Search found 437 matches

by jhogue
Tue Mar 31, 2020 3:36 pm
Forum: Bonds
Topic: Negative interest rates
Replies: 51
Views: 3941

Re: Negative interest rates

I am letting the balance of my T-bills mature and not renewing them at negative nominal yields. Proceeds are currently split between my treasury money market fund (FDLXX) and my annual I bond purchase. I think that it helps to remember that while the real yield on Cash is slightly negative, the yiel...
by jhogue
Thu Mar 26, 2020 10:51 am
Forum: Cash
Topic: Negative 1 and 3 Month Treasury Rates
Replies: 21
Views: 394

Re: Negative 1 and 3 Month Treasury Rates

Now would be a great time to start an I-bond ladder.

The yield on the I-bond will be 2.22% until 1 May 2020.

Get 'em while they are red-hot!
by jhogue
Thu Mar 26, 2020 10:45 am
Forum: Permanent Portfolio Discussion
Topic: Desert Portfolio vs PP
Replies: 4
Views: 269

Re: Desert Portfolio vs PP

I could be wrong, but I believe that a Desert Portfolio generates more taxable interest and dividends than an HBPP. The charts do not account for that real world problem.
by jhogue
Thu Mar 26, 2020 9:55 am
Forum: Other Discussions
Topic: Not the Onion or the Babylon Bee
Replies: 18
Views: 226

Re: Not the Onion or the Babylon Bee

I assume that just by virtue of people having joined this forum that it would be overwhelmingly composed of "ants" over "grasshopper"? I am the ultimate ant! Vinny Yes, but I doubt most of us are as hardcore as you. I definitely don't still have any shirts or jeans from 20 years ago. :P I am more a...
by jhogue
Wed Mar 25, 2020 8:59 am
Forum: Cash
Topic: Ok, everyone, time to go Treasury-only MMFs
Replies: 68
Views: 1945

Re: Ok, everyone, time to go Treasury-only MMFs

Vinny,
Please see my comments regarding your situation over at the bond buying tutorial thread.
by jhogue
Wed Mar 25, 2020 8:48 am
Forum: Bonds
Topic: Treasury Bond Buying Tutorial
Replies: 119
Views: 126300

Re: Treasury Bond Buying Tutorial

Vinny, Given all of the difficulties that you have described in multiple threads on this forum dealing with Vanguard over the telephone, I wonder if you would not be more satisfied establishing your accounts in-person at your nearest Fidelity brick-and-mortar office. -Fidelity's headquarters is in B...
by jhogue
Tue Mar 24, 2020 2:56 pm
Forum: Variable Portfolio Discussion
Topic: Strategically taking a 401k loan and/or no-penalty withdrawal
Replies: 23
Views: 456

Re: Strategically taking a 401k loan and/or no-penalty withdrawal

The OP was talking about a 401k loan as an investment, not as a means to survival. As an investment, a 401k loan is always a bad idea. Tax laws are written to ensure that pulling money out of a 401k will cost you money. In the long run, you are always ahead to leave an investment inside of your 401k...
by jhogue
Tue Mar 24, 2020 2:28 pm
Forum: Variable Portfolio Discussion
Topic: Strategically taking a 401k loan and/or no-penalty withdrawal
Replies: 23
Views: 456

Re: Strategically taking a 401k loan and/or no-penalty withdrawal

I would never take out a 401k loan because I always keep plenty of cash on hand.

All loans are leverage and leverage usually makes for bad investments, as Uncle Harry taught us.
by jhogue
Mon Mar 23, 2020 11:33 am
Forum: Cash
Topic: Can T-bills trade at a premium?
Replies: 9
Views: 390

Re: Can T-bills trade at a premium?

Fidelity fixed income page shows the following: US Treasury CUSIP # 9128285Q9, maturity 11/30/20, yield 0.313, bid 101.667, ask 101.871, yield to maturity 0.021. Depth of book shows recent transactions (more sells than buys). Yes, some T-bills can (and do) trade at a premium in the secondary market ...
by jhogue
Sun Mar 22, 2020 12:29 pm
Forum: Cash
Topic: Schwab cancels T bill rollovers due to negative rate fears
Replies: 23
Views: 509

Re: Schwab cancels T bill rollovers due to negative rate fears

The last thing I would do with T bill money is put it in a bank! Are you serious???? If we slide into a depression and banks start failing with the federal government already having spent trillions on stimulus packages, I'm not sure the FDIC guarantee is going to mean much. I had in mind watching t...
by jhogue
Sat Mar 21, 2020 3:42 pm
Forum: Cash
Topic: How do you invest the Cash portion?
Replies: 194
Views: 53790

Re: How do you invest the Cash portion?

I just saw this notice on Fidelity's fixed income web page: icon-exclamation-yellowtriangle-1x Recent extreme market conditions have resulted in a lack of liquidity, wide spreads (the difference between the price a customer can buy and sell a bond), large swings in prices, and substantial increases ...
by jhogue
Fri Mar 20, 2020 10:09 pm
Forum: Cash
Topic: Schwab cancels T bill rollovers due to negative rate fears
Replies: 23
Views: 509

Re: Schwab cancels T bill rollovers due to negative rate fears

Interesting development.

This morning, I checked the Treasury yield curve at Fidelity and noted something I had never seen before-- no 3 month and no 6 month T-bills available.

With the 30 year T-bond yielding only 1.45%, the entire Treasury yield curve has a negative real yield right now.