OnTheBeach
Recycles dryer sheets
- Joined
- May 12, 2015
- Messages
- 114
Vanguard Short-Term Federal Fund Investor Shares (VSGBX) 2.50%
Yeah, I did, assuming that Prime gets to 2.15% soon, I'd lose about $50 by breaking it.
Mainly I'm just starting to find out that I really hate selling funds to get cash, thanks to a lifetime of conditioning that invested money is untouchable! So I'm finding myself wanting that CD to be more liquid, even though I don't really need it. But for now I will leave it alone.
Vanguard Short-Term Federal Fund Investor Shares (VSGBX) 2.50%
Did you run a spreadsheet to see if you even break even? I guess you have to guess how much higher the Prime MM might go.
Depositaccounts has an early withdrawal calculator, but you also need to calculate what you would earn by switching (minus the penalty) and compare the two total interest payments over the remainder of CD duration. https://www.depositaccounts.com/tools/ewp-calculator.aspx
I don’t know if I would bother unless there was a wider differential to make up for the penalty.
Also it's very easy to upgrade as rates move up. I was surprised with their recent move so soon. So I suppose in another 3 months there might be yet another move up even before reaching their typical end of year special.I think the 2% no-penalty CD at Ally would be the simpler option, with lower minimum, so less hoops to jump through to get the rate. But again, because the yield difference is so much smaller, even though there's more cash sitting there, the impact is still insignificant.
Vanguard Short-Term Federal Fund Investor Shares (VSGBX) 2.50%
I haven't kept as much cash on hand as in the past. I can always use my credit card if I need to.
<SNIP>
Thanks for that tip. They do have a 6 month CD at 1.5% APY. Not great, but better than 0.35%. Longer CD's don't work for me because my after tax balance, which is all cash, goes essentially to zero as I approach January; I pull from tIRA in December for the entire following year, limited by PPACA, if that's still a "thing" when December rolls around. An alternative would be to just pop that December money into a high yield savings account at some (new to me) online bank, then ACH money periodically to the CU to pay bills. I'm kind of reluctant to do that since I'm trying to reduce the number of institutions that I deal with. I had eleven, and now I'm down to seven: CU (billpay), Fido, Vanguard, 401k, 401k brokerage, HSA, Bank brick and mortar (safe deposit box & DW's spending account).
Where do you stash cash? Well not exactly cash money in greenbacks, but easy to access money that I can turn into cash.
I have a few hundred in a local credit union, and somewhere between 10-20 thousand in a vanguard money market account. I auto transfer out of that VG account for reoccurring bills. And I use it as a slush fund if I ever need it. Maybe once every couple years i need it for that. But I have a lot more than I normally need in that account, especially since it does pay much in interest.
Is there a better way? Should I just lower my mm account totals?
Given the international situation, it is much safer to leave your money where it is.
Cash in my Schwab brokerage account sweeps automatically into SWSXX which is currently earning 1.49%. ................................
I use an Ally Bank savings account, currently paying 1.8%
https://www.ally.com/bank/online-savings-account/
How do you rate that? I was under the impression that the only sweep available was to a bank acct earning 0.2+ % . Also told that higher yielding funds are available but not as sweep funds and that you manually have to move them.