Search found 402 matches

by jhogue
Sat Dec 21, 2019 9:09 am
Forum: Permanent Portfolio Discussion
Topic: 401K rules are changing
Replies: 3
Views: 345

Re: 401K rules are changing

1. The legislation is called the SECURE Act. The advertised aim is to encourage retirement saving. Whether it would actually do this is arguable. 2. I think that Sophie's instincts are correct. Those most likely to be made more financially secure by the provisions of this law are insurance salesmen ...
by jhogue
Wed Dec 18, 2019 9:50 am
Forum: Cash
Topic: Treasury Direct account security discussion at Bogleheads
Replies: 35
Views: 22233

Re: Treasury Direct account security discussion at Bogleheads

Exactly. Just as in the Lehman Brothers bankruptcy in 2008, it will be impossible in advance to predict where, when, and how the next liquidity crisis will strike. The point of holding T-bills in a brokerage, I bonds in a safe deposit box or TreasuryDirect account, and a stash of greenbacks somewhe...
by jhogue
Sat Dec 14, 2019 3:21 pm
Forum: Bonds
Topic: Buying and maintaining the LT bonds part of the PP
Replies: 19
Views: 1313

Re: Buying and maintaining the LT bonds part of the PP

I live in the EU and am going to buy German "bunds" which are available (secondary market) through my broker. I have a few questions: 1. The only bond with 30-year maturity is https://www.boerse-berlin.com/index.php/Bonds?isin=DE0001102481. It has a 0% coupon and trades at a discount. Does all that...
by jhogue
Wed Dec 11, 2019 9:08 am
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

Don’t forget, the govt can print money. So getting your money back is not really the issue. Far more likely problems are legal delays and in the ZA (new acronym for Zombie Apocalypse) inflationary devaluation. To me for the first and most likely problem, treasury direct is a no brainer. Just you an...
by jhogue
Tue Dec 10, 2019 9:18 am
Forum: Bonds
Topic: TLT Historical?
Replies: 3
Views: 408

Re: TLT Historical?

Vinny,

I bought TLT when I first bought into the Permanent Portfolio. After about 6 months, I switched to 30 year T-bonds held in a tax-deferred brokerage account.
by jhogue
Tue Dec 10, 2019 8:38 am
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

I'm not getting Ally CDs, using their Savings. Pays more than 30-day T-Bill. Yeah, I know about Ally... it use to be GMAC. Ally savings account interest rate is currently 1.70%. 3 month T-bill interest rate is currently 1.59%. Simple to ladder and put on auto-roll. The difference is 0.11% ( further...
by jhogue
Mon Dec 09, 2019 11:08 am
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

(Sigh) 1. Does anyone examine the creditworthiness of the banks that are peddling these supposedly “red hot” CD rates? Ally Bank, its predecessor , and its subsidiaries were up to their eyeballs in subprime mortgages. It had to be bailed out with $17 billion in TARP funds or it would have failed. Wh...
by jhogue
Fri Dec 06, 2019 3:47 pm
Forum: Other Discussions
Topic: Amazon medical transcriptions
Replies: 9
Views: 476

Re: Amazon medical transcriptions

Happy Birthday, Pugchief!

How many is that in pug-years?

Sorry I can't be there to help you celebrate. How about if I just send you an I-bond as a gift instead?
by jhogue
Fri Dec 06, 2019 3:27 pm
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

Vinny, Financial safety is reinforced through diversity and liquidity. T-bills held in a brokerage account at Vanguard are safe enough for “normal” times because Vanguard is a big active player in the enormous world-wide secondary market for Treasurys. Unless there is a terrific disruption in this m...
by jhogue
Thu Dec 05, 2019 9:00 am
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

Vinny, Remember that if you held your short term T-bill to maturity, you got your full principal back plus your original stated interest. Note too in the 2008 example you cited that when US interest rates fell, the principal value of the 30 year T-bonds in the HBPP rose dramatically. You always have...
by jhogue
Tue Dec 03, 2019 6:27 pm
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

Did you read the fine print? : "Special 55-Month Certificate offer and stated APY may change at any time. APY effective August 14, 2019, is 2.60%; interest rate is 2.575%. Certificate has a $1,000 minimum and a $250,000 maximum balance. Must maintain a minimum $1,000 balance to earn the advertised A...
by jhogue
Tue Dec 03, 2019 9:45 am
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 180
Views: 42879

Re: How do you invest the Cash portion?

So, for that miniscule difference, why bother taking the credit risk of the CD-issuing bank PLUS the credit risk of the FDIC?

If all you really care about is a higher interest rate, I am sure there must be some really red-hot CD rates from Venezuelan banks right now. Adios, amigos!