|
Strong Sauce posted:writings been on the wall for hashicorp. hashicorp has been slowly eroding away things already like changing licenses that have annoyed developers. not sure when you bought it but now that ibm is taking it over i would sell it off as i can. ibm coming in means a worse product at more cost. and a ton of their code is opensourced and people have gone to fork their own versions, including the linux foundation w/ "opentofu" I saw a few articles about how apparently OpenTofu is either outright stealing Terraform's stuff or just using it in a not-fully-license-compliant manner. Given that OpenTofu actually put in the #1 feature that people have asked for - "please, please, for the love of God, let us just run Terraform against specific things that we want to run it against" - I do hope they end up succeeding, but for their sake I hope they don't steal from IBM. IBM probably has as many lawyers in one wing of one office than HCP has employees. It's kinda sad. Hashicorp gave my cat a Terraform certification because I found an Easter egg in their cert program rules that allowed pets to get certified. IBM would probably send whoever wrote that Easter egg to a firing squad.
|
#
?
Apr 25, 2024 20:09
|
|
|
|
| # ? Apr 25, 2024 22:30 |
|
|
drk posted:For those still thinking about buying I Bonds at the current rate, now is the time. The fixed rate will likely remain similar, but the variable inflation rate is going down.
|
|
#
?
Apr 25, 2024 20:17
|
|
|
Josh Lyman posted:Is there a reason to go with I Bonds over SGOV or USFR? yeah they do totally different things. SGOV holds (almost entirely) short term US treasury securities with fixed rates. USFR holds (almost entirely) short term US Treasury Floating Rate Notes Series I Bonds are US treasury securities with variable rates designed to protect principle against inflation
|
|
#
?
Apr 25, 2024 20:25
|
|
|
Josh Lyman posted:Is there a reason to go with I Bonds over SGOV or USFR? As a general rule inflation protected bonds like IBonds and TIPS are the better choice if inflation turns out to be above what the market is expecting going forward. While nominal bonds (things like BND, SPBO, GOVT, ect...) are generally the better choice if inflation turns out to be below what the market is expecting. Obviously its impossible to know which will be the case before hand. So the usual "the future is unknowable so just diversify" argument applies here. Its worth noting that if you are going to hold TIPS (or a TIPS fund/ETF) you *really* want to hold them in some kind of tax deferred account (IRA, 401k, 403b, ect...) due to the unique way they are taxed. Personally I would *never* hold TIPS in a taxable brokerage account. IBonds don't have this specific issue but unlike TIPS they have a yearly purchase limit and some other unique fiddly restrictions. Equities tend to be a much better hedge against inflation than bonds over longer periods of time but they do this at the cost of much higher volatility. I see SGOV and USFR as being roughly equivalent to a high yield savings account. I wouldn't expect them to keep pace with inflation over the long term. Antillie fucked around with this message at 20:48 on Apr 25, 2024 |
|
#
?
Apr 25, 2024 20:28
|
|
|
I'll be slightly less annoying and maybe describe the differences more accurately here: I Bonds have a fixed rate and a variable rate. The variable rate is set and adjusted by the Treasury to reflect inflation on a semi-annual basis. The bond yields the sum of the fixed and variable rate; interest accrues monthly and is compounded to the principle when the rate changes. They are a good deal for a store of value, and as a result have some restrictions: You can only buy $10K of them*, you must hold them directly, and you must hold them for at minimum 12 months. There is a penalty of 3 months interest if not held for more than 60 months. There is no secondary market; you redeem your I Bonds directly to the Treasury. SGOV holds treasury bills. The interest rates of treasury bills are determined at auction. The fund pays out dividends roughly equal to the trailing 13 week T-Bill yield on a monthly basis. T-Bills are zero coupon bonds so they are sold at a discount to face. USFR holds treasury floating rate notes. The interest rates of FRNS are determined by the most recent 13 week T-Bill yield plus a spread, which can be negative or positive but is constant over the duration of the FRN. USFR pays out a monthly dividend based on the yield of its FRN holdings. Practically speaking there is not much difference between SGOV and USFR over a moderate time horizon since the underlying mechanism is the current 13 week T-Bill, but most current FRN issuances have a positive spread so they will yield slightly more than the 13 week T-Bill. The risk profile of all of these investments is functionally identical in that they are all based on treasury securities of different types.
|
|
#
?
Apr 25, 2024 20:41
|
|
|
jfff posted:I may not fully understand what you're asking, but IIRC you can only contribute to a solo 401k as an employER based on your profit from self-employment. Yup, agreed. So my question is regarding the total 69k limit. Say i contribute 6k as the employER contribution. Theoretically, that leaves me with 69-23-6k=40k of space still. Can I use that additional 40 k of space to make post tax contributions to my 401k up to the 40k limit? And then convert that to Roth? Even though that 40k is coming from my W2 job?
|
|
#
?
Apr 25, 2024 21:01
|
|
|
I just realized I have about 5.84% of my taxable portfolio in SGOV, and it's money I don't need in the short term (like, more than a decade) at all. Would it be better for me to sell it and buy different ETFs with it?
|
|
#
?
Apr 25, 2024 21:01
|
|
|
ETF just means exchange traded fund - it doesn't imply anything about the actual underlying securities and their risk profiles. So it's very hard to tell you if you should buy "a different ETF" - it depends on what that ETF actually is, and how well it aligns with your money goals. SGOV sounds like it doesn't align with your goals for this money so I think it's a good idea for you to sell and invest in something else - but to determine the "something else" you need to figure out what your goals actually are and when you will need the money. You could buy an ETF that only invested in companies that start with the letter A. You could buy an ETF that invested in nothing but junk grade corporate paper. You could buy an ETF run by Cathie Wood. You could buy an ETF that tracks the performance of the Nikkei 225. All of these would meet different goals (comedy, income stream at high risk, bagholding, you really like Japan).
|
|
#
?
Apr 25, 2024 21:10
|
|
|
KYOON GRIFFEY JR posted:ETF just means exchange traded fund - it doesn't imply anything about the actual underlying securities and their risk profiles. So it's very hard to tell you if you should buy "a different ETF" - it depends on what that ETF actually is, and how well it aligns with your money goals. SGOV sounds like it doesn't align with your goals for this money so I think it's a good idea for you to sell and invest in something else - but to determine the "something else" you need to figure out what your goals actually are and when you will need the money. All in on DJT, got it  Meant more of sell SGOV and put it in to a general IVV/ITOT/IEMG/QQQ/SCHD kind of deal, general wider market ETFs with the goal of growing over decades.
|
|
#
?
Apr 25, 2024 21:21
|
|
|
|
| # ? Apr 25, 2024 22:30 |
|
|
Antillie posted:As a general rule inflation protected bonds like IBonds and TIPS are the better choice if inflation turns out to be above what the market is expecting going forward. While nominal bonds (things like BND, SPBO, GOVT, ect...) are generally the better choice if inflation turns out to be below what the market is expecting. Obviously its impossible to know which will be the case before hand. So the usual "the future is unknowable so just diversify" argument applies here. Its worth noting that if you are going to hold TIPS (or a TIPS fund/ETF) you *really* want to hold them in some kind of tax deferred account (IRA, 401k, 403b, ect...) due to the unique way they are taxed. Personally I would *never* hold TIPS in a taxable brokerage account. IBonds don't have this specific issue but unlike TIPS they have a yearly purchase limit and some other unique fiddly restrictions. As a way to stash money that you don’t want to put into a VTI/VOO type vehicle, they feel about the same to me, with the benefit of SGOV/USFR being liquidity in case you do decide to move the funds to VTI/VOO. But the returns on I Bonds, SGOV, and USFR seem pretty similar. I haven’t really thought about the tax implications but from what I can tell, the interest on all 3 are subject to federal taxes as ordinary income and exempt from state taxes.
|
|
#
?
Apr 25, 2024 21:29
|
|