Search found 33 matches

by lahob
Wed May 08, 2019 1:07 pm
Forum: Investing - Theory, News & General
Topic: point of maximal pessimism for international investing
Replies: 66
Views: 6178

Re: point of maximal pessimism for international investing

IT WAS A JOKE. IT WAS SATIRE. I am quite sure Bogle did not advocate finding companies to invest in that ONLY do business in the USA, refusing to accept business outside of the USA. That would be a ridiculous limiting factor. I thought it was funny to take some arguments here to the extreme: higher...
by lahob
Thu Apr 18, 2019 4:06 pm
Forum: Investing - Theory, News & General
Topic: Consensus on I Bonds for 2019?
Replies: 67
Views: 13366

Re: Consensus on I Bonds for 2019?

I bought half my allotment in January and will buy the other half before the end of April. I'll be shocked if the fixed rate doesn't go down in May.
by lahob
Wed Apr 17, 2019 8:12 am
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I'm not an expert either, but Vanguard lists the top FRN in your list as: United States Treas Frn2.53977157% due 1/31/2021 Floating/Variable Coupon - Daily Reset,13WK TBILL + 11.5BP - And the Treasury only lists the spread here, not the HDM: https://www.treasurydirect.gov/instit/annceresult/annceres...
by lahob
Tue Apr 16, 2019 4:16 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

thanks for the update. re "irrelevant for the time being"- can you amplify your line of thought? this page shows they last issued with 18bps of extra yield (over the 3 month tbill) https://www.treasurydirect.gov/instit/annceresult/annceresult.htm that seems attractive and is higher than its been fo...
by lahob
Tue Apr 16, 2019 11:31 am
Forum: Personal Finance (Not Investing)
Topic: "When Adding to Your Retirement Account is a Bad Idea"
Replies: 29
Views: 4065

Re: "When Adding to Your Retirement Account is a Bad Idea"

From the article... While $2 million sounds like a lot—and it is; trying to save a few more tax dollars today can hurt you a lot later. In the example above the RMD the first year exceeds $500,000! I think he needs some work on his math. I get an RMD for that person of about $73k at age 70. The res...
by lahob
Fri Apr 12, 2019 7:44 am
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I've tried to sell 5 times in the past few months. The first two times I didn't even get a quote. The last three times I did and submitted a sell order, but it never executed. I finally manage to sell the other day on the 6th attempt. Perseverance pay off! Because there's not really a market for th...
by lahob
Thu Apr 04, 2019 3:08 pm
Forum: Personal Consumer Issues
Topic: English /Spanish dictionary suggestions ??????
Replies: 15
Views: 760

Re: English /Spanish dictionary suggestions ??????

The best medium sized paper dictionary I know of is the Webster's New World Spanish Dictionary (concise edition). I have the 1992 printing. I believe it's out of print, but you can probably find it used on Amazon. The best offline electronic (and perhaps the best overall) is the Oxford Spanish Dicti...
by lahob
Sun Mar 03, 2019 6:36 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

grok87 wrote:
Wed Feb 27, 2019 7:48 pm
thanks for the update. i'm wondering if position size might be the issue. maybe one needs $10k, or $25k or some quantity like that to trade on the secondary market.
That is certainly possible. Calling the Vanguard bond desk could also help.
by lahob
Tue Feb 26, 2019 4:21 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I bought a $2000 FRN at the auction in April. I requested a bid today at Vanguard at 10:30 am Eastern for quantity 1 and 5 hours later I still don't have a bid. I am not surprised but I am disappointed. I'll try again sometime. I've tried to sell 5 times in the past few months. The first two times ...
by lahob
Fri May 11, 2018 3:19 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

livesoft wrote:
Fri May 11, 2018 2:50 pm
Why not just use a floating rate note ETF?
Nothing wrong with those. Personally I was looking for a replacement for a Treasury money market fund, plus I was curious how the Treasury FRNs worked.
by lahob
Fri May 11, 2018 2:48 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I don't blame you grok, that last 20% sounds a little unnerving, but it would be interesting to know exactly what would ensue, like what kind of spread there would be. And how confident can you be in the pricing? I suppose then that's an issue with Muni's too? It's nothing I've dealt with before. W...
by lahob
Thu Apr 26, 2018 8:59 am
Forum: Personal Investments
Topic: Considering a CD ladder
Replies: 46
Views: 11192

Re: Considering a CD ladder

I have a $85,000 purchase of Total Bond made Aug '16 with dividends reinvested currently sitting at $82,900. I have a hard time seeing this thing gain $2,100 in the next 4 months to break even. I am guessing using the past to predict the future isn't the best move. I doubt you'll get back to $85k i...
by lahob
Thu Apr 12, 2018 8:13 am
Forum: Investing - Theory, News & General
Topic: I bonds rates and returns
Replies: 7
Views: 1727

Re: I bonds rates and returns

Everyone is focusing on your second question, which can't be answered, and ignoring the other two, which can. 1) https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm mentions that the I-bonds are currently giving a rate of return of 2.58%. It is also written tha...
by lahob
Wed Apr 11, 2018 9:44 am
Forum: Personal Investments
Topic: Is it a good time to invest in Vanguard Intermediate-Term Bond fund?
Replies: 18
Views: 4106

Re: Is it a good time to invest in Vanguard Intermediate-Term Bond fund?

Also, what is the best ETF version of VBILX? I compared it to LQD but LQD is only down 0.71 over the past year, compared to 2.56 for VBILX. I thought the two were similar? BIV is the ETF version of VBILX. You are looking at price and not total return. Both are up over the past 12 months, though LQD...
by lahob
Fri Apr 06, 2018 12:54 pm
Forum: Personal Investments
Topic: Series I Bonds in April/May 2018
Replies: 69
Views: 11778

Re: Series I Bonds in April/May 2018

Is there some reason to believe the fixed rate will be significantly better in May, enough to warrant waiting for May to make the purchase? Shorter-term TIPS yields have gone up quite a bit in the past few months, so I think there's a decent chance they'll raise the fixed rate. The worst that can h...
by lahob
Mon Apr 02, 2018 6:45 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

radiowave wrote:
Mon Apr 02, 2018 6:28 pm
So does that mean, if you bought a $200k FRN, that you can sell any portion of it or is it like a CD in that you would have to sell the entire bond?
I would assume it's like any other Treasury: you can sell in $1000 increments.
by lahob
Mon Apr 02, 2018 6:44 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I bought one at auction like a year ago. Based on this thread, I initiated the sell process to see what would happen but did not complete it. It showed no quotes and did not show a bid/ask spread. It said i needed to request a quote which i did not do. This is similar to what happens when you try t...
by lahob
Mon Apr 02, 2018 3:59 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

I just went to Vanguard's website and searched for all categories of "Treasuries" at Vanguard for the secondary market. Lots of things to choose from, Bills, Notes, Bonds, STRIPS, TIPS, Floating rate notes... Then I incrementally eliminated everything but Floating rate notes from the search, and no...
by lahob
Mon Apr 02, 2018 12:11 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

Thanks to grok87 and VinhoVerde for looking into this. Sounds like you can sell them, so that's good news!

Hopefully the sell price you get isn't too bad. I may buy an FRN and try selling it to see what happens.
by lahob
Mon Apr 02, 2018 9:59 am
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

grok87 wrote:
Fri Mar 30, 2018 5:52 pm
not sure what you mean. if i own a treasury FRN in my fidelity brokerage account are you saying i can't sell it?
Yes, that's my understanding. I'd love to be proven wrong.
by lahob
Mon Apr 02, 2018 9:58 am
Forum: Personal Investments
Topic: Considering a CD ladder
Replies: 46
Views: 11192

Re: Considering a CD ladder

a 100% guaranteed negative return over the next few years I'll go on record to predict that Total Bond Market will have a positive return over the next 3 years, starting from today's date. (Considering TBM has never had a negative return in any 2 year period, I feel fairly safe making this predicti...
by lahob
Fri Mar 30, 2018 5:23 pm
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

"No. To sell marketable securities that are in your TreasuryDirect account, you must transfer the securities to a broker/dealer account. The broker/dealer can sell the securities for you." Somewhat of a hassle, but it is possible if you have a broker who offers this service on TFRN's. I checked Van...
by lahob
Fri Mar 30, 2018 11:10 am
Forum: Investing - Theory, News & General
Topic: Brokered CDs
Replies: 17
Views: 3040

Re: Brokered CDs

Also a good part of the pool of money buying brokered CDs are doing it in amounts that far exceed FDIC coverage limits. For example, Vanguard Prime Money Market Fund . For them, they are essentially buying a corporate bond. They have to watch their credit risk very closely. The ones that pay higher...
by lahob
Fri Mar 30, 2018 9:31 am
Forum: Personal Investments
Topic: Treasury Floating Rate Note-Has its Time Arrived?
Replies: 50
Views: 6985

Re: Treasury Floating Rate Note-Has its Time Arrived?

What's the attraction of the FRN? I feel like I'm not understanding something. You get the yield of a 13 week T-bill but, since the rate is reset every week, almost no duration risk. That is, the price of the FRN is close to par all the time. And you only need to roll them over every 2 years. (Roll...
by lahob
Tue Mar 27, 2018 2:50 pm
Forum: Personal Investments
Topic: Time to sell intermerdiate and long term bonds?
Replies: 19
Views: 2900

Re: Time to sell intermerdiate and long term bonds?

:confused I have BIV [...] in my taxable brokerage account. Since I purchased them in 2016 I've lost 7.31% of the intermediate bond ETF You didn't really lose 7.31%. Over that time the total return of BIV is about -2.5%. You are looking at price only. You need to look at total return, which include...
by lahob
Tue Mar 27, 2018 12:28 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard sends out erroneous "not enough money in settlement fund" notice]
Replies: 94
Views: 8726

Re: Concerns with Vanguard

Agggm wrote:
Tue Mar 27, 2018 12:27 pm
I've caught a couple of fraudulent activities in past 8 or 9 years.
At Vanguard or somewhere else?
by lahob
Tue Mar 27, 2018 7:49 am
Forum: Personal Investments
Topic: premium/discount when buying an ETF
Replies: 31
Views: 3018

Re: premium/discount when buying an ETF

jhfenton wrote:
Thu Mar 22, 2018 2:58 pm
Let's see where they end up after this evening.
Where did they end up?
by lahob
Wed Mar 21, 2018 11:53 am
Forum: Personal Investments
Topic: Considering a CD ladder
Replies: 46
Views: 11192

Re: Considering a CD ladder

peterinjapan wrote:
Wed Mar 21, 2018 10:56 am
So, is this plan totally wrong?
It's perfectly reasonable to use CDs as part or all of your fixed income allocation.

I can't understand how you only made $200 holding $40k of BND for 3 years, but that doesn't change the answer to your question.
by lahob
Mon Mar 19, 2018 3:33 pm
Forum: Personal Finance (Not Investing)
Topic: need $5000.00 , take from U.S. treasury bonds or brokerage account
Replies: 10
Views: 1008

Re: need $5000.00 , take from U.S. treasury bonds or brokerage account

And, $1700.00 Federal taxes for selling the treasury bond (I sold one of 6, each holds about $8,200.00 currently). As bloom2708 said, it seems unlikely that you owe that much tax on the sale of a Treasury bond. 1700/8200 is suspiciously close to 20%. Are you sure you aren't to trying to pay capital...
by lahob
Fri Mar 16, 2018 2:50 pm
Forum: Personal Investments
Topic: Liquidity/Sale of Brokered CD
Replies: 13
Views: 1505

Re: Liquidity/Sale of Brokered CD

Kevin M wrote:
Thu Mar 15, 2018 12:32 pm
Looking at a 3-year CD I own at Fidelity, I see a bid, and the bid/ask yield spread is a little over 30 bps (2.918/2.604).
How does that compare to a typical early withdrawal penalty (6 months) on a direct CD?
by lahob
Fri Mar 16, 2018 2:30 pm
Forum: Personal Consumer Issues
Topic: [What TV Show Have You Recently Watched?]
Replies: 1570
Views: 170121

Re: Netflix, Your Current Favorite Show

Wife and I struggling to find a new Netflix show to watch. We have completed Breaking Bad, Better Call Saul, Ozark, Bloodline, Stranger Things, and we recently just finished Dexter. Have loved all of them -- didn't want Dexter to end! Any recommendations? I have watched and enjoyed all of those, ex...
by lahob
Wed Feb 28, 2018 8:09 pm
Forum: Personal Investments
Topic: Treasury floating rate note secondary market
Replies: 5
Views: 797

Re: Treasury floating rate note secondary market

Yes at Schwab: US Treasury VAR 01/31/2020 9128283T5 1.570 01/31/2020 Ask 25 99.99970 31.620 25,031.550 US Treasury VAR 10/31/2019 9128283B4 1.403 10/31/2019 Ask 25 100.14620 28.570 25,065.120 Thanks. Does the "Ask" there mean these are offers to sell? Are there any bids (offers to buy)? The latter ...
by lahob
Wed Feb 28, 2018 9:47 am
Forum: Personal Investments
Topic: Treasury floating rate note secondary market
Replies: 5
Views: 797

Treasury floating rate note secondary market

The US Treasury introduced floating rate notes (FRNs) a couple years ago. https://www.treasurydirect.gov/indiv/research/indepth/frns/res_frn.htm They would make an attractive substitute for money market funds except that there doesn't appear to be any secondary market for them, rendering them illiqu...