William Bernstein on Cash holdings (T-Bills)

[joypog]

Just listening as I work so I haven't listened to the whole program. 14 minutes in, Bernstein mentions that safe assets should be held as T-bills (as opposed to bond funds) and that Buffet holds 20% in bills.

https://twitter.com/i/spaces/1rmGPgNWXRMKN?s=20

[Hal]

You will probably find this five part article interesting then.
https://www.idiosyncraticwhisk.com/search?q=bonds

[whatchamacallit]

Great listen. I seem to always enjoy Bernstein.

Thanks for posting.

[yankees60]

Just listening as I work so I haven't listened to the whole program. 14 minutes in, Bernstein mentions that safe assets should be held as T-bills (as opposed to bond funds) and that Buffet holds 20% in bills.

https://twitter.com/i/spaces/1rmGPgNWXRMKN?s=20

Is there any date for the recording?

[joypog]

Yes, it was today, 5/5/2022.

[yankees60]

Just listening as I work so I haven't listened to the whole program. 14 minutes in, Bernstein mentions that safe assets should be held as T-bills (as opposed to bond funds) and that Buffet holds 20% in bills.

https://twitter.com/i/spaces/1rmGPgNWXRMKN?s=20

This was quite good. Listened to it twice while doing no-mind work on my property this afternoon.

Bernstein (along with Michael Kitces) is on MY personal finance Mt. Rushmore!

[whatchamacallit]

Does anyone else get this image in their head when listening to Bernstein?

The Dude

[yankees60]

Does anyone else get this image in their head when listening to Bernstein?

The Dude

No, since I have prior seen his pictures and have thought he was in his 70s:

Bernstein.jpg (15.37 KiB) Viewed 4449 times

[jalanlong]

Why would he be down on TBill etfs? I’m keeping my dry powder in SGOV which is a 0-3 month treasury bill etf with a .05% expense ratio. I prefer the ease of that instead of setting up auto rolling etc. Especially since I can reinvest the distributions into more shares.

[Kbg]

Why would he be down on TBill etfs? I’m keeping my dry powder in SGOV which is a 0-3 month treasury bill etf with a .05% expense ratio. I prefer the ease of that instead of setting up auto rolling etc. Especially since I can reinvest the distributions into more shares.

In my view .05 is well worth it too. However, individual bonds have a bunch of advantages including aligning with funding needs, less self-sabotaging loss reaction behavior, better tax planning and plain ole keeping your .05% for you.. Let's say you know how to buy a bond on Treasury Direct (TD) or at your broker with a $1M bond portfolio that's 5K per year in savings.

I could set up complex a $1M auto-rolling T-Bill ladder in 15-20 mins top. Probably 5mins for a basic roll it all on the same date next year (or something similar) plan. $5K is quite a bit to pay for a 20 min do it yourself job. (x number of years held)

If I could move money between TD and my brokerage accounts of various tax treatments I'd never own bond fund.

[whatchamacallit]

.05 percent of 1 million would only be 500 but that is still a lot when you think about how little income you are earning from the etf.

If you earned $20,000, $500 would be 2.5% of your income you earned from the fund.

[Kbg]

.05 percent of 1 million would only be 500 but that is still a lot when you think about how little income you are earning from the etf.

If you earned $20,000, $500 would be 2.5% of your income you earned from the fund.

Yep...I goofed it. Thanks for the correction.