Search found 640 matches

by jhogue
Tue Oct 19, 2021 5:08 pm
Forum: Cash
Topic: Highest I bond rate ever: 7.12%
Replies: 8
Views: 545

Re: Highest I bond rate ever: 7.12%

It may still possible to retire on a cash-only investment portfolio, but I would not recommend it. My father-in-law never invested in anything riskier than savings bonds or 1 year bank CDs. He started buying war bonds when the Army sent him to the South Pacific in 1944. When he died in 2008, all of ...
by jhogue
Thu Oct 14, 2021 9:40 am
Forum: Cash
Topic: Highest I bond rate ever: 7.12%
Replies: 8
Views: 545

Re: Highest I bond rate ever: 7.12%

Much as I like I-bonds, I like the freedom that comes with being debt free even more. I don't think I would be accumulating I-bonds if I had not paid off my mortgage already.
by jhogue
Wed Oct 13, 2021 12:16 pm
Forum: Cash
Topic: Highest I bond rate ever: 7.12%
Replies: 8
Views: 545

Highest I bond rate ever: 7.12%

Tipswatch has announced that the new variable component of I-bonds will reset to a whopping 7.12% on November 1, 2021. This is the highest interest rate ever recorded since I bonds were created in 1998. Given this high rate, it seems unlikely that the Treasury will announce a fixed component rate ab...
by jhogue
Fri Oct 01, 2021 11:47 am
Forum: Other Discussions
Topic: The end of the Roth conversions?
Replies: 34
Views: 834

Re: The end of the Roth conversions?

What is missing in the over-heated class rhetoric in the OP is the inescapable fact that tax-advantaged retirement accounts (401k, 403b, traditional IRAs, and Roth IRAs) have turned an enormous number of thrifty, but otherwise ordinary Americans into millionaires. I think it is creating fear and loa...
by jhogue
Thu Sep 30, 2021 10:11 am
Forum: Cash
Topic: Calling ALL IBond aficionado's!!!!
Replies: 16
Views: 2508

Re: Calling ALL IBond aficionado's!!!!

The I bond Manifesto is a great idea, endorsed by four real experts in riskless fixed income investing. I would add a couple points: -Because of the $10,000 cap on annual purchases, I bonds work best as part of a long term accumulation strategy. The longer you hold them, the better they get due to t...
by jhogue
Sun Aug 22, 2021 4:27 pm
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 252
Views: 102654

Re: How do you invest the Cash portion?

As I just stated, if my belief that an income producing investment such as cash belongs in a retirement account then that eliminates any I bonds as Treasury Direct does not work with retirement accounts. Since you are with both Vanguard and Fidelity and use do autoroll at Fidelity can you verify th...
by jhogue
Sat Aug 21, 2021 11:21 am
Forum: Cash
Topic: TIPS
Replies: 24
Views: 1485

Re: TIPS

This web site seems to offer a lot of solid information regarding both TIPS and iBonds... https://tipswatch.com/ I actually read some articles on that website before I bought my TIPS. just like when I bought into the PP I finally had to decide that looking at all the graphs and pros and cons, ultim...
by jhogue
Thu Aug 19, 2021 8:03 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

I agree that I-bonds work best as long-term investments. The longer you hold them, the better they get. That’s why they have always been called U.S. savings bonds. As for your fears about liquidity, I am confident that I can cash my paper I-bonds at my local bank today. I am confident that I can cas...
by jhogue
Thu Aug 19, 2021 7:56 am
Forum: Cash
Topic: TIPS
Replies: 24
Views: 1485

Re: TIPS

1. Thanks for continuing your TIPS experiment. I expect it to be illuminating for interested members of the forum.

2. The difference in valuation of your taxable and tax-deferred TIPS is a head scratcher. Why not call Fidelity customer service and ask for a broker to explain the difference?
by jhogue
Wed Aug 18, 2021 8:40 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

I have never understood pugchief’s repeated complaint about the $10,000 cap on annual I-bond purchases. Can we put that canard to bed once and for all? There is a $6,000 cap on annual Roth IRA purchases (and also an income limit). Does that mean no one should ever contribute to a Roth IRA? No, it si...
by jhogue
Tue Aug 17, 2021 5:39 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Do you think inflation will drop again? Is that with or without Biden's record $3.5 trillion budget?
by jhogue
Tue Aug 17, 2021 4:56 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

-I don’t see a point in keeping cash in a checking account at 1%. I buy virtually everything with a Fidelity VISA card that returns 2% on all purchases. -As you suggest, I bonds with a fixed rate above 0.00% are the only Treasury-issued instruments guaranteed to yield a positive after inflation retu...
by jhogue
Tue Aug 17, 2021 3:14 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

So what do you think would be a better Cash alternative over the long run?
by jhogue
Mon Aug 09, 2021 11:42 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

You call that hard work, Vinny? -We routinely worked 100 hours/ week at the fertilizer business during planting season. I will probably die from pesticide poisoning—we bathed in the stuff daily. -My other summer job when I was 17 was building grain bins with pneumatic socket wrenches. Hard hat, gogg...
by jhogue
Mon Aug 09, 2021 10:29 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Vinny, 1. isn't it nice to have a cushion of Cash? 2. My first salaried job (with W-2) started the day after I turned 16. I got my commercial driver's license and drove a fertilizer truck for my parents' company. My all-cash side hustle was bailing hay for local farmers. I have always had some kind ...
by jhogue
Sun Aug 08, 2021 2:41 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Vinny, Do keep us posted. I reread this entire thread. From what you have written, I cannot tell if the problem is with Treasury (which issues I bonds), or with the IRS (which has to process your return first, and then pass it on to Treasury). You may have to contact the latter to be sure that your ...
by jhogue
Sun Aug 08, 2021 9:41 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

They can answer questions about either your TreasuryDirect account or purchases of paper I bonds.
by jhogue
Sun Aug 08, 2021 8:01 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Try this:

Treasury Retail Division:

Call them during business hours at 1-844-284-2676. Yes, they do answer the phone and yes they are extremely helpful.
by jhogue
Tue Aug 03, 2021 5:09 pm
Forum: Cash
Topic: TIPS
Replies: 24
Views: 1485

Re: TIPS

At least theoretically, a TIPS fund should be less volatile than a TIPS ETF because it will only be marked to market at the end of each day, while the professional inflation expectation traders on Wall Street will be jumping in and out of the ETF market throughout the trading day. But let us return ...
by jhogue
Tue Aug 03, 2021 8:38 am
Forum: Cash
Topic: TIPS
Replies: 24
Views: 1485

Re: TIPS

Sorry sophie, but there is no question in my mind that buying a big position in short term TIPS is the opposite of HBPP market agnosticism. It is pure speculation on the future of interest rates. Look at the charts for STIP, which is ishares' 0-5 year TIPS ETF. In March 2020 the discount on STIP’s N...
by jhogue
Mon Aug 02, 2021 7:37 am
Forum: Cash
Topic: TIPS
Replies: 24
Views: 1485

Re: TIPS

@pp4me: I sympathize with the desire to improve on the abysmal yield currently provided by nominal Short Term Treasurys. The Fed remains hell-bent on Zero Interest Rate Policy (ZIRP). For example, FDLXX, Fidelity’s all-Treasury money market fund, has a year-to-date return of 0.00%-- and, of course, ...
by jhogue
Mon Jun 28, 2021 9:17 am
Forum: Stocks
Topic: Best fund/ETF for equities portion of Permanent Portfolio?
Replies: 16
Views: 6188

Re: Best fund/ETF for equities portion of Permanent Portfolio?

I am (somewhat) surprised that no one has mentioned FZROX (Fidelity ZERO Total Market Index Fund). 1. FZROX is a newer and smaller fund that has pioneered my favorite expense ratio of 0.00%. Over time, expense really does matter. I am also doing Roth conversions, which should lower taxes in the long...
by jhogue
Sun Jun 13, 2021 12:23 pm
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Vinny, I e-filed my 1040 on 3 May. I have not yet received my paper I-bonds. There are a lot of complaints on several threads over on bogleheads on the IRS lateness of returns. You may recall that the agency had similar problems attributable to lockdowns over the virus last year. The agency had to p...
by jhogue
Sun Jun 13, 2021 7:49 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

How is the CPI-U relevant to inflation these days anyway? Good question! To paraphrase Winston Churchill, I think CPI-U is the worst possible inflation index—except for all others. CPI-U has serious shortcomings, but what would be a better replacement? For more on the subject, see the interesting l...
by jhogue
Sat Jun 12, 2021 11:36 am
Forum: Cash
Topic: New I-bond rate: 3.54%
Replies: 99
Views: 6976

Re: New I-bond rate: 3.54%

Nope. You are wrong on multiple points.

You really should read the TreasuryDirect website before you post on this subject again.