Search found 399 matches

by jhogue
Thu Feb 20, 2020 12:29 pm
Forum: Cash
Topic: Do T-Bills Keep Up with Inflation?
Replies: 24
Views: 559

Re: Do T-Bills Keep Up with Inflation?

This morning, Bloomberg News correspondents declared that this was the "buy everything" market. Almost, but not quite true. Cash is the out of favor asset, thanks to years of pummeling by the Fed. It is difficult to get an inflation-adjusted positive return from anything without taking an outsized r...
by jhogue
Wed Feb 19, 2020 4:58 pm
Forum: Cash
Topic: Do T-Bills Keep Up with Inflation?
Replies: 24
Views: 559

Re: Do T-Bills Keep Up with Inflation?

This discussion brings up my recent thoughts of just going all Treasury Bills or cash. My grandfather lived a sort of Dave Ramsey existence. He never borrowed money, never had credit cards and paid cash for all of his vehicles. The amount of interest he saved over his lifetime must have been stagge...
by jhogue
Mon Feb 17, 2020 2:32 pm
Forum: Bonds
Topic: vanguard vs fidelity
Replies: 37
Views: 8747

Re: vanguard vs fidelity

Vinny, 1. I bonds are guaranteed by the US Treasury to not go below 0% yield in a deflationary interest rate environment. There is no such guarantee for T-bills or TIPS. Also, if you are particularly worried about long term deflation, you might want to investigate EE bonds, which are guaranteed to d...
by jhogue
Thu Feb 13, 2020 1:47 pm
Forum: Permanent Portfolio Discussion
Topic: A popular blogger misses most of it with Gold and the PP
Replies: 11
Views: 2911

Re: A popular blogger misses most of it with Gold and the PP

1. A central problem with owning real estate is that it is illiquid, whether it is your own house or a rental property. The four HBPP assets are liquid enough you can sell them all to cash in 1-2 days. Anyone who has tried to sell a house in a down market like 2008-2009 understands the distress of t...
by jhogue
Thu Feb 06, 2020 3:07 pm
Forum: Permanent Portfolio Discussion
Topic: I'm Done!
Replies: 327
Views: 74775

Re: I'm Done!

Budd’s posts began as contrarion takes on the HBPP performance, but ended up as personal attacks. Our moderator gave him every opportunity to retract, but he refused. Mathjak posted prolifically all over the place. Some people felt he was hijacking conversations. That problem seems to have been reso...
by jhogue
Mon Feb 03, 2020 3:01 pm
Forum: Cash
Topic: Do T-Bills Keep Up with Inflation?
Replies: 24
Views: 559

Re: Do T-Bills Keep Up with Inflation?

Did you see the charts from bogleheads that sophie referenced earlier in this thread? #Cruncher’s first chart showed that T-bills kept up with inflation (but not inflation and taxes) in rough fashion over the ten year test period of 1970-1981. More to the point, I did not say—or mean to imply-- T-bi...
by jhogue
Sun Feb 02, 2020 1:28 pm
Forum: Cash
Topic: Do T-Bills Keep Up with Inflation?
Replies: 24
Views: 559

Re: Do T-Bills Keep Up with Inflation?

T-bills will keep up with inflation over the longer term, but it helps to shorten the maturity if the interest rate is starting to climb rapidly-- like right now. Also not helpful to get stuck at the front end of an inverted yield curve-- as in the last year.
by jhogue
Sat Feb 01, 2020 1:44 pm
Forum: Cash
Topic: Fidelity - SHV BIL or TBILL ladder (auto roll)
Replies: 19
Views: 5664

Re: Fidelity - SHV BIL or TBILL ladder (auto roll)

You are right that FDLXX cannot be used as a sweep account and SPAXX can. That explains part of the disparity in the size of the funds, but not all of it--in my view.
by jhogue
Fri Jan 31, 2020 12:19 pm
Forum: Permanent Portfolio Discussion
Topic: Is cash really 2nd after bonds for retirement accounts?
Replies: 5
Views: 2358

Re: Is cash really 2nd after bonds for retirement accounts?

1. For i bonds, see https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_ibuy.htm and https://www.treasurydirect.gov/indiv/research/faq/faq_irstaxfeature.htm 2. I have had both Roth IRAs and Sep IRAs from Fidelity. If you call a rep by phone, they can help you set up these account...
by jhogue
Fri Jan 31, 2020 10:07 am
Forum: Permanent Portfolio Discussion
Topic: Is cash really 2nd after bonds for retirement accounts?
Replies: 5
Views: 2358

Re: Is cash really 2nd after bonds for retirement accounts?

I think I bonds are a great alternative for tax deferral AND tax diversification of Cash for most investors. Creating a ladder of I bonds year after year before you retire (or even in early retirement) can give you a nice guaranteed income stream in retirement that is not subject to the mandatory RM...
by jhogue
Wed Jan 29, 2020 2:24 pm
Forum: Cash
Topic: Fidelity - SHV BIL or TBILL ladder (auto roll)
Replies: 19
Views: 5664

Re: Fidelity - SHV BIL or TBILL ladder (auto roll)

dualstow, You are probably correct that few people know what the ER is in their money market mutual fund. However, the big money certainly knows: SPAXX, one of the cash sweep funds, has $152 billion in net assets. FDLXX, the Treasury only money market fund, has only $2.9 billion in net assets. Clear...
by jhogue
Wed Jan 29, 2020 8:40 am
Forum: Cash
Topic: Fidelity - SHV BIL or TBILL ladder (auto roll)
Replies: 19
Views: 5664

Re: Fidelity - SHV BIL or TBILL ladder (auto roll)

Isn't it interesting that Fidelity has kept a relatively high ER for its money market funds at the same time its massive advertising campaign highlights its "low fees"? Lower fees, however, will not fix the problem of systemic risk in the repo market. The FOMC's repeated injections of liquidity in t...