Search found 8777 matches

by Kevin M
Mon Jan 15, 2018 9:38 pm
Forum: Investing - Help with Personal Investments
Topic: Municipal bonds, pension funds...time to get out of munis and into bonds, stocks?
Replies: 4
Views: 468

Re: Municipal bonds, pension funds...time to get out of munis and into bonds, stocks?

First, I would look at the ratings on your munis. If AAA or even AA, and maturing within 2-3 years, I would not worry. If they are rated lower than AA or maybe A, I'd take a closer look. The pension issues are well known, and should be factored into the ratings. It takes some time for munis to get d...
by Kevin M
Mon Jan 15, 2018 8:29 pm
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2093

Re: CDs & Savings as a substitute for bonds or bond funds

Yeah, reinvestment of interest is a nice advantage of direct CDs. In addition to the automatic reinvestment of interest, some direct CDs automatically roll over to a new CD of the same maturity. This is a bad feature if the new rate is not competitive (perhaps by design) and requires the investor t...
by Kevin M
Mon Jan 15, 2018 8:23 pm
Forum: Investing - Help with Personal Investments
Topic: What to do with money for house down payment?
Replies: 6
Views: 1099

Re: What to do with money for house down payment?

@rl3, I've been finding individual AAA munis in the 1.5-3.0 year range with taxable-equivalent yields (for me) in the 2.5% ballpark. Interestingly, non-CA munis consistently have a higher TEY for me than CA munis (I figure my federal marginal rate at 27%, and CA rate at 8%, and I do not expect to it...
by Kevin M
Mon Jan 15, 2018 3:29 pm
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2093

Re: CDs & Savings as a substitute for bonds or bond funds

The problem with CDs is what to do when the stock market goes down significantly, and you want to re-balance into stocks. You may need to break some CDs and pay EWP, or sell brokered CDs for whatever they are worth on the market. A solution to this is to do some of each. You might hold your expecte...
by Kevin M
Mon Jan 15, 2018 3:20 pm
Forum: Investing - Help with Personal Investments
Topic: CDs & Savings as a substitute for bonds or bond funds
Replies: 20
Views: 2093

Re: CDs & Savings as a substitute for bonds or bond funds

One thing that can reduce the term risk of CDs purchased directly from a bank or credit union is the early withdrawal option. This limits the downside risk to the amount of the early withdrawal penalty. So a ladder of direct CDs with low early withdrawal penalties is indeed less risky than a similar...
by Kevin M
Sun Jan 14, 2018 12:53 pm
Forum: Investing - Help with Personal Investments
Topic: Need to move "safe" money to another place
Replies: 16
Views: 1387

Re: Need to move "safe" money to another place

No, not an IRA account. OK, so we're talking POD/TOD. Using a trust account at Ally would solve your problem, but I understand that you don't want to draft a living trust. Vanguard allows TOD accounts for individuals, but not for joint accounts. I assume that if Vanguard told you they could meet yo...
by Kevin M
Sat Jan 13, 2018 9:37 pm
Forum: Investing - Help with Personal Investments
Topic: Need to move "safe" money to another place
Replies: 16
Views: 1387

Re: Need to move "safe" money to another place

Will I be subject to fees that I wouldn’t have at Ally? Is it complicated to set up? What can I get that will duplicate my Ally savings account (1.25%) that will generate a bit of interest - do they offer those? ...Or would I have to get a money market account? I don’t even know how those work. I j...
by Kevin M
Sat Jan 13, 2018 9:28 pm
Forum: Investing - Help with Personal Investments
Topic: Need to move "safe" money to another place
Replies: 16
Views: 1387

Re: Need to move "safe" money to another place

Are you talking about an IRA account or taxable account?
by Kevin M
Sat Jan 13, 2018 8:55 pm
Forum: Investing - Theory, News & General
Topic: VUSXX vs. TreasuryDirect
Replies: 10
Views: 988

Re: VUSXX vs. TreasuryDirect

Kevin, Which tax-exempt MM were you thinking? When I look at the Vanguard VMSXX its 7-day yield is only .74%. Hardly seems an alternative to VMMXX paying 1.42%. Dave You're quoting the 1-year return. The SEC yield is 1.22%. For me, this is a TEY of 1.73%. I estimate my 2018 federal marginal tax rat...
by Kevin M
Sat Jan 13, 2018 8:50 pm
Forum: Investing - Theory, News & General
Topic: VUSXX vs. TreasuryDirect
Replies: 10
Views: 988

Re: VUSXX vs. TreasuryDirect

Windfall-parking theory says to temporarily park large amounts (that would exceed FDIC limits) in short term (say 4-wk) T-Bills or an MM fund, until you figure out what you actually want to do with the cash. pcflow welcome to the forum. You can go up to $250k per person per bank for FDIC coverage. ...
by Kevin M
Sat Jan 13, 2018 8:28 pm
Forum: Investing - Help with Personal Investments
Topic: Short term bond fund question
Replies: 4
Views: 438

Re: Short term bond fund question

If you're trying to match a liability in two years, I would not use a fund. I would use a good 2-year CD, perhaps 2-year Treasuries, or depending on your marginal tax rates a few 2-year AAA or even AA-rated municipal bonds. I have been finding AAA rate munis in the 2-year maturity ballpark with taxa...
by Kevin M
Sat Jan 13, 2018 8:24 pm
Forum: Investing - Theory, News & General
Topic: VUSXX vs. TreasuryDirect
Replies: 10
Views: 988

Re: VUSXX vs. TreasuryDirect

The conversation might be more productive if we knew why you are asking, and how much money you're talking about. One reason I mention this, is that the FDIC limit can be quite a bit higher than many people realize. For example, with a trust or POD account with five beneficiaries, you get coverage u...
by Kevin M
Sat Jan 13, 2018 12:55 pm
Forum: Investing - Help with Personal Investments
Topic: What is the long term average nominal yield of the total bond market index fund ?
Replies: 27
Views: 1188

Re: What is the long term average nominal yield of the total bond market index fund ?

What is the long term average nominal annual return of the total bond market index fund ? Others have mentioned Morningstar, but I find Portfoliio Visualizer easier and quicker, as long as you're OK with data through the most recent complete month: Backtest Portfolio Asset Allocation This shows the...
by Kevin M
Fri Jan 12, 2018 6:49 pm
Forum: Personal Consumer Issues
Topic: 2017 HR Block tax federal tax update won't install
Replies: 10
Views: 567

Re: 2017 HR Block tax federal tax update won't install

Just did the update on a Windows laptop, and it took less than a minute.

Kevin
by Kevin M
Fri Jan 12, 2018 4:52 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Vs CIT- Seeking advice
Replies: 9
Views: 623

Re: Ally Vs CIT- Seeking advice

One reason I haven't messed around moving money to higher rate savings accounts is that I took advantage of Ally's no-penalty 11-month CDs at 1.75% (now 1.60%). And now the Vanguard municipal money market funds are providing me with taxable-equivalent yields (TEYs) of 1.74% (as of most recent close)...
by Kevin M
Thu Jan 11, 2018 4:59 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

how are you keeping accrued interest as low as possible? If you are concerned about paying taxes on interest you didn't receive, your broker should report accrued interest on your 1099, and on your Schedule B, you should be able to subtract it from interest received. This should not be an issue for...
by Kevin M
Thu Jan 11, 2018 1:56 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

jimishooch wrote:
Thu Jan 11, 2018 9:34 am
how are you keeping accrued interest as low as possible?
Why should I care? I haven't been paying any attention to that.
by Kevin M
Thu Jan 11, 2018 1:02 am
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

yeah, it's gone, always interested in what forum members are buying (not a lot of us on this forum)...2 year is about as far out as i'll go as i hold until maturity... thx jim I've been buying mainly in the 17-25 month range since mid-December, but have gone out as far as four years (1.975%, which ...
by Kevin M
Wed Jan 10, 2018 5:17 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

do you have the CUSIP for the bond you bought? thx jim Not sure why you want it, as the best muni bond deals change daily. But I'm glad to provide it anyway: 262579NS0. Searching on this CUSIP, I don't see any currently available. Searching earlier today, I did not find any deals that were nearly t...
by Kevin M
Wed Jan 10, 2018 5:02 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

Do anyone have experience buying CDs and Bonds via Vanguard's phone fixed income desk? It appears that our 401k VBO does not allow buying bonds, treasurys or CDs online, but require calling the fixed income desk. I presume this is to prevent the buying of tax exempt securities which is not allowed ...
by Kevin M
Tue Jan 09, 2018 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

When you purchase bonds on the Fidelity brokerage website, you can preview the purchase prior to committing. The preview (supposedly) gives you the after commissions effective yield you would be obtaining on the purchase. When I purchase secondary market CDs at Vanguard, I see the same thing. Both ...
by Kevin M
Tue Jan 09, 2018 3:47 pm
Forum: Personal Finance (Not Investing)
Topic: Brokered CDs - often better return secondary market
Replies: 38
Views: 3938

Re: Brokered CDs - often better return secondary market

So is it correct to assume that for comparison sake, if my commission schedule is $1/ $1000 face value (Vanguard 401k VBO), then I remove 10 bps divided by the term to the yield ( e.g. 2 bps on a 5y CD) (a simplification). Yes, this will be a very close estimate if not exact. If you have basic spre...
by Kevin M
Sun Jan 07, 2018 9:54 pm
Forum: Investing - Help with Personal Investments
Topic: How to calculate total return (including dividends)
Replies: 7
Views: 652

Re: How to calculate total return (including dividends)

I like Portfolio Visualizer: Backtest Portfolio Asset Allocation. Very easy to use, and you can set different rebalancing schemes. Of course like any other backtesting tool, it only shows you historical results, which are unlikely to match future results closely.

Kevin
by Kevin M
Sun Jan 07, 2018 9:15 pm
Forum: Investing - Help with Personal Investments
Topic: Why not Muni Money Market?
Replies: 41
Views: 3234

Re: Why not Muni Money Market?

So I was wondering, the Muni funds are interest tax free, but even if you redeemed the shares back to your bank account? I am asking that because I noticed a disclaimer at the Vanguard Taxable-equivalent yield calculator: Although the income from a municipal bond fund is exempt from federal tax, ca...
by Kevin M
Sun Jan 07, 2018 11:33 am
Forum: Investing - Help with Personal Investments
Topic: Why not Muni Money Market?
Replies: 41
Views: 3234

Re: Why not Muni Money Market?

Pretty small amount to worry about. Can't see why anyone would have MM accounts at today's rates. Online savings accounts pay more. Not after taxes, probably for most people. I calculate the taxable equivalent yield for me of the CA muni fund as 1.97% and the national muni fund as 1.94%. My Ally Ba...
by Kevin M
Sat Jan 06, 2018 3:36 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

<snip> Although I expect to only be in the 12% federal tax bracket in 2018, my federal marginal tax rate will likely by 27%, since I expect to be in the range where a marginal dollar of income pushes qualified dividends from the 0% rate to the 15% rate, and 12% + 15% = 27%. I expect my CA state tax...
by Kevin M
Sat Jan 06, 2018 3:02 pm
Forum: Investing - Help with Personal Investments
Topic: Why not Muni Money Market?
Replies: 41
Views: 3234

Re: Why not Muni Money Market?

The Tax exempt muni MM portfolio is almost 100% VRDO (variable rate deposit obligations) which are long term bonds from municipalities where the interest rate changes on a weekly or so basis and the holder has a put option to be able to sell the bond to an underwritir like a Bank or insurance compa...
by Kevin M
Sat Jan 06, 2018 12:46 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

Kevin, with the national muni MM fund, what is the risk of loss due to rising market interest rates (assuming they do rise even if the slope is small)? A money market fund typically won't have any losses when rates rise, since the charter of a money market fund is to maintain a stable value of $1.0...
by Kevin M
Fri Jan 05, 2018 9:26 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

The Vanguard municipal money market funds are now a better deal for me. I calculate my taxable equivalent yield (TEY) as 2.00% on the CA muni MM fund (7-day yield = 1.30%) and 1.97% on the national muni MM fund (7-day yield = 1.39%). And I calculate my TEY on the Limited-Term muni fund, with a durat...
by Kevin M
Wed Jan 03, 2018 9:43 pm
Forum: Investing - Help with Personal Investments
Topic: California - Intermediate Muni Bonds - effect of capital gains tax
Replies: 5
Views: 362

Re: California - Intermediate Muni Bonds - effect of capital gains tax

The dividends (income return) will be tax free, but the gain or loss on the sale of shares will be taxed at your capital gain rates (which for CA is the same as for ordinary income). It's impossible to say how much of your return will be from income return and from capital return, but you can see so...
by Kevin M
Wed Jan 03, 2018 9:14 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I think a phone call can take care of many issues. And yes, their wait time has been longer than usual lately, but if you want the better rate, you have to put in some effort. I don't think so. If you qualify for the 10-day rate guarantee (whatever it is exactly), you'll get the guaranteed rate, an...
by Kevin M
Wed Jan 03, 2018 9:06 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I transferred a number of CDs to the higher rate on Jan 1. I also opened an additional one with a zero balance on Jan 1. Just funded it this morning. It shows a rate of 1.6% (the current rate), not the 1.75% promotional rate that was in effect on Jan 1, when i opened the CD. I sent them an e-mail a...
by Kevin M
Wed Jan 03, 2018 9:00 pm
Forum: Investing - Theory, News & General
Topic: Why the Roth IRA Bias?
Replies: 133
Views: 28858

Re: Why the Roth IRA Bias?

I think the end game is to get as much in a Roth as possible <snip> Not necessarily, and this is typical of the confusion I was trying to explore in starting this thread more than seven years ago. The end game is not to get as much in a Roth as possible, but to maximize your after-tax wealth and in...
by Kevin M
Mon Jan 01, 2018 2:15 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

are you guys opening so many cds because of low $ limit for online transactions? I haven't done so but I think folks do it so that they can break one or two without having to liquidate one large CD in the event rates are lower at the time they need the funds. Perhaps there are other reasons I haven...
by Kevin M
Fri Dec 29, 2017 5:28 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

dellfanboy wrote:
Fri Dec 29, 2017 5:22 pm
Weird. I tried to join and I see there is a withdraw penalty. Is anyone else getting this message for the 2% version?
There is an early withdrawal penalty for all Ally CDs except the 11-month no-penalty CD, currently earning 1.75% for deposits of $25K or more.

Kevin
by Kevin M
Thu Dec 28, 2017 10:06 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I don't understand this thing about a credit check to open a checking account. I have opened a number of checking accounts at Ally without a credit check. Perhaps you're talking about a freeze on ChexSystems? I have no idea if that's an issue, because I didn't freeze ChexSystems. I may not have open...
by Kevin M
Thu Dec 28, 2017 10:00 pm
Forum: Investing - Theory, News & General
Topic: Ally 1-year 2.0% CD vs. USAlliance 3-year 2.4% CD
Replies: 5
Views: 1512

Re: Ally 1-year 2.0% CD vs. USAlliance 3-year 2.4% CD

I'm looking at DA and also the USAlliance web site and I only see 35 mo. CD @ 2.22% APY - is there something I'm not seeing? <snip> So it must be 2.22% is correct. Yep, the good deal is gone. That's two good CD deals gone in the last couple of weeks. I'm still finding better deals for my taxable ac...
by Kevin M
Tue Dec 26, 2017 10:50 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 153
Views: 24375

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Furthermore, note this language in the deposit agreement (my boldfacing and red type) Early Withdrawals n. You may not make a partial withdrawal of principal from a CD or IRA CD prior to the maturity date. If we consent to the closure of a CD or IRA CD prior to the maturity date, we will redeem the...
by Kevin M
Tue Dec 26, 2017 2:02 pm
Forum: Investing - Theory, News & General
Topic: NavyFed IRA CDs: 32-months 2.75% APY
Replies: 24
Views: 2199

Re: NavyFed IRA CDs: 32-months 2.75% API

Big fan and longtime member of NFCU here. But I like their previously announced 15 mo. 2.25% deal better. With rates potentially rising, tying the money up half as long with close to the same rate is more attractive to me. Of course it's a perfectly valid choice to keep your term risk less in retur...
by Kevin M
Tue Dec 26, 2017 1:37 pm
Forum: Investing - Theory, News & General
Topic: What ever happened to the Larry portfolio?
Replies: 114
Views: 10411

Re: What ever happened to the Larry portfolio?

The main reason is the higher returns of small-cap value stocks during the periods he uses in his analyses. I don't think that you are interpreting the "Black Swans" idea correctly. You quoted me out of context. This part of my reply was simply disagreeing with the point that higher term risk in th...
by Kevin M
Sun Dec 24, 2017 9:03 pm
Forum: Investing - Help with Personal Investments
Topic: Wrapping my head around creating a 'simple' pre-tax cd-ladder. What do you do?
Replies: 5
Views: 721

Re: Wrapping my head around creating a 'simple' pre-tax cd-ladder. What do you do?

It's a tradeoff between simplicity and return/yield. If you stick with Ally, you won't get the best rates across the yield curve, but it would be simple. Ally currently has a great 0-year rate (1.75% on the 11-month no-penalty CD) and a great 1-year rate at 2.00%. But beyond one year their rates are...
by Kevin M
Sun Dec 24, 2017 6:10 pm
Forum: Investing - Theory, News & General
Topic: What ever happened to the Larry portfolio?
Replies: 114
Views: 10411

Re: What ever happened to the Larry portfolio?

Just wondering if Larry Swedroe is still recommending the 25% SCV + 75% Bonds portfolio allocation or has moved away from it. This is a common misconception about what the LP is; i.e., that there's some particular stock/bond allocation ratio. With the LP, you determine the stock/bond ratio based on...
by Kevin M
Sun Dec 24, 2017 5:49 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues ...
by Kevin M
Sat Dec 23, 2017 9:02 pm
Forum: Personal Consumer Issues
Topic: How much have you donated to John C Bogle Center for Financial Literacy?
Replies: 17
Views: 1753

Re: How much have you donated to John C Bogle Center for Financial Literacy?

By signing up at Smile.Amazon.com, and putting that address in my bookmarks, I've directed donations to John C Bogle Center for Financial Literacy. So far, I've donated $14.40. What are others at? Not signed up? Do it and join us for 2018! $51.04 as of 12/20/2017. I have a "Smile Always" extension ...
by Kevin M
Sat Dec 23, 2017 8:59 pm
Forum: Investing - Theory, News & General
Topic: NavyFed IRA CDs: 32-months 2.75% APY
Replies: 24
Views: 2199

Re: NavyFed IRA CDs: 32-months 2.75% API

239 people clicked on this message but nobody has responded. Is the silence a sign of agreement? Or 2.75% for 32 months is not good enough? It's an excellent deal. USAlliance 35 month is 2.4%, and that has been the bogey I've been trying to match or beat for terms of around three years. Three-year ...
by Kevin M
Sat Dec 23, 2017 8:37 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I sent an SM to Ally asking if my 9 December 1.60% CDs qualified for an automatic conversion to 1.75% on 19 December. As of 23 December, Ally still has not responded to my SM. Today, I accessed my account, closed all 1.60% CDs and opened the same number of 1.75% CDs. I spent less time doing it myse...
by Kevin M
Sat Dec 23, 2017 8:26 pm
Forum: Personal Finance (Not Investing)
Topic: Ally Bank 11 month [No-Penalty CD]
Replies: 382
Views: 30788

Re: Ally Bank 11 month [No-Penalty CD]

I just did this an hour ago - took about 15 min to connect with an Ally rep on the phone and 10 min to close the old CD at 100k and get 4 new one's open at 25k each. They will fund within 2 business days taking funds from from my old CD to the new one's. My credit reports are all frozen. No issues ...
by Kevin M
Thu Dec 21, 2017 7:11 pm
Forum: Investing - Help with Personal Investments
Topic: weird Vanguard cost basis
Replies: 7
Views: 366

Re: weird Vanguard cost basis

mouses wrote:
Thu Dec 21, 2017 6:50 pm
Okay, thanks. Although this makes my head spin.
Would it make your head spin less if you had taken the dividend as cash into your money market account, then used that cash to buy more shares?

Kevin
by Kevin M
Thu Dec 21, 2017 7:08 pm
Forum: Investing - Theory, News & General
Topic: Ally 1-year 2.0% CD vs. USAlliance 3-year 2.4% CD
Replies: 5
Views: 1512

Ally 1-year 2.0% CD vs. USAlliance 3-year 2.4% CD

The Ally 1-year CD at 2.00% APY is a great deal, with the closest competitor at 1.80% (according to DepositAccounts.com). However, for investment horizons of three years or more, the 35 month USAlliance credit union CD at 2.40% APY might be a better bet, especially if you already have a USAlliance a...