Search found 10039 matches

by Kevin M
Mon Nov 19, 2018 12:02 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2018 Tax Software Deluxe Federal + State $29.95
Replies: 111
Views: 8831

Re: H&R Block 2018 Tax Software Deluxe Federal + State $29.95

nalor511 wrote:
Mon Nov 19, 2018 8:17 am
Walmart has 2018 deluxe+state for $18 https://www.walmart.com/ip/H-R-Block-Ta ... /810000421
That link shows me price of $31.92.

Kevin
by Kevin M
Sun Nov 18, 2018 8:51 pm
Forum: Investing - Theory, News & General
Topic: Prime MM vs 6-month Treasury in IRA
Replies: 14
Views: 1493

Re: Prime MM vs 6-month Treasury in IRA

Playing devil's advocate against myself, the 6-month Tbill at about 2.5% is 25 basis points higher than 0-month Prime MM at 2.25%, which is 50 basis points per year of additional maturity. This is well above the Swedroe guideline of 20 bps/year of additional maturity. Since people brought up the Tre...
by Kevin M
Sun Nov 18, 2018 4:30 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Thanks 15202guy. I guess with +2% interest on the savings account, tying up the money for five months is not the end of the world, yes? I am seeing that the 2% interest is a promotional rate and only good for 3 months. Also, it isn't clear you can do both promotions. Are you seeing something differ...
by Kevin M
Sun Nov 18, 2018 4:22 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 95
Views: 14368

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

I will look at the 1-2 year Treasuries. Thanks I have gone to Tresury Direct. Looked up auctions. I see upcoming auctions 13 and 26 week. I did read Treasury Bill go up to 52 weeks and bid every 4 weeks. I don't see what the rate will be. I can only see past rates when I open. Where do I see the in...
by Kevin M
Sun Nov 18, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: Prime MM vs 6-month Treasury in IRA
Replies: 14
Views: 1493

Re: Prime MM vs 6-month Treasury in IRA

I have some concern that Prime has the ability to restrict withdrawals/impose fees in extreme situations. The Fed money market has none of these restrictions for about 11 bps less. Treasury Money Market is another option if you investing $50k it has the same yield as Prime with no restrictions/with...
by Kevin M
Sun Nov 18, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: Prime MM vs 6-month Treasury in IRA
Replies: 14
Views: 1493

Re: Prime MM vs 6-month Treasury in IRA

I was thinking of entering an order in an IRA for some 6-month Treasury bills at the auction that closes on Monday. Vanguard is showing the estimated yield for the 6-month at about 2.51%, while Prime MM SEC yield now is 2.25%. Side point. What is your reasoning for holding large amounts of "cash" i...
by Kevin M
Sat Nov 17, 2018 10:22 pm
Forum: Investing - Theory, News & General
Topic: TIPS yield curve oddity
Replies: 22
Views: 1388

Re: TIPS yield curve oddity

tips use raw or not seasonally adjusted CPI which can be a little noisy. TIPS yields for maturites < 1 year often display this kind of behavior. Thanks. I found a thread that goes into the details of seasonal yield error: https://www.bogleheads.org/forum/viewtopic.php?t=150300 One of the eventual o...
by Kevin M
Sat Nov 17, 2018 9:14 pm
Forum: Investing - Theory, News & General
Topic: Prime MM vs 6-month Treasury in IRA
Replies: 14
Views: 1493

Prime MM vs 6-month Treasury in IRA

I was thinking of entering an order in an IRA for some 6-month Treasury bills at the auction that closes on Monday. Vanguard is showing the estimated yield for the 6-month at about 2.51%, while Prime MM SEC yield now is 2.25%. Odds are pretty good that the Fed will increase the federal funds rate (F...
by Kevin M
Sat Nov 17, 2018 3:26 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 95
Views: 14368

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

Hi Kevin, question. I purchased a 5 year ally cd last year a 2.25% and now at 3.1%. With rates still increasing should I just cash sell the cd and put it into a no penalty? If I purchas the 3.1% and it goes up again I would have to cash out again? Just asking what is the best strategy. I do have 2 ...
by Kevin M
Fri Nov 16, 2018 4:34 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Some details about the email bonus confirmation. My email says on track to receive $1,000 "as of 11/5/18". So this part doesn't address withdrawals from NP CDs after 11/5 (into eligible checking, then back into eligible NP CD), which I've done (but am not worried about--see below). It does confirm t...
by Kevin M
Thu Nov 15, 2018 2:32 pm
Forum: Personal Finance (Not Investing)
Topic: CDs that compound interest payments, at big brokerages ?
Replies: 19
Views: 2361

Re: CDs that compound interest payments, at big brokerages ?

Old topic,but wondering if people are feeling better about brokered CDs now that you can immediately invest the interest in a decent money market rate over 2 pct? Good question. For me, it has never factored into my decision about which type of CD to buy. What steered me toward using primarily brok...
by Kevin M
Thu Nov 15, 2018 2:23 pm
Forum: Investing - Help with Personal Investments
Topic: Question re: brokered CD at maturity
Replies: 10
Views: 905

Re: Question re: brokered CD at maturity

If by bank CDs you mean direct CDs (brokered CDs also are issued by banks), then there is no market (i.e., you can't sell a direct CD on some open market), so there is no mark to market value. A direct CD always has two known (or knowable) values: the value if you continue to hold and the value if ...
by Kevin M
Wed Nov 14, 2018 8:54 pm
Forum: Investing - Help with Personal Investments
Topic: Question re: brokered CD at maturity
Replies: 10
Views: 905

Re: Question re: brokered CD at maturity

I will point that that bank CDs also fluctuate in value. The critical difference is that bank statements don’t show the mark-to-market value, just the book value. If by bank CDs you mean direct CDs (brokered CDs also are issued by banks), then there is no market (i.e., you can't sell a direct CD on...
by Kevin M
Wed Nov 14, 2018 8:48 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard Municipal Money Market VMSXX 1.39%
Replies: 248
Views: 33835

Re: Vanguard Municipal Money Market VMSXX 1.39%

Can anyone tell me what the distribution schedule is for this fund? If it is on their website, I've not been able to locate it. All Vanguard MM funds accrue interest daily, and distribute it monthly on the last day of the month. You can see the distributions for any fund by looking at the Distribut...
by Kevin M
Wed Nov 14, 2018 4:11 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I made my deposit first to an eligible checking account, then opened two NP CDs funding from the checking account (as with others, was told several times by chat reps that you could move the money between eligible accounts as long as it remained in eligible accounts for the retention period). So if...
by Kevin M
Wed Nov 14, 2018 4:02 pm
Forum: Investing - Theory, News & General
Topic: Is there CD funds in VG to be used for IRA's?
Replies: 22
Views: 2022

Re: Is there CD funds in VG to be used for IRA's?

I am just trying to play safe with longest possible term because I think VG is still exposing too much even with target retirement funds. I want to make sure that specific percentage of my AA will never lose value for specific period, in this case 5 years. Anything below 3% is not really worth comp...
by Kevin M
Wed Nov 14, 2018 1:39 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I made my deposit first to an eligible checking account, then opened two NP CDs funding from the checking account (as with others, was told several times by chat reps that you could move the money between eligible accounts as long as it remained in eligible accounts for the retention period). So if ...
by Kevin M
Wed Nov 14, 2018 1:22 pm
Forum: Investing - Help with Personal Investments
Topic: For Those Who Purchased Ally No Penalty CD's in Dec/Jan
Replies: 95
Views: 14368

Re: For Those Who Purchased Ally No Penalty CD's in Dec/Jan

Yeah, I too have always received the higher rate automatically, including for one of the NP CDs I opened recently at 2.1% (now showing 2.2%). You don't see the higher rate until day 10 or 11. It takes about five minutes to do an early withdrawal from an NP CD and reinvest in another one, so if for w...
by Kevin M
Mon Nov 12, 2018 9:05 pm
Forum: Investing - Theory, News & General
Topic: Is there CD funds in VG to be used for IRA's?
Replies: 22
Views: 2022

Re: Is there CD funds in VG to be used for IRA's?

For maturities out to about one year, I would buy Treasuries instead of CDs, as the yields are higher. A 1-year Treasury yields about 2.8%, while the 1-year new-issue CD yield is 2.65% at Vanguard. The 1-year Treasuries are auctioned once per month. At 2-year maturity, the new-issue CD yields are ah...
by Kevin M
Mon Nov 12, 2018 8:17 pm
Forum: Investing - Help with Personal Investments
Topic: Help to understand bonds maturity vs investment timeline
Replies: 3
Views: 361

Re: Help to understand bonds maturity vs investment timeline

I'm curious about the mechanics of this. If you do have a 5 year timeline, you could start with an intermediate term fund. One year later, however, your investment timeline is now 4 years but your IT fund still has a duration 5-6 years. Do you have to continually shift a percentage of IT funds into...
by Kevin M
Mon Nov 12, 2018 5:49 pm
Forum: Investing - Help with Personal Investments
Topic: Help to understand bonds maturity vs investment timeline
Replies: 3
Views: 361

Re: Help to understand bonds maturity vs investment timeline

The basic idea is that the longer the duration of the fund, the more volatile it will be, so if the duration is much longer than your investment horizon, there is less certainty about how much you'll end up with at the end of that horizon. So yes, it has to do with sensitivity to changes in bond yie...
by Kevin M
Mon Nov 12, 2018 5:29 pm
Forum: Personal Finance (Not Investing)
Topic: Stock market open today?
Replies: 14
Views: 2205

Re: Stock market open today?

dm200 wrote:
Mon Nov 12, 2018 5:22 pm
Trivia question - why is the stock market open on Veterans Day?
Perhaps because Veteran's day actually was on Sunday, even though it's observed today? Of maybe that applies to the bond market. I read something like that over the weekend.

Kevin
by Kevin M
Mon Nov 12, 2018 5:27 pm
Forum: Investing - Theory, News & General
Topic: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)
Replies: 51
Views: 5728

Re: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)

I'm confused. Is the term premium something other than the difference between short rates and long rates? Yes--at least the way the term is being used here. I gave a brief explanation, but you can read the bernanke blog post I linked to for a more in depth explanation. Here's an example. The 1-mont...
by Kevin M
Mon Nov 12, 2018 2:25 pm
Forum: Investing - Theory, News & General
Topic: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)
Replies: 51
Views: 5728

Re: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)

Shouldn't the term premium as computed by any model be positive always? It would seem that the market has offered up it's best guess at future rates and if any useful (known) models predicted a negative term premium, bond investors would go short and push up the longer term rates to force a positiv...
by Kevin M
Mon Nov 12, 2018 2:06 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6145

Re: Do I need more than Original Medicare?

I am confused Kevin. If all payments are the same, why did they bother with any network? Good question. I have no idea, and found that pretty surprising myself. I guess their network is relevant to their HMO plans, and although the same network is used for this PPO plan, for whatever reason there s...
by Kevin M
Mon Nov 12, 2018 1:04 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6145

Re: Do I need more than Original Medicare?

I am confused Kevin. If all payments are the same, why did they bother with any network? Good question. I have no idea, and found that pretty surprising myself. I guess their network is relevant to their HMO plans, and although the same network is used for this PPO plan, for whatever reason there s...
by Kevin M
Mon Nov 12, 2018 1:00 pm
Forum: Investing - Help with Personal Investments
Topic: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?
Replies: 8
Views: 1083

Re: Decumulation phase of retirement: money market a safe place to park money needed over the next two years?

5) Any other suggestions as to where to hold funds one will need within the next year or two? SEC yield on Prime money market currently is 2.23%, but it has been gradually increasing, and almost certainly will continue to do so as long as the Fed keeps increasing the federal funds rate. You can get...
by Kevin M
Mon Nov 12, 2018 12:35 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6145

Re: Do I need more than Original Medicare?

The Medicare Advantage PPO plan I have through my employer-retiree program covers everything the same for out of network and in network providers. Why would a Medicare supplement plan be better? My employer-retiree program does not offer a supplement plan. Interestingly, the provider they use, UHC,...
by Kevin M
Mon Nov 12, 2018 12:31 pm
Forum: Investing - Theory, News & General
Topic: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)
Replies: 51
Views: 5728

Re: Treasury term premium estimate: negative in most of 2017, now 2018 too (NY Fed Adrian, Crump, Moench model)

It seems to me that people are confusing an inverted yield curve with a negative term premium. Although the Treasury yield curve is quite flat beyond 2-year maturity, it isn't inverted. Anyway, that's not it. You can read some of the linked articles to understand it better. My understanding is that...
by Kevin M
Sun Nov 11, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Better place to park cash than VMMXX or VGSH/VCSH?
Replies: 4
Views: 937

Re: Better place to park cash than VMMXX or VGSH/VCSH?

I'm not worried about tax factors, like investing in a municipal bond fund. Why not? Is this in a tax-advantaged account, or do you not pay taxes? Also, how much are you talking about, and what hoops are you willing to jump through? I earn 3.33% on up to $25K in a reward checking account (RCA). I f...
by Kevin M
Sun Nov 11, 2018 9:00 pm
Forum: Personal Finance (Not Investing)
Topic: Do I need more than Original Medicare?
Replies: 110
Views: 6145

Re: Do I need more than Original Medicare?

The Medicare Advantage PPO plan I have through my employer-retiree program covers everything the same for out of network and in network providers. Why would a Medicare supplement plan be better? My employer-retiree program does not offer a supplement plan. Interestingly, the provider they use, UHC, ...
by Kevin M
Sun Nov 11, 2018 2:41 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Thanks Kevin. What bank is paying much higher interest than Ally? It's a local bank, Poppy Bank, paying 2.50% on balances of $10K or more; may be available to CA residents only. There was briefly a nationwide offer at the same rate, but it was pulled after about one month. There are other local ban...
by Kevin M
Sat Nov 10, 2018 10:45 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Kevin, you must believe CD rates will be going up since you are sticking with this no risk CD, yes? Is there anything that indicates when CDs will increase, or is it just by chance? I'm not "sticking with this no risk CD". I'm taking advantage of the $1,000 bonus on $100K of "new deposits" that mus...
by Kevin M
Fri Nov 09, 2018 8:02 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Kevin, you must believe CD rates will be going up since you are sticking with this no risk CD, yes? Is there anything that indicates when CDs will increase, or is it just by chance? I'm not "sticking with this no risk CD". I'm taking advantage of the $1,000 bonus on $100K of "new deposits" that mus...
by Kevin M
Fri Nov 09, 2018 4:07 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Just completed the process for both of us. Our CDs were opened on 10/30 and 10/31, so the 10 day rate guarantee should have kicked in. I didn't see it, just went and did it myself all in 10 minutes. I've never had to unfreeze my credit reports to open any account at Ally, and I've opened many of th...
by Kevin M
Fri Nov 09, 2018 3:57 pm
Forum: Personal Finance (Not Investing)
Topic: Garden SFCU 4% 4-year CD, 6 month EWP
Replies: 35
Views: 2446

Re: Garden SFCU 4% 4-year CD, 6 month EWP

The details page for this offer now shows an "update" that they have concluded their special rates offer as of this afternoon (Friday Nov 9). So that's it for 4%/4yr . . . at least for now. And that makes my points! The problem with IRAs is that it takes time to do the IRA transfer, and by the time...
by Kevin M
Fri Nov 09, 2018 3:34 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

Saw the rate increase here, so I decided to go through the process. Tips: - Do NOT close your old CD. I did, called about whether I have to lift the credit freeze (yes, you do) and learned some things. Unfreeze your Transunion credit, wait 15 minutes, open the new CD. Then close the old CD, into yo...
by Kevin M
Fri Nov 09, 2018 3:31 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Banking 1% extra back up to $1,000 on new money deposited
Replies: 477
Views: 45251

Re: Ally Banking 1% extra back up to $1,000 on new money deposited

I split my cash into multiple no penalty CDs and was hit with an excessive transaction fee today so keep that in mind. I originally deposited cash into the online savings account, opened the CDs and funded it through the savings. Today I broke the CDs and deposited back to savings, and finally crea...
by Kevin M
Fri Nov 09, 2018 3:29 pm
Forum: Personal Finance (Not Investing)
Topic: Garden SFCU 4% 4-year CD, 6 month EWP
Replies: 35
Views: 2446

Re: Thoughts on Garden Savings FCU CD (2yr-2% & 4yr-4%)

I've seen that mentioned before (perhaps by you), still don't see how it makes sense taken out of context of the general shape of the 'riskless' yield curve. If the curve were very steep upsloping a CD with >.20% more yield might have a significantly lower spread to the treasury curve than a shorte...
by Kevin M
Thu Nov 08, 2018 9:59 pm
Forum: Personal Finance (Not Investing)
Topic: Garden SFCU 4% 4-year CD, 6 month EWP
Replies: 35
Views: 2446

Re: Garden SFCU 4% 4-year CD, 6 month EWP

As others have pointed out, this is an excellent yield on a 4-year fixed-income security with minimal credit risk, and low term risk due to the EWP of 180 days of interest. I probably would jump on it if I had a bunch of cash ready to go, but I went for the Ally promo of $1K on $100K of new deposits...
by Kevin M
Thu Nov 08, 2018 9:25 pm
Forum: Investing - Theory, News & General
Topic: Good explanation of how bond funds don't get crushed in rising rate environment
Replies: 64
Views: 6195

Re: Good explanation of how bond funds don't get crushed in rising rate environment

Yes, the 1940s were worse, because staying short-term didn't help due to the government cap on all rates, including short-term rates. There was nowhere to hide in the 1940s in terms of fixed income. At least staying short-term in the 1970s helped. At any rate, OP is asking for explanations about how...
by Kevin M
Thu Nov 08, 2018 7:43 pm
Forum: Investing - Theory, News & General
Topic: Good explanation of how bond funds don't get crushed in rising rate environment
Replies: 64
Views: 6195

Re: Good explanation of how bond funds don't get crushed in rising rate environment

Let me insist that it's lower yields than inflation that really hurt bonds, not inflation itself. The 1970s are an example of how higher yields did let nominal bonds recover from high inflation. The backtest spreadsheet shows intermediate-term Treasuries (ITT) experiencing a cumulative real return ...
by Kevin M
Wed Nov 07, 2018 7:34 pm
Forum: Investing - Theory, News & General
Topic: Good explanation of how bond funds don't get crushed in rising rate environment
Replies: 64
Views: 6195

Re: Good explanation of how bond funds don't get crushed in rising rate environment

It depends what model you use. The Simba/siamond backtest spreadsheet uses longinvest's 10-4 ladder to simulate Vanguard intermediate-term Treasury fund (ITT = Intermediate Term Treasuries) for 1966-1975, and it shows a cumulative real return of -10.4% for this 10-year period. I don't know that I'd ...
by Kevin M
Wed Nov 07, 2018 2:20 pm
Forum: Investing - Theory, News & General
Topic: Good explanation of how bond funds don't get crushed in rising rate environment
Replies: 64
Views: 6195

Re: Good explanation of how bond funds don't get crushed in rising rate environment

I wouldn't use the words "hammered" or "crushed" in describing nominal returns, but that's totally subjective. Based on historical bond fund variances, if you are expecting to earn the current yield to maturity on an intermediate-term bond fund, say 3%, you might well end up earning 2% or 4% over th...
by Kevin M
Wed Nov 07, 2018 1:35 pm
Forum: Personal Finance (Not Investing)
Topic: H&R Block 2018 Tax Software Deluxe Federal + State $29.95
Replies: 111
Views: 8831

Re: H&R Block 2018 Tax Software Deluxe Federal + State $29.95

Just curious, do they give you an easy way to auto load prior years' Turbo Tax return data? Yes. There were a few glitches when I switched over a few years ago--can't remember the details, but something was entered twice; might have had to do with rental real estate depreciation. Whatever it was, i...
by Kevin M
Wed Nov 07, 2018 1:33 pm
Forum: Investing - Theory, News & General
Topic: VCAIX Vs. 2 Year CD [Vanguard CA Intermediate-Term tax-exempt bonds]
Replies: 5
Views: 572

Re: VCAIX Vs. 2 Year CD [Vanguard CA Intermediate-Term tax-exempt bonds]

OK, 12% tax bracket, but is that your federal marginal tax rate? I expect to be in 12% bracket, but marginal tax rate will be 27% due to QD/LTCG being pushed from 0% to 15% tax with additional interest income. Next, what is your CA state tax rate? If your marginal tax rates are low, then the CA mun...
by Kevin M
Tue Nov 06, 2018 7:28 pm
Forum: Investing - Theory, News & General
Topic: VCAIX Vs. 2 Year CD [Vanguard CA Intermediate-Term tax-exempt bonds]
Replies: 5
Views: 572

Re: VCAIX Vs. 2 Year CD [Vanguard CA Intermediate-Term tax-exempt bonds]

OK, 12% tax bracket, but is that your federal marginal tax rate? I expect to be in 12% bracket, but marginal tax rate will be 27% due to QD/LTCG being pushed from 0% to 15% tax with additional interest income. Next, what is your CA state tax rate? If your marginal tax rates are low, then the CA muni...
by Kevin M
Tue Nov 06, 2018 12:08 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on 5 year TIPS bonds?
Replies: 42
Views: 3615

Re: Thoughts on 5 year TIPS bonds?

But a retiree needs to think about their spending requirements for each year going forward. In my case I have to take RMD's each year that are substantial so 5 year TIPS won't satisfy that requirement. It's very individual based on spending choices and income streams (IRA's, Roths, taxable, maybe p...
by Kevin M
Mon Nov 05, 2018 8:39 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on 5 year TIPS bonds?
Replies: 42
Views: 3615

Re: Thoughts on 5 year TIPS bonds?

So Kevin, if I understand you right the real yield as stated on the April 2019 is an illusion. When I run the VG quotes I have to correct them? When the inflation is corrected for seasonality it brings the real yield in line with the yields further out? Based on my understanding from what I've lear...
by Kevin M
Mon Nov 05, 2018 7:08 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on 5 year TIPS bonds?
Replies: 42
Views: 3615

Re: Thoughts on 5 year TIPS bonds?

There has been some mention of the seasonality effect. #Cruncher developed a spreadsheet to derive an estimated real yield that factors in seasonality. I made some modifications, for example, to dynamically pull CPI data from FRED, and to use quotes downloaded from Fidelity. Below is a chart showing...