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.
I trade only bond funds because of their persistency of trend combined with their lack of volatility. There are exceptions, but since 2000 there has always been a bond category that has beaten the S@P annually. Of course those exceptions are pret…
hank, I was not criticizing you, or have any upset with you. For me the thread title was, "How Would You Invest $100,000 right now". I confess I don't know what was meant by the phrase of "kicks, giggles, and ideas", so I just focused on how I wou…
My only harp here with all the cash dwellers is: Provided that’s your established style I think it’s a really great way to go and locking in the highest available rates is a solid decision. Where I’d have a concern is with former equity investors …
I'm guessing dtconroe wants to lock in 5.4% for 2 or more years. The Fido mm rate would drop significantly if the US enters recession in 2024 or 2025 .
That is correct--I have some cash in SNAXX which is paying a very nice interest rate, but MMs do…
Where would I invest $100k today?--one of the 5.4% CDs available on the Schwab website. $100k is the amount I normally invest in a given CD, so this would be consistent with my investment decisions for the past several months. Unfortunately, I do…
I don't post $ or % amounts, sorry.
I provide information for others to use. Posters are free to use it or not. I am not into showboating.
My post(s) on FRN purchase details on THIS thread were in response to specific questions from posters.
BT…
@dtconroe I would post % of portfolio invested, but not $$$$ (amount) !
I was able to make a small 1.5% purchase in IRA of T-note mentioned above. That was all of the cash I had available in that account at Schwab. I then turned to Vanguard to up…
Just bought two 12-months CDs from two large national banks with a quite satisfactory yield of 5.30%. I am not concerned about eking out a few extra basis points here or there in the future.
If I were to add a bond fund to my portfolio at this time…
It is very very rare on these threads, to see specifics about how much you are investing. So you hear these very detailed discussions about buying, but nothing about the extent of buying. I am an investor who does not have a large number of posit…
Not a bad idea to get off the FR/BL train soon. When rates stop going up, these act just as short-term HY from low-rated companies that cannot access the normal bond market. There is a recession risk too, but the is consensus that it has been cancel…
I noticed that Bank CD offerings at Schwab, are bumping up slightly with more banks offering 5.3% CDs for almost all periods of 1 year or shorter. 18 mo CDs are also bumping up slightly, but not quite to 5.3% yet. Longer than 18 months are not ch…
I know ZEOIX well, invested in it briefly, for a short period, several years ago, and continued it on a M* Watchlist. I maintained it in a "category" of funds I entitled "cash alternative" options, that had a history of low SD. As the OP noted, it…
Not much to add to the "health" discussion. After I retired about 10 years ago, I started focusing on bond oefs, and I did well with them, with limited stress until 2018. Starting in 2018, bond oefs became much less predictable for me, and I went …
https://www.cbsnews.com/news/how-high-will-cd-rates-go-experts-weigh-in/
I found this article interesting, based on the projections of a group of experts. My reading of the article is that shorter term CDs look appealing for the remainder of 2023, …
@dtconroe : Maybe it's time to look for a back-up bank ?
Maybe so--I do have a credit card account at Bank of America, have used them previously for a checking account, so it would be a logical "replacement" bank option with local branches in Tyler …
It got my attention when it noted that Capital One is facing a downgrade to Negative in its rating. I have been a Capital One customer for a long time, heavily tied to both my automatic deposit and payment details, and with accounts in Joint check…
Using Schwab as my source of CD rate data it seems as though a plateau may have been reached. Since July 10 rates have been essentially flat. I don’t think that these rates will last well into 2024. Now may be the time to lock in for longer.
My …
Just purchased a 6 figure CD for my IRA, paying 5.2%, over an 18 month term--my first CD with a Maturity Date in 2025. I have 3 more CDs maturing in 2023, and 9 CDs maturing in 2024. When these remaining CDs mature, I will seriously consider buyin…
BenWP: "You could have a second career as a market timer!!"
Unfortunately, I do not consider myself a good market timer. I got a bit lucky in 2022, but I could tell many stories about poor timing decisions in the past. I have very much enjoyed th…
@dtconroe: I am intrigued by your explanation of how you use of CDs and their multiple maturity dates. I spend what some would probably call an excessive amount of my free time juggling MFs and ETFs. However, I did put $10K into a CD for the very fi…
Something that does not discussed when considering CDs, is the importance of coupon frequency. In my taxable account I prefer shorter term CDs, withh monthly coupons, to ensure I have greater liquidity options. I use a lot of 6 month, 9 month, and …
“ … in my lifetime as an investor, I haven’t seen cash yields this high ”
Gosh, I do remember earning 15-20% on money market funds during my early working years. :)
Along with that, the aisles in grocery stores (1970s) were often filled with stor…
This morning, Schwab brokerage MM SWVXX is paying 5.17% and SNAXX is paying 5.32%. CD rates at Schwab seem to be about in this same MM range, with anything over a year being less than the MM rates. I had a CD mature yesterday, which I have decided…
There are a number of factors with "personal" complications, in making lifestyle/materialistic changes later in life. My wife and I are in pretty good health now, but who knows what tomorrow will bring. Moving/relocating has a lot of stress involv…
How long will it last, and where will it peak? Those are the questions. The consensus seems to be that it will only last for about a year, not more than 2, and that it will peak around 6%, maybe a little less and not more than 6.25%. That's a very s…
@hondo. Same boat here. My wife has no interest in this stuff and I think more and more about a vastly simplified portfolio going forward. As my CD’s and treasuries mature it might be time to build a position in Wellesley or some such thing. At l…
dt: I bought a 12 month 5% CD yesterday. I know that I could have gotten a higher rate with a brokered CD, but wanted to stay with my credit union. As you know, I have always tried to keep it simple for my wife's sake. Now, I have come to the poin…
@dt. Does Swvxx have more than one share class? My position seems to be yielding 5.09%.
SWVXX is one of the share classes for their Prime Money Market Fund--I checked again a few minutes ago and SWVXX is now paying 5.12%. I corrected an earlier …
@MikeM- You mentioned "I moved the $ to the Schwab MM"... Could you advise which particular MM? I know this sounds stupid, but I've never been sure about their moneymarket accounts. When interest on a CD is paid, or a CD matures, they automatically …
Morningstar Legacy Portf. Mngr:
I can still see it. I got it back after trying a couple of steps, a week or so ago. As was mentioned here at MFO, apparently, M* was doing something internally, and I was involuntarily logged out. On a logged-out bas…
I was assuming the OP was specifically talking about Traditional/Rollover IRAs as titled in this thread, not other types of retirement accounts such as 401/403/457 accounts. Those are two very different kind of retirement accounts, and when you set …
I don't rely on firms' RMD calculators. They have some built-in assumptions that may or may not apply to individual situations.
When I take RMDs, I don't even designate them as RMDs to avoid firms' default RMD screens. I just take them as withdrawa…
If you google "RMD Calculator", you get several options, but the Schwab Calculator pops up. It incorporates the age difference between you and your spouse, etc. to give you an estimate, based on the amount in your IRA account at year end, your age,…
If you keep your IRA accounts in a major brokerage, such as Schwab or Fidelity, they will do all the calculations for you. It has been a pretty simple process for me--I just have to time my withdrawals to fit my personal investing choices, and deci…
American Funds seem to be the darlings of 401, 403, 457, etc. retirement funds. I owned them for many years, as part of company retirement programs, and was on Company Investment Committees that helped select them. They have huge AUMs, guided by …
Observant wrote:
@dtconroe,
Your statements quoted above are certainly true.
However, there is much more to this story.
I won't get into the details, but suffice to say, FD's behavior was sometimes inappropriate
and caused acrimonious disputes.
…
It's "difficult" because it's essentially the same thing as tolerating a few louts screaming and interrupting an otherwise calm and civil meeting just because they feel entitled to do that.
That conduct is similar to what we've now come to see …
