Vinny
boglerdude wrote: ↑Fri Jul 05, 2019 3:27 amWelcome to the forum OP
I use ibonds and Orion's 4% checking
With some effort you can buy more than 10k ibonds or EE bonds each year
https://www.bogleheads.org/forum/viewtopic.php?t=213142
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boglerdude wrote: ↑Fri Jul 05, 2019 3:27 amWelcome to the forum OP
I use ibonds and Orion's 4% checking
With some effort you can buy more than 10k ibonds or EE bonds each year
https://www.bogleheads.org/forum/viewtopic.php?t=213142
jhogue wrote: ↑Fri Jul 05, 2019 2:57 pmWelcome to the forum.
I think the above suggestions will probably work out just fine for you.
That said, consider the following points:
1. Keep in mind that the purpose of Cash in the PP is to always hold the safest and most liquid asset possible in case one of the three volatile assets exceeds its 35/15 bands and needs to be rebalanced. Cash will smooth out your portfolio returns over time.
2. Investors in the HBPP have discovered that one of the four assets will almost invariably lags the others. Right now, that lagging asset is Cash. That makes it tempting to make the mistake of chasing yields in Cash by trying to substitute higher-yielding securities like unbreakable CDs or intermediate term Treasurys in place of more liquid, shorter-duration Treasurys. Don’t do it.
Yep, I try to overpay taxes. Then $10k for each one of me, my wife and 2 kids... so plenty of room there. It would mean my additional contributions for the year are north of $200k (never happened )
Just that: I buy TBills at Fidelity, and I select auto-roll, so then they mature Fidelity uses the proceedings to buy more of the same duration.
No concerns, as close as cash I can get without having to bother selling TBills for each and every expense.
They are iShares ETFs, which trade for free at Fidelity
anato wrote: ↑Fri Jul 05, 2019 12:36 am3 components for me:
1. I Bonds (every year, as many as I can get)
2. 1-3-6 months TBills in auto-roll at Fidelity
3. $10k-ish in a Fidelity cash account, in FDLXX
The dynamic is fairly easy: when the balance in the cash account reaches $11k (and no big expense is on the horizon), that $1k becomes a T-Bill (whichever has the best interest rate at the moment), ITOT, IJS (I have a Golden Butterfly, not a pure PP) o IAU.
Long term treasury bonds are all in the 401k and HSA (CA resident, so I need to avoid paying state taxes on that HSA), I don't keep cash in them except for the $1-2k building up for the next (mostly bond) purchase.
Once a year, I ransack the T-Bills to get as many I Bonds as I can.
Rinse and repeat.
If some big expense is on the horizon (e.g. new car), I just make sure I keep that money ready available in either the cash account or (if not happening in the next month or so) T-Bills, in excess of my target 20% allocation.
sophie wrote: ↑Sat Jul 06, 2019 2:29 pmCheck out the numerous threads on cash. There are so many options it's ridiculous. It depends on your time horizon, tax situation, and how much you value simplicity. One approach is to divide your cash allocation into thirds: the top third is easily accessible cash (savings account, money market fund), the bottom "deep" third can be long-term holdings like Series I bonds or 5 year CDs, and the middle third is, well, middle (e.g. autorolled Treasury bills).
I happen to have high state/local taxes, so the highest yield for me right now is the one month Treasury bill, which I hold at Fidelity on autoroll. I use treasury money markets (Vanguard and Fidelity) and series I savings bonds also.
dualstow wrote: ↑Sat Jul 06, 2019 5:36 pmTD sent me an offer of a $500 bonus if I deposit 20K. So 2.5% After that, the savings rate is 0.10% I looked up Ally’s rate because I have checking with them and thought, ooh, 2.10%, not bad. (There are other offerings from TD that are higher, but without the bonus, I think).
Not really worth opening and closing accounts.
jacksonM wrote: ↑Sun Jul 07, 2019 6:57 pmT bills for me too. Some of it is in various money market accounts at Fidelity and Vanguard for convenience sake but basically if I have a big bunch of cash it goes into T-Bills.
As for why I do this, it's because that was what HB suggested in his book and also the authors of the newer book by the folks who originally started this forum. They seemed to have spent more time thinking about these kinds of things than me and showed facts and figures for why it worked in the overall scheme of things so I didn't see any reason to delve any further to come up with my own plans.
Especially true nowadays when the best you can hope for with cash beyond what they recommended is is a minuscule improvement that doesn't really justify the risk of doing something else.
vnatale wrote: ↑Mon Oct 07, 2019 8:00 pmA few questions for you...
1) First the oddball one. How do you get current news to appear under your posts -- even long after you have composed them?
2) I have read here how some people have created automatic ladders in Fidelity. I did call Vanguard (my investment company exclusively) to learn all about buying bills and bonds through them. They did not seem to offer any form of automatic buying? Is that true? You have to manually make your own ladders?
Thanks
Vinny
i like shv for cash ... shy is to bond related when rates rise ....shy is nice when the trend is down but it moves to much when rates go up up.
I don't use ETFs for cash, but it's mainly because they are a PITA to trade. Plus I've experienced a bit of float with share values. Much prefer money market funds pegged at $1/share and straight up T bills.
Vanguard is paying 1.87% compounded minus the 0.09% ER per their own site.mathjak107 wrote: ↑Sun Oct 27, 2019 2:01 pmMarket watch shows vusxx at 2.23 and shv at 2.22 expenses included ........hardly worth me dealing with vanguard for
Yes indeed!!!! (What's #11?)
- #11 is the fund number. I often search for this fund with the ticker if i use google, but with the fund number if I’m on Vanguard’s own site. I find it easier to remember the numbers for some reason. I’m definitely more word-oriented than math-inclined, but these non-word tickers are easy to mix up.sophie wrote: ↑Mon Oct 28, 2019 6:54 amYes indeed!!!! (What's #11?)
Another advantage of VUSXX over an ETF: you can print out and mail in a form to Vanguard, and they'll send you free checks. Gives you another way to access the cash in VUSXX: write a check.
Which I might end up doing soon enough...had a big plumbing leak last night under my sink and the downstairs neighbor got water pooling on her lovely gourmet wood kitchen cabinets. The super shut off the water in my kitchen so I have to do dishes in the bathtub for now. Yikes.
Does that whole process now seem like the Dark Ages compared to now? I also used to buy tons of stamps back and write a lot of checks. Now it's only a handful of stamps used ALL year and not that many checks written.
Yeah... except just remember... common everyday email is NOT ENCRYPTED. If you want something to be really pretty private, send it by US Mail... or encrypt it.