Where to Invest Money Right Now?

[Kevo]

Attachment 466297


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Lol nice. Hope SDFCU works out for you.

They also have a pretty decent 2% cash back credit card with no foreign transaction fees.

I think if you can ask them to use the same credit pull from the auto loan in order to apply for the credit card if you apply over the phone for the credit card.

[yeahman]

Lending Club just raised my high yield savings rate to 4.5%. I like getting paid every month.

[jm2e]

Cashed in an ibond since interest sucks. It will pay for the ebike.

How much hassle/time did it take?


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[summit]

Logged into the t-direct, clicked on holdings, clicked on ibond, clicked on the one i wanted, clicked redeem, clicked submit. Says it will be in my linked bank in 2 days.

[ex-powderbroker]

I hear Canadian futures are the way to go.

[Boissal]

Logged into the t-direct, clicked on holdings, clicked on ibond, clicked on the one i wanted, clicked redeem, clicked submit. Says it will be in my linked bank in 2 days.

Was looking into doing it with the paper bonds I bought with my tax return last year. Read about the process, redeemed an electronic one instead. As easy as you describe.
The paper one I'll probably have to hand deliver to the Fed in DC after riding cross country on a mule then return to UT with a sack of silver coins...

[riser4]

Was looking into doing it with the paper bonds I bought with my tax return last year. Read about the process, redeemed an electronic one instead. As easy as you describe.
The paper one I'll probably have to hand deliver to the Fed in DC after riding cross country on a mule then return to UT with a sack of silver coins...

Lulz. As Dog intended.

[jm2e]

Pulled money from my online account at Ally and from Treasury Direct to buy a car this week. Both sources I expected to take 5-6 day for the funds to move. Both put funds in my account in 24 hours.


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[boltonoutlaw]

It's 13 month, and callable, but JPMC is offering 5.7% on new CD

[EWG]

Treasury money market funds are still on their way up. VUSXX is at 5.13% and will likely climb another 20 basis points or so in the next couple weeks.

It's more flexible than a CD since you can withdraw at any time but the rates can float down if the Federal Reserve lowers rates.

Never bought a fund like this. Riddle me how it works. Does your initial investment go up and down like a regular fund? If so, what determines that?

[4matic]

Never bought a fund like this. Riddle me how it works. Does your initial investment go up and down like a regular fund? If so, what determines that?

It’s a short term money market with 30-60 day duration. “Bills” are bought at a discount and paid in full at maturity whereas “bonds” and “notes” are sold at par and trade at market value paying 100% at maturity. The mm funds buy new paper every week.

For example. A 30 day bill yielding 5% would sell for 99.6c on the dollar. The .4C multiplied over 12 months is around 5% annual yield. Ok?

So, when you buy the fund it will accrue whatever the cumulative payout each month and then start over again each month. The goal is to maintain a $1.00 nav.

The money market can be broken and has come close a couple times but so far has not.

Some short term funds accrue the dividend in price and go ex every month. JPST for example.

[MiddleOfNight]

For example. A 30 day bill yielding 5% would sell for 99.6c on the dollar. The .4C multiplied over 12 months is around 5% annual yield. Ok?

i go treasury direct, the amount i 'bought' was the value at maturity - not the amount i put in up front - just what you're saying: it sells at a discount, it doesn't just add the % to your investment .. minor difference, but ..
if the rate was 5% and you wanted 1000 exactly to invest in a 13 week t-bill, you'd wanna do the maths of investment, %, and term to calculate the amount to 'buy' .. so you'd enter whatever $1012.5 - i think ... (?) it should work backward from that and take 1000 from your funding source and put 1012.5 back in at the end. maybe not those numbers but you get the idea.
i bought t-bill, and took me a minute to figure out why I entered X amount but it withdrew Y amount. my amounts are so small the difference is basically zip, but that's what happened.
automatically puts the money back in your funding source at the end of the term, unless you do a reinvestment ladder. very easy. i think treasury direct has a 100$ min on t-bills.

[CarlMega]

So with the I-Bonds now being below what I can get in Treasuries or even CDs, does it make any sense to keep them vs. redeeming? Only about 20K worth so not much to worry over but, these days, I'm trying to make all money productive.

With that, I think they are hovering around ~3.5 with treasuries being a bit over 5. Is the consensus the I-Bonds are sort of done now - I think I was around 9% on them for a time?

[summit]

I don't think you can redeem an I bond until 12 months? Or can you?

[CarlMega]

I don't think you can redeem an I bond until 12 months? Or can you?

Good point. Both my 10K I-Bonds are over a year tho.

I think you can redeem w/ a penalty/loss of interest if you are under tho.

I guess I should add - since you can only put in 10K a year, I'm wondering if it's worth sitting on these b/c I'd be starting with another 10K buy-in should inflation creep up again (vs. 30k). Do people accumulate these things over a life as matter of course - just in case? A dumb small hedge? thnx.

[summit]

Good point. Both my 10K I-Bonds are over a year tho.

I think you can redeem w/ a penalty/loss of interest if you are under tho.

Maybe lose all interest.... I got one in Jan. So I'd lose 8mo of interest now. If I wait until the 1 year mark, I'll lose 3 mo of interest. (You lose that for anything under 5yr).

If I had anything 1yr+ I'd cash in immediate unless I was close to 5yr. There are better alternatives. I already did that with my older one.

For me, my question is: In 4mo can I make a return greater than 4.4% effective interest I'd get for the 9mo of interest I'd keep holding the Ibond until January? Maybe, but there is risk. So I'll wait.

Otherwise... RTX and NOC seem unfairly beat up today.

[goldenboy]

I sold my ibond, and I'll sell my other one soon. Even if you want to be conservative, there are CDs at 5.5%+.

This was a good article on the best timing to sell an ibond based on purchase date. https://tipswatch.com/2023/08/06/the...-with-caution/

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[NBABUCKS1]

I sold my ibond, and I'll sell my other one soon. Even if you want to be conservative, there are CDs at 5.5%+.

This was a good article on the best timing to sell an ibond based on purchase date. https://tipswatch.com/2023/08/06/the...-with-caution/

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Thanks. Bought 4/22 and set a calendar reminder for Jan 1 to sell.

[CarlMega]

This was a good article on the best timing to sell an ibond based on purchase date. https://tipswatch.com/2023/08/06/the...-with-caution/

Yeah, forgot to say thanks for this. Helped me plot my optimum redeeming time.

[byates1]

this guy is entertaining

[4matic]

Easiest way to earn interest on cash? brokerage account at IB. Pays money market rate with total liquidity

[lowsparkco]

Easiest way to earn interest on cash? brokerage account at IB. Pays money market rate with total liquidity

If I’m reading it correctly, they pay nothing in the first $10k and 4.83% on anything in surplus.

Not quite as good as the best MM’s but you can’t be the liquidity.

[4matic]

If I’m reading it correctly, they pay nothing in the first $10k and 4.83% on anything in surplus.

Not quite as good as the best MM’s but you can’t be the liquidity.

Didnt know that detail. Big difference.

[ghosthop]

Easiest way to earn interest on cash? brokerage account at IB. Pays money market rate with total liquidity

I don’t know the details of the fine print, including a full withdraw penalty, but Vanguard pays the equivalent of VMFXX which is ~5.2% right now.

[yeahman]

Lending Club raising my HY savings rate to 4.65%.