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Old 10-28-2014, 07:17 PM   #61
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As you know, IBonds are not the quickest way to instant wealth, but it serves a purpose for me....To get the money out of my sight so I'm not trying to buy a stock with it.
LOL....that's my problem: I work out my cashflow budget for the year for estimated tax withholding, net weekly paycheck cash flow, HSA/IRA contributions, expenses, etc...and whatever free cash flow I have left from my paycheck and dividends that aren't reinvested, I quickly figure out how much I will have available each month so I can invest into more stocks!

I should probably join spendaholics anonymous. But probably wouldn't quite fit in when it comes my turn to introduce myself, and say that I have a binge addiction to buying more companies with any free cash I have laying around, and letting the dividends/capital gains reinvest for compounding.
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Old 10-28-2014, 07:39 PM   #62
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LOL....that's my problem: I work out my cashflow budget for the year for estimated tax withholding, net weekly paycheck cash flow, HSA/IRA contributions, expenses, etc...and whatever free cash flow I have left from my paycheck and dividends that aren't reinvested, I quickly figure out how much I will have available each month so I can invest into more stocks!

I should probably join spendaholics anonymous. But probably wouldn't quite fit in when it comes my turn to introduce myself, and say that I have a binge addiction to buying more companies with any free cash I have laying around, and letting the dividends/capital gains reinvest for compounding.

Your still better off buying a stock and getting a quick 25% haircut, than spending it all on clothes or bar hopping. I have enough locked down in IBonds and CDs and systematic purchases of a couple of index funds, but I have a stock purchase itch to scratch with my HSA account. As I have come to terms with what a person on Fatwallet said. You don't put money in an HSA for your health expenses, as money is fungible. You put it in for the tax deduction.


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Old 10-28-2014, 09:10 PM   #63
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I still have 8.5% in I-bonds. It used to be higher, but the stocks have been growing like weed, and the I-bonds grow like Bonsai.

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... I have a binge addiction to buying more companies with any free cash I have laying around...
I like stocks so much that I have to lock away some money, like the I-bonds, so that I would not plunge it all into stocks. If stocks go down, they are on sale, and I want to get more. If stocks go up, why would I want to sell?

I do not have a buy-low problem, but I need a sell-high discipline. I am working on that.
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Old 10-30-2014, 09:48 PM   #64
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I like stocks so much that I have to lock away some money, like the I-bonds, so that I would not plunge it all into stocks. If stocks go down, they are on sale, and I want to get more. If stocks go up, why would I want to sell?

I do not have a buy-low problem, but I need a sell-high discipline. I am working on that.
I have had that problem in the past. A near-death, pants-filling experience courtesy of the great recession cured me. Now I hew pretty closely to my chosen asset allocation and I keep a year plus of funds in CDs and I bonds (plus an untapped HELOC). I also figure out a sell point on every individual equity I own, write it down, and force myself to seriously consider selling when it approaches. Sometimes it is appropriate to hang on, but my default expectation is that at least half of a position will get blown out when I hit my predetermined sell price unless there is a darn good reason.

The upside is that when you proactively lighten up on appreciated stuff, you have room in the portfolio when things get hammered. As of the end of 2013 I dropped 80% of what had been my largest position. It got absolutely bludgeoned in the Fall sell-off. Since I knew the company intimately and understood that the valuation had gotten very, very attractive, I was able to belly up to the bar and start sucking down shares by the quart.
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Old 11-03-2014, 12:57 PM   #65
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For the record, the newly announced fixed rate is 0% and the variable rate is 1.48%. So there was a decline in both the fixed and variable rate in the November adjustment. I hope everyone who was contemplating buying i-bonds this year was quick enough to make their purchases before the end of October.
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Old 11-03-2014, 01:11 PM   #66
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Got mine Oct 30th. 10k limit sucks. Wish I could have bought more.
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Old 11-03-2014, 01:19 PM   #67
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Sold all my Ibonds today. Not keeping up with inflation (for me): College expenses, food, gas.


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Old 11-03-2014, 01:27 PM   #68
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Sold all my Ibonds today. Not keeping up with inflation (for me): College expenses, food, gas.


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Not the point for me. I view these as a CD alternative.
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Old 11-03-2014, 01:36 PM   #69
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My CD alternative is to download from iTunes. Oh wait, you meant the other CD. Have never had a certificate of deposit before.


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Old 11-03-2014, 01:43 PM   #70
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My CD alternative is to download from iTunes. Oh wait, you meant the other CD. Have never had a certificate of deposit before.


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Uh, OK. Bizarre.
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Old 11-03-2014, 03:33 PM   #71
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I was trying to make a joke but was also trying to convey that Ibonds and/or CD's pay out so little they are hardly worth messing with. Maybe as an extreme safety measure I guess.

Does anyone buy bonds and CDs while still accumulating assets? Maybe once I retire I will be able to wrap my mind around why people buy Ibonds/CDs.



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Old 11-03-2014, 04:01 PM   #72
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I was trying to make a joke but was also trying to convey that Ibonds and/or CD's pay out so little they are hardly worth messing with. Maybe as an extreme safety measure I guess.

Does anyone buy bonds and CDs while still accumulating assets? Maybe once I retire I will be able to wrap my mind around why people buy Ibonds/CDs.



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I always did. It was a better place to stash my emergency fund than a savings account (higher yield) and an alternative to bonds for a portion of my fixed income allocation. Never had a ton, but there were good deals to be had from time to time.
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Old 11-03-2014, 05:34 PM   #73
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Times change.
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Old 11-04-2014, 07:21 AM   #74
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Does anyone buy bonds and CDs while still accumulating assets? Maybe once I retire I will be able to wrap my mind around why people buy Ibonds/CDs.
Certainly my bond funds have returned more YTD than some of my international funds. So I buy bond funds in order to make more money when my equity funds don't do so well.

My bond funds allow my money to live and fight another day in the equity markets.
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