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Old 11-08-2018, 10:00 AM   #521
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Filthy market timers & disgusting rate chasers.
Why, thank you for the compliment!
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Old 11-08-2018, 10:03 AM   #522
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Put a good bunch in at 2.7% for 1 yr. this week. Thinking its probably a wash.
Waiting around in the 2% range V.S getting .7 more for a year then getting a 5 yr with the funds (that I believe will be 5% or more 12 mo's from now) Silly games.......
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Old 11-08-2018, 01:03 PM   #523
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The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.


How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or
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Old 11-08-2018, 01:16 PM   #524
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How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or
I haven't paid enough attention to give a definitive answer. But if you want daily rates you can go here:
https://personal.vanguard.com/us/fun...2018&year=#res

VMMXX is fund 0030. Enter any date range you want.

On January 1 the yield was 1.37%. June 21 it hit 2.0%. It's now 2.22%.
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Old 11-08-2018, 01:21 PM   #525
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13 week Treasure Bill 2.366
See the rates from recent auctions 4, 8, 13, 26, 52 week on the US Treasury direct site.
https://www.treasurydirect.gov/insti...nnceresult.htm

Buying T Bills is easier than you think.
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Old 11-08-2018, 01:45 PM   #526
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[QUOTE=pb4uski;2138543]One thing to remember to do (I just did this the other day).... get online and set your PenFed CDs so that they don't automatically renew under the More account info and actions and then Certificate Options.

thank you for the reminder. I have some coming due soon.
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Old 11-08-2018, 02:28 PM   #527
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The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.
Well, according to my spreadsheet, my weighted APR in my cash/CD accounts is 2.55% and the weighted maturity is 234 days (0.64 years). That is including some cash in brokerage accounts and traditional credit union accounts that is yielding 0%, and some in high yield savings/Money market so that I could pay an unexpected expense w/o breaking a CD.

I only bring this up in that there can be some value in chasing, in this case a 14.8% higher return (2.55-2.22)/2.22 while still keeping a relatively short term duration. (This is $330 per year per $100,000 invested.)
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Old 11-08-2018, 02:42 PM   #528
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I hope you are correct. That would give us a fighting chance of beating inflation with some real gains after taxes.
Um? What? If rates get to 5%, then I think inflation will be at least that much. If we are making crazy wishes, how about the 15% CDs that could be had in 1979? That would be fantastic...right?
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Old 11-08-2018, 02:44 PM   #529
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Um? What? If rates get to 5%, then I think inflation will be at least that much. If we are making crazy wishes, how about the 15% CDs that could be had in 1979? That would be fantastic...right?
Well a 30 year Treasury Bond from the late 70's wouldn't have been too bad.
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Old 11-08-2018, 02:49 PM   #530
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Well a 30 year Treasury Bond from the late 70's wouldn't have been too bad.
No doubt.
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Old 11-08-2018, 03:09 PM   #531
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Problem is interest rarely stay very high for extended periods. You probably could not get a 30 year for those high rates at the time. I remember when I first came to North America in 82 that interest rates were way up. I purchased a 2 year at some high rate and rented an apartment. When it matured, I purchased a car cash and put a down payment on a condo with the interest alone. Those were the days, I think the condo was like $30k for a 3 bed 3 bath with a basement. :sigh:
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Old 11-08-2018, 07:34 PM   #532
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How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or
Daily I expect.
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Old 11-08-2018, 10:01 PM   #533
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Well, according to my spreadsheet, my weighted APR in my cash/CD accounts is 2.55% and the weighted maturity is 234 days (0.64 years). That is including some cash in brokerage accounts and traditional credit union accounts that is yielding 0%, and some in high yield savings/Money market so that I could pay an unexpected expense w/o breaking a CD.

I only bring this up in that there can be some value in chasing, in this case a 14.8% higher return (2.55-2.22)/2.22 while still keeping a relatively short term duration. (This is $330 per year per $100,000 invested.)
Equivalent to about one hour of time if you value yours as Darrow does: https://www.caniretireyet.com

Is it worth the time you spend to earn the $330?
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Old 11-09-2018, 05:43 AM   #534
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Ally Bank 11 month no penalty CD 2.20%
12 month CD 2.65%
18 Month CD 2.70% ($25k+)
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Old 11-09-2018, 05:56 AM   #535
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Ally Bank 11 month no penalty CD 2.20%
12 month CD 2.65%
18 Month CD 2.70% ($25k+)
OK! Going to be doing some upgrading soon. No penalty CD will probably be even higher by Jan.
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Old 11-09-2018, 05:59 AM   #536
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Equivalent to about one hour of time if you value yours as Darrow does: https://www.caniretireyet.com

Is it worth the time you spend to earn the $330?
That was a very interesting article, thanks. Along with the comments. I'm not sure I understood his conclusions though in terms of where he felt safest stashing his cash.
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Old 11-09-2018, 06:16 AM   #537
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Make sure you stay on top of any CD's issued by GS/Marcus. I let one slip because I got no notice and it renewed at a well below market rate. Fortunately, I caught it during the grace period, but no notice.

And thanks to whoever posted you could opt out of renewing PenFed CD's on-line. They were on my "to do" list for early December. Now done.
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Old 11-09-2018, 06:23 AM   #538
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Did agree with his idea of reducing the number of institutions. Am also trying to keep it to a minimum and still get a decent return. Always a struggle as great rates are offered at times to get new customers. At places you would seldom think to invest with.
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Old 11-09-2018, 06:28 AM   #539
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Make sure you stay on top of any CD's issued by GS/Marcus. I let one slip because I got no notice and it renewed at a well below market rate. Fortunately, I caught it during the grace period, but no notice.

And thanks to whoever posted you could opt out of renewing PenFed CD's on-line. They were on my "to do" list for early December. Now done.
Yeah - thatís really important. Ally and PenFed have been easy to deal with in this regard because you can change the renewal options online. PenFed lets you set up no renewal when you open the CD. Synchrony is more of a pain, because you have to call in to not renew, but you can do this in advance and donít have to wait until the CD matures.
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Old 11-09-2018, 06:50 AM   #540
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That was a very interesting article, thanks. Along with the comments. I'm not sure I understood his conclusions though in terms of where he felt safest stashing his cash.
Apparently he does not consider "treasury only" money market funds, such as VUSXX, to be safe, nor does he like on-line banks because they might use bait and switch. As a result, he accepts an interest rate that guarantees he will lose out to inflation over the period he intends to hold so he can "simplify." The fear creeping into his thought process is unsettling.
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