How do you invest the Cash portion?

Discussion of the Cash portion of the Permanent Portfolio

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mathjak107
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Re: How do you invest the Cash portion?

Post by mathjak107 » Sat Oct 26, 2019 3:05 am

ochotona wrote:
Fri Oct 25, 2019 7:19 pm
Does anyone use SHV for cash?
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.

as it is gold and long term rates seem to move together . i would not want anymore correlated movement by using shy . shv is far less rate sensitive then shy .
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sophie
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Re: How do you invest the Cash portion?

Post by sophie » Sun Oct 27, 2019 11:07 am

ochotona wrote:
Fri Oct 25, 2019 7:19 pm
Does anyone use SHV for cash?
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.

Also, VUSXX (Vanguard treasury-only MM) blows SHV away on the expense ratio (0.09% vs 0.15%). I wish FDLXX (Fidelity's treasury MM) would come down from its eye-popping 0.42%.
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Re: How do you invest the Cash portion?

Post by dualstow » Sun Oct 27, 2019 1:06 pm

VUSXX/#11 is the greatest.
Under political pressure, Chick-Fil-A 🐓 chain cuts off the Salvation Army - wsj. :o
Vanguard treasury money market now yields 1.71%
compounded (last week, 1.72-3%)
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mathjak107
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Re: How do you invest the Cash portion?

Post by mathjak107 » Sun Oct 27, 2019 2:01 pm

Market watch shows vusxx at 2.23 and shv at 2.22 expenses included ........hardly worth me dealing with vanguard for
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Re: How do you invest the Cash portion?

Post by dualstow » Sun Oct 27, 2019 2:45 pm

mathjak107 wrote:
Sun Oct 27, 2019 2:01 pm
Market watch shows vusxx at 2.23 and shv at 2.22 expenses included ........hardly worth me dealing with vanguard for
Vanguard is paying 1.87% compounded minus the 0.09% ER per their own site.
Under political pressure, Chick-Fil-A 🐓 chain cuts off the Salvation Army - wsj. :o
Vanguard treasury money market now yields 1.71%
compounded (last week, 1.72-3%)
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mathjak107
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Re: How do you invest the Cash portion?

Post by mathjak107 » Mon Oct 28, 2019 3:06 am

be careful comparing yields ... first off the sec yield on money markets is a 7 day average ... the sec yield on etf's like shv are based on the last 30 days ending on the last day of the last month . plus shv can have capital appreciation . so i would not compare a money market to shv and then rule out shv because of a higher expense ...you are not even comparing the same duration holdings so it can not be an apple to apple comparison ..

my shv has outperformed my money market .
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Re: How do you invest the Cash portion?

Post by sophie » Mon Oct 28, 2019 6:54 am

dualstow wrote:
Sun Oct 27, 2019 1:06 pm
VUSXX/#11 is the greatest.
Yes 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.
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Re: How do you invest the Cash portion?

Post by mathjak107 » Mon Oct 28, 2019 4:15 pm

We do all bill paying ,transfers and coordination of our finances through fidelity .....so all check writing goes through the core .we can shift money from shv , but I look at them as two separate functions ....shv holds cash that is like a stock option with no expiration date to buy assets at lower prices .....so it has a different function than our money market core.

If the flood was not your fault liability wise you are not responsible for damage ...my son had a sink pipe break and flood downstairs ...since he never touched the original sink or pipe he was found not responsible for any damages below
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Re: How do you invest the Cash portion?

Post by dualstow » Tue Oct 29, 2019 7:07 am

sophie wrote:
Mon Oct 28, 2019 6:54 am
dualstow wrote:
Sun Oct 27, 2019 1:06 pm
VUSXX/#11 is the greatest.
Yes 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.
- #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.

- Checks: yes! Sometimes I use Vanguard checks to pay taxes.

- sorry to hear about the plumbing and your neighbor’s cabinets! I now feel a little less bad about myself, having discovered that a family of birds has made a home in the wood just below my roof. Misery loves company.
Under political pressure, Chick-Fil-A 🐓 chain cuts off the Salvation Army - wsj. :o
Vanguard treasury money market now yields 1.71%
compounded (last week, 1.72-3%)
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Re: How do you invest the Cash portion?

Post by sophie » Tue Oct 29, 2019 9:09 am

Thanks dualstow, I learned something new about Vanguard today. Sorry to hear about your roof issue and hope it's not too expensive! Thinking it might be worth it in the long run to put in a leak detector under the sink.

BTW if anyone is interested in buying a new faucet, here's a big sale at efaucets.com right now.
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Re: How do you invest the Cash portion?

Post by dualstow » Tue Nov 05, 2019 7:55 am

sophie wrote:
Tue Oct 29, 2019 9:09 am
...
I learned something new about Vanguard today.
...

The fund numbers were more useful in the old days when I used to buy shares with a paper check in the mail. You had to write the fund number on the form and on the check.
Under political pressure, Chick-Fil-A 🐓 chain cuts off the Salvation Army - wsj. :o
Vanguard treasury money market now yields 1.71%
compounded (last week, 1.72-3%)
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Re: How do you invest the Cash portion?

Post by vnatale » Tue Nov 05, 2019 12:26 pm

dualstow wrote:
Tue Nov 05, 2019 7:55 am
sophie wrote:
Tue Oct 29, 2019 9:09 am
...
I learned something new about Vanguard today.
...

The fund numbers were more useful in the old days when I used to buy shares with a paper check in the mail. You had to write the fund number on the form and on the check.
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.

Vinny
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