Search found 755 matches

by jhogue
Sat Mar 02, 2024 12:24 pm
Forum: Cash
Topic: Placement of cash (vs other PP assets)
Replies: 17
Views: 1876

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...
by jhogue
Tue Jan 09, 2024 9:11 am
Forum: Bonds
Topic: High TIPS Yields Are a Retiree’s Best Friend
Replies: 6
Views: 21822

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...
by jhogue
Sat Aug 26, 2023 1:45 pm
Forum: Other Discussions
Topic: First Movie You Remember Seeing
Replies: 13
Views: 6804

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...
by jhogue
Wed Aug 16, 2023 6:46 am
Forum: Cash
Topic: Why I Stopped Buying I-Bonds (For now)
Replies: 12
Views: 6563

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?
by jhogue
Tue Aug 08, 2023 8:20 am
Forum: Cash
Topic: Why I Stopped Buying I-Bonds (For now)
Replies: 12
Views: 6563

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.
by jhogue
Sun Aug 06, 2023 4:42 pm
Forum: Cash
Topic: Why I Stopped Buying I-Bonds (For now)
Replies: 12
Views: 6563

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...
by jhogue
Mon May 29, 2023 7:55 am
Forum: Bonds
Topic: Is anyone else buying TIPS?
Replies: 28
Views: 11394

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...
by jhogue
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: 1438

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...
by jhogue
Sat Dec 24, 2022 9:43 am
Forum: Gold
Topic: Liquidate Some Roth Space to Buy Physical Gold?
Replies: 18
Views: 9047

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...
by jhogue
Fri Dec 16, 2022 1:46 pm
Forum: Gold
Topic: Another Gold ETF post
Replies: 29
Views: 12846

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.
by jhogue
Fri Dec 16, 2022 1:40 pm
Forum: Cash
Topic: Bank Bonuses
Replies: 36
Views: 11882

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...
by jhogue
Sun Nov 27, 2022 8:56 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 5372

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...
by jhogue
Sun Nov 27, 2022 8:31 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 5372

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...
by jhogue
Thu Nov 24, 2022 11:23 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 5372

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...
by jhogue
Thu Nov 24, 2022 8:29 am
Forum: Cash
Topic: Tempting Cash Rebate offers
Replies: 36
Views: 5372

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...
by jhogue
Sat Nov 19, 2022 11:42 am
Forum: Bonds
Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
Replies: 14
Views: 4539

Re: Treasury Notes (Auction vs Secondary - basically a wash?)

Yep, no question that the era of ZIRP is over.
by jhogue
Fri Nov 18, 2022 10:19 am
Forum: Bonds
Topic: Treasury Notes (Auction vs Secondary - basically a wash?)
Replies: 14
Views: 4539

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...
by jhogue
Wed Nov 16, 2022 9:11 am
Forum: Politics
Topic: Putin Invades Ukraine II
Replies: 1173
Views: 1071586

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...
by jhogue
Mon Nov 07, 2022 8:17 am
Forum: Cash
Topic: 2022 Nov iBonds: 0.4% fixed
Replies: 4
Views: 1745

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...
by jhogue
Fri Nov 04, 2022 10:09 am
Forum: Cash
Topic: 2022 Nov iBonds: 0.4% fixed
Replies: 4
Views: 1745

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...
by jhogue
Sun Oct 23, 2022 2:15 pm
Forum: Cash
Topic: Cash as an inflation hedge
Replies: 8
Views: 3207

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?
by jhogue
Tue Oct 18, 2022 8:59 am
Forum: Cash
Topic: I-bonds from tax refund
Replies: 37
Views: 10992

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...
by jhogue
Sun Oct 16, 2022 9:28 am
Forum: Cash
Topic: I-bonds from tax refund
Replies: 37
Views: 10992

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...
by jhogue
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: 8574

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...
by jhogue
Mon Oct 03, 2022 10:15 am
Forum: Bonds
Topic: TBills as "the best horse at the glue factory?"
Replies: 93
Views: 13615

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.