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Old 04-25-2009, 02:13 PM   #61
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Thanks for the information Brewer.

Well currently evantage, redneck, etc. are 25K, but I figured out why they are all getting listed lower. Letter just went out, "Due to the high demand for our reward checking accounts we are lowering out apy to 4% on the first 10K effective may 5th. But Coulee is still paying out 5.01. And the best way to play it is to link your orange to the account and when they lower the rate just move it out and find another one.

And reward checking isn't gimmicky, the math completely checks out when you get an average joe performing well over a dozen transactions a month, but they always run the risk of having a flood of rate chasers fly into their bank and skewing their margins. All I can say is if you have the capital, its worth the game.
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Follow up on this...........
Old 08-18-2009, 07:20 AM   #62
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Follow up on this...........

I'm trying to get my AA together, and a large part of it is going to be Vanguard bond funds, probably VWITX.

Since I need a bond fund at some point, and since VWITX does not seem to move around all that much anyway (although over the last 5 years it was down about 10% during late 2008), do I just bite the bullet and do it now or is something coming over the horizon that should make me wait? It will be a big investment, so I don't want to totally miss-time it.

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Old 08-18-2009, 09:02 AM   #63
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I had a similar decision to make several years ago. While not as much $ as you are working with it was my entire portfolio. My reading at the time and based on discussions at Bogleheads is that, just like any other attempt to time the market, it is a fools errand to time your transition. The intellectual decision should be based on decided that this is your AA going forward and do it all carte blanche. Of course there is the emotional/behavioral side to investing which cannot be ignored. If you would be devastated if your move to VWITX was to result in a loss in the short term then you may be better off to move into that position over some period of time by DCA.

At 54% of FIRE target
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Old 08-18-2009, 09:09 AM   #64
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Just one thought: Be prepared to see the NAV drop if interest rates go up.
But, if you stay in the fund long term it shouldn't matter.
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Old 08-18-2009, 09:16 AM   #65
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Just one thought: Be prepared to see the NAV drop if interest rates go up.
But, if you stay in the fund long term it shouldn't matter.
That's why I *think* I should DCA into it, because it seems rates have nowhere else to go but up, but how many years do I DCA into it while I wait on this to happen, and how much yield would I lose compared to my lowly current cash yields while I wait?

Sounds like damned if I do, damned if I don't...............
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Old 08-18-2009, 11:32 AM   #66
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I'm struggling with the same problem.
I noticed the FED plans to stop buying treasury's in OCT.
Will this event cause interest rates to start moving up?
Trying to time the bond market is a tough proposition.
So you probably have the right way to do it, Little by little.
Another thing that is often recommended, go for shorter term funds.
You could also shop for individual Muni bonds in your State for better tax advantage. I personally do both, funds and individual.

edit to add: I missed what was probably the best buying time of my life for muni's as the market crashed 2008 2009. I bought stock funds all the way down but couldn't bring my self to buy muni's that were doing the same thing. I was a deer in the head lights, I guess. You got to admit it all looked like armageddon.
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Old 08-18-2009, 11:41 AM   #67
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I just bought some more VWITX this morning. I feel good about it. I think it will be a while before rates start moving up sharply, and in the mean time I want to enjoy the 4% tax free yield. When the muni yield curve starts flattening, then I'll start moving to the shorter end of the curve. It just seems too early.
46 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions.
Current AA: real estate 64% / equities 10% / fixed income 16% / cash 10%
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