Search found 11309 matches

by Kevin M
Sun May 24, 2020 5:07 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 68
Views: 7847

Re: Ally lowers APR on savings from 1.5% to 1.25%

Given how close CD rates are to high yield savings accounts, I don't see the point in CDs. I suppose no penalty CDs are a different thing, but they also very close to high yield savings accounts. Right, even if NP CD rate is same or slightly lower than HY savings account, it's a better deal, since ...
by Kevin M
Sat May 23, 2020 8:51 pm
Forum: Investing - Theory, News & General
Topic: TIAA warns on negative yields on money market funds
Replies: 71
Views: 4670

Re: TIAA warns on negative yields on money market funds

And Ally Bank's high-yield savings account rate never dropped below 0.84% during the seven years of the 0% FFR lower limit: https://i.postimg.cc/0j9tHBy3/Screenshot-2020-05-23-Compare-Savings-Account-Rates-for-May-2020-Deposit-Accounts.png Source: https://www.depositaccounts.com/savings/ Now at 1.25...
by Kevin M
Sat May 23, 2020 8:39 pm
Forum: Investing - Theory, News & General
Topic: TIAA warns on negative yields on money market funds
Replies: 71
Views: 4670

Re: TIAA warns on negative yields on money market funds

Vanguard MM fund yields never dropped below 0.01% for the years that the federal funds rate lower target was 0%, and short-term Treasury yields were barely above 0%. Again, this lasted for multiple years --anyone can verify by using the Vanguard price history search tool. If anyone cares, I can run...
by Kevin M
Sat May 23, 2020 5:33 pm
Forum: Investing - Theory, News & General
Topic: TIAA warns on negative yields on money market funds
Replies: 71
Views: 4670

Re: TIAA warns on negative yields on money market funds

Vanguard MM fund yields never dropped below 0.01% for the years that the federal funds rate lower target was 0%, and short-term Treasury yields were barely above 0%. Again, this lasted for multiple years --anyone can verify by using the Vanguard price history search tool. If anyone cares, I can run ...
by Kevin M
Fri May 22, 2020 7:53 pm
Forum: Investing - Theory, News & General
Topic: Where to park cash in Fidelity?
Replies: 62
Views: 6002

Re: Where to park cash in Fidelity?

To the original topic, a couple funds to consider. FIPDX - tips FUMBX - short term treasuries FUAMX - intermediate treasuries all would be state tax exempt. How does this address the original topic? Is there any place in Fidelity that would function as a high yield savings account or money market f...
by Kevin M
Thu May 21, 2020 7:03 pm
Forum: Investing - Theory, News & General
Topic: Where to park cash in Fidelity?
Replies: 62
Views: 6002

Re: Where to park cash in Fidelity?

To the original topic, a couple funds to consider. FIPDX - tips FUMBX - short term treasuries FUAMX - intermediate treasuries all would be state tax exempt. How does this address the original topic? Is there any place in Fidelity that would function as a high yield savings account or money market f...
by Kevin M
Tue May 19, 2020 4:57 pm
Forum: Investing - Theory, News & General
Topic: Where to park cash in Fidelity?
Replies: 62
Views: 6002

Re: Where to park cash in Fidelity?

There are some good money market funds to hold cash in at Fidelity. Really? If by "good" you mean ones that provide yields that are competitive with high-yield savings accounts, then I don't think this is the case. SPRXX yield is 0.19%, and all of the Fido government fund yields are 0.01%. FZDXX yi...
by Kevin M
Tue May 19, 2020 1:57 pm
Forum: Personal Finance (Not Investing)
Topic: Trusts, k1s, and state taxes
Replies: 9
Views: 354

Re: Trusts, k1s, and state taxes

Not a lawyer or accountant, but from my limited experience, a trust should file a trust state income tax return as applicable, and a state version of the K-1 should be distributed to beneficiaries as applicable. Example I'm currently involved in as a family advisor ... Most property was in CA, so tr...
by Kevin M
Tue May 19, 2020 11:42 am
Forum: Personal Investments
Topic: Holding cash the right choice?
Replies: 17
Views: 2409

Re: Holding cash the right choice?

Does any of the big funds houses fidelity, Schwab, Vanguard have CD options? I believe if you have to invest in fixed assets through these firms, you have to put money in money market which is not paying 1% right now. You can buy CDs from any of these brokers (brokered CDs), but the yields are much...
by Kevin M
Mon May 18, 2020 5:46 pm
Forum: Personal Investments
Topic: Holding cash the right choice?
Replies: 17
Views: 2409

Re: Holding cash the right choice?

It's a small tweak, but I'd prefer a no-penalty 11-month CD at 1.30% (currently available from Ally Bank) than a HY savings account at 1.30%. It's likely that top HY savings account rates will continue to fall toward the 1% ballpark, perhaps even lower, while the NP CD locks in the rate for 11 month...
by Kevin M
Sat May 16, 2020 10:35 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Yep, there are no ownership category tricks to increase FDIC/NCUA deposit insurance above $250K in an IRA. Kevin I agree. You probably don't want to open one for $250K. Maybe do the math and open it for less than $250K. Leave enough room for the interest so that you don't run over. I think Kevin M ...
by Kevin M
Sat May 16, 2020 8:14 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Keep in mind that for a joint account with two owners, whether or not there are beneficiaries, the maximum deposit insurance coverage is halved if one of the owners dies. However, both FDIC and NCUA provide a grace period of six months during which coverage is maintained as if the deceased owner we...
by Kevin M
Sat May 16, 2020 1:20 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1584
Views: 217551

Re: Fidelity as a one stop shop

The Federal government lifted the transaction limit, but have you found a bank with high yield savings that has actually lifted that limit? Without charging fees if you go over? No, but I don't believe any yield higher than about 0.25% is going to last long. Apparently Ally Bank has temporarily sus...
by Kevin M
Sat May 16, 2020 12:57 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Keep in mind that for a joint account with two owners, whether or not there are beneficiaries, the maximum deposit insurance coverage is halved if one of the owners dies. However, both FDIC and NCUA provide a grace period of six months during which coverage is maintained as if the deceased owner wer...
by Kevin M
Fri May 15, 2020 8:24 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 68
Views: 7847

Re: Ally lowers APR on savings from 1.5% to 1.25%

For now, I'm going with the 1.3% rates. However, Vanguard Ultra-Short Term Bond VUBFX might be better option. 1.83%, but some risk to lose a few percentage points in principal if things don't go your way. 0.53% do not seem that worth it for the potential risk to principal. I own some of the admiral...
by Kevin M
Fri May 15, 2020 2:43 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Fund Platform EOL
Replies: 245
Views: 8517

Re: Vanguard Mutual Fund Platform EOL

So we are on both platforms at the same time with the same login. If we transition our ROTH/IRA's to the new brokerage platform: Can we add / still invest in MF's using the brokerage platform? Will anything change with our ROTH/IRA accounts at all? Do we gain or lose access to ANY funds whether the...
by Kevin M
Fri May 15, 2020 2:39 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Fund Platform EOL
Replies: 245
Views: 8517

Re: Vanguard Mutual Fund Platform EOL

So we are on both platforms at the same time with the same login. If we transition our ROTH/IRA's to the new brokerage platform: Can we add / still invest in MF's using the brokerage platform? Will anything change with our ROTH/IRA accounts at all? Do we gain or lose access to ANY funds whether the...
by Kevin M
Fri May 15, 2020 2:36 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Mutual Fund Platform EOL
Replies: 245
Views: 8517

Re: Vanguard Mutual Fund Platform EOL

since you cannot hold ETF’s on the older platform. This confuses me greatly. We own ETF's and I never transitioned to the new platform. Your joint taxable account is on the new platform (“brokerage”). As a test, see if you can purchase an ETF in your IRA (obviously don’t submit anything). I’ve neve...
by Kevin M
Fri May 15, 2020 12:54 pm
Forum: Personal Investments
Topic: HY Savings vs Govt Bonds vs Treasuries
Replies: 7
Views: 527

Re: HY Savings vs Govt Bonds vs Treasuries

Can someone please educate me about the advantages/disadvantages of these? And wheat exactly is meant by “treasuries”? You can read about "treasuries" on the Treasury Securities & Programs webpage of TreasuryDirect. Unless otherwise qualified, I think people on the forum mentioning "Treasuries" usu...
by Kevin M
Thu May 14, 2020 4:23 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Kevin M, My wife has one CD at PSECU with me as POD beneficiary. Does this automatically give $500,000 NCUA protection even in her ONE existing (ADD ON provision) CD? Could you please clarify? Thanks My understanding is that POD (or what PSECU calls tentative trust) accounts are insured up to $250,...
by Kevin M
Wed May 13, 2020 6:23 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Thanks @KevinM for the information about the CD rate history charts on DepositAccounts! You're welcome! For those who signed up for the PSECU CDs with monthly add-ons, do you have any plans on what to do if / when your total amount goes over the NCUA insured amount of $250,000, if not already? I de...
by Kevin M
Tue May 12, 2020 12:28 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 68
Views: 7847

Re: Ally lowers APR on savings from 1.5% to 1.25%

It won't be long before you have to start paying them to keep your money there. I doubt it. During the years after the GFC in 2008, when the federal funds rate lower limit target was 0%, Ally online savings lowest APY was 0.84%. I have posted several times recently that I expect their savings rate ...
by Kevin M
Tue May 12, 2020 12:22 pm
Forum: Investing - Theory, News & General
Topic: Ally lowers APR on savings from 1.5% to 1.25%
Replies: 68
Views: 7847

Re: Ally lowers APR on savings from 1.5% to 1.25%

<snip> Ally hasn't been good about customer communication with me. They only offer phone calls and email - no website messaging like every other online bank I've used. <snip> The underlined part is not true. They offer both online chat and secure messaging via their website. I have used both extens...
by Kevin M
Sun May 10, 2020 6:56 pm
Forum: Investing - Theory, News & General
Topic: Thoughts currently on VCAIX?
Replies: 5
Views: 372

Re: Thoughts currently on VCAIX?

<snip> (there were maybe two worrisome weeks of losses, which it quickly gained back) <snip> The "bond crash" started on 3/9, and VCAIX bottomed out on 3/20 with a return since 3/9 of about -10.5%. As of 5/10 the return since 3/9 is about -3.3%, so it has not "quickly gained back" all of the loss y...
by Kevin M
Fri May 08, 2020 2:50 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

With new issue brokered CDs, do you always get the rate at which it is advertised or is there any chance that it is oversubscribed and so you get a lower rate as sometimes happens with buying treasuries at auction? It's nothing like a Treasury auction, for which you only know an estimated yield in ...
by Kevin M
Fri May 08, 2020 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1584
Views: 217551

Re: Fidelity as a one stop shop

Still looking for something with a higher yield for my retirement accounts, but with lowish risk. Anybody want to recommend a good short term bond fund? Right now, my cash is in FZDXX which is paying .4% and going down almost daily. I'd be willing to give up a little interest rate risk to get betwe...
by Kevin M
Wed May 06, 2020 5:43 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Bfwolf, these are add-on CDs with a balance cap, and those indeed can be a great way to lock in a rate, with the option of adding to it later if there are not much better deals elsewhere at the time. If you look at the CDs that were discussed in the OP of this thread, you'll see that these also offe...
by Kevin M
Wed May 06, 2020 5:07 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Kevin, I buy only direct CDs inside of my Vanguard Traditional IRA, no brokered CDs. I noticed Vanguards lack of competitive rates starting a little over a year ago....I’ve wondered why the change.... Summit How do you buy direct CDs inside your Vanguard IRA? Thanks Paul That was what I was wonderi...
by Kevin M
Wed May 06, 2020 3:19 pm
Forum: Investing - Theory, News & General
Topic: Understanding bonds and Covid-19
Replies: 15
Views: 1652

Re: Understanding bonds and Covid-19

This is inside an IRA at Vanguard. I like the idea of a short term bond (perhaps the ultra-short term with the trade of risks) for now perhaps with the intention of moving it to the total bond market fund at some point as I learn more. Appreciate all the help No problem. I bought some of the ultra-...
by Kevin M
Wed May 06, 2020 2:16 pm
Forum: Investing - Theory, News & General
Topic: Understanding bonds and Covid-19
Replies: 15
Views: 1652

Re: Understanding bonds and Covid-19

Thanks for the explanations. Let me make sure I got part of this correct - If the current price of a bond fund is high, you could make back any future drop in price with higher future yields. If the current price of a bond fund is low, the opposite would happen - you would gain on any increase in p...
by Kevin M
Wed May 06, 2020 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Kevin, I buy only direct CDs inside of my Vanguard Traditional IRA, no brokered CDs. I noticed Vanguards lack of competitive rates starting a little over a year ago....I’ve wondered why the change.... Summit Your CDs with Vanguard are brokered CDs, by definition. Vanguard is a broker, so any CDs yo...
by Kevin M
Tue May 05, 2020 6:51 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

I wish there existed historical data of CD rates from various institutions, both direct and brokerage, so you could compare how each responds to changes in the fed rate. Or maybe an aggregation of the top 10% (or so) yielding CDs from each group, for various terms, over time. Maybe such data does e...
by Kevin M
Tue May 05, 2020 4:58 pm
Forum: Investing - Theory, News & General
Topic: Understanding bonds and Covid-19
Replies: 15
Views: 1652

Re: Understanding bonds and Covid-19

I understand not timing stocks. They have an upward slope long-term and you have no idea what they will do in the short-term. Bonds, however, do not have an upward slope in the long-term (at least as far as the price is concerned). So, does it make sense buying a bond fund when the price is very hi...
by Kevin M
Tue May 05, 2020 1:39 pm
Forum: Personal Investments
Topic: Why ally bank
Replies: 98
Views: 14957

Re: Why ally bank

I've been with Ally Bank for almost five years, and am well satisfied. However, I have too many accounts, too many institutions, and am trying to find ways to consolidate. Recently I made a big huge concentrating move from Schwab to Fidelity. I'm wondering now, "Hmmm, could I use Fidelity Cash Mana...
by Kevin M
Mon May 04, 2020 10:08 pm
Forum: Investing - Theory, News & General
Topic: Understanding bonds and Covid-19
Replies: 15
Views: 1652

Re: Understanding bonds and Covid-19

Thanks for the responses. It does help understand. So, speculation is not a factor. That sounds like the easy part of the question. The inverse relationship is slowly sinking in. The part I still don't get is do I care about the price of a bond or a bond fund? Vanguard's total bond fund has an aver...
by Kevin M
Mon May 04, 2020 8:29 pm
Forum: Investing - Theory, News & General
Topic: Understanding bonds and Covid-19
Replies: 15
Views: 1652

Re: Understanding bonds and Covid-19

I generally understand the inverse relationship between interest rates and bond prices (and bond funds as well). Part of the confusion is thinking of "interest rates" and "bond prices" as some vague set of numbers that are inversely related. I think the most useful thing to help understanding is to...
by Kevin M
Mon May 04, 2020 6:12 pm
Forum: Personal Investments
Topic: Calculation of yield to maturity for TIPS
Replies: 9
Views: 671

Re: Calculation of yield to maturity for TIPS

The ref CPI used for the 4/15/2021 inflation adjustment is the interpolated CPI for 1/15/2021, which requires the Jan and Feb CPI values, ... Some people may be confused by this wording, Kevin. The Reference CPI for 4/15 is interpolated between the Reference CPIs for 4/1 and 5/1. There is no "inter...
by Kevin M
Mon May 04, 2020 5:50 pm
Forum: Personal Finance (Not Investing)
Topic: Best CD rates thread
Replies: 656
Views: 86517

Re: Best CD rates thread

Summit111 wrote:
Mon May 04, 2020 2:40 pm
Wonder why Vanguard CD rates are lower than others...Much higher at individual banks....

Summit
It is not uncommon for brokered CDs to have lower yields than direct CDs. It has been that way most of the time since I started moving fixed income heavily into CDs in late 2010.

Kevin
by Kevin M
Mon May 04, 2020 2:01 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1584
Views: 217551

Re: Fidelity as a one stop shop

Right. SPAXX = 0.01% and SPRXX = 0.31%. Where the heck did you get the idea SPAXX is 1.59%? SPAXX recently paid better than 0.01%. I have a bit of cash in SPAXX in my CMA, and in February the dividend was around 1.0% annualized, last month it was around 0.8%. This month, it was closer to 0.02% annu...
by Kevin M
Sun May 03, 2020 7:30 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPS
Replies: 15
Views: 822

Re: Help me understand TIPS

After thinking about this more, I think I understand it now. By paying $102.226 for a $100 bond I am guaranteed to not keep up with inflation (ignoring interest). Yes, but including interest. In fact I will underperform inflation by about half a percent. By about 0.3%. That's what the negative real...
by Kevin M
Sun May 03, 2020 5:51 pm
Forum: Investing - Theory, News & General
Topic: Help me understand TIPS
Replies: 15
Views: 822

Re: Help me understand TIPS

there was an inflation adjustment already priced into the bond <snip> The inflation adjustment only accounts for a small bump in price. Unadjusted price was 102.226154, so the bond sold at a premium to par (100) before any inflation adjustment. The index ratio on the issue date was 1.00137, which b...
by Kevin M
Sun May 03, 2020 1:42 pm
Forum: Personal Finance (Not Investing)
Topic: Fidelity as a one stop shop
Replies: 1584
Views: 217551

Re: Fidelity as a one stop shop

2. The Fidelity Brokerage Core is positioned on SPAXX is it safe to say SPAXX is yielding 1.59% which is slightly higher than Ally’s Saving account at 1.5%? B) Is that 1.59% payed out monthly? SPAXX yield is ~0.01%. SPRXX yield is ~0.30% last time I checked. Right. SPAXX = 0.01% and SPRXX = 0.31%. ...
by Kevin M
Sat May 02, 2020 9:26 pm
Forum: Personal Investments
Topic: Calculation of yield to maturity for TIPS
Replies: 9
Views: 671

Re: Calculation of yield to maturity for TIPS

The TIPS inflation adjustment has a two-month lag ; the May inflation adjustment is based on the March inflation rate. It's a 3-month lag. The May 1 inflation adjustment is based on the Feb CPI. The June 1 adjustment is based on the March CPI. Adjustments for other dates in May are based on linear ...
by Kevin M
Sat May 02, 2020 4:07 pm
Forum: Personal Investments
Topic: Calculation of yield to maturity for TIPS
Replies: 9
Views: 671

Re: Calculation of yield to maturity for TIPS

I think the market prices short term tips (maturity less than on year) off of non-seasonally adjusted CPI . i.e.the market takes the quirkiness of actual non-seasonally adjusted CPI into account. which is why short term tips yields can look a little screwy. The underlined part is wrong, but the res...
by Kevin M
Fri May 01, 2020 5:59 pm
Forum: Personal Investments
Topic: Calculation of yield to maturity for TIPS
Replies: 9
Views: 671

Re: Calculation of yield to maturity for TIPS

Thanks for the reply. I'm surprised to see real interest rates so high at this point, especially since five year real interest rates have been negative this year except for a brief period in the middle of March. This is because the yield curve is steeply inverted at the short end. Here is a chart o...
by Kevin M
Thu Apr 30, 2020 11:05 am
Forum: Personal Investments
Topic: Parents cash at Vanguard
Replies: 29
Views: 2824

Re: Parents cash at Vanguard

why not do a brokerage CD at vanguard?... 1. It's not cash. 2. Low rates--cannot get close to the 1.5% mentioned in the OP. At Vanguard, 5-year is 1.00%. For something closer to cash, like 1-3 months, rate is 0.35%. 3. Much higher rates for direct CDs, and no-penalty CD at (1.5% at Ally) is pretty ...
by Kevin M
Wed Apr 29, 2020 7:35 pm
Forum: Personal Investments
Topic: Parents cash at Vanguard
Replies: 29
Views: 2824

Re: Parents cash at Vanguard

Kevin - Thanks, you're always so thorough. I may also ask Vanguard about wiring the money as I can do that at no charge. Right, if you are Flagship, you can do an outbound wire at no charge, but others with less Vanguard assets pay $10. You don't even have to ask Vanguard about it. Once you've set ...
by Kevin M
Wed Apr 29, 2020 5:14 pm
Forum: Investing - Theory, News & General
Topic: Which Bonds when the S&P 500 Tanks
Replies: 82
Views: 6182

Re: Which Bonds when the S&P 500 Tanks

Due to bond convexity, long-term bonds have a lot more upside potential when starting yields are low . If you haven't read it yet, Tyler9000's fantastic post on Portfolio Charts about bond convexity is absolutely worth the read. From the link you provided (which I now can't find), When market rates...
by Kevin M
Wed Apr 29, 2020 3:11 pm
Forum: Personal Investments
Topic: Parents cash at Vanguard
Replies: 29
Views: 2824

Re: Parents cash at Vanguard

1) Someone said money can be transferred directly from VG MM to Ally Savings Account. Might it be safer to move the money to my local bank first and then to Ally since I have much less money at my local bank in case I'm ever hacked? I have been using electronic fund transfers to transfer money back...
by Kevin M
Tue Apr 28, 2020 8:05 pm
Forum: Personal Investments
Topic: Parents cash at Vanguard
Replies: 29
Views: 2824

Re: Parents cash at Vanguard

My major hang up with online savings accounts is just opening a new account. Also, their rates could head lower soon as well. Yes, their rates almost certainly will head lower, which is why no-penalty CDs makes more sense for cash that won't be needed very soon. Also, I think I mentioned that the A...