Search found 755 matches
- Sat Mar 02, 2024 12:24 pm
- Forum: Cash
- Topic: Placement of cash (vs other PP assets)
- Replies: 17
- Views: 1885
Re: Placement of cash (vs other PP assets)
Sophie: Tax advice is tricky, individualized, and the future is impossible to predict, but here are a couple of strategies to consider that can reduce your “monster tax bills” due to interest in taxable accounts in the near term: 1. Consider taking one or a series of Roth IRA conversions. Use part o...
- Tue Jan 09, 2024 9:11 am
- Forum: Bonds
- Topic: High TIPS Yields Are a Retiree’s Best Friend
- Replies: 6
- Views: 22016
Re: High TIPS Yields Are a Retiree’s Best Friend
1. I agree, the problem with TIPS is taxes. 2. I agree, the problem with annuities is expenses. I bonds are tax deferred for 30 years and have an expense ratio of 0%. My current cash set up is: 1/3 I bonds 1/3 T-bills 1/3 FDLXX (Fidelity Treasury Only Money Market Fund) It has safety, liquidity, and...
- Sat Aug 26, 2023 1:45 pm
- Forum: Other Discussions
- Topic: First Movie You Remember Seeing
- Replies: 13
- Views: 6845
Re: First Movie You Remember Seeing
The first movie I can remember is The Wizard of Oz, as shown on TV when I was about four. I was so traumatized by the Wicked Witch that my parents had to send me to bed-- and then I had nightmares for days.Fortunately I recovered and eventually it became an annual event at our home. I still think it...
- Wed Aug 16, 2023 6:46 am
- Forum: Cash
- Topic: Why I Stopped Buying I-Bonds (For now)
- Replies: 12
- Views: 6583
Re: Why I Stopped Buying I-Bonds (For now)
A one year T-bill yielded 5.34% this morning in Fidelity's secondary market.
A five year brokered CD yielded just 5.50%
1. Isn't it nice that Cash isn't trash any more?
2. Why fight the Fed?
A five year brokered CD yielded just 5.50%
1. Isn't it nice that Cash isn't trash any more?
2. Why fight the Fed?
- Tue Aug 08, 2023 8:20 am
- Forum: Cash
- Topic: Why I Stopped Buying I-Bonds (For now)
- Replies: 12
- Views: 6583
Re: Why I Stopped Buying I-Bonds (For now)
I suppose I should have left out any speculation on the future of interest rates in my last post. I don't know what they will do. What I am trying to do is guard against the possibility that inflation might be stubbornly persistent.
- Sun Aug 06, 2023 4:42 pm
- Forum: Cash
- Topic: Why I Stopped Buying I-Bonds (For now)
- Replies: 12
- Views: 6583
Why I Stopped Buying I-Bonds (For now)
As many on this forum know, I have long been a booster of buying US Series I bonds, especially for “Deep Cash” in the Cash quadrant of the Permanent Portfolio. I recently halted this practice (at least for now) and felt some obligation to explain why my thinking has evolved: 1. My I-bonds now consti...
- Mon May 29, 2023 7:55 am
- Forum: Bonds
- Topic: Is anyone else buying TIPS?
- Replies: 28
- Views: 11442
Re: Is anyone else buying TIPS?
Cash investors should consider taxation as well as inflation. I-bonds have superior tax treatment compared to TIPS: I-bonds come with 30 years tax deferral, interest compounded semi-annually. TIPS do not. I-bonds create extra tax deferred space. TIPS in tax-advantage accounts take up that space. I-b...
- Wed Apr 19, 2023 8:16 am
- Forum: Bonds
- Topic: Thinking of a May I-Bond purchase. Talk me out of it!
- Replies: 3
- Views: 1444
Re: Thinking of a May I-Bond purchase. Talk me out of it!
You can make some money in the short term buying and selling I-bonds. However, I agree with sophie that the most profitable I-bond strategy is to buy as much as you can as soon as you can and hold them for as long as you can. That takes maximum advantage of their 30 year federal tax deferral+ 30 yea...
- Sat Dec 24, 2022 9:43 am
- Forum: Gold
- Topic: Liquidate Some Roth Space to Buy Physical Gold?
- Replies: 18
- Views: 9096
Re: Liquidate Some Roth Space to Buy Physical Gold?
stuper1, You pose an interesting question. I would not involuntarily surrender tax free space in our Roth IRAs if I could avoid it because: 1. Once that tax advantage is gone, you can never get it back. 2. I am pretty convinced that our taxes have nowhere to go but up. ( I could be wrong, but I doub...
- Fri Dec 16, 2022 1:46 pm
- Forum: Gold
- Topic: Another Gold ETF post
- Replies: 29
- Views: 12920
Re: Another Gold ETF post
Thanks for the up to date review of gold ETFs.
I chose SGOL because of its holdings are diversified outside the US in Zurich and London.
I chose SGOL because of its holdings are diversified outside the US in Zurich and London.
- Fri Dec 16, 2022 1:40 pm
- Forum: Cash
- Topic: Bank Bonuses
- Replies: 36
- Views: 11916
Re: Bank Bonuses
Bitcoin is speculation, pure and simple. If you want to put it in the VP with money you can afford to lose, go right ahead. But right now, the cryptocurrencies remind me of tech companies before 2000 or railroads after the Civil War: a few of them survived, but even they are in substantially differ...
- Sun Nov 27, 2022 8:56 am
- Forum: Cash
- Topic: Tempting Cash Rebate offers
- Replies: 36
- Views: 5428
Re: Tempting Cash Rebate offers
I am sorry to hear of your run-in with internet bank robbers of the early 21st century variety, mathjak. I am glad to hear, however, that Fidelity is working on it. Aside from vigilance, diversification is the only answer to this sort of problem. That is why I keep I bonds at both in my TreasuryDire...
- Sun Nov 27, 2022 8:31 am
- Forum: Cash
- Topic: Tempting Cash Rebate offers
- Replies: 36
- Views: 5428
Re: Tempting Cash Rebate offers
It is a simple fact; yet STILL too often ignored by investors: No debt instrument is safer or more liquid than a Treasury-backed security. To get a higher yield you have to accept more risk. And anybody who is eager to leave their cash with Citibank would do well to first read up on its history in t...
- Thu Nov 24, 2022 11:23 am
- Forum: Cash
- Topic: Tempting Cash Rebate offers
- Replies: 36
- Views: 5428
Re: Tempting Cash Rebate offers
I think you misunderstand. The problem isn't that the FDIC will fail. It won't. But if your bank fails, it could cause you no end of headaches before FDIC makes you whole again. Well since I use a lot of FDIC insured bank accounts, please educate me with some examples in recent memory where deposit...
- Thu Nov 24, 2022 8:29 am
- Forum: Cash
- Topic: Tempting Cash Rebate offers
- Replies: 36
- Views: 5428
Re: Tempting Cash Rebate offers
I'd take that in a heartbeat. Its an FDIC insured savings account. As long as you keep it at $250K or less to stay in the insurance band, its just as good as a Treasury bill in my workd. If we truly have an issue where FDIC fails and the government doesn't back it, thats gonna be a scenario where c...
- Sat Nov 19, 2022 11:42 am
- Forum: Bonds
- Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
- Replies: 14
- Views: 4572
Re: Treasury Notes (Auction vs Secondary - basically a wash?)
Yep, no question that the era of ZIRP is over.
- Fri Nov 18, 2022 10:19 am
- Forum: Bonds
- Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
- Replies: 14
- Views: 4572
Re: Treasury Notes (Auction vs Secondary - basically a wash?)
Just for the sake of discussion… I have a T-Bill ladder in my taxable account at Fidelity composed of 3, 6, and 9 month T-Bills, purchased on the secondary market, that I will to hold to maturity. It currently yields about 4.5%-- which is far better than an HBPP-designated Treasury money market fund...
- Wed Nov 16, 2022 9:11 am
- Forum: Politics
- Topic: Putin Invades Ukraine II
- Replies: 1173
- Views: 1080154
Re: Putin Invades Ukraine II
I think there is some merit in Kriegsspiel’s contrarian views of the Russia/Ukranian War. However, the decisions by the neutral (and mostly non-corrupt) governments of Sweden and Finland to seek NATO membership immediately after the Russian invasion sounded serious alarm bells on the eastern frontie...
- Mon Nov 07, 2022 8:17 am
- Forum: Cash
- Topic: 2022 Nov iBonds: 0.4% fixed
- Replies: 4
- Views: 1749
Re: 2022 Nov iBonds: 0.4% fixed
David Enna gives an extended consideration of how to time a sale of I-bonds to yield the optimal interest rate for the short-term investor. See his column at: https://tipswatch.com Note that,( like me), his preferred strategy is to always buy the max every year and never sell before 30 year maturity...
- Fri Nov 04, 2022 10:09 am
- Forum: Cash
- Topic: 2022 Nov iBonds: 0.4% fixed
- Replies: 4
- Views: 1749
Re: 2022 Nov iBonds: 0.4% fixed
With the expected passage of 1 Nov. re-set rate for I-bonds, the dust is beginning to settle: 1. For short-term I-bond investors, the variable interest component rate fell from 9.62% to 6.48%. for an annualized rate of 8.2%, if you bought before 1 Nov. This looks like a severe fall off until you con...
- Sun Oct 23, 2022 2:15 pm
- Forum: Cash
- Topic: Cash as an inflation hedge
- Replies: 8
- Views: 3240
Re: Cash as an inflation hedge
Bankers at the Federal Reserve do not know what the interest rate will be next year. How can the average investor?
- Tue Oct 18, 2022 8:59 am
- Forum: Cash
- Topic: I-bonds from tax refund
- Replies: 37
- Views: 11023
Re: I-bonds from tax refund
Thanks, Barrett. You didn't directly answer my question, but you DID address the pressure I was feeling to get it done prior to October 31. I appreciate the reassurance that all may not be lost. Maddy, 1. Every recent (past 10 years) TreasuryDirect account that I know begins with a letter, not a nu...
- Sun Oct 16, 2022 9:28 am
- Forum: Cash
- Topic: I-bonds from tax refund
- Replies: 37
- Views: 11023
Re: I-bonds from tax refund
I bought my full aliquot of online I Bonds in January, and also got paper bonds with my tax refund in March. I filed in February as per usual, to reduce the chance that an identity thief will beat me to it - under the theory that he who files first, files best. I wonder if the problem is the timing...
- Sun Oct 16, 2022 8:55 am
- Forum: Cash
- Topic: I Bonds’s new variable rate will rise to 9.62% with the May reset
- Replies: 20
- Views: 8641
Re: I Bonds’s new variable rate will rise to 9.62% with the May reset
With the CPI data out this morning, TipsWatch has the new variable rate for 11/1/22 to 4/30/23 at 6.48%. Link is here: https://tipswatch.com/category/i-bond/ Thinking I may add to our gift box positions before 10/31 to get the current 9.62% for six months. And then, obviously, 6.48% for another six...
- Mon Oct 03, 2022 10:15 am
- Forum: Bonds
- Topic: TBills as "the best horse at the glue factory?"
- Replies: 93
- Views: 13681
Re: TBills as "the best horse at the glue factory?"
Sorry to hear about your mother's condition, sophie.
Adding to my Cash pile rather than the other 3 volatile assets during times like the present dampens volatility and "feels" like an extra bit of cushion against the unexpected or unanticipated.
Adding to my Cash pile rather than the other 3 volatile assets during times like the present dampens volatility and "feels" like an extra bit of cushion against the unexpected or unanticipated.