Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-19-2010, 04:31 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,610
I'm getting 1.3% in my Discover Bank savings account. I belong to AAII, and opened the account through them.
If you're an AAII member, go to https://aaii.discoverbank.com or call 800-338-1302 for the info.
__________________

__________________
Pas de lieu Rhône que nous.
braumeister is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-20-2010, 01:16 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,199
Thanks, Midpack, I haven't looked at the MM yield lately.

With my low tolerance for added complexity, I'm more likely to want to stay within Vanguard.

VBISX: Riskier, but average return of 4% over the last 10 years.

Online Saving: Return of 1-2% with no risk, but extra "paperwork," and possible need to call a company and "press 1 for English, etc."

Here's a comparison of VMMXX (Prime MM) and VBISX (Short Term Bond).

10 years:

ShortTerm.jpg

1 year:

ShortTermOneYear.jpg
__________________

__________________
Al
TromboneAl is offline   Reply With Quote
Old 12-20-2010, 04:47 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,977
Quote:
Originally Posted by TromboneAl View Post

I'm not an MD, but doesn't the yellow line mean the patient has died [flat-lined]?
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Savings places
Old 12-22-2010, 05:02 PM   #24
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
Savings places

I found instead of MMKt...to get Ck writting and transfering $ In /out.. > VSGBX.
yr' Fund TotRtn
08'> VSGBX 7%
09' > VSGBX 3%
10'> VSGBX YTD + 3.14% ( 1.59% yld)

In bear yrs ( 00-02' & 08' ) I split it btwn VSGBX & VFISX

From Vanguard about VSGBX.:

The Vanguard Short Term Federal Fund Investor Shares (VSGBX) will have a
fluctuating share price, unlike a money market fund, but it does still have
the capability of electronic bank transfers and checkwriting. You can
access the fund's prospectus online by going to the Forms section of our
website. From there you will see a link that says Get prospectuses &
reports and you can print it from there.


Also ck out Paul Merriman's FundAdvice.com - Home
He comes up with good places

hope that helps someone
__________________
Dennis is offline   Reply With Quote
Old 12-22-2010, 07:44 PM   #25
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Doesn't using VBISX, VSGBX or VFSTX complicate tax tracking?

I went with PenFed CDs for reasonable return with minimal hassle. It's painful to see the renewal rates, especially after I was saddened when I bought a 5% APY CD shortly after 6% APY CDs were available, but those are the ones now expiring, and I would love to have 5% back.

But when I start to look around for better rates I remind myself that the primary goal for my emergency funds were to not lose value, to be immediately available and to be a minimum of hassle to maintain. Penfed CDs still win for me.

On a side note, I set up a "money market savings" account at Penfed to hold pre-buy funds and CD maturity funds because the yield was better than than the regular savings. But now the MM savings yield is lower. Go figure. Rate chasing within an institution if I want to.
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-22-2010, 07:50 PM   #26
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
LOL! posted an alternate emergency fund strategy: Savings versus retirement investments . I briefly considered this, but decided against it for the lack of simplicity and the concern about liquidity and withdrawal limits. You also aren't guaranteed that you're buying and selling at the same price when taking money out.

In general I decided that I'm not going to jump through hoops to avoid taxes or eek out a little more return.
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-23-2010, 09:46 AM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,199
Quote:
Originally Posted by BigMoneyJim View Post
Doesn't using VBISX, VSGBX or VFSTX complicate tax tracking?
What do you mean?
__________________
Al
TromboneAl is offline   Reply With Quote
Old 12-23-2010, 10:12 AM   #28
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,040
Another alternative could be GE Interest Plus (Investment Opportunities: Corporate Notes from GE Interest Plus). Acts like a money market but is really an investment in GE bonds, but immediate cash out possible. Definitely more risk than conventional MM and not in any way FDIC insured, but decent rates. More suitable as a temporary investment than for emergency funds.

RE2Boys
__________________
RE2Boys is offline   Reply With Quote
Old 12-23-2010, 12:50 PM   #29
Thinks s/he gets paid by the post
BigMoneyJim's Avatar
 
Join Date: Feb 2003
Location: DFW
Posts: 2,627
Quote:
Originally Posted by TromboneAl View Post
What do you mean?
Since their share price fluctuates, don't you have to keep track of the cost basis for tax accounting? With savings accounts, CDs and MM funds the share value doesn't vary, so you just have to worry about interest for taxes.
__________________
BigMoneyJim is offline   Reply With Quote
Old 12-23-2010, 01:13 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,278
Quote:
Originally Posted by BigMoneyJim View Post
Since their share price fluctuates, don't you have to keep track of the cost basis for tax accounting? With savings accounts, CDs and MM funds the share value doesn't vary, so you just have to worry about interest for taxes.
Not if you let VG do it...

Also, you really do not get a lot of gain or loss built up in the account... relative to other funds...
__________________
Texas Proud is offline   Reply With Quote
Old 12-23-2010, 01:22 PM   #31
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,109
Quote:
Originally Posted by Texas Proud View Post
Not if you let VG do it...

Also, you really do not get a lot of gain or loss built up in the account... relative to other funds...
Yes, the accounting is trivial, particularly if you also let your tax software import your data from VG.
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 12-24-2010, 09:19 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,199
Quote:
Originally Posted by BigMoneyJim View Post
Since their share price fluctuates, don't you have to keep track of the cost basis for tax accounting? With savings accounts, CDs and MM funds the share value doesn't vary, so you just have to worry about interest for taxes.
I just move the numbers from the form VG sends me to the tax prep app.
__________________
Al
TromboneAl is offline   Reply With Quote
Old 12-25-2010, 07:59 AM   #33
Confused about dryer sheets
 
Join Date: Jan 2010
Posts: 2
I prefer ING Direct for my living expenses backup cash supply. I keep a few thousand in Vanguard for the convenience of large amount paper check writing, and the rest in ING. The $100-$200/year extra interest is nice, but the timing is the real reason. ING will have it in/out of my local checking account in 2 days, and Vanguard seems to take up to a week nowadays (guessing). It's just long enough to require extra planning and caution. I've used ING Direct for maybe 8 years, small to very large amounts, and it's always been flawless.
__________________
geedee is offline   Reply With Quote
Old 12-25-2010, 08:28 AM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,481
Quote:
Originally Posted by Midpack View Post
I'm not an MD, but doesn't the yellow line mean the patient has died [flat-lined]?
I think that means the interest paid has essentially gone to zero.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is online now   Reply With Quote
Old 12-25-2010, 10:26 AM   #35
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 154
I am getting 3.5% on 25 K through the credit union.
Have to safisfy a minimum number of debit transactions.
Using the debit card for coffee shops and other small purchases is working fine and i get more interest paid per month than I spend oftentimes.
__________________
theloneranger is offline   Reply With Quote
Old 12-25-2010, 11:01 AM   #36
Full time employment: Posting here.
 
Join Date: Apr 2009
Posts: 731
I have had an account at INGdirect.com for years, and more recently opened one at Ally.com - the rates vary and have been going down. Still I can ACH to my checking account at the local bank and I've NEVER had a problem doing it with either ING or Ally. The rates vary... right now:

Online savings at Ally 1.09%
ING 1.10%
I didn't know about Discoverbank at 1.25% but I'm not sure it's worth the bother to change right now.
I've got a credit union account but I don't think it's earning much - I just keep it open because I can't join it again (since I retired from the company) if I close it.

I keep money in my local checking account but the bulk of my cash is in Ally right now - the ING account I kept open with a small amount. If the rates shift I can move the money.

It's better than the .01% my local bank pays... and all FDIC insured.
__________________
Retired July 2, 2010 at 62. My only regret is that I couldn't do it sooner.
thinker25 is offline   Reply With Quote
Take a look at local banks
Old 12-26-2010, 01:48 PM   #37
Recycles dryer sheets
Henry Lili's Avatar
 
Join Date: Oct 2009
Posts: 104
Take a look at local banks

While Cap One @ 1.25% plus the quartley bonus holds up to national competition (I have money there as well) over the past couple of years I have received the best rates at local banks. They are not always listed on bankrate.com but you drive by them everyday.
__________________
Henry Lili is offline   Reply With Quote
Old 01-06-2011, 08:23 AM   #38
Dryer sheet aficionado
Dranoel's Avatar
 
Join Date: Jan 2007
Location: Full Time RVer
Posts: 27
American Express Bank High Yield Savings - 1.3% for me too...
__________________
Dranoel is offline   Reply With Quote
Old 01-31-2011, 10:24 AM   #39
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
TromboneAl's Avatar
 
Join Date: Jun 2006
Posts: 11,199
Quote:
Originally Posted by Dennis View Post
I found instead of MMKt...to get Ck writting and transfering $ In /out.. > VSGBX.
yr' Fund TotRtn
08'> VSGBX 7%
09' > VSGBX 3%
10'> VSGBX YTD + 3.14% ( 1.59% yld)

In bear yrs ( 00-02' & 08' ) I split it btwn VSGBX & VFISX

From Vanguard about VSGBX.:

The Vanguard Short Term Federal Fund Investor Shares (VSGBX) will have a
fluctuating share price, unlike a money market fund, but it does still have
the capability of electronic bank transfers and checkwriting. You can
access the fund's prospectus online by going to the Forms section of our
website. From there you will see a link that says Get prospectuses &
reports and you can print it from there.


Also ck out Paul Merriman's FundAdvice.com - Home
He comes up with good places

hope that helps someone
Thanks for that info. An added note: while VSGBX does have checkwriting, it cannot be connected to a VanguardAdvantage checking account -- only money market accounts can do that.

What I'm going to do is have about 30K in the Vanguard Short-Term Bond Index Adm, and 20K in Prime Money Market, and have my computer remind me to check the relative balances every few months (in case the MM gets so low that I could bounce a check).
__________________

__________________
Al
TromboneAl is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Alternatives to indexing (alternatives to cap weighted indexing) jIMOh FIRE and Money 7 08-31-2010 09:52 PM
Alternatives to the Stock Market eengr86 FIRE and Money 31 07-15-2010 01:03 PM
Hmm, stock market or Money Market/CD? Moneycoming Stock Picking and Market Strategy 4 08-14-2007 07:41 PM

 

 
All times are GMT -6. The time now is 09:57 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.