Bogleheads.org

I was holding VUSXX on Etrade and I swapped it to GABXX, which potentially has no repos. It also has a very slightly lower ER.

I also bought the Discover non-callable 5% 5-yr CD this morning. It was available on-and-off from Fidelity.

retiringwhen wrote: ↑Mon Mar 13, 2023 8:06 pm

indexfundfan wrote: ↑Mon Mar 13, 2023 7:54 pm Another correction: the ER of UTIXX is 0.2% (Summary prospectus 6/30/2022).

The two funds (GABXX and VUSXX) with the lowest expense ratios (0.08% & 0.09%) are neck-to-neck in their yields, and performance.

Fixed in the live copy. ER matters, probably most.

Agreed. That's why I went to verify the ER for UTIXX.

Another correction: the ER of UTIXX is 0.2% (Summary prospectus 6/30/2022).

The two funds (GABXX and VUSXX) with the lowest expense ratios (0.08% & 0.09%) are neck-to-neck in their yields, and performance.

anon_investor wrote: ↑Fri Feb 03, 2023 3:13 pm

Carno wrote: ↑Fri Feb 03, 2023 2:56 pm

PSM wrote: ↑Fri Feb 03, 2023 2:35 pm 7. ME has a much more extensive selection of money market mutual funds with institutional share classes for only a minimum of $1000.

What Money Market mutual funds do you recommend at ME?

I like TTTXX. It is a Blackrock treasury money market fund (last year it was over 96% exempt from state/local income tax), NTF, only $1k minimum initial investment, $1 minimum purchase thereafter. It has a 1:45pm cut off time which is better than many of the other money market fund options.

ME NTF MMF options:
https://olui2.fs.ml.com/publish/content ... esheet.pdf

ME NTF MMF trade cutoff times:
https://olui2.fs.ml.com/Mutualfunds/MFB ... ement.aspx

Very useful links, especially the second one. Thank you.

retiringwhen wrote: ↑Mon Mar 13, 2023 1:08 pm You are right. Actually it shows 4.49% for yesterday. I will update in my worksheet.

Fidelity shows the 7-day yields for FSIXX as follows
3/10 4.47%
3/11 4.48%
3/12 4.49%

For comparison with the other funds with yields dated 3/10, the 4.47% number seems more appropriate.

Here are the after tax rates for the Treasury MM funds mentioned above. the Fidelity FSIXX is the clear winner if you have access. The Gabelli fund is an oddball with high duration/life vs. the rest, but is also very good rates though. Otherwise Vanguard is still very good after tax rates even at the very highest state tax rates. It only gets more attractive as rate drop. Ironically, most folks in the 10+% state tax rate are better off with Munis. https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEgXpwPgtVqbIvwvLmLjOoRjN2-vWjc5FfILBmL5gLIEYZc8OkD3Nj5cJUCy0sdQkzalJ4mVLqfShKzx5P69bVSShIQaoGvgkFGQSAEsmoLYM0Rq6DD73LuCAQ0iz1pBrEOgnZfXgL1IsahekSBd-AF_VxR63FtqjKoJbA8PSUckCrhpNi0xvGOHcDs/s1014/Screenshot%202023-03-13%2013.13.13.png Thanks ...

GABXX might be a possibility. It's available at Etrade with a minimum of $10k purchase. It's ER is 1 basis point lower than VUSXX and it seems to be holding treasuries only. Nice yield, excellent ER. I can't find any documentation of their actual holding after 12/31/2022. If compared to to VUSXX, they are the same on the same date. Also, anyone know where to find their report on % USGO for tax year 2022? Note, this funds' prospectus is explicit that they will invest in Repos. I am applying the same rules to all the funds. I need the following information: - current SEC Yield (last 7 days) - holdings as of the end of the most recent month. This fund only reports 12/31/2022 and not JAN or FEB yet. - Reported USGO % for last tax year (2022). ...

Why do so many people believe that VUSXX won't meet the CA/NY/CT 50% requirement? They are not even close to failing it for the first two months this year! Even if VUSXX is only 75% Treasuries, after-tax it still beats the pants off just about every other Treasury fund out there due to its low ER. Besides, few if any of those funds are 100% every year. Last year many funds found themselves down to 95% including Fidelity. It seems to me that Vanguard has been getting low risk extra yield in excess of the higher tax costs. Seems pretty goldilocks to me (in a good way!) I would rather be in rather short in my duration right now for ready "cash". In a high tax state, VUSXX may not beat out some other treasury only money market funds ...

Droptoptop wrote: ↑Sat Mar 11, 2023 7:24 pm You guys think it makes sense to move from a prime fund with commercial paper to FDLXX until this bank run risk resolves?

Calculate the TEY for FDLXX vs FZDXX. If you have state income taxes, you may find that the TEY is actually higher with FDLXX. It is almost effortless to switch by just doing an exchange.

engineerbme wrote: ↑Fri Mar 10, 2023 11:32 am

anon_investor wrote: ↑Wed Mar 08, 2023 12:53 pm For folks with states/local income tax(es), after factoring in taxes, FDLXX currently may actually yield a little more than FZDXX. FDLXX is a retail treasury only money market fund so it is not subject to liqudity gates, so in theory it is a little safter than FZDXX.

um you still have to pay some taxes on FDLXX; even if it's like ~6% it's not 100% state tax free just FYI everyone: https://www.fidelity.com/bin-public/060 ... Letter.pdf

Yes, around 94% state-tax exempted last year. The figure was 96% in 2021.

Investors cannot redeem MYGAs without huge penalties. So I would say selling pressures, if any, would be small.

After computing the latest TEYs, I just submitted an exchange of FZDXX to FDLXX (Treasury Only MMF). It's an easy move for me since FDLXX has a slightly higher TEY and unlike FZDXX, FDLXX does not hold any commercial paper and should not be directly impacted by any effect (if any) of the SVB debacle.

I have bought online from Home Depot. It does classify as online shopping, even if you elect to pick the item up from the store.

Canvas also only use paper checks sent through the mail. This might change in the future.

Indianrock wrote: ↑Tue Mar 07, 2023 12:49 pm

BarbK wrote: ↑Tue Mar 07, 2023 11:48 am For sure, plus the penalty is tax deductible.

Here is a link for you to test for yourself:https://www.depositaccounts.com/tools/b ... lator.aspx

Unfortunately we don't itemize our taxes so I probably wouldn't be able to deduct the early withdrawal penalty

You don't need to itemize. It is offset against any of your other interest received.

GibsonL6s wrote: ↑Tue Mar 07, 2023 9:35 am

My plan now is to close out almost all the MYGAs as they mature and I intend to just keep the MYGAs from one carrier (Gainbridge).

How did your state guaranty association's coverage figure into this. I would think spreading the risk around is important for annuity owners.

Yes it does figure in. I spread the funds (taking into account the future growth) and that's why I ended up with so many carriers.

I have a 2yr, IRA MYGA with BluePrint/Oceanview which has a rate guarantee period (1.75%) ending 3/31/23. My preference is to cash-out via a 1035 transfer back to my Fidelity IRA. I completed all the paperwork for Fidelity and received confirmation from them it was sent to Oceanview on 2/23/23. As of today (3/6) Oceanview still shows nothing. Fidelity again confirmed everything looks in order on their end and suggested I give it until Thu 3/9 and if Oceanview still has nothing we'll resubmit an expedited request. Does anyone have any experiences to share on timing for this kind of thing? I'm guessing the fact that it's in an IRA adds some complexity/time? I went thru a worst-case, what-if scenario if for some bizarre reason I can't cash-ou...

This is not a 1035 exchange since it is using qualified funds. I think what you need to do is to contact Oceanview and ask them what is the process to redeem the proceeds on maturity and have the funds moved to Fidelity. Follow up with Oceanview until you get confirmation that they have received the request in proper form.

It has been reported upthread that Oceanview is offering renewal rates that are lower than new policy rates. Ask HueyLD about it.

RIMDBogle wrote: ↑Sun Mar 05, 2023 6:02 pm Thanks for weighing in.

Are they allowing to have SWVXX default cash position or we need to execute a trade?

Part of Schwab's profit strategy is to have your default cash position in low yielding options so they can make money off you. This is by design.

If you want to have a higher interest rate, you will have to execute a trade.

HueyLD wrote: ↑Fri Mar 03, 2023 8:15 amIn addition, interest rate adjustments will be made if the insolvent insurer’s interest rate is in excess of reasonable market rates provided for in the California Life and Heslth Insurance Guarantee Association.

That's an interesting statement from Califega. Canvas' rates are (currently) the highest in the industry as far as I know.

If I remember correctly, California's insurance guaranty association only covers up to 80% of the policy value. And MYGAs issued by Canvas are rated B++. So take these into consideration when buying as a California resident.

Tom_T wrote: ↑Sat Feb 25, 2023 10:36 am

indexfundfan wrote: ↑Sat Feb 25, 2023 9:46 am I guess OP does not want the money to sit temporarily between investments in the sweep MMF which is subjected to state taxes. But as far as I know, this won't happen with Fidelity's autoroll.

Doesn't it have to? When the bill matures, the money has to sit somewhere, no matter how temporary. If it's in and out settlement in one night, then maybe you won't earn MM interest on it, not sure.

That's the whole idea. With Fidelity's T-bill auto-roll, the money is in and out of the settlement fund the same day.

In comparison, Schwab's auto-roll is sub-optimal (probably on purpose) and can leave the money in Schwab's low yielding FDIC option for up to a week before re-investing in new T-bills.

I've been buying Tbills at Vanguard, but I also have a Fidelity account. If I select auto roll for Tbills on Fidelity, does the matured money skip my settlement account and go straight to a newly issued Tbill? I'm trying to minimize state taxes. Looking back on the Tbills I purchased at Vanguard, a 2-month Tbill (CUSIP 912796XV6) matured on September 13, 2022, and I had purchased another 2-month Tbill (CUSIP 912796YP8) that had an auction on September 8 and settled on September 13. If I had used auto roll at Fidelity, would the matured 912796XV6 Tbill have gone straight to the purchase of the 912796YP8 Tbill, skipping my settlement account? Or would the matured 912796XV6 Tbill have sat in my settlement account before going into the purchas...

manlymatt83 wrote: ↑Fri Feb 24, 2023 1:04 am One thing I found out recently…

If you sell a mutual fund in E*Trade — let’s say VUSXX — the funds become available around 8 or 9 pm ET.

As in, you can transfer them to your checking account immediately to use for that night’s bills.

Kind of nice. Essentially T+0 on funds availability.

Do you have a margin account? Have you verified that you were not charged margin interest at the end of the month if the money was transferred out on day T+0?

I am asking this because if you look at the trade confirmation, the purchase or sale of VUSXX settles the next business day, not same day.

A few things to know - —- Be highly confident that you can hold the annuity for the full 7 years. If you need to withdraw in excess of the annual free partial withdrawal (10% of account value on this contract), you’ll incur a punishing surrender charge. —- Be aware of additional market value adjustments upon early surrender on the products of most companies. Canvas happens to not have such adjustments. —- If buying in a taxable account, be aware that any interest withdrawn before your age 59.5 is subject to an additional 10% Federal penalty tax, in addition to regular state and federal income tax. —- Be aware of the guaranty fund coverage limits for your state. Look up your states fund at this link. Pay close attention to the “frequently a...

As many have already mentioned on other posts, Schwab's autoroll facility is sub-optimal, and if you don't pay attention, you might be thinking that your money is fully invested, when in fact it is not. This is especially so if you use Schwab to autoroll 4-week or 8-week T-bills and investors are probably better off putting the money in a money market fund instead of using autoroll. For example, if you purchased the 2/14 4-week T-bill, it will mature on 3/14. But Schwab would not purchase the new 4-week T-bill on 3/14. Instead, it will put your money in its low yielding sweep option (currently 0.45%) for one week and purchase the 3/21 4-week T-bill. Assuming the 4-week T-bill's yield is 4.65%, your average yield when you use Schwab to autor...

Thanks for the comments. I did take a look at the guide from TFB and I'm satisfied that I have entered the data correctly.

My issue is with the Form 1116 Line 18 Adjustment which TT is not doing. My first thought was that an adjustment would reduce Line 18 and this is desirable because it would give you a higher ratio (Line 19). Line 19 x Line 20 gives you the maximum amount of credit allowed.

I need to do more homework on this topic.

Maybe someone will have a better answer, but in the mean time I'd go back and review all of your interview inputs using this as a guide: https://thefinancebuff.com/foreign-tax-credit-form-1116-turbotax.html I found that his tutorial wasn't 100% representative of the user interface I saw in TT 2022, but it was close enough I was able to follow and proceed. And just to make sure, are you saying that you have less than $20,000 in foreign source qualified dividends and capital gains so Box A is correctly checked? Correct. My foreign source qualified dividends are less than $20k. Those boxes were automatically checked by TurboTax. It's just that TurboTax checked those boxes but did not make the adjustment. The value in Line 18 was just copied f...

This is my first year using TurboTax and I found that while TurboTax states that I qualify for the Form 1116 Line 18 Adjustment Exception, it does not made any adjustment to the number (line 18). https://i.ibb.co/sPPjdT8/P20230216-140815.png This adjustment is needed if you have substantial qualified dividends, otherwise your foreign tax credit will become limited. Does anyone else encounter this problem? H&R Block had always computed this automatically for me in the past so I was surprised to see my FTC limited with TurboTax. Here is a post I found online of a similar situation for TY 2021 https://ttlc.intuit.com/community/tax-credits-deductions/discussion/2021-form-1116-line-18-not-calculating-correctly/00/2551519 The post suggested t...

dspeecejr wrote: ↑Thu Feb 16, 2023 3:18 am It is now working. Nothing like last minute to allow the imports

Thanks. It works for me now as well.

dba4life wrote: ↑Wed Feb 15, 2023 9:11 am It is now 2/15 and I still can't get E*Trade to import into TurboTax. Just a message that "1099 forms not available for user". Has anyone been able to import from E*Trade?

Still no go for me as well.

Does Chile have deposit insurance like the FDIC in the US? Would your deposit be at risk if the bank fails?

Thanks for sharing your experience. I think you also improved the minimum guaranteed rate from 1.0% to 3.0%.

I was going to download the 1099 information from Fidelity into TurboTax. I started the process in TurboTax and was met with a screen that "to increase security and prevent fraud", I need to login to an Intuit account first. If I don't have an account, I need to create an account first.

I have used H&R Block in previous years and I never have to create a H&R account (and give out my information to them), before I can download 1099 information from the brokerages.

Has this always being a requirement for TurboTax? Any way to go around it?

PS. I am using the desktop version of TurboTax.

Vanguard used to have the Vanguard Advantage product that provided the ABA/Acc numbers which you can link externally. But they scrapped it and I don't believe they have offered a replacement.

As an alternative, you can use Etrade which offers VMFXX, VMRXX and VUSXX commission-free. Etrade does provide you with the ABA/Acc numbers which you can link directly from Fidelity.

Same issue with moving between MMAs. Selling one and buying a new one will result in 2 days without interest. To avoid interest loss, when moving the funds within the same fund family, use the "exchange" option instead of "sell" and then "buy" on a later date. For example, you can exchange from VMFXX to VUSXX. If you are moving funds to another fund family and you have a margin account with sufficient equity, you can line up the settlement dates, such that the sale and purchase settlement dates fall on the same day. This will avoid the interest loss. Would using the margin account accrual interest? Just curious, not planning on getting one. You won't accrue margin interest if the sale and purchase settlement d...

bmcgin wrote: ↑Mon Feb 06, 2023 4:09 pm PCOXX just updated their yields to 4.45/ 4/50. That's the highest rate I've found without needing $10MM.

PCOXX now needs $500k to get in.

bmcgin wrote: ↑Mon Feb 06, 2023 6:41 am Same issue with moving between MMAs. Selling one and buying a new one will result in 2 days without interest.

To avoid interest loss, when moving the funds within the same fund family, use the "exchange" option instead of "sell" and then "buy" on a later date. For example, you can exchange from VMFXX to VUSXX.

If you are moving funds to another fund family and you have a margin account with sufficient equity, you can line up the settlement dates, such that the sale and purchase settlement dates fall on the same day. This will avoid the interest loss.

My phone is Samsung and it does not belong to the higher end category. Recently I become aware of a device that adds eSim capability to selected phones which do not have native eSim built-in. It is sold by https://esim.me/ Has anyone used it? I have not. But I would be a little weary due to security issues since this involves an actual physical SIM too. I'm no expert, so maybe it isn't an issue. An eSim phone can be had for under $200 if you don't mind something a little older and not that great. I'd even consider, if I didn't have an eSim phone, buying a used/refurbished eSim phone for traveling if I did it enough. As I mentioned above, I have used a physical SIM from KeepGo that you can add on data to as needed. There are fewer options, ...

I recently used e-sim from https://www.airalo.com/ and it was great and cheap. Good for whatsapp/facetime, browsing, apps, maps etc. Not sure about mobile calls. +1 I bought data as needed with Airalo. You need an eSim phone though. Apple, Pixel and higher end Samsung all have eSims now. I've also purchased Sims on Amazon using KeepGo. Even if you have a carrier that supports international, the cost is usually higher. Typically $10-$15 a day. I paid $5 for 1GB in Europe with Airalo and it was good for a week. My phone is Samsung and it does not belong to the higher end category. Recently I become aware of a device that adds eSim capability to selected phones which do not have native eSim built-in. It is sold by https://esim.me/ Has anyone ...

Elmo wrote: ↑Sat Feb 04, 2023 7:41 am

secondopinion wrote: ↑Tue Jan 31, 2023 9:16 pm I focus on a 5-year add-on CD yielding 4.17% rate (not APY). It has little money in it; but if yields drop sharply, I will be glad for the hedge for any added money.

I'm interested in a 5 year add-on CD as well. Did I miss your post of a viable option?
Thanks secondopinion

That one is from Mountain America CU.

https://www.macu.com/accounts/savings/c ... e-accounts

They call it a Growth CD and is limited to $100k per person (not per CD).

My Samsung phone does not support eSim natively. But I understand there is a product from eSim.me that adds this functionality. Has anyone tried this before? Care to share your experience? Are there any other competitor products?

https://esim.me

From DOT

https://www.transportation.gov/individu ... on/refunds

indexfundfan wrote: ↑Wed Jan 25, 2023 12:25 pm Alliant Credit Union has a 36mo to ~48mo CD at 4.6% for a while now. For this CD, you can select the maturity anywhere from 36mo to 48mo less one day. For example, if you open the CD today, you can select a maturity date in the range of 1/25/2026 through 1/24/2027.

The early withdrawal penalty is the accrued interest up to 180 days and will not eat into your principal. If you withdraw anytime in the first 180 days, you get back your principal with no interest.

By the way, Alliant CU is currently running a promotion. It could be useful if you qualify and are starting a new CD with them.

https://promo.alliantcreditunion.org/fastpass

What are you expecting this month? Holding out for 5% on a 48 plus month The longer term treasury rates have trended down since they peaked some time in November. Ken, in his blog post last week seems to think that we could be past the peak of long-term CD rates this cycle. https://www.depositaccounts.com/blog/fed-deposit-interest-rate-predictions/ Long-term CD rates generally follow Treasury yields with similar maturities. That suggests that we may be past the peak of long-term CD rates. Top nationally-available 5-year CD rates haven’t changed much in the last six weeks. On December 7th, the top 5-year CD rate was 4.75% APY ($1.5k min at Bread Financial). Today the top 5-year CD rate is 4.78% APY ($100k min at Lafayette FCU). The 50-bp Fe...

Stinky wrote: ↑Wed Jan 25, 2023 2:19 pm Gainbridge offers attractive rates for all durations 3-10 years.

And, in my experience, they process partial withdrawals quickly. I’ve now had three with them, all of which were completed in less than a week.

Yes, that's the good one I alluded to in my post above.

Are the answers different if the MYGA's policy is to allow annual withdrawals of interest only, rather than up to 10%? Yes, in theory you can withdraw the interest each year if you pick a MYGA that lets you withdraw 10% each year. Since this is non-qualified funds, the carrier will issue you a 1099R. The popular tax softwares should be able to handle it. However, I would caution you about the hassle factor with withdrawing from MYGAs, especially if you want to fill up a few rungs of your ladder with MYGAs. Withdrawing from MYGAs is simply not the same as submitting an ACH to withdraw the interest and dividends from CDs or treasuries. Most carriers require you to print out an withdrawal form, fill in the policy details, affix a wet signatur...

Alliant Credit Union has a 36mo to ~48mo CD at 4.6% for a while now. For this CD, you can select the maturity anywhere from 36mo to 48mo less one day. For example, if you open the CD today, you can select a maturity date in the range of 1/25/2026 through 1/24/2027.

The early withdrawal penalty is the accrued interest up to 180 days and will not eat into your principal. If you withdraw anytime in the first 180 days, you get back your principal with no interest.

I am setting up a Fidelity brokerage account to use as my "bank" to utilize a higher interest rate. I understand that I can use the routing and account number to transfer funds in and out (I am aware that there can be holds placed on funds for a number of days). My question is about transferring money into Fidelity using an ACH "push" from another institution (e.g. bank, credit card rewards, etc.). These always ask if it is a checking or savings account when setting up the ACH. Will either work? Does anyone have info on if it makes a difference? One of my banks has even more options: Checking Savings Money Market Checking Money Market Savings Brokerage Should I choose Money Market Checking, since it is SPAXX? Or Brokera...