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09-30-2022, 08:01 AM
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#1921
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,796
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Quote:
Originally Posted by Graybeard
Vanguard VMFXX Federal Money Market and the Settlement Fund 7 day SEC yield is up to 2.75% today.
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Thanks, Graybeard. I am getting up the nerve to transfer $10K into VMFXX. Currently have money in similar savings fund at Penfed at only 1.7%. Have been poking around the Vanguard website.
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09-30-2022, 08:28 AM
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#1922
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Dryer sheet aficionado
Join Date: Mar 2022
Location: Atlanta
Posts: 31
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Quote:
Originally Posted by John Galt III
Thanks, Graybeard. I am getting up the nerve to transfer $10K into VMFXX. Currently have money in similar savings fund at Penfed at only 1.7%. Have been poking around the Vanguard website.
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Do it. With VMFXX at 2.76% today, you would earn 62% more than at Penfed.
Very easy to ACH money to/from Vanguard.
I moved $40K there last month and am glad I did. Rates went from 2.17 to 2.76 in probably 2 weeks time due to the latest Fed rate raise.
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09-30-2022, 08:33 AM
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#1923
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Recycles dryer sheets
Join Date: Jan 2022
Location: Murray
Posts: 205
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No 1 and 2 month CD's available this morning on Fidelity. One 3 month @ 3.20%. Yesterday there were several 1 and 2 month issues available? I guess everyone is waiting on the FED to jack it up some more next month? I know thats why I am buying 1 and 2 month issues hoping for better yields before year end.
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09-30-2022, 09:47 AM
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#1924
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,263
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Quote:
Originally Posted by 11522914
1 month cds are paying more than comparable Treasuries
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The last time I built a CD/bond ladder a few weeks ago, it was mostly CDs but also had a few treasury bonds.
Rates vary by duration and the current interest environment. It only takes a few minutes to check both.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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09-30-2022, 09:52 AM
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#1925
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Recycles dryer sheets
Join Date: Jun 2010
Posts: 188
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Just noticed that TD Bank is offering the following:
CD's:
6 months: 1.5%
12 months: 2%.
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09-30-2022, 09:55 AM
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#1926
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Thinks s/he gets paid by the post
Join Date: Aug 2013
Posts: 1,660
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Quote:
Originally Posted by calmloki
Our Navy FCU CDs are at 3% as well, but have a 12 month penalty that means we don't break them.
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Here is a trick to change the penalty to 6 months instead of 12:
Per a phone call I made you can transfer this CD into another CD without penalty as long as the new CD matures later than the original CD. If the new CD is less than 5 years the penalty is 6 months.
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09-30-2022, 10:18 AM
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#1927
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Recycles dryer sheets
Join Date: Jan 2022
Location: Murray
Posts: 205
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Quote:
Originally Posted by Karloff
Just noticed that TD Bank is offering the following:
CD's:
6 months: 1.5%
12 months: 2%.
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Better opportunities out there
First Republic Bank
Certificate of Deposit
CUSIP
DSM9T3030
Buy
Time period
6 Month
Yield(APY)
3.700%
Maturity date
04/06/2023
Minimum investment
$100
Pay frequency
At maturity
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09-30-2022, 10:43 AM
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#1928
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Recycles dryer sheets
Join Date: Mar 2019
Posts: 93
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I'm just starting to educate myself of brokered CD's and have a couple of questions:
1. When looking at the offerings on Vanguard, I see the below verbage on most of the entries. What does this mean? I was only looking at new issue offerings.
JP Morgan Chase Bank NA Callable 04/23@100 - Conditional Puts - Death Of Holder, FDIC#628
2. Are there any tip and tricks anyone could recommend in helping improve my selection/screening process?
I appreciate the vast knowledge being shared through this site!
2. What does "Yield to worst bid" actually mean?
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09-30-2022, 10:45 AM
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#1929
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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SWVXX 2.83%
SNAXX 2.98% today.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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09-30-2022, 12:01 PM
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#1930
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by lawman
Thanks Freedom!
"I believe there will be a major exit out of passive bond funds over the next three months and much more than the billions of redemptions every week."
Do you consider PIMIX to be a passive bond fund? They just raised their distribution yield from .046 to .055 per share. Their current dist. yield is 5.05%. I'm thinking they must be taking some high risk positions..
https://www.pimco.com/en-us/investme...come-fund/inst
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PIMIX invests in high yield and investment grade bonds as well as securitized loans. It's down over 10% YTD. I wouldn't buy it. If you want a fund with better yields go for closed end funds like PDT. At least you earn a decent yield with the risk and volatility.
https://www.cefconnect.com/fund/PDT
When PDT trades down to a steep discount to asset value, it would be a much better buy than PIMIX.
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09-30-2022, 12:31 PM
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#1931
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Recycles dryer sheets
Join Date: May 2017
Posts: 256
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Vanguard currently has a non-callable 3 year 4.4% CD from Discover. Cusip 254673V29
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09-30-2022, 01:31 PM
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#1932
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,796
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Penfed just went from 3.25% to 3.6% on 5 and 7 year CD's. They must have seen my posts, lol. Now I have to pause and rethink stuff. A good problem to have, lol. Well, actually, the Vanguard CD's are way better, and Penfed already has a lot of my cash anyway. Hmmm.
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09-30-2022, 01:53 PM
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#1933
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,796
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I am logged into the Vanguard website, trying to ACH $10K from a checking account to the VMFXX. I have spent 10 minutes of futility trying to either open VMFXX and/or tell them my checking account details. Don't help me, I'll figure it out. SO far, they suck, lol.
Penfed was WAY easier than this (but their rates are too low)
edit to add: still sucking at Vanguard. What do they think an account is? I have ONE account with various products in it, right? The website is acting as though I need to add a new account for every single product I want to buy.
The sreen says I need to enter an amount. There is NOWHERE to enter an amount. Awful.
A popup appeared and asked my why I was exiting out of the process. I was polite and told them the instructions were unclear. I almost expected a response from them like "Thankyou. We strive to be unclear!" Just awful.
Edit to add one hour later. Giving up for today. The 'live chat' is down. Treasury Direct and Penfed are both way more intuitive than this garbage. Thanks for hearing my rant. I was going to keep it down to one beer today, but maybe not, lol.
BTW, I converted my account from the old legacy platform to this new brokerage stuff a few months ago. Maybe that's why nothing makes sense.
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09-30-2022, 02:02 PM
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#1934
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Thinks s/he gets paid by the post
Join Date: Jul 2008
Location: Weatherford, Texas
Posts: 1,213
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Quote:
Originally Posted by Freedom56
PIMIX invests in high yield and investment grade bonds as well as securitized loans. It's down over 10% YTD. I wouldn't buy it. If you want a fund with better yields go for closed end funds like PDT. At least you earn a decent yield with the risk and volatility.
https://www.cefconnect.com/fund/PDT
When PDT trades down to a steep discount to asset value, it would be a much better buy than PIMIX.
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"When PDT trades down to a steep discount to asset value" Does that ever happen? It looks close now.
__________________
Life is good. Then you die.
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09-30-2022, 02:42 PM
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#1935
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Thinks s/he gets paid by the post
Join Date: Jan 2019
Location: Sunny California
Posts: 2,617
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Quote:
Originally Posted by RetireAge50
Here is a trick to change the penalty to 6 months instead of 12:
Per a phone call I made you can transfer this CD into another CD without penalty as long as the new CD matures later than the original CD. If the new CD is less than 5 years the penalty is 6 months.
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It actually happened to me a couple of months back and I was not charged a penalty and when I asked she claimed she had no idea why but it happens sometimes.
I checked the dates and the new CD was NOT longer than the original, it was actually about 6 months shorter. Maybe because they felt sorry for me, I was only earning 1.19% and by cancelling it early I made a few thousand dollars and the no penalty just sweetened the deal.
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09-30-2022, 02:50 PM
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#1936
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,716
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Quote:
Originally Posted by lawman
"When PDT trades down to a steep discount to asset value" Does that ever happen? It looks close now.
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Follow the link to CEF connect, click on the tab for “pricing information”, then “since inception”. It will show you the history of market price to NAV, or premium / discount. This CEF has many years of history with the market price below the net asset value. From the graph, it would appear trading at discount is the norm.
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09-30-2022, 03:18 PM
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#1937
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Dryer sheet aficionado
Join Date: Mar 2022
Location: Atlanta
Posts: 31
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Quote:
Originally Posted by John Galt III
I am logged into the Vanguard website, trying to ACH $10K from a checking account to the VMFXX. I have spent 10 minutes of futility trying to either open VMFXX and/or tell them my checking account details. Don't help me, I'll figure it out. SO far, they suck, lol.
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This is the link I have for adding a bank account at Vanguard
https://personal1.vanguard.com/mnb-m...webapp/welcome
BTW, you don’t need to “purchase” anything at Vanguard if you want VMFXX.
Their default settlement account is the VMFXX fund. So I just tranfer my money in and by default it just sits in the settlement fund == VMFXX
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09-30-2022, 03:26 PM
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#1938
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Recycles dryer sheets
Join Date: May 2017
Posts: 256
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Quote:
Originally Posted by John Galt III
I am logged into the Vanguard website, trying to ACH $10K from a checking account to the VMFXX. I have spent 10 minutes of futility trying to either open VMFXX and/or tell them my checking account details. Don't help me, I'll figure it out. SO far, they suck, lol.
Penfed was WAY easier than this (but their rates are too low)
edit to add: still sucking at Vanguard. What do they think an account is? I have ONE account with various products in it, right? The website is acting as though I need to add a new account for every single product I want to buy.
The sreen says I need to enter an amount. There is NOWHERE to enter an amount. Awful.
A popup appeared and asked my why I was exiting out of the process. I was polite and told them the instructions were unclear. I almost expected a response from them like "Thankyou. We strive to be unclear!" Just awful.
Edit to add one hour later. Giving up for today. The 'live chat' is down. Treasury Direct and Penfed are both way more intuitive than this garbage. Thanks for hearing my rant. I was going to keep it down to one beer today, but maybe not, lol.
BTW, I converted my account from the old legacy platform to this new brokerage stuff a few months ago. Maybe that's why nothing makes sense.
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I was on hold with Vanguard fixed income forever today. When I got through, the woman was apologetic and said that they have been slammed and are hiring a bunch of new people to help. She was very helpful. I find that the Vanguard folks almost always are. So, try calling them on Monday when you've got something to do while on hold.
BTW, if you've got a brokerage account, you should have a settlement fund set up for you already, even if it shows zero dollars. That settlement fund is VMFXX. On the right hand side of where that account is, there should be an option of "transfer money" with three dots. If you click on the dots, you should be able to transfer from your checking account to your settlement account. That's how I do it on a monthly basis.
If you don't already have your checking account set up for transfers, click on the three dots by the "More account information" on the left hand side of your settlement account and you'll see an option to add a new bank account.
I agree that their site is not very intuitive.
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09-30-2022, 03:27 PM
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#1939
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Thinks s/he gets paid by the post
Join Date: Jul 2008
Location: Weatherford, Texas
Posts: 1,213
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Quote:
Originally Posted by Freedom56
PIMIX invests in high yield and investment grade bonds as well as securitized loans. It's down over 10% YTD. I wouldn't buy it. If you want a fund with better yields go for closed end funds like PDT. At least you earn a decent yield with the risk and volatility.
https://www.cefconnect.com/fund/PDT
When PDT trades down to a steep discount to asset value, it would be a much better buy than PIMIX.
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When I chart PDT with SPY (S & P 500 index tracking ETF) they run very close..Does the chart reflect reinvestment of PDT dividends? If so, it seems to perform about like the stock market
__________________
Life is good. Then you die.
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09-30-2022, 05:24 PM
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#1940
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,951
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Quote:
Originally Posted by ShokWaveRider
SWVXX 2.83%
SNAXX 2.98% today.
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Thanks for including SWVXX for us poor folk.
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