CD M-mkt regulations are quite tough now. Look around, there are hardly any small m-mkt funds - they have been merged or liquidated. It was unheard of just few years ago for firms to offer m-mkt funds from other firms, but now, some even offer a menu of m-mkt funds from other firms (ML/BoA, E*Trade/MS, etc). Sure, Fidelity, Schwab, Vanguard still offer their own m-mkt funds, but many firms don't have that choice.
And m-mkt reforms are ongoing, especially for gates for retail-prime m-mkt funds and other aspects for institutional-prime m-mkt funds (with floating NAVs).
I don't worry about government m-mkt funds with $1 NAV. Without the fear of gates, retail-prime m-mkt funds with $1 NAV will be fine too.
For liquid part of fixed-income, one can look broadly at a mix of m-mkt funds, T-Bills, short-term CDs, ultra ST bond funds. It isn't a good idea to rely entirely on any one of these, or to claim that one would never have x or y or z.
BTW, institutions are stuck with m-mkt funds and T-Bills (ask Warren Buffett) because what will do with limited FDIC insurance, now restricted to 5x per account per bank with all sort of tricks.
CD I am redeeming cds as they mature and moving the cash to my VG MM fund, 5.27%. If cds start paying better than the MM, I may invest again at my cu. I only buy cds at my credit union. It has always paid a good rate. I will not shop around for a few tenths of a percent.
I struggle a bit with how much money I want to hold in a Brokerage MM fund. None of it is insured, so you have to basically trust that the brokerage investors will do an excellent job of how to keep the MM money as safe as possible, without government insurance for protection. The great majority of my brokerage investments are in an IRA, and in general I choose to only hold an amount in my MM that equals the RMD amount for that year. Everybody has their system they believe in, but for now, I prefer the safety FDIC insurance of my CDs, even though I might get "a few tenths of a percent" more in that MM.
CD VUSXX has virtually the same yield as VMFXX (this has been true for several months), and is mostly state tax exempt.
In a moderate (
5%) to high (10%) income tax state, the fund can save 20-40 basis points in taxes (assuming the fund is 80% invested in Treasuries and yields stay above
5%). It may not be worth shopping different institutions to gain a few basis points, but moving from VMFXX to VUSXX can be done overnight and doesn't involve multiple institutions.
https://investor.vanguard.com/investment-products/money-markets#mm-ratesOf course this only makes sense in a taxable account.
CD Callable CDs at Schwab are paying more than MMs. I'm buying 1-year CDs where the 1st "possible" call date is 6 months from now, at 5.5%.
CD I am redeeming cds as they mature and moving the cash to my VG MM fund, 5.27%. If cds start paying better than the MM, I may invest again at my cu. I only buy cds at my credit union. It has always paid a good rate. I will not shop around for a few tenths of a percent.
IRS Waiver of Annual RMD for Inherited Retirement Accounts There was indeed confusion in early-2021 and there were revised versions of IRS Publication 590-B [
As you wrote in the cited link, "So, this new
590-B dated 3/2
5/21 makes things clear."
Hence the original two year transition waiver through the
end of 2022.
If the rules have been clear since 3/2
5/21, then ISTM that by providing additional waivers for 2023 and then 2024, all the IRS is doing is rewarding people who didn't read rules that were clear for two years or more at the time they were required to take RMDs (2023 and later).
IRS Waiver of Annual RMD for Inherited Retirement Accounts
IRS Waiver of Annual RMD for Inherited Retirement Accounts To be clear here (somewhat ironic choice of words), the IRS is rewarding failure to read the rules by waiving a rule for another year.
Some individuals who are owners of inherited IRAs ... [misunderstood] the new 10-year rule. ... Specifically, [they] expected that the [new] 10-year rule would operate like the [old] 5-year rule. [They though that] there would not be any RMD due for a calendar year until the last year of the 5- or 10-year period following the ... death of the eligible ... beneficiary. ...
[B]eneficiaries of individuals who died in 2020 explained that they did not take an RMD in 2021 and were unsure of whether they would be required to take an RMD in 2022. [They] asserted that ... the Treasury Department and the IRS should provide transition relief for failure to take distributions that are RMDs due in 2021 or 2022
https://www.irs.gov/pub/irs-drop/n-24-35.pdfFair enough. To avoid penalizing beneficiaries due to initial confusion about the new rule, the IRS provided a two year period where penalties were waived.
Apparently two years weren't enough for some taxpayers. The IRS extended the waiver for 2023, and now again for 2024. As near as I can see, there was no additional rationale given beyond that used for the initial transition waiver.
Note that the same rules apply to inherited employer-sponsored plans (401(k)s, 403(b)s).
IRS Waiver of Annual RMD for Inherited Retirement Accounts
The Week in Charts | Charlie Bilello The Week in Charts (04/12/24)The most important charts and themes in markets, including...
00:00 Intro
00:18 Topics
00:
57 Inflation Heating Up
08:43 The Most Absurd # in CPI
10:
53 See You in September (Fed Cut Pushed Back)
17:28 The Higher For Longer Impact
20:
59 The Start of a Correction?
27:24 Correlation ≠ Returns
30:
53 Reversion to the Meme
32:
54 Fast Food Isn't Cheap Anymore
37:13 Rising Donations
VideoBlog
The MOVE Index - Please Share your Insight Unfortunately Move isn't accurate and can't tell you when to get out in a timely manner and why I don't look at it.
Link
Your link provided doesn't even mention
MOVE, so it's unclear what you tested and why it "isn't accurate"?
Every data point doesn't have to provide a simplistic buy/sell strategy.
Your link for short-term momentum stuff mentions only
VIX that is a volatility measure for SP
500 (there are several other stock-VIX too), while MOVE is a volatility measure
Treasury yields - those have been quite volatile (and then there was 2022). With your bond-heavy approach, maybe you should look at MOVE more.
CD Bought an 18 month non-callable CD this week at Schwab, to replace one that matured last week. The CD pays 5% interest, and is from an A rated bank. The 18 month CD fits well into a CD ladder I have in place. As a retired person, I am very comfortable buying CDs, which pay at least 5%, from banks with a strong financial rating.
⇒ All Things Boeing ... NASA may send Starliner home without its crew
Buy Sell Why: ad infinitum. Added to current position in VTI and considering adding to earlier buy of 5-yr TIPS.
Update: Went ahead and placed an order for additional 5-yr TIPS in both IRAs.
The MOVE Index - Please Share your Insight
The MOVE Index - Please Share your Insight
The MOVE Index - Please Share your Insight
DJT in your portfolio - the first two funds reporting (edited) IIRC he only gets those extra 30m shares if the price is above 17.50 for a certain period of time. Based on recent price action, that floor may be breached in a few weeks. LOLNot a chance that those shares will not be granted. As
@Mark wrote above:
The shares have already been earned because the calculation for performance was volume weighted and in the first week of trading there was huge volume at high prices.
From the SPAC merger proxy statement/prospectus :
The Earnout Shares shall be earned and payable during the Earnout Period as follows:
- if the dollar volume-weighted average price (“VWAP”) of New Digital World common stock equals or exceeds $12.50 per share for any 20 trading days within any 30 trading day period, New Digital World shall issue to the former TMTG stockholders an additional 15,000,000 Earnout Shares;
- if the VWAP of New Digital World common stock equals or exceeds $15.00 per share for any 20 trading days within any 30 trading day period, New Digital World shall issue to the former TMTG stockholders an additional 15,000,000 Earnout Shares; and
- if the VWAP of New Digital World common stock equals or exceeds $17.50 per share for any 20 trading days within any 30 trading day period, New Digital World shall issue to the former TMTG stockholders an additional 10,000,000 Earnout Shares.
https://www.sec.gov/Archives/edgar/data/1849635/000119312524038590/d408563d424b4.htmPost merger, Digital World became Trump Media.
Jamie Dimon (JPM) Looking for Future Rate Storms Interesting that Jamie Dimon's concerns have been quoted widely, but his wide rate range of 2-8% is skipped in these quotes. All he may be trying to say that as the largest bank in the US (TBTF, SIFI, etc; also largest globally by market-cap but not by assets), he is prepared for all eventualities.
BTW, Treasury volatility is indicated by
MOVE (it's like VIX for bonds) and it's now 121; recent
52-wk high was 148 in 10/2022; all-time low was 37 in 09/2020.
https://finance.yahoo.com/quote/^MOVE
DJT in your portfolio - the first two funds reporting (edited) IIRC he only gets those extra 30m shares if the price is above 17.50 for a certain period of time. Based on recent price action, that floor may be breached in a few weeks. LOL
Interestingly in their (original?) prospectus they say they don't track or report 'metrics' that 'would be normally expected of companies in their line of work' (eg, standard data/metrics for social media companies such as MAUs, engagements, etc) -- which should've raised suspicions of ANYONE with a clue who was remotely thinking of investing into them.
