Join Early Retirement Today
Closed Thread
 
Thread Tools Display Modes
Old 06-22-2022, 06:16 AM   #741
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
One other thing about buying Treasuries at Vanguard or Fidelity: you increase your liquidity.

Treasury products at Treasury Direct (except savings bonds) need to be transferred to a brokerage in order to sell them. In true Treasury Direct fashion, it isn't easy.
__________________
Retired Class of 2018


JoeWras is offline  
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 06-22-2022, 06:59 AM   #742
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
Quote:
Originally Posted by NomDeER View Post
Vanguard apparently is the same.



I've got a question about timing. How long after the Fed increases interest rates is that reflected in the interest rates for the treasuries being auctioned?


There is no set formula for how the market reacts. Rates are already rising in anticipation of the most recent hike which does not take effect until July.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Old 06-22-2022, 07:10 AM   #743
Thinks s/he gets paid by the post
 
Join Date: Jul 2013
Posts: 1,877
Quote:
Originally Posted by kongmen View Post
I just opened my account with Synchrony at .85 I'm hoping they will increase soon along with the other online banks in response to the latest 75 basis point increase by the Fed.
Synchrony is at 1.1% today.

I don't know when it was increased, as they don't announce these changes like Ally does.
mrfeh is online now  
Old 06-22-2022, 08:13 AM   #744
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,544
CFG Bank's HY money market is now at 1.30%. It is certainly much more interesting on the way up.
Montecfo is offline  
Old 06-22-2022, 08:32 AM   #745
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: 38,002
Quote:
Originally Posted by Dtail View Post
Actually there is no minimum, once you establish the original 100k.
I know in that my mom has an account with less than 1k balance and is receiving the premium rate.
I carefully read through the prospectus a few years ago and thought I read maybe $2K and what they would do when you went under, which meant basically nagging you for a couple of months to bring it above that min before closing it.

So I suppose things have changed….

Well I found this under Policies in the current prospectus.
Quote:
If your fund balance falls below $10,000 worth of shares for any reason and you do not increase your balance, Fidelity may sell all of your shares and send the proceeds to you after providing you with at least 30 days' notice to reestablish the minimum balance. Your shares will be sold at the NAV, minus any applicable shareholder fees, on the day Fidelity closes your fund position. Certain fund positions are not subject to these balance requirements and will not be closed for failure to maintain a minimum balance.
That $10K min is higher than I remembered reading. Is your mom holding it in an IRA? IRAs often have different minimums.
__________________
Retired since summer 1999.
audreyh1 is online now  
Old 06-22-2022, 08:54 AM   #746
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: 38,002
Quote:
Originally Posted by JoeWras View Post
One other thing about buying Treasuries at Vanguard or Fidelity: you increase your liquidity.

Treasury products at Treasury Direct (except savings bonds) need to be transferred to a brokerage in order to sell them. In true Treasury Direct fashion, it isn't easy.
That’s because Treasury Direct doesn’t operate on the secondary market. Makes perfect sense to me. They aren’t trying to be difficult.

If you hold to maturity your money will be returned directly to you. No selling involved.
__________________
Retired since summer 1999.
audreyh1 is online now  
Old 06-22-2022, 09:07 AM   #747
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
Quote:
Originally Posted by audreyh1 View Post
That’s because Treasury Direct doesn’t operate on the secondary market. Makes perfect sense to me. They aren’t trying to be difficult.
What I mean by "being difficult" is that in the event you do have to transfer to a brokerage, it will be a difficult administrative process, because every administrative process with Treasury Direct is difficult. I once just poked around to see what it would take to transfer out and got a headache. You will have to submit a medallion guaranteed paper form. The process will take a while. Instructions here: https://www.treasurydirect.gov/indiv...sfermarketable

I don't plan on selling, but one never knows. Examples would be: a sudden deal on a house comes into play which requires cash, or you die and your estate administrators have an extra hurdle of administrative tasks to liquidate your long holdings.
__________________
Retired Class of 2018


JoeWras is offline  
Old 06-22-2022, 09:15 AM   #748
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: 38,002
Quote:
Originally Posted by Aerides View Post
Thanks, but all I have with them is the one CD account. I don't have a money market. I guess I'll go close it, put it in my back, and them open another in a day... as it took 12 mins on hold, then a person, then another 10 mins on hold, then a terrible broken up line where I could barely understand them let alone make sense of it.
I have a savings and checking account with Ally. I’ve always done the early withdrawal close, and reopen a new no penalty. It’s virtually instantaneous.

I added the checking account later simply due to the limited withdrawals per statement cycle allowed on a savings account. Ally may have increased the monthly limit since the Fed dropped the limit.
__________________
Retired since summer 1999.
audreyh1 is online now  
Old 06-22-2022, 09:18 AM   #749
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 13,879
Quote:
Originally Posted by audreyh1 View Post
I have a savings and checking account with Ally. I’ve always done the early withdrawal close, and reopen a new no penalty. It’s virtually instantaneous.

I added the checking account later simply due to the limited withdrawals per statement cycle allowed on a savings account. Ally may have increased the monthly limit since the Fed dropped the limit.
Yes, it finally worked, but was error-ing out multiple times. It was far quicker once I got that done than the phone side. It really should have been in their FAQs "want to close early? Do this"...
Aerides is offline  
Old 06-22-2022, 09:22 AM   #750
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: 38,002
Quote:
Originally Posted by JoeWras View Post
What I mean by "being difficult" is that in the event you do have to transfer to a brokerage, it will be a difficult administrative process, because every administrative process with Treasury Direct is difficult.

I don't plan on selling, but one never knows. A sudden deal on a house comes into play, or say you die and your estate administrators have an extra hurdle.
Your original point was a good one: if you think you might sell your treasuries on the secondary market, then buy them though a broker in the first place.

I bought my treasuries through my broker in the first place because they make it seamless and convenient to do, especially the autoroll feature. I’ve never sold my treasuries.

I only use Treasury direct for iBond purchases, and that has been straightforward enough, fortunately. Redemption after the one year minimum holding period is very straightforward, and partial redemption is supported. You have to download the 1099-INT the next year. They may have emailed a notice, I don’t remember.
__________________
Retired since summer 1999.
audreyh1 is online now  
Old 06-22-2022, 09:23 AM   #751
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 11,701
Quote:
Originally Posted by Aerides View Post
Yes, it finally worked, but was error-ing out multiple times. It was far quicker once I got that done than the phone side. It really should have been in their FAQs "want to close early? Do this"...
Like the cable company, their FAQs never discuss closing out.
__________________
Retired Class of 2018


JoeWras is offline  
Old 06-22-2022, 10:05 AM   #752
Thinks s/he gets paid by the post
 
Join Date: Jan 2013
Posts: 3,405
Bask Bank savings is now at 1.61 percent.
Another Reader is offline  
Old 06-22-2022, 10:16 AM   #753
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 11,226
Quote:
Originally Posted by audreyh1 View Post
I carefully read through the prospectus a few years ago and thought I read maybe $2K and what they would do when you went under, which meant basically nagging you for a couple of months to bring it above that min before closing it.

So I suppose things have changed….

Well I found this under Policies in the current prospectus.

That $10K min is higher than I remembered reading. Is your mom holding it in an IRA? IRAs often have different minimums.
Just a regular taxable account and no hint or mention that the balance had to be increased to 10k.
She is a Private Client, so perhaps that gets an exception.

FZDXX now at 1.18%.
__________________
TGIM
Dtail is online now  
Old 06-22-2022, 10:37 AM   #754
Full time employment: Posting here.
Silver's Avatar
 
Join Date: Sep 2010
Location: Orlando, Fl
Posts: 950
Quote:
Originally Posted by Another Reader View Post
Bask Bank savings is now at 1.61 percent.
You beat me to it....well done.
__________________
"Some people describe themselves as being able to see things as a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."
Silver
Silver is offline  
Old 06-22-2022, 10:56 AM   #755
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: 38,002
Quote:
Originally Posted by mrfeh View Post
Synchrony is at 1.1% today.

I don't know when it was increased, as they don't announce these changes like Ally does.
Definitely an improvement. But I suspect it won’t be long before it reaches 1.5% as 3 month treasuries are now trading above 1.6%
__________________
Retired since summer 1999.
audreyh1 is online now  
Old 06-22-2022, 11:46 AM   #756
Full time employment: Posting here.
 
Join Date: Aug 2013
Location: New Jersey
Posts: 908
PenFed posted their CD special today - 5 year 3.50%
Al18 is offline  
Old 06-22-2022, 12:04 PM   #757
Thinks s/he gets paid by the post
John Galt III's Avatar
 
Join Date: Oct 2008
Posts: 2,776
Quote:
Originally Posted by almost there View Post
Yep, have 5 yr CD's maturing at Navy Jan 2023 and Pen Fed Jan 2024.
Will be interesting what rates will be there / then.

Am thinking Jan 23 will be much higher than Jan 24...Just a guess.
Someone just posted that PenFed has 3.5% 5 year CDs now. It *seems* to me that rates for 5 and 7 year CDs ought to go up to 5% or higher by June, 2023. But who knows, right? Not biting yet on the 5 year 3.5% Penfed. Hoping for at least 4% for 5 or 7 year CD. Even then, I won't put all my cash in. Hoping for 5%, of course.
John Galt III is offline  
Old 06-22-2022, 12:08 PM   #758
Full time employment: Posting here.
erkevin's Avatar
 
Join Date: Oct 2014
Location: Tucson
Posts: 797
Morgan Stanley has a 5 year CD (callable) at 3.785%
erkevin is offline  
Old 06-22-2022, 12:19 PM   #759
Full time employment: Posting here.
 
Join Date: May 2011
Posts: 770
Quote:
Originally Posted by John Galt III View Post
Someone just posted that PenFed has 3.5% 5 year CDs now. It *seems* to me that rates for 5 and 7 year CDs ought to go up to 5% or higher by June, 2023. But who knows, right? Not biting yet on the 5 year 3.5% Penfed. Hoping for at least 4% for 5 or 7 year CD. Even then, I won't put all my cash in. Hoping for 5%, of course.
I've been waiting for 4% to 5% also. For some reason, even with crazy inflation, I fear we may not get there and I'll miss the boat again. [emoji848]

I'm seriously considering ladders.

10 year Treasury got up to 3.48% about 3 days ago and now down to 3.14%. it's hard to lock in these yields when inflation is 9%.
__________________
you interpret daily life according to your ideas of what is possible or not possible - Seth Speaks
11522914 is offline  
Old 06-22-2022, 12:21 PM   #760
Full time employment: Posting here.
Happyras's Avatar
 
Join Date: Jun 2015
Location: Redmond
Posts: 892
FZDXX now at 1.18
Marcus base MM 1.0, all in with promos 1.6
8 week Tbill 1.375?
Long story, on the phone with the bond guy, he really could not explain why TD says the yeild is 1.45, but the new issue yield is 1.375 after sale. They swear there is no fee or commission nor spread, its just they method used to calculate, BS....
Happyras is offline  
Closed Thread


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


» Quick Links

 
All times are GMT -6. The time now is 05:42 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.