Search found 8994 matches

by Kevin M
Wed Apr 18, 2018 5:33 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

^ Kevin: I think there's a misunderstanding. I was referring to the State of Illinois General Obligation bonds; the state has a BBB- credit rating. You're not going to find a State of Illinois General Obligation bond with an AA rating. Not a misunderstanding--just pointing out that I'm not buying a...
by Kevin M
Wed Apr 18, 2018 4:26 pm
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 46
Views: 11942

Re: Ally Bank No penalty CD for parking cash, is there a catch?

As mentioned in other threads, Vanguard's Prime Money Market fund is now yielding 1.78%. Exactly. The Ally no-penalty CD is no longer competitive for short-term cash. You can open a trust account at Vanguard. Another option is Popular Direct savings paying 2.00% APY. https://www.depositaccounts.com...
by Kevin M
Wed Apr 18, 2018 12:56 pm
Forum: Investing - Help with Personal Investments
Topic: Need Help to FIRE in Thailand
Replies: 10
Views: 1485

Re: Need Help to FIRE in Thailand

Keeping it all in CDs is probably a bad idea. Most research suggests you need at least ~30% equities to last 30 years. Depends on your withdrawal rate. At 2% you can go 50 years with 0% real return, and you can do better than that (at least out to 30 years) in a TIPS ladder. Still, I wouldn't disag...
by Kevin M
Wed Apr 18, 2018 12:48 pm
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 20
Views: 1617

Re: Why is the SEC yield the one that Vanguard displays?

Also, the SEC yield nets out the expense ratio which also makes it easier to compare between funds. Are you saying distribution yield does not net out expense ratio? That's my understanding. Per Investopedia: "The distribution yield of a security is calculated by dividing the distributions paid (ye...
by Kevin M
Wed Apr 18, 2018 12:44 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Of note, Charles Schwab is offering a 2 year stepped CD (2.25% year 1, 3.25% year 2) with a YTM of 2.75%- offered by Wells Fargo, with a settlement date of 4/30/2018. CD is callable by WF after 1 year. If willing to take on the call risk, this CD offers 10bps over current new CD offerings from Gold...
by Kevin M
Tue Apr 17, 2018 9:50 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Thanks for the write-up. The reason I'm asking is because it looks like for two-year treasuries, the settlement date of the new issue and the maturity date of the old issue line up on the last day of each month (or next business day). Hence my question whether I can get the proceeds on the maturity...
by Kevin M
Tue Apr 17, 2018 9:33 pm
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 20
Views: 1617

Re: Why is the SEC yield the one that Vanguard displays?

The last paragraph in my previous reply illustrates one reason SEC yield is preferable to distribution yield in comparing bond funds. Modify that example to be two different bond funds, one that bought the bond some time ago at 100, and one that bought it some time later at 102. The yield to maturit...
by Kevin M
Tue Apr 17, 2018 9:18 pm
Forum: Investing - Theory, News & General
Topic: Why is the SEC yield the one that Vanguard displays?
Replies: 20
Views: 1617

Re: Why is the SEC yield the one that Vanguard displays?

I think I know the trick here. The SEC yield covers all income, less expenses. So both coupon and capital appreciation. The fund only distributes coupon income. Are you sure? I’m no expert but how can any fund company know what the capital appreciation will be looking forward 30 days? SEC yield is ...
by Kevin M
Tue Apr 17, 2018 8:31 pm
Forum: Investing - Help with Personal Investments
Topic: Need help splitting a muni bond ladder 50/50 between heirs and general Schwab Question
Replies: 19
Views: 912

Re: Need help splitting a muni bond ladder 50/50 between heirs and general Schwab Question

In addition to our PM conversation about this, here are some additional thoughts--maybe some repeat of what I've already said in PM. Before selling, I would determine if any of the munis are attractive holdings for either of you, considering marginal tax rates and maturities. For example, I have bee...
by Kevin M
Tue Apr 17, 2018 8:00 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Very interesting. One somewhat unrelated question -- at Fidelity / Vanguard, does your account get credited with the proceeds of the CD or bond on the maturity date? Or is it the next business day? Good question. I haven't had a bond or CD mature yet in a taxable account since I started buying brok...
by Kevin M
Tue Apr 17, 2018 5:59 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Today I did something a little different in looking at my next CD purchase in a Fidelity IRA. I set search criteria for 2y to 2y6m, with minimum yield of 2.70% (since I want at least 2.65% after commission to match or beat best 2-year new issue yield), then I downloaded the results into a spreadshee...
by Kevin M
Tue Apr 17, 2018 5:19 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

@ Kevin Yes, the Popular Direct rate at 2% is the best I've seen recently, as well, but I was turned off by their fee structure. I see a fee structure like that at Live Oak as notably more customer friendly. Plus there's no minimum deposit at Live Oak while Popular requires a 5k minimum. Fair enoug...
by Kevin M
Tue Apr 17, 2018 3:58 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

Here, for example, are the current CD rates for Live Oak Bank. I think their rates for short term CDs are very good, especially that 6 month rate of 1.95%. The linked page also discusses the early withdrawal penalties and it's 90 days simple interest for CDs with terms less than 24 months. That's a...
by Kevin M
Tue Apr 17, 2018 3:45 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 109
Views: 18386

Re: Muni Money Market funds starting to look good!

If you are in the 12% tax bracket for ordinary income, any amount of QDIV/LTCP should be taxed at the 0% rate correct. Whether it is 20k or 200k. That is not true. Work through a dummy 1040 line 44 and schedule D. Yes, using the Schedule D worksheet is a good way to see how the calculation works. T...
by Kevin M
Mon Apr 16, 2018 9:13 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

Fidelity's brokered CDs are up to 2.65 for the 2 year, I'm still hemming and hawing about whether I want to build a ladder of these. For what purpose? You can't build a ladder with a single maturity. Having said that, 2-year maturity is pretty much the sweet spot of the CD yield curve. You get abou...
by Kevin M
Mon Apr 16, 2018 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

Unfortunately the rates on that are not competitive with a Capital One money market account so that's where my funds are now. 1.50% for >$10K? Please see my earlier reply for better options. Alternatively I could buy 26-week T-bills, or a ladder of 12 one-year CDs and accept some penalty if I every...
by Kevin M
Mon Apr 16, 2018 8:37 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

I saw in other thread there is 10k minimum required for Vanguard brokered CDs. The $10K minimum is for the new-issue CDs currently available at Vanguard and Fidelity--not sure if this is always the case. You can buy smaller quantities on the secondary market, and sometimes the highest yields are fo...
by Kevin M
Mon Apr 16, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: Help with CD ladder strategy for emergency fund
Replies: 36
Views: 2304

Re: Help with CD ladder strategy for emergency fund

Hello all. I currently have close to 7 months expenses saved in cash in an online savings account that earns 1% APY. This is a horrible rate. There is a savings account now that is paying 2%, and even Vanguard Prime money market is paying 1.77%. It would be useful to know your federal and state mar...
by Kevin M
Mon Apr 16, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 109
Views: 18386

Re: Muni Money Market funds starting to look good!

$100 of ordinary interest would pay 12% or $12 in a 12% ordinary income bracket, not $27. But for someone with ordinary income in the 12% bracket and with QDIV/LTCG draped atop that into the 15% QDIV bracket (so that some of the QDIV was taxed at 0% and some at 15%), $100 more ordinary interest wou...
by Kevin M
Mon Apr 16, 2018 3:39 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Kevin, You're getting closer to appreciating the complexities of a discount bond and its taxation. Why just getting closer? I think I completely understand it now. I only own one bond for which this is an issue, and I understand how to deal with it now. I am aware of the "discount of a discount" ph...
by Kevin M
Sun Apr 15, 2018 3:28 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

One more. Do you deduct accrued interest on out of state tax exempt bonds from the state tax return in the year the bond is bought or the year the interest is paid? I bought some out of state munis in December, but no out of state muni interest was paid in 2017. My CPA entered the accrued interest ...
by Kevin M
Sun Apr 15, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

I got a guest account at Fidelity for 30 days...easy. The first NC muni I came to is here...you've got to have a Fidelity account or a guest account to follow this link I suspect... https://fixedincome.fidelity.com/ftgw/fi/FIBondDetails?requestType=&displayFormat=TABLE&cusip=65825PCA6&ordersystem=T...
by Kevin M
Sun Apr 15, 2018 11:41 am
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

If all of this is correct, I'll pay ordinary income tax on about $50 for tax year 2020, since I bought 15 for 14,950.05 (not including accrued interest). Assuming my marginal tax rates still are 27% + 8%, as I estimate for 2018, I'll pay about $17.48 federal + state income tax. Not a big deal, but ...
by Kevin M
Sat Apr 14, 2018 10:55 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Posts like this make individual bonds seems complicated when in reality they are not. Please elaborate. Clearly the taxation of individual bonds can be a bit complicated. How can you simplify it for us? Kevin Turbo Tax download Even if Turbo tax handled everything perfectly, it wouldn't help in mak...
by Kevin M
Sat Apr 14, 2018 9:59 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Iliketoridemybike wrote:
Sat Apr 14, 2018 9:27 pm
Posts like this make individual bonds seems complicated when in reality they are not.
Please elaborate. Clearly the taxation of individual bonds can be a bit complicated. How can you simplify it for us?

Kevin
by Kevin M
Sat Apr 14, 2018 9:57 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Mydanyale wrote:
Sat Apr 14, 2018 6:01 pm
Am I reading it correctly online? There is no fee for newly issued CDs, bonds.
There is never a fee for treasuries.
Yes. No commission for new-issue CDs, and no commission for Treasuries bought at auction or on secondary market. This is true at both Vanguard and Fidelity.

Kevin
by Kevin M
Sat Apr 14, 2018 9:56 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 109
Views: 18386

Re: Muni Money Market funds starting to look good!

It seems that everyone uses SEC yield to calculate TEY, which is indeed close to/superior to bank saving rates (2% or so). This comparison leads one to chose Muni MM over saving accounts. I wonder though if distribution yield should be used instead? For VCTXX the distribution yields were 1.07, 0.91...
by Kevin M
Sat Apr 14, 2018 9:37 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 109
Views: 18386

Re: Muni Money Market funds starting to look good!

The interest we're earning now is in 2018, which means the rules are different, so there are no longer 25% or 27% Federal Tax Brackets. There was not a 27% federal tax bracket in 2017 either. My federal marginal tax rate will be 27% because my ordinary income will be in the 12% bracket, but qualifi...
by Kevin M
Sat Apr 14, 2018 9:15 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

When you're buying a municipal bond, you're going to want a premium bond or at least a discount de minimis bond. If your discount bond is beyond de minimis, you're going to pay regular income tax on the gain (not just a capital gain), so it's best to avoid them. I don't believe this is correct--at ...
by Kevin M
Sat Apr 14, 2018 5:17 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

^ I would strongly urge avoiding IL bonds. Even the state's general obligation bonds are rated BBB-, which is really getting down there. And a state cannot declare bankruptcy! It has been drilled into my head that bonds are for safety and the few bucks you're going to pick up with IL bonds are just...
by Kevin M
Sat Apr 14, 2018 4:34 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

gmaynardkrebs wrote:
Sat Apr 14, 2018 3:15 pm
Kevin, does Fidelity let you place a limit order below ask?
Yes, but the one time I tried recently for a muni, the order was cancelled within a few minutes.

Kevin
by Kevin M
Sat Apr 14, 2018 3:01 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Kevin, I agree with you on the safety of AAA/AA munis. It seems like Vanguard's intermediate muni VWIUX doesn't quite make that standard....also Larry S's standard. Baird's intermediate muni BMBIX is very close to all AAA/AA. I'm interested in buying single state munis. Every time I look, I feel li...
by Kevin M
Sat Apr 14, 2018 12:55 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

How would amortization work in this case when the bonds are municipal and therefore, no state taxes will be paid for the interest? There is no state income tax on bonds issued by your state of residence, but there is state income tax on muni bonds issued by other states. So for an in-state muni, th...
by Kevin M
Sat Apr 14, 2018 12:47 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

When you're buying a municipal bond, you're going to want a premium bond or at least a discount de minimis bond. If your discount bond is beyond de minimis, you're going to pay regular income tax on the gain (not just a capital gain), so it's best to avoid them. I don't believe this is correct--at ...
by Kevin M
Sat Apr 14, 2018 12:22 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

@Kevin Re: Kaiser bonds I hope you do realize that you bought the bonds above par, and upon maturity in a year, in total return, you will be losing money. The yield to maturity calculation factors in both the change in value of the bond from time of purchase to maturity (capital return) and the cou...
by Kevin M
Fri Apr 13, 2018 5:00 pm
Forum: Investing - Theory, News & General
Topic: Muni Money Market funds starting to look good!
Replies: 109
Views: 18386

Re: Muni Money Market funds starting to look good!

TEY depends on whether you itemize deductions or not, so that could be why some of you are getting slightly different TEYs. Tax exemption is slightly less valuable if you already are getting a federal deduction for state income taxes. TEY of CA Muni MM for me now is 2.08% (SEC yield 1.35%), at 27% f...
by Kevin M
Fri Apr 13, 2018 4:50 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Kevin - I couldn't find it today but how about this one - Morgan Stanley Bank, National Association Secondary2.8% due 4/12/2021 (CUSIP: 61747MT35) It's showing a yield of 2.87 (after $100 commission for 50 of them and net amount is 49919.18). Please let me know if this is a good deal. Thanks, inv* ...
by Kevin M
Fri Apr 13, 2018 4:20 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

I used to buy individual GO bonds, because I foolishly thought they were the state equivalent of Full Faith & Credit federal bonds. Now that I've discovered that the legal environment has changed, the GO guarantee is suspect. Default rates are extremely low now, but these things tend to happen in e...
by Kevin M
Thu Apr 12, 2018 7:49 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Who is the insurer? I don't investigate insurers, so it doesn't matter much to me. You an look up the bond on EMMA and see for yourself. Like I said, I'm OK if the insured rating is AA and maturity is three years or less. Also, how risky do you think an "A" is if it's substantially longer term than...
by Kevin M
Thu Apr 12, 2018 5:30 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

Re: 2-year AA Munis at Vanguard and Fidelity Today

Great to see Larry commenting again. His bond buying advice on this forum and in his books were invaluable to me in building a muni bond ladder a few years ago. Good to see your comments. :thumbsup Larry was kind enough to answer some questions via PM/email about buying munis as I was just getting ...
by Kevin M
Thu Apr 12, 2018 4:38 pm
Forum: Investing - Theory, News & General
Topic: 2-year AA Munis at Vanguard and Fidelity Today
Replies: 79
Views: 3981

2-year AA Munis at Vanguard and Fidelity Today

I just resumed buying munis in taxable after liquidating some no-penalty CDs at Ally, and thought I would share what I bought today and why. I bought 15 RUSSELL CNTY ALA WTRAUTH WTR REV REF BDS02.00000% 02/0r1/2020 SER.2015, CUSIP 782391FF8, at 99.567/2.427%, which is 99.667/2.190% after commission,...
by Kevin M
Thu Apr 12, 2018 4:04 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Understood. What I did was in the middle. I sold half of my FSITX position and put 25% into a 2yr CD (2.65%) and 25% into a 3yr CD (2.85%). I'll continue to put money into FSITX via my 401k auto contributions and then look at what the curve looks like in 2-3yrs and either re-roll a CD or move back ...
by Kevin M
Thu Apr 12, 2018 11:52 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Could you explain the math for the commission? I've been using this Google Sheets formula when looking at secondary CDs (using the numbers quoted above) to calculate the actual yield. But I don't follow how each $1 in commission results in a $0.10 increase in the sale price. =YIELD("04/11/2018", "0...
by Kevin M
Thu Apr 12, 2018 11:28 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Kevin - Thanks for this info. Most of us didn't know these options in VG (or Fidelity). I just checked in VG, is the following a good buy? CUSIP: 48126XA54 Issue: JP Morgan Chase 48 MO Callable 06/18@100 Maturity Coupon: 03/15/2021 1.750 Price bid: 98.699 Yield to worst bid: 2.658 Yield to maturity...
by Kevin M
Tue Apr 10, 2018 1:25 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

At Vanguard there is a 3-year, SALLIE MAE BANK SALT LAKE CITY UT CD FDIC #58177 2.75% 04/12/21 04/11/18, at 99.55, which is 99.65 for yield of 2.872% at $1 commission, and 99.75 for yield of 2.837% at $2 commission, so a pretty good one if you want to go to three years (I just bought a few in sever...
by Kevin M
Tue Apr 10, 2018 11:53 am
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 113
Views: 14409

Re: 2-year CDs at Vanguard and Fidelity Today

Well, the trend of increasing 2-year and 3-year CD rates has resumed. Morgan Stanley Bank now is offering new-issue 2-year at 2.65% and 3-year at 2.85%, available at both Fidelity and Vanguard. These settle 4/19, so now I'll require that any secondary CD rates beat these rates (I already have gotten...
by Kevin M
Tue Apr 10, 2018 11:37 am
Forum: Personal Finance (Not Investing)
Topic: Need help with form 1099-B
Replies: 7
Views: 417

Re: Need help with form 1099-B

Yes. You can sell it all and use a zero basis. You can have a problem using various with some software and it does not sound like various is accurate anyway. So, I would just pick a date that represents your best guess. You can use "various" with TurboTax, which I think OP mentioned is what is bein...
by Kevin M
Mon Apr 09, 2018 8:32 pm
Forum: Personal Finance (Not Investing)
Topic: Need help with form 1099-B
Replies: 7
Views: 417

Re: Need help with form 1099-B

For your current problem, using TurboTax, worst case you can enter 0 for cost basis, and "various" for date acquired, then check the "long term" box. Your son will the be taxed on $20.80 of long-term capital gain, which is no big deal. The tax might even be $0, depending on his tax bracket. How many...
by Kevin M
Mon Apr 09, 2018 4:51 pm
Forum: Personal Finance (Not Investing)
Topic: Please suggest money market fund to park cash for a few months
Replies: 10
Views: 818

Re: Please suggest money market fund to park cash for a few months

My tax bracket should be 32% no state tax if there is a different fund that works better At 32% marginal fed tax rate, VG muni money market TEY is 2.04% (SEC yield 1.39), so this currently is your best option once you can get $3,000 together to do an initial purchase. As I said, once you own the fu...
by Kevin M
Mon Apr 09, 2018 2:28 pm
Forum: Personal Finance (Not Investing)
Topic: Please suggest money market fund to park cash for a few months
Replies: 10
Views: 818

Re: Please suggest money market fund to park cash for a few months

What's are your federal and state marginal tax rates, and what state are you in? At certain marginal rates, the Vanguard muni MM funds have higher taxable-equivalent yields. Although the MM minimum to open is $3K, there is no minimum to keep it open. I've had MM funds with only a few dollars in them...