How do you invest the Cash portion?
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- Kriegsspiel
- Executive Member
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Re: How do you invest the Cash portion?
What about the superb Gyroscope, by Dismemberment Plan?
I hated all the things I had toiled for under the sun, because I must leave them to the one who comes after me. Who knows whether that person will be wise or foolish? Yet they will have control over all the fruit of my toil into which I have poured my effort and skill under the sun. . . Nothing is better for a man than to eat and drink and enjoy his work.
- Ecclesiastes
- Ecclesiastes
Re: How do you invest the Cash portion?
You see, for the longest time I've kind of lamented choosing "Smith1776" as my username.
Because now changing my avatar to any other historical thinker looks incongruous.
If only I could now be Newton1687 haha.
Because now changing my avatar to any other historical thinker looks incongruous.

If only I could now be Newton1687 haha.
“On balance, the financial system subtracts value from society.”
― John C. Bogle
― John C. Bogle
Re: How do you invest the Cash portion?
You can have it changed. Greg, who made an appearance here recently, was 1NV3ST0R or something like that once upon a time.
“As a white person of colour, I am extremely concerned about the rise of black whiteness.” — Titania McGrath
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
Re: How do you invest the Cash portion?
Hehe, dualstow, I personally think the PP is more like Iron Man than the hulk -- because it's armoured on all sides. 

“On balance, the financial system subtracts value from society.”
― John C. Bogle
― John C. Bogle
Re: How do you invest the Cash portion?
With extremely precious metals.
“As a white person of colour, I am extremely concerned about the rise of black whiteness.” — Titania McGrath
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
pariah — 1610s member of a low caste in S. India; Tamil (Dravidian) “drummer”, as members of the lowest caste played drums at festivals. “social outcast,” 1819.
Re: How do you invest the Cash portion?
A bit of water cooler talk here.
Which would you guys consider to be safer for the cash portion of the PP, assuming you could only pick one?
1) A ladder of 1 - 5 year federal government treasuries
2) A fund with 0 - 90 day commercial paper obligations?
Which would you guys consider to be safer for the cash portion of the PP, assuming you could only pick one?
1) A ladder of 1 - 5 year federal government treasuries
2) A fund with 0 - 90 day commercial paper obligations?
“On balance, the financial system subtracts value from society.”
― John C. Bogle
― John C. Bogle
Re: How do you invest the Cash portion?
2) because interest rate swings will cause volatility for 1). Cash is zero-ish duration almost by definition.
Re: How do you invest the Cash portion?
When it comes to bonds these things are highly efficient and I have no idea why we try to over analyze them. It just isn't hard if you aren't buying a fund. Your return is the interest coupon +/- the par value discount/premium.
The two options provided are time vs. credit risk...treasuries are categorically safer and the interest will be fixed. Commercial paper is more risky as compared to treasuries and the interest return will float/adjust rather quickly.
If the question truly is safety defined as I get all my principal back with interest, no contest.
If the question is where do you think interest rates are going...Och's guess is as good as anybody else's guess.
The two options provided are time vs. credit risk...treasuries are categorically safer and the interest will be fixed. Commercial paper is more risky as compared to treasuries and the interest return will float/adjust rather quickly.
If the question truly is safety defined as I get all my principal back with interest, no contest.
If the question is where do you think interest rates are going...Och's guess is as good as anybody else's guess.
Re: How do you invest the Cash portion?
Right, it's very interesting to see who prefers what kind of risk.
Myself? Seeing what happened to the Reserve Primary Fund with its commercial paper, I prefer the longer duration federal notes personally.
Myself? Seeing what happened to the Reserve Primary Fund with its commercial paper, I prefer the longer duration federal notes personally.
“On balance, the financial system subtracts value from society.”
― John C. Bogle
― John C. Bogle
- mathjak107
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Re: How do you invest the Cash portion?
what money markets can invest in has changed drastically since the reserve fund failed . i owned that money market too
Re: How do you invest the Cash portion?
That is true.mathjak107 wrote: ↑Mon Sep 09, 2019 4:41 pmwhat money markets can invest in has changed drastically since the reserve fund failed . i owned that money market too
“On balance, the financial system subtracts value from society.”
― John C. Bogle
― John C. Bogle
- vnatale
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Re: How do you invest the Cash portion?
Regarding the below....
1) I Bonds. The limit is $10,000? Plus, if you overpay your taxes by $5,000 you can purchase another $5,000 with your tax refund? Is that what you do?
2) Can you give more description of: "1-3-6 months TBills in auto-roll at Fidelity"
3) Obviously you have no concern regarding FDLXX when I wrote:
"Similarly going to Fidelity I see that the composition of the Fidelity® Treasury Only Money Market Fund (FDLXX) is:
Normally investing at least 99.5% of total assets in cash and U.S. Treasury securities.
In addition, the fund normally invests at least 80% of its assets in U.S. Treasury securities.
Its current composition is:
U.S. Treasury Bills 72.23% (81.33% / 9/10/19) , U.S. Treasury Coupons 28.64% (23.00% / 9/10/19) , and Net Other Assets (0.87%) (-4.33% / 9/10/19)"
4) Not following this what you wrote (primarily what the abbreviations represent): "(whichever has the best interest rate at the moment), ITOT, IJS (I have a Golden Butterfly, not a pure PP) o IAU."
Thanks
Vinny
1) I Bonds. The limit is $10,000? Plus, if you overpay your taxes by $5,000 you can purchase another $5,000 with your tax refund? Is that what you do?
2) Can you give more description of: "1-3-6 months TBills in auto-roll at Fidelity"
3) Obviously you have no concern regarding FDLXX when I wrote:
"Similarly going to Fidelity I see that the composition of the Fidelity® Treasury Only Money Market Fund (FDLXX) is:
Normally investing at least 99.5% of total assets in cash and U.S. Treasury securities.
In addition, the fund normally invests at least 80% of its assets in U.S. Treasury securities.
Its current composition is:
U.S. Treasury Bills 72.23% (81.33% / 9/10/19) , U.S. Treasury Coupons 28.64% (23.00% / 9/10/19) , and Net Other Assets (0.87%) (-4.33% / 9/10/19)"
4) Not following this what you wrote (primarily what the abbreviations represent): "(whichever has the best interest rate at the moment), ITOT, IJS (I have a Golden Butterfly, not a pure PP) o IAU."
Thanks
Vinny
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.
"I only regret that I have but one lap to give to my cats."