Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
3-6 months T-Bills are paying more than CD. Easier to buy big amounts instead of several institutions for CDs + you can sell any time with no penalties + no state tax.
msf: However, it is no more difficult to trade TBIL than it is to trade T-Bill CUSIP 912796CS6 (maturing Sept 28) at a brokerage
FD: since I never traded CDs or treasuries, I called Schwab's bond desk.
If you sell a CD before maturity, you'll inc…
I changed CG=100K + coverted $25K from T-IRA to taxable for each person = $150K income..and the numbers for Fed+State tax stayed the same.
Again, even if I was 60 years old and not living in GA, I would not buy CD/treasuries direct. MM or ETF=TBIL …
a married couple filing jointly may exclude twice the given limit.
This makes it sound as if a couple gets a combined exclusion that's double the individual exclusion. That's not quite accurate.
The exclusion is available for the taxpayer and his…
(https://www.audits2.ga.gov/reports/summaries/retirement-income-exclusion/)
Published: February 3, 2023.. QUOTE: "In 1981, Georgia enacted an income tax exclusion for retirement income received by taxpayers aged 62 years and over. Currently, taxpay…
"Cutting losses quickly and letting profits run" is the right way.
1) It took me about 18 years (1995-2013) to get it until I got to a nice-size portfolio. In those years I was invested at 99+%. When the funds I owned lagged, I just switched to bet…
It's a similar argument when someone says, I own 20 funds VS 3 funds and I don't have any problem.
The following are several issues, at least for me.
1) We have 5 accounts at each discount broker. One joint, 2 Roth IRAs, and 2 Rollover IRAs. If I ow…
@rforno : What brokerage are you using to roll treasuries & what term ?
Thanks , Derf
Schwab.
I bought a 1-mo TBill at auction yesterday and it's set to auto-roll next month...first time I've done …
(https://seekingalpha.com/article/4629757-how-do-t-bills-bil-stack-vs-other-asset-classes?mailingid=32449091&messageid=2850&serial=32449091.7608)
See below several excerpts.
How Do T-Bills And BIL Stack Vs. Other Asset Classes?
Aug. 19, 202…
Observations:
1) USFR have a bit better performance than TFLO for 6-12 months, but for 1-3 months they are really close...according to M* chart.
2) In the last 1-2 months VMFXX lags a bit. Stockchart shows that but it's difficult to know how accura…
I invest with Dodge & Cox directly. I never had a problem. No fees for buying/selling shares. No obfuscation. No time wasted.
Most don't want to have several accounts of taxable+IRA for each/a few funds they own. My only exception, which never…
Until the end of May 2023, I traded HY Munis. Since then, I'm in funds with short duration and low volatility.
I don't listen to a perma bear such as David Rosenberg. Most generic typical core funds can't handle the situation too well. DODIX, a g…
Another idea. If you own MM in one company and you transfer/ACAT to another, you lose several days. Instead, you can buy a mutual fund, such as RPHIX, but maybe you don't have access to it. Another choice is TBIL which is very close to VG MM=VMFXX…
I can't believe it, you can lose maybe 3-5 days of MM? How much is it? 0.1%.
I used ACAT back and forth Schwab-Fidelity and usually it takes 2--3 days. You can wire the money too. I only wired money from Schwab and it took a couple of hours, and it …
Concur with @yogibearbull on the risk of short duration bond funds in rising rate environment. Bond price falls as interest rate rises and there is NO hiding place. The same risk is lessen this now now that most of the rate hike is coming to an en…
I disregard the expense ratio because many bond indexes expense is very cheap but it's a plane without a pilot. BND, one of the most recommended indexes lost a lot in 2022 and made less than 1% in 2023.
Treasury ladder didn't help you either becaus…
I have never invested directly in a treasury fund because this category has a high correlation to rates and rates are unpredictable short term. PLW did poorly YTD. See a YTD chart of VGIT(inter Gov/treasury) + DODIX(good generic higher rated bond f…
Said already several times. The main reason I use lower yield, "safer" MM with no gates because
1) The extra 0.2-0.3% (or a bit more) is *negligible on an annual basis.
2) I also have more than enough and can stay in MM for years but I'm using mostl…
In this link https://cdn.nar.realtor/sites/default/files/documents/hai-06-2023-housing-affordability-index-2023-08-10.pdf
You can see that housing payments doubled since 2020. Affordability is way down too from 2020=169.9 to 06/2023=87.8
Hi dryflower, I do take higher risks but I want to make a lot more than an extra 0.2-0.3% annually. This is why I trade bond funds for weeks-months and back to MM.
Regardless, making 5+% for SOME of the money is great for most.
The money market I am in at Wells Fargo is WMPXX. Its 7 day effective yield is now 5.59%. I see no reason to buy a CD with this money right now.
https://www.allspringglobal.com/investments/mutual-funds/fund-profile/overview/?accountingId=WBC7&s…
Diversification, duration, and experience don't guarantee better risk-adjusted performance, especially in markets as we had since early 2022.
You can own 10 bond funds and still have higher volatility + lower performance.
The article predicts stabil…
Income investing is a myth that has been promoted for years. In many cases, the writer wants to sell you something. Income investing as someone's main/first criterion has no legs in reality because TR=total return (performance) is the ultimate indic…
So my question is: why would you prefer to own bond funds to a longer term CD when rates are falling?
You changed what we are talking about. We were discussing shorter-term CD that matures in 3-6-12 months. I already posted that 3-5 years CD make…
@wabac,
You raised good points. A portfolio can have several goals. Performance is always important. But, I also think that risk-adjusted performance is more important, at least for me, and that can be measured by the Sharpe ratio.
The following …
@FD1000 So what? Just because investors can do this, that or the other thing doesn't mean they will. No matter how hard you try to convince them, they will do what they feel most comfortable with no matter what evidence you provide to the contrary. …
Diversification doesn't guarantee better performance or better risk/SD or better risk-adjusted performance. Being in 10 funds isn't necessarily better than 2 funds. I could be wrong but I can't find any research that proves that more funds are a bet…
Hank, I didn't say that I was an expert or that 15 years make me an expert. You made up these conclusions. I have been posting here for years and will keep posting, I never told anyone they are MISPLACED anywhere as you did.
I state my opinion, how …
Hank: Are you an investment professional? Where did you come by these individual’s performance histories? Must be from somewhere else. It’s quite rare for anyone here to ever post their annual returns. I don't.
FD: this is an observation after pos…
To me, the point isn’t that CD yields can be marginally higher than money markets. It’s that interest rates will start dropping at some point, and then MM yields will drop quickly. With CDs, you can lock in high yields for as long as 10 years, and y…
wow, only 50-100K in each CD? I would have to purchase many of them + deal with so many different institutions. The more details I read about the less I want to do it.
Disclaimer: I never owned CDs or treasuries.
Buffett's investment process is focused on purchasing companies with competitive advantages
(wide moats) at a fair price and holding them "forever."
He believes that at least 98% of people who invest should extensively diversify and not trade.
FW…
I based my system on Buffett's (and Munger) 3 important rules: Rule No. 1: Never Lose Money. Rule No. 2: Never Forget Rule No. 1 and Rule 3: Diversification is a protection against ignorance. I added a fourth rule: momentum. My system was born in ea…
Looking at Fidelity CD for 3-6 months(https://fixedincome.fidelity.com/ftgw/fi/FILanding) shows the highest yield as 5.15-20% while SCOXX pays 5.2%. MM is the easiest way to invest your money with a monthly payout, easy to hold using one fund, easi…
