Spanky
Thinks s/he gets paid by the post
My cash is in a saving account @0.6% --- bummer!!!! Planning to move it to a short-term bond fund.
Where is your cash?
- Thread starter tuixiu
- Start date
Keeping 2 yrs of COH to pay the bills...
In Jan moved ST $ into : FFRHX, VWEHX and VFSTX ( per our Bond Port. Advisor/Firm)
With a Sell Stop of Taking back out our CB ( Cost Basis- Principal) when those funds hit +10% ytd's and move the CB $ into Laddered CD's.. and let the profits Ride the Wave..until further notice by them..( this changes every Yr )
For Jan. 07', it was ST & Intmed. Treasuries ( like they advised us in 00-02')
and VSGBX for our MMkt $.. to pay the bills...
and I have had a All Bond Portfolio for many yrs, with a past 10 yr apy of over 8% and a 4.5% ave. Yld.. Butt, using some Aggressive Bond Funds instead vs Equities.. and my Advisor have always moved the vast majority ( 75%) into Treasuries in Bear Markets..
past 11 yrs? So far, So Good..
and well worth paying them 0.50% fee ...
Don't Think most of us can do this Investing Game on our own..even using Mutual Funds.. It takes a Good Full time Pro' to stay up with their Peers.. an it may cost $5k Yr on a $1Mil Port. , but making the ave of +4% more a Yr is worth it to me..Not to mention Not loosing Nottin' Honey and making $ in Bear markets really makes me feel really Good.
Of course, I spent 30 yrs serving these Pro's in the market thru Being in the Limo business and thus knew who to use for my $..When I finally got some...an that time to retire came along..
;-)
In Jan moved ST $ into : FFRHX, VWEHX and VFSTX ( per our Bond Port. Advisor/Firm)
With a Sell Stop of Taking back out our CB ( Cost Basis- Principal) when those funds hit +10% ytd's and move the CB $ into Laddered CD's.. and let the profits Ride the Wave..until further notice by them..( this changes every Yr )
For Jan. 07', it was ST & Intmed. Treasuries ( like they advised us in 00-02')
and VSGBX for our MMkt $.. to pay the bills...
and I have had a All Bond Portfolio for many yrs, with a past 10 yr apy of over 8% and a 4.5% ave. Yld.. Butt, using some Aggressive Bond Funds instead vs Equities.. and my Advisor have always moved the vast majority ( 75%) into Treasuries in Bear Markets..
past 11 yrs? So far, So Good..
and well worth paying them 0.50% fee ...
Don't Think most of us can do this Investing Game on our own..even using Mutual Funds.. It takes a Good Full time Pro' to stay up with their Peers.. an it may cost $5k Yr on a $1Mil Port. , but making the ave of +4% more a Yr is worth it to me..Not to mention Not loosing Nottin' Honey and making $ in Bear markets really makes me feel really Good.
Of course, I spent 30 yrs serving these Pro's in the market thru Being in the Limo business and thus knew who to use for my $..When I finally got some...an that time to retire came along..
;-)
Meadbh
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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- Jul 22, 2006
- Messages
- 11,401
GICs: 5 year closed at 4.0 and 4.25%, high interest savings accounts (my bank recently gave its preferred customers a higher rate in a push to increase its own money supply). I sold my money market fund because it was just treading water.
My plan is to invest cash yearly in 5 year GICs at the best possible rate, in both my TFSA and RRSP. After 5 years I will have a ladder and something will mature every year. The interest earned inside my TFSA will be tax free (although I can only add $5000, indexed for inflation, each year). Investments in my RRSP are tax deductible and no tax will be paid till I begin withdrawing from it (at age 71), after which withdrawals will be taxed as income.
Glossary:
GIC = Guaranteed Investment Certificate
TFSA = Tax Free Savings Account
RRSP = Registered Retirement Savings Plan
My plan is to invest cash yearly in 5 year GICs at the best possible rate, in both my TFSA and RRSP. After 5 years I will have a ladder and something will mature every year. The interest earned inside my TFSA will be tax free (although I can only add $5000, indexed for inflation, each year). Investments in my RRSP are tax deductible and no tax will be paid till I begin withdrawing from it (at age 71), after which withdrawals will be taxed as income.
Glossary:
GIC = Guaranteed Investment Certificate
TFSA = Tax Free Savings Account
RRSP = Registered Retirement Savings Plan
In-control
Recycles dryer sheets
- Joined
- Mar 9, 2007
- Messages
- 319
I have 5 yrs of laddered cd's(4%+ each), each one 1 yrs household budget. Each December I search BankRate and PenFed for the best rates.
I accumulate $ in my VGMM(.2% yld) and run my savings/checking accounts thru Bank of Internet(~2% yld).
Cash to me is a cushion against the market and allows me ample time to make adjustments. As long as the majority of it is beating inflation it is a win.
I accumulate $ in my VGMM(.2% yld) and run my savings/checking accounts thru Bank of Internet(~2% yld).
Cash to me is a cushion against the market and allows me ample time to make adjustments. As long as the majority of it is beating inflation it is a win.
DangerMouse
Thinks s/he gets paid by the post
We are lucky in that interest rates for cash deposits are much higher in Austrlaia than here in the US. We are currently getting 7% for the next 5 years on term deposits.
Bimmerbill
Thinks s/he gets paid by the post
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- Jan 26, 2006
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- 1,645
I spent all of mine paying off all my debts, except the mortgage. I do have a small stash in the safe, but need some septic repairs, so will probably end up paying the bill with it.
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
Yep, the agony and ecstasy of Wellesley - owning the fund is about as exciting as watching paint dry. Or so I hope.
IndependentlyPoor
Thinks s/he gets paid by the post
This is a subject of hot debate, but it seems to me that if the conventional wisdom that it is good to hold a mortgage during inflationary times (and I agree with that), then the converse ought to be true too: holding a mortgage in deflationary times is not such a good idea.
OTOH, we might be seeing significant inflation soon....
calmloki
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Cash? I ain't tellin you reprobates. Numbers? Mostly in PenFed 6.25% CDs till 1/2010. After that maybe I'll just keep making loans till I run out of money.
dm
Full time employment: Posting here.
Mine is in Vangard MM and a few banks earning next to nothing. I'm stashing some at home that is earning nothing, but I'm saving on gas going to the bank to deposit/withdraw, so I may be comming out ahead.
DangerMouse
Thinks s/he gets paid by the post
heard on the radio yesterday that Citibank is offering CD's paying 3.5% with a minimum investment of $1,000. Might be of interest to someone.
Free To Canoe
Thinks s/he gets paid by the post
Just bought some of this very fund for the first time yesterday. Seeing your post is a positive affirmation for me. This is a part of reducing my equities exposure though.
Free to canoe
Free To Canoe
Thinks s/he gets paid by the post
Just bought some of this yesterday. Glad to see your post.
Free to canoe
Thanks for the analysis.
Free to canoe
growing_older
Thinks s/he gets paid by the post
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- 2,657
6 months living expenses in Vanguard Prime MM, but earning almost nothing :-(
Worried about job security, I pulled a bunch out of HELOC and parked it in 1 year and 1.5 year CDs paying slightly more than the HELOC rates (but only slightly). These are coming due soon, so either I need to put the money back on the HELOC or find another place to park it. Nothing is looking very attractive. Luckily I have a new job, so am less worried about job security now.
Worried about job security, I pulled a bunch out of HELOC and parked it in 1 year and 1.5 year CDs paying slightly more than the HELOC rates (but only slightly). These are coming due soon, so either I need to put the money back on the HELOC or find another place to park it. Nothing is looking very attractive. Luckily I have a new job, so am less worried about job security now.
Meadbh
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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- 11,401
John Heinzl would say "yes".
The best investment? Paying off your mortgage - The Globe and Mail
Keep in mind that YMMV if your mortgage interest is tax deductible. My interpretation of this in a Canadian context is that the mortgage on a principal residence should be paid off ASAP, but a mortgage on an investment property should be paid off based on after tax cash flows.
Excuse my ignorance, but what does YMMV mean?
Your Mileage May Vary
REWahoo
Give me a museum and I'll fill it. (Picasso) Give
You can find the answer to than plus more here: http://www.early-retirement.org/for...slang-frequently-used-on-the-forum-34884.html
Don't overlook gold. I am in the "distribution" phase I guess, and as a hedge against a private retirement (stocks, bonds) most of my wealth is my home and precious metals, mostly gold coins with a few collectibles thrown in for fun. Since early 2004 when I moved most of the funds into gold, it's done very well, like from $425 to $1000+ /oz. A safe deposit box costs about $35/year.
haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
freebird5825
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Good old boring TE muni bond funds, both national and NYS, just as I have been doing for several years, pre- and post-FIRE.
I just started up a small DCA amount into a NY TE MM fund, but after 3 months, decided to back off the DCA to that for a little while until it is worth it.
