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Small White Dragon posted:Any reason not to roll an old solo 401k into the 401k of a new job? Old one could have better fund options, lower fees, or both.
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Aug 15, 2023 04:36
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Serious_Cyclone posted:Appreciate the direction, whatever I was looking at was giving hard numbers for minimum income for eligibility. There is also the non-mega backdoor Roth which makes this all the more confusing. As explained above the megabackdoor Roth is for contributing past the contribution limit in a 401k. The regular backdoor Roth is for contributing to a Roth IRA when your MAGI is above the limit for being allowed to contribute.
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Aug 15, 2023 19:16
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I don't know if this is old news, but looks like Vanguard is getting into the pseudo-Savings Account game with a new "Cash Plus Account" offering.
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Aug 17, 2023 15:43
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Good-Natured Filth posted:I don't know if this is old news, but looks like Vanguard is getting into the pseudo-Savings Account game with a new "Cash Plus Account" offering. They've had this for a while now but for some reason they're limiting signups. Less of an incentive now.
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Aug 17, 2023 16:16
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Residency Evil posted:They've had this for a while now but for some reason they're limiting signups. Less of an incentive now. Ah. That's probably why I'm just finding out. I got an email saying I could sign-up now.
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Aug 17, 2023 16:28
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My wife and I want to move our 6-month emergency fund from the 0% checking account it’s currently in to an account where it’s earning something. I know there are a number of options out there, but I want to limit this to a HYSA or money market account. I am not going to be doing any yield chasing; I have no time for that. I want to set this up and forget about it unless there's an emergency. The amount is $25K if it matters. It seems like there are three main considerations: 1. FDIC insured, obviously. 2. Interest rate. 3. Ease of access. (If my roof suddenly needs to be replaced and I need 20K immediately, I don’t want to hear any excuses why I can’t get it.) Am I missing anything obvious here for an emergency fund? Thanks!
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Aug 20, 2023 20:51
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hepcat posted:My wife and I want to move our 6-month emergency fund from the 0% checking account it’s currently in to an account where it’s earning something. I know there are a number of options out there, but I want to limit this to a HYSA or money market account. I am not going to be doing any yield chasing; I have no time for that. I want to set this up and forget about it unless there's an emergency. The correct answer is probably laddering and auto rolling cds.
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Aug 20, 2023 20:59
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hepcat posted:My wife and I want to move our 6-month emergency fund from the 0% checking account it’s currently in to an account where it’s earning something. I know there are a number of options out there, but I want to limit this to a HYSA or money market account. I am not going to be doing any yield chasing; I have no time for that. I want to set this up and forget about it unless there's an emergency. Sign up for Ally Bank. Don't ladder a bunch of CDs because then you can't access the money immediately.
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Aug 20, 2023 21:03
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pseudanonymous posted:The correct answer is probably laddering and auto rolling cds. How is this the answer? The balance is tied up in CDs and you can’t access it without penalty. An ordinary HYSA is perfect for this use case.
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Aug 20, 2023 21:05
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hepcat posted:The amount is $25K if it matters. I'd probably go with a brokerage account and SGOV.
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Aug 20, 2023 22:40
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H110Hawk posted:Sign up for Ally Bank. Don't ladder a bunch of CDs because then you can't access the money immediately. This is what I do. The large transfers take 2 business days. If you want to be quicker, you can also Zelle from those accounts, but there are sending limits.
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Aug 20, 2023 22:59
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H110Hawk posted:Sign up for Ally Bank. Don't ladder a bunch of CDs because then you can't access the money immediately. Yeah there are several good HYSA options that clock in at over 4% interest and I'd just pick one of those instead of the more complicated options suggested here since the difference in returns will be marginal at best. Ally is good and at 4.25%. We use capital one 360 at 4.30% and have since it was ING direct. Good company and we've got pretty much all our accounts with them.
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Aug 20, 2023 23:26
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CompeAnansi posted:Yeah there are several good HYSA options that clock in at over 4% interest and I'd just pick one of those instead of the more complicated options suggested here since the difference in returns will be marginal at best. Ally is good and at 4.25%. We use capital one 360 at 4.30% and have since it was ING direct. Good company and we've got pretty much all our accounts with them. Yea I had a HYSA from ING Direct -> capital one and they lovingly kept the interest at .30%. Had to open a new account to get the 4.3% but hey took all of 5 seconds but still.
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Aug 20, 2023 23:35
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I bought a year long treasury bond ladder through my schwab account a few months ago. The first rung is maturing at the end of the month. That money plus interest is then free to re-invest right?
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Aug 21, 2023 21:17
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Awkward Davies posted:I bought a year long treasury bond ladder through my schwab account a few months ago. The first rung is maturing at the end of the month. That money plus interest is then free to re-invest right? Also, please note that treasuries are taxable!
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Aug 21, 2023 21:39
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jokes posted:Also, please note that treasuries are taxable! But only on the federal level right? Whereas HYSAs are also taxable on the state level?
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Aug 22, 2023 00:20
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Awkward Davies posted:But only on the federal level right? Whereas HYSAs are also taxable on the state level? Correct. If you pay state income taxes going directly in to treasuries has some tax benefits. Funds containing treasuries etc are much more of a difficult area to understand and it varies widely by state.
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Aug 22, 2023 01:54
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Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. I live in Florida, an income tax free state if it makes a difference 
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Aug 23, 2023 15:23
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Ramrod Hotshot posted:Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. If anyone could predict with certainty where interest rates were going, they wouldn't be posting here. They would be floating on their Yacht somewhere in the Caribbean with all the profits they made from their knowledge. You have to make that decision based on what's best for you.
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Aug 23, 2023 15:31
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Ramrod Hotshot posted:Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. Market expectations on what interest rates will do is already priced into the difference between shorter term and longer term treasury bonds. The only way to game interest rates the way you want, is to correctly predict something better than the market can. Generally it makes the most sense to buy the longest duration that meets your cash flow and liquidity needs. Sometimes there are market irregularities but it's usually not worth worrying about.
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Aug 23, 2023 15:34
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Ramrod Hotshot posted:Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. Can't time the market.
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Aug 23, 2023 15:46
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You say that, but I have it on good authority* that a market crash is coming** * my wife's boss * timeline TBD
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Aug 23, 2023 15:57
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esquilax posted:Market expectations on what interest rates will do is already priced into the difference between shorter term and longer term treasury bonds. The only way to game interest rates the way you want, is to correctly predict something better than the market can. Yes, though even with all the combined information the market has, it will still inevitably be wrong in one direction or the other. Looking at the current yield curve versus just one year ago, long term bonds look like they were way overpriced (yielding too little). Or, maybe they were priced more or less correctly and the current high yields will drop.  To answer the original question though, assuming that you are talking about short term treasuries (1 year and less), there are lots of good options. Individual treasuries and SGOV are both good. I personally use XHLF, which is slightly longer in duration and lower fees compared to SGOV. For the longer term, it certainly looks like a fairly reasonable time to be buying longer term treasuries as well, though long term decisions should be made based on an asset allocation plan, not current rates.
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Aug 23, 2023 16:08
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Easychair Bootson posted:You say that, but I have it on good authority* that a market crash is coming** Lots of people are saying a crash is coming. But fewer than were saying a crash is coming a year ago. Does that mean we're on a trajectory to avoid a crash? I feel like we need a "percentage of analysts predicting a crash" graph over time or something.
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Aug 23, 2023 16:23
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Ramrod Hotshot posted:Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. Inflation isn't dead yet which would imply a couple more rate hikes might be coming. But if something breaks in the economy rates would likely need to be cut. It's all guesswork. Personally I think "higher for longer" interest rates are more likely than the market is currently pricing. So SGOV and treasuries of a under 1 year duration are where I'm sticking money at the moment. Subvisual Haze fucked around with this message at 17:26 on Aug 23, 2023 |
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Aug 23, 2023 17:21
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Easychair Bootson posted:You say that, but I have it on good authority* that a market crash is coming** on a long enough timeline, he's probably right! I've been pretty happy to squat on short term treasuries this year and take my 5% but lots of opportunity cost there too
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Aug 23, 2023 17:33
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Chad Sexington posted:I've been pretty happy to squat on short term treasuries this year and take my 5% but lots of opportunity cost there too I've got a mix of SGOV and 13/17/26 bills which works fine for me. Like you, I'm not super stressed about missing a few basis points here and there.
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Aug 23, 2023 18:21
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Bremen posted:Lots of people are saying a crash is coming. But fewer than were saying a crash is coming a year ago. Does that mean we're on a trajectory to avoid a crash? I feel like we need a "percentage of analysts predicting a crash" graph over time or something. Time to establish my derivative fund based on the change in percentage over time and really juice my profits somehow.
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Aug 23, 2023 18:31
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Bremen posted:Lots of people are saying a crash is coming. But fewer than were saying a crash is coming a year ago. Does that mean we're on a trajectory to avoid a crash? I feel like we need a "percentage of analysts predicting a crash" graph over time or something. Like a rotten tomatoes for economic collapse?
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Aug 23, 2023 18:37
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Ramrod Hotshot posted:Is it fair to say interest rates have probably peaked and may start falling from here? Trying to decide whether to repurchase treasurys (I have a bunch that just matured) or just throw it into SGOV. Easier, but it might make sense to lock in rates. as others have said, no one knows with any real certainty, but for what it's worth the most recent fed minutes seems to have the markets anticipating rates will be higher for longer maybe the bond market has successfully priced this in and we're near peak rates, but i wouldn't be astonished if were higher in six months
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Aug 23, 2023 19:21
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Even if inflation goes down, I don’t see the Fed as being quick to cut. Rates between 4-7% seem pretty normal and I don’t think there is much desire to go near zero again without a major recession.
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Aug 23, 2023 20:50
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H110Hawk posted:Sign up for Ally Bank. Don't ladder a bunch of CDs because then you can't access the money immediately. KYOON GRIFFEY JR posted:How is this the answer? The balance is tied up in CDs and you can’t access it without penalty. An ordinary HYSA is perfect for this use case. A lot of CDs have pretty minimal penalties for breaking them. I'll take a low probability of losing half of 7 month's interest in case of an emergency.
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Aug 26, 2023 16:52
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To play devil’s advocate, non-laddered CDs might be a bad idea if the bank is not obligated to let you break them early - read the terms carefully. In times of crisis they may need to halt early withdrawals, and in extreme crisis if the bank fails the FDIC is probably not going to give you your money back before the end of the term. Personally I am sticking with 1/3rd of my emergency fund in HYSA and 2/3rd in I-Bonds. I realize this is current unpopular but I’m not interested in wasting my time chasing a tiny bit of extra yield here and there (and it is tiny when you consider the tax advantages of I Bonds). Plus the current situation where cash rates are more than a point above inflation is unlikely to persist for long (and the treasury market agrees quite strongly)
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Aug 27, 2023 02:38
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Does anyone else here use https://projectionlab.com/? I've found it to be an incredibly powerful tool. I've used Mint for a decade to make a budget, monitor trends, etc., but with projection lab, I plug in all my accounts it creates a detailed and customizable roadmap for the future. For example, I can create different simulations/scenarios based on different conditions. So first, I modeled my current numbers with predictable raises, milestones, and expenses (like wanting a new car every 20 years to keep up with safety ratings). Then I created a duplicate model but changed the amount of money I'd spend on said car every 20 years; I ran one with different retirement and investments accounts to see how that might change my retirement; I ran a different scenario about whether or not it's worth it to get an advanced degree and a higher paying job in my field (it's not! I'd have to work longer once it projected the loss in income from reducing work hours while at school and the cost of the program itself against the increased pay with my age/remaining working years factored in). Obviously this thing can't predict the future but I've found it very useful in making a plan I feel good about. I find PL + Mint to be pretty much what I need 
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Aug 28, 2023 04:52
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Lol I have been wondering why my IBKR funds haven't been performing that well, the usual VT and VTI stuff. Just realised it's because the USD has devalued by 15% over the last year. Wow. I don't think it changes much for my plans but it's a bit of a reminder that I have that exchange rate exposure. 
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Aug 28, 2023 07:42
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Anyone buying long TIPS for retirement accounts? Here's what I see this morning:  2% real yields on 25+ yrs is not bad. Many of these are selling at a substantial discount to inflation adjusted par. On the other hand, over that long time frame, its hard to imagine stocks not doing much better than 2% real.
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Aug 28, 2023 16:26
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How do I go about picking which investment options to take/distribute to on my new work 401k plan
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Aug 28, 2023 21:41
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Boris Galerkin posted:How do I go about picking which investment options to take/distribute to on my new work 401k plan Post them here if you want some input. Generally speaking you want some broadly diversified index funds with fees under 0.5% (less than 0.10% would be better, but not everyone has options that cheap)
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Aug 28, 2023 22:20
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Boris Galerkin posted:How do I go about picking which investment options to take/distribute to on my new work 401k plan Info we'd need: Ticker symbol Expense ratio For all the options.
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Aug 28, 2023 22:49
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KYOON GRIFFEY JR posted:I've got a mix of SGOV and 13/17/26 bills which works fine for me. Like you, I'm not super stressed about missing a few basis points here and there. The game I would like to play / automate is keep the least amount of money in my Checking account possible and in a timely fashion ID the credit card bills due that month (unpredictable because I expense tons of stuff for work), sell the appropriate amount of SGOV, transfer to Checking, pay bill. It just doesn't seem worth the overdraft risk / time commitment in doing that though, unless I'm missing something and should just move my credit card payments / etc. to be sourced out of a Fidelity checking account / something that lets me park in FZDXX until the last possible moment.
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Aug 28, 2023 23:15
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