Max [maxmyinterest.com]

Discussion of the Cash portion of the Permanent Portfolio

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Kbg
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Re: Max [maxmyinterest.com]

Post by Kbg » Thu Jun 28, 2018 9:11 am

eufo wrote:
Wed Jun 27, 2018 8:47 pm
CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.
It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.
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eufo
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Re: Max [maxmyinterest.com]

Post by eufo » Thu Jun 28, 2018 12:45 pm

Kbg wrote:
Thu Jun 28, 2018 9:11 am
eufo wrote:
Wed Jun 27, 2018 8:47 pm
CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.
It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.
But yet it does.
Don't agree with me too strongly or I'm going to change my mind
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dualstow
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Re: Max [maxmyinterest.com]

Post by dualstow » Thu Jun 28, 2018 1:19 pm

Ha. Well, as Kevin M said over at Bogleheads, that 2.8% figure is just a 12-month snapshot.
Today is Treasury Interest Day for some of us
de-fang the snake, said my filipino kali instructor. Shortly after that, he hit me in the head with a rattan stick.
— Desert, 2016 (Nomad clothing thread)
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Kbg
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Re: Max [maxmyinterest.com]

Post by Kbg » Thu Jun 28, 2018 1:37 pm

eufo wrote:
Thu Jun 28, 2018 12:45 pm
Kbg wrote:
Thu Jun 28, 2018 9:11 am
eufo wrote:
Wed Jun 27, 2018 8:47 pm
CIT Bank Money Market has upped to 1.85%. Cash is feeling comfy.
It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.
But yet it does.
Captain, illogical. :-)
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eufo
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Re: Max [maxmyinterest.com]

Post by eufo » Thu Jun 28, 2018 3:39 pm

Kbg wrote:
Thu Jun 28, 2018 1:37 pm
eufo wrote:
Thu Jun 28, 2018 12:45 pm
Kbg wrote:
Thu Jun 28, 2018 9:11 am


It shouldn't be feeling comfortable at all...you are losing .95% real as inflation is running about 2.8% now.
But yet it does.
Captain, illogical. :-)
Feelings are always illogical, but as long as I stick to a logical plan, all is good.
Don't agree with me too strongly or I'm going to change my mind
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ochotona
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Re: Max [maxmyinterest.com]

Post by ochotona » Sun Jul 08, 2018 7:27 am

Ally 1.75%
Marcus 1.80%
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pugchief
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Re: Max [maxmyinterest.com]

Post by pugchief » Sun Jul 08, 2018 8:19 am

ochotona wrote:
Sun Jul 08, 2018 7:27 am
Ally 1.75%
Marcus 1.80%
Meh
(Quasi Treasury) Vanguard Federal MM 1.84%
Purepoint 1.9%
Vanguard Prime MM 2.04%
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jhogue
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Re: Max [maxmyinterest.com]

Post by jhogue » Sun Jul 08, 2018 2:29 pm

Note the effects of the FOMC’s deliberate flattening of the yield curve on investors’ Deep Cash choices:

3 month Treasury = 1.96%
1 year Treasury = 2.37%
30 year Treasury = 2.93%

1. Given that a 1 year T-bill now captures an astounding 93% of the yield of a 30 year T-bond, AND that the FOMC is transparently promising to raise the Fed Funds rate twice before the end of 2018, anyone who buys a longer term Treasury or CD seems to be buying unnecessary interest rate risk.

2. While I bonds for “deep cash” currently offer a comparatively attractive 2.52% (2.70% tax equivalent yield for this MN resident), and I purchased my usual limit of $5,000 paper I bonds with my 2017 IRS refund earlier this year, I will still be waiting until the November 2018 reset to purchase electronic I bonds from Treasury Direct in anticipation that there is almost certainly another increase in the I bond fixed rate component in the offing.
“Groucho Marx wrote:
A stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!"
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ochotona
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Re: Max [maxmyinterest.com]

Post by ochotona » Sat Jul 14, 2018 7:06 am

pugchief wrote:
Sun Jul 08, 2018 8:19 am
ochotona wrote:
Sun Jul 08, 2018 7:27 am
Ally 1.75%
Marcus 1.80%
Meh
(Quasi Treasury) Vanguard Federal MM 1.84%
Purepoint 1.9%
Vanguard Prime MM 2.04%
Though I have wondered about just buying 30-day Bills. I don't like the TreasuryDirect user interface, though I use it for I-Bonds. Plus what if we had a real emergency just after buying some 30-day Bills? My wife would never, ever use TD. Schwab? I'd hate to have to remember to reinvest the proceeds. If you are a day late, you give up all the rate advantages.
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pugchief
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Re: Max [maxmyinterest.com]

Post by pugchief » Sat Jul 14, 2018 7:19 am

ochotona wrote:
Sat Jul 14, 2018 7:06 am
pugchief wrote:
Sun Jul 08, 2018 8:19 am
ochotona wrote:
Sun Jul 08, 2018 7:27 am
Ally 1.75%
Marcus 1.80%
Meh
(Quasi Treasury) Vanguard Federal MM 1.84%
Purepoint 1.9%
Vanguard Prime MM 2.04%
Though I have wondered about just buying 30-day Bills. I don't like the TreasuryDirect user interface, though I use it for I-Bonds. Plus what if we had a real emergency just after buying some 30-day Bills? My wife would never, ever use TD. Schwab? I'd hate to have to remember to reinvest the proceeds. If you are a day late, you give up all the rate advantages.
Open an account with Fidelity if you don't already have one. Buying T-bills is super easy, and you can set it up to auto-roll. If you need the cash, sell them early, commission-free. Schwab charges to sell them IIRC.
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Desert
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Re: Max [maxmyinterest.com]

Post by Desert » Sat Jul 14, 2018 7:47 am

I agree with pug, it appears that Fidelity is the best platform right now for short treasuries, due to the auto-roll.

Would you buy 30 day or go out to a year, as Jhogue has suggested? That ~2.34% for 1 year looks good.

I'll probably stick with Vanguard Treasury MM at 1.84% for now, since I don't want to open another account right now.
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ochotona
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Re: Max [maxmyinterest.com]

Post by ochotona » Sat Jul 14, 2018 9:03 am

Desert wrote:
Sat Jul 14, 2018 7:47 am
I agree with pug, it appears that Fidelity is the best platform right now for short treasuries, due to the auto-roll.

Would you buy 30 day or go out to a year, as Jhogue has suggested? That ~2.34% for 1 year looks good.

I'll probably stick with Vanguard Treasury MM at 1.84% for now, since I don't want to open another account right now.
I'm going to shut down Marcus. Indeed, no point in it. Fidelity set-up, funding underway.
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