:35 pm I didn't know before all this that it was so common for businesses to just disregard FDIC insurance and the insurance limit and store many millions in a plain old bank account. Is the issue that their cash reserves are so massive that there is nothing they can do (even given things like CDARS or whatever is analogous for checking) so they just look the other way? And I thought a lot of corporate treasurers swept all but immediate cash needs into money markets or similar instruments.

I guess we are finding there has been a lot of incompetence and complacency going on.

Gort wrote: ↑Fri Mar 10, 2023 8:51 pm

chinchin wrote: ↑Fri Mar 10, 2023 7:36 pm Electric vehicles don’t have catalytic converters.

Nor do bicycles.

True. Personally I am considering an e-bike.

Electric vehicles don’t have catalytic converters.

HR and the legal department are not your friend. They work for the company. If you have never had to deal with these people, consider yourself lucky.

- Should she talk to HR first before resigning?
No. HR is not your friend.

- If she resigns effectively immediately, what should she put in the resignation letter for a reason, if anything?
No reason required.

At the risk of sounding like Tim Cook, if you're that worried you can buy and wear an Apple Watch which can then be used to unlock your phone in public.