Search found 18 matches

by DanFromNewYork
Sun Jul 26, 2020 8:45 am
Forum: Personal Finance (Not Investing)
Topic: Help with math figuring savings rate from nest egg
Replies: 3
Views: 537

Re: Help with math figuring savings rate from nest egg

You can use the PMT function in Excel. This function is typically used to compute the payment for a loan, but if you enter a negative value for the future value you can output what you are looking for.

For example, if you assume that you will get a rate of return of 8%, invest annually for 30 years, currently have 0 in your portfolio and want to have 1,000,000 at the end:
=PMT(0.08,30,0,-1,000,000)

The output is $8,827, which is how much you would have to invest annually to reach the goal of 1,000,000 at the end of the period. Then just divide this by your income to get a savings rate.
by DanFromNewYork
Fri Apr 10, 2020 1:04 pm
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

There was a large 44 bps decrease yesterday in the vanguard NY muni fund, with the daily yield down to 0.62%. My TEY is now below the best savings account so I'll probably be moving my cash soon.

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by DanFromNewYork
Thu Apr 09, 2020 11:18 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Daily yields seem to be slowly decreasing, with the NY vanguard daily yield going down by 14 bps to 1.06% yesterday. The yield is back around where it was before the liquidity issues.

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by DanFromNewYork
Tue Apr 07, 2020 6:34 pm
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Kevin M wrote: Tue Apr 07, 2020 5:35 pm For VMSXX through 4/6:
...
Daily yield seems to have leveled out for now at 1.36%. Considering weekend days, we have four total days and two weekdays of 1.36-1.37%.
Similar story for the NY muni fund, with the daily yield only going down 5 bps to 1.20%.

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by DanFromNewYork
Sat Apr 04, 2020 6:38 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

The decrease for the NY fund seems to have paused, with the daily yeld increasing by 1 bp yesterday to 1.25%. Daily yields are flat over the weekend so we will have to see what Monday's yield is (computed on Tuesday).

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by DanFromNewYork
Fri Apr 03, 2020 8:57 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

indexfundfan wrote: Fri Apr 03, 2020 7:26 am I believe the party's over. From my quick calculation, the annualized yield yesterday (4/2) was 1.3% for VMSXX.
I am seeing the same for the NY muni fund. Daily yield is down to 1.24%

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by DanFromNewYork
Tue Mar 31, 2020 3:01 pm
Forum: Personal Investments
Topic: I bought a Put option - now what?
Replies: 77
Views: 5295

Re: I bought a Put option - now what?

If we ignore dividends, mathematically it is never optimal to exercise an American option early. If you are in the money and want to take your gain, just sell the option.
by DanFromNewYork
Tue Mar 31, 2020 6:19 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Kevin M wrote: Sat Mar 28, 2020 3:49 pm Image
Kevin, can you compute your daily yield for yesterday (Monday) to see if the national fund had a similar increase to what I am seeing for the NY fund below?

NY muni daily yield increased a little on Monday to 2.94%. Though the 7-day average still went down to 3.06% due to the earlier daily decreases.

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by DanFromNewYork
Sun Mar 29, 2020 6:38 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Kevin M wrote: Sat Mar 28, 2020 4:42 pm Exactly how your you calculating SEC yield based on your daily yields?
I am just taking a straight average of the previous 7 days of daily yields (these averages include the weekends, the weekend daily yields are always the same as the previous Friday). I tried both methods, including or excluding dividends, and am off by 0.01% for two days this month if I include the dividends:

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by DanFromNewYork
Sat Mar 28, 2020 4:06 pm
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Kevin M wrote: Sat Mar 28, 2020 3:49 pm
Kevin M wrote: Fri Mar 27, 2020 12:51 pm I'll still do my own calculation on Saturday of VMSXX daily yield for Friday, but I won't have the history you have during the peak of the liquidity crisis.
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Kevin
It looks like you assume that we earn interest on the accrued dividends as well. If I try that, my 7-day average for one day is off by 0.01% from the posted SEC yield. It is obviously a negligible difference, but I was wondering if anyone knows if money market funds should theoretically earn interest on the accrued dividends.
by DanFromNewYork
Sat Mar 28, 2020 6:25 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

The decline seems to have slowed a bit yesterday. Daily NY muni yield only decreased to 2.74%.

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by DanFromNewYork
Fri Mar 27, 2020 7:43 am
Forum: Investing - Theory, News & General
Topic: What's happening with Muni Money Market fund yields?
Replies: 153
Views: 17832

Re: What's happening with Muni Money Market fund yields?

Kevin M wrote: Thu Mar 26, 2020 7:58 pm Today is the 26th, and I believe the SEC yields shown for the 26th in my chart are based on the 7-day period ending the 25th.
From what I am seeing this isn't quite correct. Based on my computed daily yields, the SEC yields for the 26th would be the average of the 7-day period ending on the 26th. The story remains the same, however.

For my NY muni position, the decrease keeps accelerating with the daily yield for the 26th at 2.92% and the 7-day average of 3.84%.

Here is my daily yield:
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by DanFromNewYork
Thu Mar 26, 2020 4:56 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123982

Re: Vanguard Municipal Money Market VMSXX 1.39%

I have some money in the NY muni money market at vanguard and computed the daily yield from my accrued dividends (if I average over 7 days I match the posted SEC yields). It looks like the yield peaked on the 19th and has only slowly been decreasing. The daily yield was 3.48% as of yesterday.

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by DanFromNewYork
Sat Dec 28, 2019 7:03 pm
Forum: Personal Investments
Topic: NY 529 Lumpsum question please confirm
Replies: 11
Views: 652

Re: NY 529 Lumpsum question please confirm

A workaround is to put 10k in NY 529 and 140k in any other state’s 529 this year. Then in every subsequent year roll over 10k from the other state’s plan to NY for the deduction.

This allows you to get the full 150k growing right away but still take deductions every year.
by DanFromNewYork
Fri May 10, 2019 5:53 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123982

Re: Vanguard Municipal Money Market VMSXX 1.39%

Kevin M wrote: Fri May 10, 2019 4:07 pm Is this in a brokerage account or mutual fund account?
This is in a mutual fund account.
by DanFromNewYork
Fri May 10, 2019 11:54 am
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123982

Re: Vanguard Municipal Money Market VMSXX 1.39%

I noticed something interesting today. The SEC yields for all of the Vanguard muni money market funds was unchanged from May 8 to May 9. However, this does not match what the behavior should have been based on a 7-day lagged average of the daily accrual computed yield based on my holdings in the NY muni fund, which predicted that the 7-day average should have decreased by 6 bps. I checked every day of the past two weeks and my estimated 7-day average yields match the SEC yields (with less than 1 bp difference due to rounding). But for May 9, I am off by 6 bps. Has anyone seen something like this before? In checking all this today, I also noticed that the distribution I am paid out at the end of the month does not match what was shown as acc...
by DanFromNewYork
Tue Apr 23, 2019 11:55 am
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123982

Re: Vanguard Municipal Money Market VMSXX 1.39%

Big spike in Muni Yields for tax day.

TEY are for my particular marginal tax rates.

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by DanFromNewYork
Fri Jun 15, 2018 12:27 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Municipal Money Market VMSXX [0.03%]
Replies: 651
Views: 123982

Re: Vangaurd Municipal Money Market VMSXX 1.39%

This is an interesting phenomenon. I looked for papers discussing this but could only find this paper from 2000 that mostly touches on the end of the year "turn" effect:
Seasonal Patterns in Money Market Mutual Funds