Search found 765 matches

by ruud
Fri Mar 10, 2023 10:24 am
Forum: Investing - Theory, News & General
Topic: Vanguard launches Short Term Tax Exempt Bond ETF (VTES)
Replies: 23
Views: 4201

Re: Vanguard launches Short Term Tax Exempt Bond ETF (VTES)

muffins14 wrote: Thu Mar 09, 2023 8:27 pm I’m ready for VTEL, (long). Why don’t they make that for me?
While we’re at it, I’d like a California specific ETF.
by ruud
Fri Mar 10, 2023 9:24 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Re: Market order for VTI not executed at Vanguard?

To close the loop here: now that the transaction has settled, the transaction history shows 3 items: the executed limit order, a reversal of that limit order, and a purchase at the original price (as if the market order had executed).

So I can buy that cup of coffee after all.

(This happened without any intervention on my side, I did not contact Vanguard)
by ruud
Thu Mar 09, 2023 10:47 am
Forum: Investing - Theory, News & General
Topic: Vanguard launches Short Term Tax Exempt Bond ETF (VTES)
Replies: 23
Views: 4201

Re: Vanguard launches Short Term Tax Exempt Bond ETF (VTES)

Possibly related to this announcement, it appears that Vanguard recently renamed the short-term tax-exempt mutual bond funds (VWSTX/VWSUX) to Ultra-Short:
Effective on or about February 28, 2023, the fund name will change from the Vanguard Short-Term Tax-Exempt Fund to the Vanguard Ultra-Short-Term Tax-Exempt Fund. The Fund's investment objective, strategies, and policies will remain unchanged.
Link: https://investor.vanguard.com/investmen ... file/vwstx
by ruud
Thu Mar 09, 2023 10:02 am
Forum: Investing - Theory, News & General
Topic: Vanguard launches Short Term Tax Exempt Bond ETF (VTES)
Replies: 23
Views: 4201

Vanguard launches Short Term Tax Exempt Bond ETF (VTES)

Link: https://investor.vanguard.com/investor- ... y-launched
We've launched a new fund to expand our tax-exempt bond ETF (exchange-traded fund) lineup. Vanguard Short-Term Tax-Exempt Bond ETF (VTES) is built to help you earn consistent, tax-exempt income. VTES may be suitable for tax-sensitive investors with a short-term time horizon and low interest rate risk tolerance.
Looks like it competes with iShares SUB (both have an expense ratio of 0.07%).
by ruud
Tue Mar 07, 2023 11:23 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Re: Market order for VTI not executed at Vanguard?

muffins14 wrote: Tue Mar 07, 2023 11:04 am
ruud wrote: Tue Mar 07, 2023 9:23 am I placed a market order to buy a handful shares of VTI in our Vanguard Brokerage account (with sufficient available balance in the settlement fund to cover the trade). Normally these execute immediately, but this time it… didn’t :confused The order just shows as “open” with no executed pice, as if it were a limit order whose price wasn’t reached yet.

Did anyone else experience this? Should I cancel and re-submit, or just wait?
did you place a market order before the market was open?
No, I placed the order around 10:15 EST.
by ruud
Tue Mar 07, 2023 10:33 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Re: Market order for VTI not executed at Vanguard?

Wiggums wrote: Tue Mar 07, 2023 10:20 am
ruud wrote: Tue Mar 07, 2023 9:52 am It still didn’t execute.

I ended up canceling, and submitting a limit order instead, which executed immediately. Of course, in the mean time, the price of VTI had gone up :oops:
Don’t worry about short term price fluctuations
I don't, in the grand scheme of things it's less than the price of a cup of coffee, just thought it was ironic.
by ruud
Tue Mar 07, 2023 10:33 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Re: Market order for VTI not executed at Vanguard?

samsoes wrote: Tue Mar 07, 2023 9:55 am The price went up? VTI is down almost a percent.
It went up a little bit between when I placed the first order (that didn't execute) and the second order (that did). After that the price went down again. I don't really care about it, in the grand scheme of things it's less than the price of a cup of coffee, just thought it was ironic.
by ruud
Tue Mar 07, 2023 9:52 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Re: Market order for VTI not executed at Vanguard?

It still didn’t execute.

I ended up canceling, and submitting a limit order instead, which executed immediately. Of course, in the mean time, the price of VTI had gone up :oops:
by ruud
Tue Mar 07, 2023 9:23 am
Forum: Personal Investments
Topic: Market order for VTI not executed at Vanguard?
Replies: 27
Views: 2731

Market order for VTI not executed at Vanguard?

I placed a market order to buy a handful shares of VTI in our Vanguard Brokerage account (with sufficient available balance in the settlement fund to cover the trade). Normally these execute immediately, but this time it… didn’t :confused The order just shows as “open” with no executed pice, as if it were a limit order whose price wasn’t reached yet.

Did anyone else experience this? Should I cancel and re-submit, or just wait?
by ruud
Sun Dec 18, 2022 5:21 pm
Forum: Personal Investments
Topic: Wash Sale with T-Bills purchase possible?
Replies: 6
Views: 894

Re: Wash Sale with T-Bills purchase possible?

I’m not a tax expert, but I would assume that unless you buy the exact composition of VFISX, it wouldn’t be a wash sale. The term used in the tax code is “substantially identical”, after all. Also, while VFISX is a short-term fund, it’s actively managed, invests a small percent of its holdings in non-treasuries, and has plenty of treasuries longer than one year (a “t-bill” has a maturity of at most one year). So all in all, I would not expect buying a t-bill to be substantial identical to VFISX.
by ruud
Thu Dec 08, 2022 8:07 pm
Forum: Personal Investments
Topic: What is the best way for me to invest in TIPS.
Replies: 18
Views: 1942

Re: What is the best way for me to invest in TIPS.

nisiprius wrote: Thu Dec 08, 2022 7:48 pm For another suggestion, if you were in Vanguard's target date funds, you would presumably have been in Target Retirement 2015, and merged into Target Retirement Income, and Vanguard would have put about 37% of your fixed income into the short-term TIPS fund.
Minor correction: in the Target Retirement Income fund, about 24% of fixed income is in TIPS (16.8 out of 70). (source)
by ruud
Thu Nov 24, 2022 9:48 pm
Forum: Personal Finance (Not Investing)
Topic: Sell then rebuy VTI same day for TGH purpose
Replies: 15
Views: 2716

Re: Sell then rebuy VTI same day for TGH purpose

Brianjp18 wrote: Thu Nov 24, 2022 8:56 pm So once I sell my shares of the ETF, granted to sell goes through, will those funds be immediately available to trade (rebuy the same etf)? Is there a settlement period for the sell of the etf that I would have to be mindful of so vanguard doesn’t try to complete my buy order prior to funds being available. I would be using the proceeds of the sell for the buy.
It's my understanding that you can buy ETFs with unsettled funds as long as you don't sell those newly bought shares before the original sell order settles. (I don't know if buying the exact same ticker makes a difference, but I assume it doesn't)
by ruud
Wed Nov 23, 2022 2:31 pm
Forum: Personal Investments
Topic: More TIPS Questions
Replies: 16
Views: 1209

Re: More TIPS Questions

Prudence wrote: Wed Nov 23, 2022 2:02 pm I am just trying to understand the mechanics of this nutty TIPS product. Suppose I had a 2045 TIPS and I decide to sell it in 2028 to satisfy an RMD?
If the YTM drops, the price rises.
So you buy $10,000 worth of TIPS today.
In 2028, let’s say the YTM dropped and buying the same TIPS would cost $15,000.
But… the TIPS in your IRA is also worth $15,000 now.

You sell it for $15,000 in the IRA; withdraw $15,000 from the IRA; and buy the same TIPS for $15,000 in taxable.
(As Kevin M pointed out, you’ll lose a bit on the bid/ask spread)
by ruud
Wed Nov 23, 2022 12:13 pm
Forum: Personal Investments
Topic: More TIPS Questions
Replies: 16
Views: 1209

Re: More TIPS Questions

Prudence wrote: Wed Nov 23, 2022 12:00 pm Suppose my TIPS matures in 2030. May I do an in-kind transfer to taxable for an RMD in, say 2028, so I can keep the TIPS and the YTM until maturity?
Even if you can't do an in-kind transfer, you could just sell in the IRA and buy the same bond in the taxable account. Whatever the effect of interest rates would be, it would affect both transactions the same.
by ruud
Tue Nov 22, 2022 5:12 pm
Forum: Investing - Theory, News & General
Topic: VTI, S&P500 still so top heavy
Replies: 124
Views: 10751

Re: VTI, S&P500 still so top heavy

the_wiki wrote: Tue Nov 22, 2022 4:25 pm I guess I was asking how do we rationalize VTI as our core holding when it is so top heavy?
What alternative do you propose?

And can this alternative be implemented at a 0.03% expense ratio with > $1 trillion AUM?
by ruud
Tue Nov 15, 2022 9:15 pm
Forum: Investing - Theory, News & General
Topic: Taxation of Treasury bills, notes and bonds
Replies: 1027
Views: 149378

Re: Taxation of Treasury bills, notes and bonds

Kevin M wrote: Tue Nov 15, 2022 7:26 pm Treasury bills are the easiest to understand. Say you pay $990 for $1,000 of face value (this is the minimum at a broker). At maturity you'll receive $10,000; $10 of this will be reported as interest in box 3 of 1099-INT for the year of maturity. IRS publications refer to this $10 as accrued acquisition discount.
I assume you meant $1,000 instead of $10,000 there.

How does this work for Treasury Bills bought late in the year that mature the subsequent year? What year(s) is the interest taxable in?
by ruud
Wed Nov 09, 2022 9:25 am
Forum: Investing - Theory, News & General
Topic: First 20% of bonds in long-term Treasuries
Replies: 2259
Views: 266936

Re: First 20% of bonds in long-term Treasuries

Long bonds are down -33% YTD.How can you say they are "risk free"? I would not characterize an asset that can drop that much in less than a year as being "risk free". I offer you a deal where you give me $1000 and in 30 years I’ll pay you back double that: $2000. Assuming I’ll still be around and I’ll have the money, that’s a risk-free deal. You know exactly what you are going to get in 30 years. Tomorrow my neighbor comes around and offers you a deal where in 30 years he’ll triple the money instead of just doubling it. But you’ve already given me your $1000. You’re still going to get the $2000 in 30 years. In one sense there’s no risk: you know exactly what you’re going to get. In another sense, you feel cheated becaus...
by ruud
Tue Nov 08, 2022 3:10 pm
Forum: Personal Investments
Topic: Exchange Vanguard Index Mutual Funds for ETF'S
Replies: 17
Views: 1571

Re: Exchange Vanguard Index Mutual Funds for ETF'S

Weathering wrote: Tue Nov 08, 2022 3:02 pm Is it correct that converting from mutual fund shares to ETF shares occurs at the NAV for each? (not at the trading value of the ETF)
Yes.
by ruud
Sun Nov 06, 2022 9:41 am
Forum: Personal Investments
Topic: Tax Loss Harvesting-- CA Muni Bond Fund/ETF
Replies: 4
Views: 540

Re: Tax Loss Harvesting-- CA Muni Bond Fund/ETF

My suggestion would be a blend of 75-80% VCLAX (California Long-Term Tax-Exempt) and 20-25% VCTXX (California Tax-Exempt Money Market). Overall volatility and performance should be comparable to VCADX. Then after 31 days, exchange back to VCADX.
by ruud
Sat Nov 05, 2022 3:13 pm
Forum: Personal Investments
Topic: Whats the most conservative ETF for a taxable account?
Replies: 33
Views: 2944

Re: Whats the most conservative ETF for a taxable account?

Booogle wrote: Sat Nov 05, 2022 2:58 pm Thanks all.

I'm going with this:

https://www.schwabassetmanagement.com/products/snsxx
That’s not an ETF though.
by ruud
Mon Oct 31, 2022 3:16 pm
Forum: Personal Investments
Topic: Why has vanguard vtblx sec yield increases so much
Replies: 7
Views: 1246

Re: Why has vanguard vtblx sec yield increases so much

metalworking wrote: Mon Oct 31, 2022 2:49 pm Again thanks. The math helps a lot. Now if you can explain why the dividend per share was lower in September than it was in august I could clear up another mystery :happy
Isn't this explained by the number of days in the month?
by ruud
Sat Oct 29, 2022 9:31 pm
Forum: Personal Investments
Topic: breakdown of VTI into VTV, VUG, etc
Replies: 2
Views: 1273

Re: breakdown of VTI into VTV, VUG, etc

The CRSP indexes used by Vanguard split up sizes as follows:
  • mega cap is top 70% of market capitalization
  • mid cap is the next 15%
  • small cap is the bottom 15%
  • large cap = mega + mid = top 85%
So, among the funds you listed, VUG and VTV are both large cap. To approximate VTI, you’d use 42.5% VUG, 42.5% VTV, 15% VB (or 7.5% each of VBR/VBK). No need for VO (mid-cap) as it is covered by the large cap funds already.
by ruud
Fri Oct 28, 2022 8:45 pm
Forum: Personal Investments
Topic: VTSAX/VTI mutual fund to ETF conversion
Replies: 6
Views: 869

Re: VTSAX/VTI mutual fund to ETF conversion

Outafter20 wrote: Fri Oct 28, 2022 7:17 pm Glad to hear the cost basis was converted correctly. After your VSIGX was converted, it just showed the one combined position of VGIT?
Yes, it showed as one line item in “balances and holdings” but the cost basis still tracked the lots that were purchased as VSIGX and as VGIT as separate lots.
by ruud
Fri Oct 28, 2022 7:14 pm
Forum: Personal Investments
Topic: VTSAX/VTI mutual fund to ETF conversion
Replies: 6
Views: 869

Re: VTSAX/VTI mutual fund to ETF conversion

Outafter20 wrote: Fri Oct 28, 2022 7:02 pm Did anyone ever have both share classes of the same fund in their account at the same time?
Yes, we had VSIGX (Intermediate Term Treasury Index) converted to VGIT (Intermediate Term Treasury ETF) while already holding some VGIT.
Also, as an aside, did anyone have any cost basis issues once the conversion was completed?
For us, the cost basis was converted correctly, lot-for-lot.
by ruud
Sun Oct 23, 2022 5:05 pm
Forum: Personal Investments
Topic: Vanguard Brokerage: Proper procedure for same-day ETF buy?
Replies: 8
Views: 939

Re: Vanguard Brokerage: Proper procedure for same-day ETF buy?

I can buy ETFs immediately after transferring money to my settlement account. Just did last week for a five-figure amount.

(I don't know if they allow this for brand new accounts, though)
by ruud
Sun Oct 16, 2022 6:13 pm
Forum: Personal Finance (Not Investing)
Topic: Issue with Backdoor-roth contribution of $6000 for prior-year in tax-form 1099-R/8606 getting taxed twice?
Replies: 18
Views: 1177

Re: Issue with Backdoor-roth contribution of $6000 for prior-year in tax-form 1099-R/8606 getting taxed twice?

Contributions can be made for a prior tax year but conversions are always taxed in the year in which they are performed.

So the sequence of events should have been, assuming I understand you correctly:
* Tax year 2020: report $6000 non-deductible contribution on Form 8606, establishing a $6000 basis
* Tax year 2021: report an additional $6000 non-deductible contribution, along with a $12000 conversion.
Since the basis from 2020 is carried over, there is no double taxation.
by ruud
Fri Oct 14, 2022 3:16 pm
Forum: Personal Investments
Topic: Finding EFT equivalents for Vanguard Funds
Replies: 15
Views: 1475

Re: Finding EFT equivalents for Vanguard Funds

Jimmbo wrote: Fri Oct 14, 2022 1:00 pm •••••CONVERTIBLE TO ETF

VBIRX (VANGUARD SHORT TERM BOND INDEX ADMIRAL CL)
ETF = BSV
While VBIRX and BSV are share classes of the same fund, you cannot convert VBIRX to BSV due to a difference in the way dividends are accrued. (The same goes for VBILX/BIV, VBLAX/BLV and VBTLX/BND. Other bond funds with an ETF share class can be converted, however)
by ruud
Fri Oct 14, 2022 1:47 pm
Forum: Investing - Theory, News & General
Topic: TIPS maturity- undershoot or overshoot?
Replies: 4
Views: 516

Re: TIPS maturity- undershoot or overshoot?

There are (currently) no TIPS maturing in 2033-2039.
by ruud
Fri Oct 14, 2022 9:54 am
Forum: Investing - Theory, News & General
Topic: VFIAX v VOO
Replies: 13
Views: 2837

Re: VFIAX v VOO

I would be very careful about holding mutual funds in taxable accounts. It is possible to incur a large capital gains tax liability from ownership in a mutual fund, even without personally having made a gain in that fund. Although it is true that VFIAX historically does minimal selling and historically has been able to offset any gains on such (minimal) sales through sophisticated tax maneuvers, VFIAX may not be able to negate all pass-through tax liabilities in case a lot of its fundholders decide to sell without there being offsetting purchases. In case enough shareholders want to sell their holdings, VFIAX may have to sell long-held individual stocks at a gain and pass the tax bill for those gains on to all of its fundholders, including...
by ruud
Fri Oct 07, 2022 2:59 pm
Forum: Investing - Theory, News & General
Topic: 2 Questions on Bonds
Replies: 44
Views: 4368

Re: 2 Questions on Bonds

Novice2020 wrote: Fri Oct 07, 2022 10:29 am Practically speaking, what does it mean that they pay a fixed coupon? You get 4.3% return on the principal at the end of the 2-year period?
You receive a fixed coupon payment every 6 months.
by ruud
Fri Oct 07, 2022 9:36 am
Forum: Investing - Theory, News & General
Topic: 2 Questions on Bonds
Replies: 44
Views: 4368

Re: 2 Questions on Bonds

Novice2020 wrote: Tue Oct 04, 2022 6:24 pm 1.) Are federal taxes actually withheld from the amount you get? Or do you just get a 1099 form after the fact?
No. Yes (from your broker).
2.) The interest pays every 6 months, correct? Does it compound such that it's a 4.3% annual return, with the interest compounding every 6 months and the principal getting higher every 6 months and building on itself?
No, Treasuries pay a fixed coupon. If you want to compound the interest you’d have to reinvest the coupon payments.
by ruud
Sun Oct 02, 2022 9:22 pm
Forum: Personal Investments
Topic: Vanguard Target Retirement 2020 Down [almost 20%]
Replies: 14
Views: 2294

Re: Vanguard Target Retirement 2020 Down 30%

Also, if you’re just comparing share prices: keep in mind that those don’t include reinvested dividend and capital gains distributions.
by ruud
Sun Oct 02, 2022 2:10 pm
Forum: Personal Finance (Not Investing)
Topic: reinvest RSU dividends or not?
Replies: 7
Views: 718

Re: reinvest RSU dividends or not?

calimero wrote: Sun Oct 02, 2022 2:01 pm
Is there any tax difference (deferred)?
Dividends are taxed regardless of whether you take them as cash or reinvest. From a tax perspective, reinvesting a $x dividend is exactly the same as taking a $x dividend as cash and separately buying $x of stock.
by ruud
Sun Oct 02, 2022 2:08 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455421

Re: Trading Treasuries (nominal and TIPS)

prettybogle wrote: Sun Oct 02, 2022 2:01 pm I am looking at treasury bill quotes in vanguard- i am trying to understand difference between 0% coupon and x% coupon on the same maturity dates. For example, I see options below for maturity date of 5/15/2024:

First option
Price $97
Yield 4.4%
Coupon $2.5

Second option
Price $93.4
Yield 4.2%
Coupon $0

As Both have almost same yield, second option seems like a no brainer. What does x% coupon mean ?
Treasury Bills don’t have coupons. You might be looking at a Treasury Note or Bond that’s maturing soon.
Why are you preferring the one with lower yield? Why do you think that’s a “no brainer”?
by ruud
Sun Oct 02, 2022 2:00 pm
Forum: Personal Finance (Not Investing)
Topic: reinvest RSU dividends or not?
Replies: 7
Views: 718

Re: reinvest RSU dividends or not?

Whenever you get a cash bonus, do you normally invest it in your employer’s stock?
by ruud
Sun Oct 02, 2022 12:00 pm
Forum: Investing - Theory, News & General
Topic: What are the downsides/risks of "target maturity" bond ETFs?
Replies: 4
Views: 600

Re: What are the downsides/risks of "target maturity" bond ETFs?

billfromct wrote: Sun Oct 02, 2022 11:46 am What’s BSV?
Vanguard Short-Term Bond Index ETF.
by ruud
Sun Oct 02, 2022 10:57 am
Forum: Personal Investments
Topic: TLH Partner for IT and Limited Term Tax-Exempt (VWIUX & VMLUX)
Replies: 3
Views: 466

Re: TLH Partner for IT and LT Tax-Exempt (VWIUX & VMLUX)

You’re using LT both to refer to Limited Term and Long Term in your post, which is a bit confusing.

Anyway, you don’t need to find an exact partner for each fund in isolation. Rather, if you currently have a mix of intermediate (VWIUX) and limited-term (VMLUX), you could construct a mix of (e.g.) long term (VWLUX) and short term (VWSUX) that have similar characteristics.

For example, these both portfolios behave very similar:
  • 75% VWIUX / 25% VMLUX
  • 65% VWLUX / 35% VWSUX
PV link

Another fund you might consider is VTEAX (Tax-Exempt Index) although that one does not declare dividends daily, which will make it a bit more of a hassle if you want to TLH out of it in the future.
by ruud
Sat Oct 01, 2022 7:43 pm
Forum: Investing - Theory, News & General
Topic: Trading Treasuries (nominal and TIPS)
Replies: 4107
Views: 455421

Re: Trading Treasuries (nominal and TIPS)

Hi. Bought my first Treasury note on the secondary market for my IRA. Matures 6/15/25. Just got the Vanguard statement and it shows accrued interest of almost $400. In a personal account I know I would get a 1099 and deduct that accrued interest on my tax return. Within an IRA, what happens with the accrued interest when it matures? Quantity bought :$47,000, Price: $96.06250, Accrued Interest :$383.96, Principal:$45,149.38, Net Amount: $45,533.34. CUSIP: 91282C-EU-1.Please explain. Thanks Short answer: nothing happens in an IRA. Longer answer: in December you will receive interest for six months. But you’ve only owned the bond for about three months by then. So you get to deduct the accrued interest for the period you didn’t own the bond. ...
by ruud
Fri Sep 30, 2022 10:55 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611498

Re: If long TIPS hit a real yield above 2.0% I will…

Nate79 wrote: Fri Sep 30, 2022 9:37 pm Is it possible to buy TIPs that mature in 1 year or less, perhaps on the secondary market?
Yes.
by ruud
Fri Sep 30, 2022 8:18 pm
Forum: Investing - Theory, News & General
Topic: Now that long TIPS yields are 60 bp off their highs I will…
Replies: 2937
Views: 611498

Re: If long TIPS hit a real yield above 2.0% I will…

So, if I buy the individual TIPS now and "lock in" a positive real yield of, say, 1.5%, and actual (not expected or estimated) inflation were 2% for the duration of my holding period, does that mean I would be paid a constant 3.5% over the term? No, you would not get a 3.5% coupon payment each year. Instead, the principal value would be adjusted by 2% each year, and your coupon would be 1.5% of that adjusted principal. And at maturity, you get the adjusted principal back. Here is a highly simplified example of how that would play out for a 10 year TIPS with 1.5% coupon at 2% inflation: 0 -10,000.00 1 153.00 2 156.06 3 159.18 4 162.36 5 165.61 6 168.92 7 172.30 8 175.75 9 179.26 10 12,372.79 (The final payment is 12,189.94 princip...
by ruud
Fri Sep 30, 2022 4:39 pm
Forum: Investing - Theory, News & General
Topic: investor.vanguard.com using LetsEncrypt certificates instead of Comodo
Replies: 27
Views: 2112

Re: investor.vanguard.com using LetsEncrypt certificates instead of Comodo

exodusNH wrote: Fri Sep 30, 2022 3:50 pm Let's Encrypt is fine, though the 90 day expiration is annoying to monitor. (I don't think that adds much security.)
... but it more-or-less forces the use of automation to renew, making it less likely that the certificate expires (see TreasuryDirect a few weeks ago).
by ruud
Thu Sep 29, 2022 3:30 pm
Forum: Investing - Theory, News & General
Topic: Vanguard settlement fund (VMFXX) vs 1 to 3 month treasuries
Replies: 22
Views: 5293

Re: Vanguard settlement fund (VMFXX) vs 1 to 3 month treasuries

67Bosox wrote: Thu Sep 29, 2022 3:13 pm Is there any way to estimate for how long the 7-day yield may last, or may decline, or may increase, etc?
Based on the current rising rate environment, is it "fairly likely" to remain at 2.75 or higher, for some time?
The money market fund yields tend to track the Fed interest rate. See https://www.cmegroup.com/trading/intere ... -fomc.html for a prediction of future Fed rates.
by ruud
Thu Sep 29, 2022 2:07 pm
Forum: Investing - Theory, News & General
Topic: Vanguard settlement fund (VMFXX) vs 1 to 3 month treasuries
Replies: 22
Views: 5293

Re: Vanguard settlement fund (VMFXX) vs 1 to 3 month treasuries

67Bosox wrote: Thu Sep 29, 2022 2:07 pm Is the cash in my settlement fund really earning 2.75%, as of today?
Yes.
by ruud
Thu Sep 29, 2022 1:45 pm
Forum: Personal Investments
Topic: 2043-47 TIPS paying 1.6%
Replies: 72
Views: 8340

Re: 2043-47 TIPS paying 1.6%

FCM wrote: Thu Sep 29, 2022 10:34 am One thing to keep in mind when considering individual long-term TIPS is that if you are buying them in an IRA and are facing substantial RMDs because you're 75+ in age, make sure you aren't forced to sell them before maturity.
If you’re worried about being forced to sell at a discount in your IRA, you can buy them at a discount in your taxable account, so I’m not sure whether that’s really a risk.
by ruud
Wed Sep 28, 2022 9:34 am
Forum: Investing - Theory, News & General
Topic: 2 Questions on Bonds
Replies: 44
Views: 4368

Re: 2 Questions on Bonds

NewbieBogle007 wrote: Wed Sep 28, 2022 9:25 am I don't understand this. Why would it be risky to spend after it matures?
Because you don’t know what interest rates will do in the future.

If you want to spend the money in 3 years, you’ll need to re-invest it for a year after your 2-year treasury matures. Maybe by then the interest rate has plummeted and so you get a lousy return for that last year.
by ruud
Fri Sep 23, 2022 10:08 pm
Forum: Personal Investments
Topic: What duration of treasuries for "Cash" needs?
Replies: 21
Views: 2640

Re: What duration of treasuries for "Cash" needs?

asdfqwerty wrote: Fri Sep 23, 2022 8:30 pm For the 26 week T bill, if interest rates go up 1% the price should only go down about 0.5% if I needed to sell early, correct?
Only if the rates go up immediately after you buy it. The closer to maturity you get, the smaller the price change.
by ruud
Thu Sep 22, 2022 9:26 am
Forum: Personal Consumer Issues
Topic: Vanguard website succumbs to "Fisher-Price" UI design
Replies: 843
Views: 112313

Re: Vanguard website succumbs to "Fisher-Price" UI design

lostdog wrote: Thu Sep 22, 2022 9:17 am It says "available to withdrawal".

I was able to do this on the mobile app but not the website unless it's in a spot I cannot find.
Transfer Money -> Send Me Money -> “where’s the money coming from?” enter the amount “available to withdraw” next to VMFXX -> “where’s the money going?” select your back account.

Although I didn’t complete the transaction, I was able to put the entire “amount available to withdraw” in the text box and continue to the confirmation screen, even though that amount is more than the settled balance in VMFXX.
by ruud
Sun Sep 18, 2022 5:33 pm
Forum: Personal Investments
Topic: To international stock or not to international stock
Replies: 154
Views: 15815

Re: To international stock or not to international stock

The total California stock market index is good enough for me. I have no need for all those out-of-state companies. Californian companies have outperformed, and a lot of non-California revenue is made by Californian companies, so I have some exposure to the non-California market anyway.

/s
by ruud
Sat Sep 17, 2022 5:34 pm
Forum: Investing - Theory, News & General
Topic: Why is 60/40 supposed to be the best for retirement?
Replies: 168
Views: 18514

Re: Why is 60/40 supposed to be the best for retirement?

JoeRetire wrote: Sat Sep 17, 2022 5:28 pm
ruud wrote: Sat Sep 17, 2022 4:48 pm
JoeRetire wrote: Sat Sep 17, 2022 3:52 pm Let's say my portfolio is 40x my expenses.
And let's say I keep 3 years of expenses in fixed income assets.
JoeRetire wrote: Sat Sep 17, 2022 4:36 pm My current AA is about 65:35.
Aren’t those 3 statements in contradiction with each other?

I must be missing something? :confused
From two different posts.

The first two are hypothetical, in order to propose a scenario that would help me understand the math behind this equation. (I wrote "Let's say...")

The second is actual. (I wrote "My current AA...")
Thanks for explaining what I was, in fact, missing!
by ruud
Sat Sep 17, 2022 5:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard paper on short-term TIPS
Replies: 19
Views: 2804

Re: Vanguard paper on short-term TIPS

I found the paper I was thinking of! It is called “The long and short of TIPS”.

Here is the previous forum discussion about it: viewtopic.php?f=10&t=109591

The link in that post is broken, but the PDF appears to still be on Vanguard’s Canada site: https://www.vanguard.ca/documents/tips.pdf