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07-05-2022, 03:06 PM
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#881
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Full time employment: Posting here.
Join Date: Feb 2019
Location: NC
Posts: 568
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07-05-2022, 04:13 PM
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#882
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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Quote:
Originally Posted by Born2Fish
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HOORAY!! I remember the feeling of that first tax-free interest payment. You will smile again at tax time.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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07-05-2022, 06:42 PM
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#883
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by Born2Fish
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Congrats! It's a nice feeling.
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07-05-2022, 06:44 PM
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#884
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Its even a better feeling when the monthly interest payments are more than you need to live on.
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07-05-2022, 09:02 PM
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#885
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Full time employment: Posting here.
Join Date: Feb 2019
Location: NC
Posts: 568
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Quote:
Originally Posted by COcheesehead
Its even a better feeling when the monthly interest payments are more than you need to live on.
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I bet that’s a great feeling.
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07-07-2022, 12:40 PM
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#886
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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9.48% effective yield...for 6 days. Money didn't have any better uses so what the heck.
27.9% annual before the $1/CD commission.
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07-08-2022, 09:45 AM
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#887
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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So did you buy them all? Leave any for the rest of us? Just kidding.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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07-12-2022, 09:01 AM
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#888
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Purchased muni this morning. Then the phone rang about an hour ago - dealer claims mistake. Same old, same old...
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07-12-2022, 09:03 AM
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#889
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by njhowie
Purchased muni this morning. Then the phone rang about an hour ago - dealer claims mistake. Same old, same old...
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I’ve had buy orders canceled that should not have been canceled, but never had one rescinded. Wow.
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07-12-2022, 09:23 AM
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#890
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by COcheesehead
I’ve had buy orders canceled that should not have been canceled, but never had one rescinded. Wow.
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Can you imagine if you hit the buy or sell button and then afterwards claimed it was a mistake and asked the broker to reverse it? How loudly would they laugh?
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07-12-2022, 11:22 AM
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#891
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by njhowie
Can you imagine if you hit the buy or sell button and then afterwards claimed it was a mistake and asked the broker to reverse it? How loudly would they laugh?
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No lie.
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07-16-2022, 05:32 PM
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#892
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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So my home state of MD has decided to shake things up by offering a series of 30 yr zero coupon bonds. Home state bonds generally get A2 or better ratings and the yields reflect that. I’ve reached for yield by going out 20 yrs and buying high rated county bonds with good coupons. Most new issues here have decent coupons but the premium pricing crushes the yield. I never understood that part. Anyway these are not issues that I would normally be attracted to (Stadium bonds lumped in with public school issues). The expected pricing yields 5% but 30 yrs is just a bit too far out for me. I hate the way Fido assumes 37% rate to estimate taxable equivalent. Maybe I’ll nibble.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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07-17-2022, 09:03 AM
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#893
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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I think it's good to steer clear of new issues as you have no leverage. They set the prices, you take it or leave it. In the secondary market, you are able to pick and choose. Generally, the yields are going to be better, because everyone could simply subscribe for the new issue. So the secondary market is competing with the primary in that sense. As you know, you are able to bid in the secondary market, so there is even more opportunity for higher yields if you've done your research and can identify issues that are potentially mispriced and a dealer that is looking to unload inventory.
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07-17-2022, 10:08 AM
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#894
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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That comparison of new vs. secondary makes sense. I’d be 95 when these zeros mature. No income in the meantime unless I sell. My very first muni was a new issue priced at par with 22 yr maturity. I think that experience set my expectations wrt new issues. I took a tax hit on an IRA distribution to get the bond into a taxable account. A regional broker sold it to me on a cold call but never came up with anything of value after that.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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07-21-2022, 05:33 PM
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#895
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Fidelity is once again having their $100 bonus offer for opening an account and depositing $50 in it. This is available for new or existing customers who have not previously done the offer.
Last year I was able to do this for DW, but mine was screwed up in the process. I just signed up for it again for myself, and it looks like it will work this time.
Since I now control mom's accounts, I'll do one for her as well.
https://www.fidelity.com/go/starter-pack
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07-22-2022, 07:47 AM
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#896
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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10-year treasury yield cratering - currently 2.74%.
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07-22-2022, 05:39 PM
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#897
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by njhowie
10-year treasury yield cratering - currently 2.74%.
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Good stuff if you bought the recent muni yield spike. I used up all my maturing funds cash to buy everything I could 45 ish days ago.
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07-22-2022, 07:03 PM
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#898
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by COcheesehead
Good stuff if you bought the recent muni yield spike. I used up all my maturing funds cash to buy everything I could 45 ish days ago.
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We just sold mom's car this week and closed on selling her condo last week, so we have a lot of funds to deploy. We did pretty well this week and last between CDs, Treasuries, and munis. I did find a few good deals for the munis. Will be interesting to see what happens next week after the rate hike - however much it will be.
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07-22-2022, 07:09 PM
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#899
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by njhowie
We just sold mom's car this week and closed on selling her condo last week, so we have a lot of funds to deploy. We did pretty well this week and last between CDs, Treasuries, and munis. I did find a few good deals for the munis. Will be interesting to see what happens next week after the rate hike - however much it will be.
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I am assuming and we know how problematic assuming is, that short term rates will rise and intermediate and long term will show little movement. We shall see.
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07-22-2022, 07:46 PM
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#900
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by COcheesehead
I am assuming and we know how problematic assuming is, that short term rates will rise and intermediate and long term will show little movement. We shall see.
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As I've pointed out over the past several months - 3.0% for the 10-year seems to be the resistance point. It can get there and even above for a short period, but then it gets smacked back down. We'll see if that continues to hold - I believe it will. I think after the hike, we'll see it move higher again for a short while before going back down. I'm hoping that's what happens once again, with some short-term volatility and we'll get another short period of higher yields for new purchases.
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