Search found 9308 matches

by Kevin M
Sun May 27, 2018 3:52 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Recommendation
Replies: 13
Views: 1026

Re: Bond Recommendation

These are the 401k options with expense ratios for my new employment. This is probably a different question, but would it be a bad idea to move my old 401k (all in TRRKX which is T Rowe Price target 2045 to this account. the expense ratio for TRRKX is 0.76%). Thanks again. You have excellent, low-c...
by Kevin M
Sun May 27, 2018 3:35 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

0.49% to 1.90% in six months? You sure you're not looking at eighteen months? For the 3-month CMT series I see 0.48% on 2016-11-28, 1.27% on 2017-11-27. Oops, you're right. I'll redo the calculations now. :oops: Kevin Done: https://www.bogleheads.org/forum/viewtopic.php?f=10&t=250059&p=3946494#p394...
by Kevin M
Sun May 27, 2018 3:25 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

lack_ey wrote:
Sun May 27, 2018 2:51 pm
0.49% to 1.90% in six months? You sure you're not looking at eighteen months?

For the 3-month CMT series I see 0.48% on 2016-11-28, 1.27% on 2017-11-27.
Oops, you're right. I'll redo the calculations now.
:oops:

Kevin
by Kevin M
Sun May 27, 2018 3:19 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Kevin, the spreadsheets you are posting are very useful. Can you explain how you do them? I assume you are downloading all the bond data points from Fidelity and then sorting them. Can you give us a few sorting tips or send a link so we can download them? Glad you find them useful. I find them part...
by Kevin M
Sun May 27, 2018 2:48 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

So that we are on the same page, are you using price spread or yield spreads? Since we're charting yields, I'm talking about yield spreads, since that's what would be relevant if I charted bid yield instead of ask yield. I was seeing almost 4 bps in yield for the two 8/15/26 issues at Schwab yester...
by Kevin M
Sun May 27, 2018 2:36 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Thanks for your tips and graphs. I'm not going to buy anything shorter than 90-day but will buy one 90-day a month with 1/4th my cash until I have 1/4 in cash and 90-day t-bill ladder with 1/3 maturing every month. The timing of our purchases is really uncertain due to construction labor shortage i...
by Kevin M
Sun May 27, 2018 1:45 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

How about doing this again when the market is open. Maybe do it on the bid instead of the ask to see if the dips become peaks indicating perhaps a spread/liquidity difference. :idea: That will be easy enough to do, but I don't think it will make much difference. We shall see. The bid/ask spreads ar...
by Kevin M
Sun May 27, 2018 1:30 pm
Forum: Investing - Help with Personal Investments
Topic: Bond Recommendation
Replies: 13
Views: 1026

Re: Bond Recommendation

I am 100% in a target fund SSDEX. Expense ratio is pretty low (0.12%). Any problems using this for my 401k? This should be 90 stock / 10 fixed. SSDEX State Street Target Retirement 2045 Fund Holdings: State Street Equity 500 Index II Portfolio 38.31 % State Street Global Equity ex-U.S. Index Portfo...
by Kevin M
Sun May 27, 2018 12:29 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

If I plot yield vs. duration, I still get a very spiky chart, but in this case it becomes very evident that the spikiness is due to the difference in yields between stripped interest and stripped principal zero-coupon bonds. There still might be some small dips for higher coupon bonds, but much les...
by Kevin M
Sun May 27, 2018 10:45 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

After the June fed meeting and press conference I plan to start buying 90-day bills through Schwab at auction monthly with 1/4th of what I now have in money market. Goal is 25% in Schwab MM, 25% 1-30 days to maturity, 25% 31-60 days to maturity and 25% 61-90 days out. With one transaction of the sa...
by Kevin M
Sat May 26, 2018 11:07 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

Tesla is big software on the wheel. I don't think you could disable the updates on it even if you wanted to. Wrong! When an OTA update is available, you get a notification and an option to schedule the update or install it immediately. If you do neither, the update will not be installed. If you're ...
by Kevin M
Sat May 26, 2018 10:06 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

If I plot yield vs. duration, I still get a very spiky chart, but in this case it becomes very evident that the spikiness is due to the difference in yields between stripped interest and stripped principal zero-coupon bonds. There still might be some small dips for higher coupon bonds, but much les...
by Kevin M
Sat May 26, 2018 9:30 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

What happens if you bid for bill, it gets accepted but funds are not in account at time of settlement? Do the Tbill police come? You may not be allowed to even place such an order if you don't have sufficient assets in your account to cover it. You can get away with more in a margin account, but th...
by Kevin M
Sat May 26, 2018 9:19 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

But wouldn't lower liquidity result in higher yields instead of lower yields? It could go either way. If you want to buy US Treasury 6.75% 08/15/2026 which has a dated date of 8/15/96 and there are very few available because they are all held by insurance companies to meet 30 year obligations when ...
by Kevin M
Sat May 26, 2018 5:39 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

I actually have to tug the wheel a bit now and then, even if not necessary to maintain lane control, to keep from receiving the warning to keep my hands on the wheel. This seems to be more necessary in my Tesla with AP2 than the one with AP1. Maybe that's a testimony that AP2 actually is a little b...
by Kevin M
Sat May 26, 2018 5:32 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

<snip> ... she told me that Achieva pays for an additional $250K of coverage, so I was insured up to $500K. <snip> She said she would send me details on the additional $250K deposit insurance. If after reviewing this I'm not comfortable with it, I still have the options to do a penalty-free IRA tra...
by Kevin M
Sat May 26, 2018 3:43 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

As a side note, a new-issue CD sometimes starts trading on the secondary market at a higher net yield before its first settlement date, which is another reason I prefer the secondary market. Kevin - If it is new issue. how does it get onto the secondary market before the new issue settlement date? ...
by Kevin M
Sat May 26, 2018 3:21 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

I actually have to tug the wheel a bit now and then, even if not necessary to maintain lane control, to keep from receiving the warning to keep my hands on the wheel. This seems to be more necessary in my Tesla with AP2 than the one with AP1. Maybe that's a testimony that AP2 actually is a little be...
by Kevin M
Sat May 26, 2018 3:17 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

For the most part, it does--particularly the big dips for high coupon bonds. I've done the pulls when market is open, and see the same big dips for high coupon bonds. Are you able to see a distinction between a duration effect and a liquidity effect? I'm thinking that high coupon might mean a bond ...
by Kevin M
Sat May 26, 2018 12:57 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Here is a chart of ask yields for bonds maturing in 3-5 years, just pulled from Fidelity. Looking at this type of detail during non-market hours is questionable. See if it holds up on Monday. For the most part, it does--particularly the big dips for high coupon bonds. I've done the pulls when marke...
by Kevin M
Sat May 26, 2018 12:42 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

please explain..........faster settlement The settlement date is when you actually buy it, and the cash to pay for it is removed from your settlement/core fund. On the secondary market, this is T+2 for a CD, so if you place the order and it's accepted on Tuesday, it will settle on Thursday. Usually...
by Kevin M
Sat May 26, 2018 12:27 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

Wow, that would be a disaster if you attempted to "park" in that situation. Sure, but who would do that??? I've seen this a number of times, and I just chuckle. Kevin To answer your rhetorical question, no one. But it does not fill me with confidence that it suggests it can park between cars that p...
by Kevin M
Sat May 26, 2018 12:20 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

For bills, notes or bonds of same maturity, typically bonds with higher coupons will have lower yields than bonds with lower coupons (or no coupon)--at least if there is at least one coupon payment before maturity. This is because with higher coupons you get more of your money back sooner, and mone...
by Kevin M
Sat May 26, 2018 10:56 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

1) All the listings have YTM yield displayed in the depth of books. Aren't those correct, or does one need to calculate each bond like the example? The yields displayed are correct. Since there is no commission for Treasuries, you will see the same net yield displayed in the preview screen after yo...
by Kevin M
Fri May 25, 2018 9:16 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Thanks again Kevin. As the final chapter to this, what yield would I actually earn on this transaction? Using my numbers (even though it is now a hypothetical example), on 5/31/2019 I will have effectively received 3 coupon payments of $75 + $10K return of principal equals $10,225. I paid out $9995...
by Kevin M
Fri May 25, 2018 7:47 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

Wow, that would be a disaster if you attempted to "park" in that situation. Sure, but who would do that??? I've seen this a number of times, and I just chuckle. It does show that there is a certain context we have when driving that goes beyond the mere placement and current movement of vehicles. Th...
by Kevin M
Fri May 25, 2018 7:38 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Thanks again Kevin. As the final chapter to this, what yield would I actually earn on this transaction? Using my numbers (even though it is now a hypothetical example), on 5/31/2019 I will have effectively received 3 coupon payments of $75 + $10K return of principal equals $10,225. I paid out $9995...
by Kevin M
Fri May 25, 2018 7:33 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Thanks again Kevin. As the final chapter to this, what yield would I actually earn on this transaction? Using my numbers (even though it is now a hypothetical example), on 5/31/2019 I will have effectively received 3 coupon payments of $75 + $10K return of principal equals $10,225. I paid out $9995...
by Kevin M
Fri May 25, 2018 7:21 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Do you think this is a wise strategy? I think you are more willing to work for these deals than I am at this point. As I recall, you got in on the last 4% 5-year CD deal that came around, which required joining another credit union, doing an early withdrawal, and doing the IRA transfer. I was too l...
by Kevin M
Fri May 25, 2018 7:08 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

kevin, researching new issues at Vanguard and Schwab for the past 2 weeks. Did you get those at Fido or Vanguard? Which ones? What size were the "lots". (still trying to grasp that concept). thanks, jim With new issues there's really not much to research. Both Vanguard and Fidelity show the top rat...
by Kevin M
Fri May 25, 2018 9:29 am
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Great! Thanks for the details, Kevin! Perhaps with your permission I will copy this record and email it to them if they tell me the same thing again. (not mentioning you by name of course). First ask to talk to IRA specialist--maybe ask if the person I named still works there, and if you can talk t...
by Kevin M
Fri May 25, 2018 9:26 am
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

<snip> ... leavening the portfolio by purchasing 2 year notes, which, last I checked, were yielding 2.52%. Yes, 2-year Treasury about 2.48% today for large quantities, so a bit less for smaller quantities. But, 2-year CD is 2.80%, so more than 30 basis points higher. Big spike in the CD yield curve...
by Kevin M
Thu May 24, 2018 9:21 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

This is also the info I received! The only catch is that their disclosure agreement specifies that allowing premature withdrawals is at the bank's discretion. Yes, this is pretty standard language. Today there was not even a second of hesitation on the rep's part about doing an early withdrawal. Of...
by Kevin M
Thu May 24, 2018 9:17 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

I don't know how you managed to do a direct transfer into an IRA at Achieva if you did not have one before. I am now a member and I went online to see if I could open an IRA. There are no links to open any accounts that I could find on their website...no links to forms either. I logged in and only ...
by Kevin M
Thu May 24, 2018 7:42 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Happy to see that Achieva has already closed out my two CDs at 2.71% APY and opened the one at 4.2% APY. That was fast and easy.

Kevin
by Kevin M
Thu May 24, 2018 7:37 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

One catch is that they cannot open the certificate until the funds are available in your core account at Achieva, so you need to do a rollover into a non-IRA account at Achieva, and then move the money into the IRA certificate. I would double-check this. I know for a fact I did not do this, as I ha...
by Kevin M
Thu May 24, 2018 4:12 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Thanks very much Kevin. Just to finalize the details of this example…This bond has 1.5 coupon and matures on 5/31/2019. OK, I see this. I see price 99.230 for minimum quantity 25, so as of now, you can't get this price for 10. I enter a trial order for 25, and I see on the preview screen that accru...
by Kevin M
Thu May 24, 2018 3:51 pm
Forum: Investing - Theory, News & General
Topic: Help me understand zero coupon bonds
Replies: 11
Views: 758

Re: Help me understand zero coupon bonds

This is new territory for me. Fidelity is offering zero coupon treasuries maturing in 6 months at 2.09%. Looks like you are looking at the auction expected yield. This is not for sure what you'll get. The auction closes 5/29, so next Tuesday, so the yield will depend on the low-price (high-yield) b...
by Kevin M
Thu May 24, 2018 3:13 pm
Forum: Investing - Theory, News & General
Topic: Fact, Fiction, and the Size Effect
Replies: 78
Views: 5181

Re: Fact, Fiction, and the Size Effect

So, Robert T, are you making any changes to your investment policy based on this research, and why or why not?

Kevin
by Kevin M
Thu May 24, 2018 2:53 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

What are the membership requirements for Achieva if you don't live in Florida? It looks like there is still an easy membership option. Go to https://www.achievacu.com/Home/Membership/. Leave the county selection blank, and choose "No" for are you related to a current member (unless you are, then of...
by Kevin M
Thu May 24, 2018 2:46 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Some additional clarification might be useful to those unfamiliar with the way bond prices are quoted. Prices are quoted as a percentage of par value (par value = 100% of face value), but as mentioned already, one bond is face value of $1,000. So if you see a price quote of 99.5, it means that the b...
by Kevin M
Thu May 24, 2018 1:40 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

Finally, as already mentioned, you need to click the depth of book icon to find yields for the quantity you are interested in. So first pick maturity of interest, then click depth of book, then find highest yield with minimum quantity less than or equal to how many you want to buy. You can then cli...
by Kevin M
Thu May 24, 2018 1:36 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Achieva FCU in Florida is offering 5 year CD within an IRA at 4.2% APY with a minimum of $75k. Thank you Kevin. Detail provided greatly appreciated. You are very welcome, but I want to also thank you for bringing this to our (my) attention. This turned out to be an exceptional deal for me--better t...
by Kevin M
Thu May 24, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: US T bills - first time user
Replies: 90
Views: 5924

Re: US T bills - first time user

I'm a little confused about purchasing treasuries at Fidelity. Here's a listing of 1-year tbills: https://i.imgur.com/rYuyzJK.png Under Qty(min) column, the minimum quantity is listed in the hundreds (200 to 500). Since my understanding is that a quantity of 1 represents $1000, I'm hoping this does...
by Kevin M
Wed May 23, 2018 10:39 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Here are my rough calculations on the net yield this would be for me if I broke my 2.7% CD, assuming EWP of six months of interest = 1.35%. Net interest rate for first year is 4.2% - 1.35% = 2.85%, then for next four years I earn 4.2%. So for the 5-year period, net yield is: ( (1+2.85%) * (1+4.2%)^4...
by Kevin M
Wed May 23, 2018 9:44 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 206
Views: 28190

Re: 2-year CDs at Vanguard and Fidelity Today

I did some more work, trying to see if I could work out the yield to worst assuming different call dates, and using the spreadsheet XIRR function. I couldn't think of an easier way to do it, since the coupon rate changes. The closest I could come was an IRR of 3.03% if called on 5/20/2020, so a coup...
by Kevin M
Wed May 23, 2018 7:35 pm
Forum: Investing - Theory, News & General
Topic: 2-year CDs at Vanguard and Fidelity Today
Replies: 206
Views: 28190

Re: 2-year CDs at Vanguard and Fidelity Today

CUSIP 48125YZ98 Here's what I see when I search for this CUSIP at Vanguard. There are 10 available with minimum quantity 1. Coupon is 1.25%, and ask price is 96.857. Maturity date is 5/20/21, so basically a 3-year CD. Yield to maturity is 3.332% and yield to worst is 3.011%. The fact that YTW is lo...
by Kevin M
Wed May 23, 2018 6:43 pm
Forum: Personal Consumer Issues
Topic: Tesla Autopilot, worth it?
Replies: 56
Views: 3887

Re: Tesla Autopilot, worth it?

MotoTrojan wrote:
Wed May 23, 2018 10:57 am
Add it later on. It’ll extend that new car feeling. It’s just a software change.
A software change plus $1,000 more than if you get it when you buy.

Kevin
by Kevin M
Wed May 23, 2018 6:41 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Not wanting to hijack but I see you are active on this thread and you see seem to be the go to person on this topic Achieva FCU in Florida is offering 5 year CD within an IRA at 4.2% APY with a minimum of $75k. Becoming a member is reasonably easy and inexpensive. I do not know what the EWP is but ...
by Kevin M
Tue May 22, 2018 11:28 pm
Forum: Investing - Theory, News & General
Topic: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch
Replies: 43
Views: 5148

Re: 5 yr CD up to 3.41% APY, NO EWP for seniors in IRA, but with catch

Lower bid ask spreads only matter if you sell before maturity. Comparable or higher TEY in taxable is my bigger reason.

At any rate, staying short term is consistent with your outlook.