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Post by steadyeddy on Feb 3, 2023 12:33:11 GMT
Stable Value fund was a good option for many many years... paying a nice yield when the rest of the world was 0%.
Now, SV (at least in my 401(K)) is still around 2% when the rest of the money-market instruments are much higher.
Any ideas how to squeeze a bit more yield with 401(K) cash? One option could be a blend of total stock fund (say 20%) and total bond fund (80%) composition.
Your input welcome.
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Post by roi2020 on Feb 3, 2023 23:26:08 GMT
Stable Value fund was a good option for many many years... paying a nice yield when the rest of the world was 0%. Now, SV (at least in my 401(K)) is still around 2% when the rest of the money-market instruments are much higher. Any ideas how to squeeze a bit more yield with 401(K) cash? One option could be a blend of total stock fund (say 20%) and total bond fund (80%) composition. Your input welcome. I sold my intermediate core-plus bond fund in late 2021 and used the proceeds to purchase a SV fund.
This trade was reversed in late 2022.
My SV fund rate was also ~2%.
Bond yields are significantly higher than a year ago and I believe most of the Fed's tightening during this cycle has already occurred.
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Post by steelpony10 on Feb 4, 2023 0:56:21 GMT
We use PONAX/PIMIX in a TIRA for excess cash to needs. It held up fairly well in 2022. Current yearly yield is 5%+ and long term management has been good under a variety of market conditions. It has a monthly distribution.
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Post by Chahta on Feb 4, 2023 1:51:16 GMT
We use PONAX/PIMIX in a TIRA for excess cash to needs. It held up fairly well in 2022. Current yearly yield is 5%+ and long term management has been good under a variety of market conditions. It has a monthly distribution. Why isn't excess cash put back into the CEFs until it is needed? |
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Post by Chahta on Feb 4, 2023 1:53:16 GMT
Stable Value fund was a good option for many many years... paying a nice yield when the rest of the world was 0%. Now, SV (at least in my 401(K)) is still around 2% when the rest of the money-market instruments are much higher. Any ideas how to squeeze a bit more yield with 401(K) cash? One option could be a blend of total stock fund (say 20%) and total bond fund (80%) composition. Your input welcome. With prices down why not equities? |
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Post by steadyeddy on Feb 4, 2023 2:05:53 GMT
Stable Value fund was a good option for many many years... paying a nice yield when the rest of the world was 0%. Now, SV (at least in my 401(K)) is still around 2% when the rest of the money-market instruments are much higher. Any ideas how to squeeze a bit more yield with 401(K) cash? One option could be a blend of total stock fund (say 20%) and total bond fund (80%) composition. Your input welcome. With prices down why not equities? My base case is equities will go lower... So, equities is not an option. |
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Post by steadyeddy on Feb 4, 2023 2:06:43 GMT
Stable Value fund was a good option for many many years... paying a nice yield when the rest of the world was 0%. Now, SV (at least in my 401(K)) is still around 2% when the rest of the money-market instruments are much higher. Any ideas how to squeeze a bit more yield with 401(K) cash? One option could be a blend of total stock fund (say 20%) and total bond fund (80%) composition. Your input welcome. I sold my intermediate core-plus bond fund in late 2021 and used the proceeds to purchase a SV fund.
This trade was reversed in late 2022.
My SV fund rate was also ~2%.
Bond yields are significantly higher than a year ago and I believe most of the Fed's tightening during this cycle has already occurred.
, thanks. Perhaps I should divert some of the SV money into an aggregate bond fund. Thanks again. |
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Post by rhythmmethod on Feb 4, 2023 2:21:39 GMT
We use PONAX/PIMIX in a TIRA for excess cash to needs. It held up fairly well in 2022. Current yearly yield is 5%+ and long term management has been good under a variety of market conditions. It has a monthly distribution. That is my jam too. It's an easy hold for me My CB is 10.00. It covers 25% of income needs and is 9% of portfolio. It's good enough, IMO. |
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Post by steelpony10 on Feb 4, 2023 15:24:52 GMT
Chahta , Using the good old compound calculator our CEF income projects, using a personal inflation rate of 3.5% and 2.1% (my parents) average SS raises, to last as is to at least age 90. We currently use less then half. SS raises have been 13%+ the last two years and using our downside no growth losers in a TIRA dropped our RMD values 15%+ for that year meaning no transfers in kind with permanent tax increases from ordinary income still but with plenty of real cash available. We both won’t live to 90 probably, one maybe. The descendants or LTC get the values. I’m as greedy as the next guy, 5% money can become 10% money any time or the next market swoon along with any added cash. I emptied the vault in 2020 and 2022 getting 10%+ distributions. It’s prudent for us to resupply and reload. Call it income “rebalancing”. Leaving some cash accumulation also is always necessary. rhythmmethod , it’s all risk parameters and portfolio management. With all the good and bad traits found in each type of investment PONAX/PIMIX seems just right at this time. I’m all for diversifying income if you have the chance. Capital gains are stuck in the mud for now but you need an allocation there also. We also try to spread risk if we can at the expense of income, always trying to get something from somewhere under all market conditions.
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Post by rhythmmethod on Feb 4, 2023 15:55:25 GMT
To be clear, I am still in the camp of diversification for the unskilled. I still hold VWIAX, VWENX, SCHD, SCHY, APPL, AMZN, MSFT, O and others. Too many, actually. However, PIMIX has been a steady payer. That, combined with my CEF stable that I just bit my lip and bought over the past year, exceeds my income needs. The rest is mostly for amusement. As my income needs grow, I'll buy more income. I can't really spend paper gains, and I see little in the way of cap gains in the near future. "It's all good," as the kids say. steelpony10, |
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Post by steadyeddy on Feb 4, 2023 20:46:13 GMT
Speaking of PIMIX, which brokerage allows accumulating PIMIX without transaction fee?
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Post by roi2020 on Feb 4, 2023 21:11:17 GMT
Vanguard investors with $1M - $5M in qualified assets can make 25 free trades in transaction-fee (TF) funds.
PIMIX is a TF fund available via Vanguard with a $25K minimum investment.
For investors with less than $1M in qualified assets, it costs $20 per trade for TF funds.
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Post by catdog on Feb 4, 2023 23:20:06 GMT
I owned PONAX in my IRA at Fidelity. Dividends on auto reinvest. While I only bought once I don't believe I was limited on how often I could purchase. Load/transaction fee free.
I got mad when they raised the expense ratio in 2021(I think) and sold.
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Post by steadyeddy on Feb 5, 2023 4:10:38 GMT
Vanguard investors with $1M - $5M in qualified assets can make 25 free trades in transaction-fee (TF) funds.
PIMIX is a TF fund available via Vanguard with a $25K minimum investment.
For investors with less than $1M in qualified assets, it costs $20 per trade for TF funds. , thanks. I do not have much money at VG anymore. |
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Post by steadyeddy on Feb 5, 2023 4:12:27 GMT
I owned PONAX in my IRA at Fidelity. Dividends on auto reinvest. While I only bought once I don't believe I was limited on how often I could purchase. Load/transaction fee free. I got mad when they raised the expense ratio in 2021(I think) and sold. , I agree, I do not want to own PONAX just coz it's ER is much higher than PIMIX. I am in the hunt for a brokerage that allows PIMIX purchases load/transaction fee free. |
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Post by newtecher on Feb 5, 2023 4:17:44 GMT
I am in the hunt for a brokerage that allows PIMIX purchases load/transaction fee free. E-Trade baby is your man. |
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Post by steadyeddy on Feb 5, 2023 17:24:28 GMT
I am in the hunt for a brokerage that allows PIMIX purchases load/transaction fee free. E-Trade baby is your man. , thank you! I will open accounts there.. |
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Post by Deleted on Feb 5, 2023 17:34:08 GMT
E-Trade baby is your man. , thank you! I will open accounts there.. E-Trade is being merged into Schwab this year. |
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Post by yogibearbull on Feb 5, 2023 17:40:30 GMT
newtecher , thank you! I will open accounts there.. E-Trade is being merged into Schwab this year. TD Ameritrade is with Schwab now. E*Trade is with Morgan Stanley now. |
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Post by Deleted on Feb 5, 2023 18:01:48 GMT
E-Trade is being merged into Schwab this year. TD Ameritrade is with Schwab now. E*Trade is with Morgan Stanley now. Thanks for the clarification. |
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Post by richardsok on Feb 5, 2023 18:02:33 GMT
E-Trade is being merged into Schwab this year. TD Ameritrade is with Schwab now. E*Trade is with Morgan Stanley now. Schwab is showing zero ROC for PAXS. |
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Post by steadyeddy on Feb 5, 2023 19:15:20 GMT
E-Trade is being merged into Schwab this year. TD Ameritrade is with Schwab now. E*Trade is with Morgan Stanley now. A couple of years ago I considered E*Trade but did not move money there primarily because getting to live help via phone was impossible. With Morgan Stanley taking over, I feel optimistic they would improve their customer service. I will post my experience in a separate thread. |
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Post by steadyeddy on Feb 5, 2023 23:10:47 GMT
catdog , thanks again for pointing out E*Trade. I was able to talk to a live person in less than 5 minutes. Unrelated, but the Morgan Stanley savings account offers 3.5% apy - so thinking of consolidating some cash over there as well. I just opened an account there. PIMIX has no minimum investment, NL/NTF, and no short-term redemption fee at E*Trade. Also, there are a few other PIMCO funds of interest to me PHMIX (hy muni) and PFIIX (low dur). Several institutional class PIMCO funds are there too.
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Post by catdog on Feb 5, 2023 23:50:57 GMT
Steadyeddy,
the E-trade tip was not from me, but it's ok, I would stand in line for a half hour for a pat on the back.
Good luck
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Post by marquay on Feb 6, 2023 0:00:06 GMT
Wellsfargoadvisors
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Post by steadyeddy on Feb 6, 2023 0:56:21 GMT
Steadyeddy, the E-trade tip was not from me, but it's ok, I would stand in line for a half hour for a pat on the back. Good luck , YOU deserve the thanks since you told me about E*Trade. catdog, my bad.. but thanks anyway! |
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Post by steadyeddy on Feb 6, 2023 0:57:43 GMT
marquay, are you saying Wells also allows purchase into PIMIX with no initial min investment and NL/NTF?
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Post by newtecher on Feb 6, 2023 1:28:24 GMT
marquay , are you saying Wells also allows purchase into PIMIX with no initial min investment and NL/NTF? Sorry for barging in but Wellsfargo indeed does allow PIMIX purchases as NTF as well. I owned it there in the past. It's just that Wellstrade has been very buggy for me recently (e.g., available balance does not update after selling the stock for many hours) so I do not recommend it. Also E-trade has many more MF options without transaction fees than Wellstrade. |
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Post by steadyeddy on Feb 6, 2023 3:28:48 GMT
marquay , are you saying Wells also allows purchase into PIMIX with no initial min investment and NL/NTF? Sorry for barging in but Wellsfargo indeed does allow PIMIX purchases as NTF as well. I owned it there in the past. It's just that Wellstrade has been very buggy for me recently (e.g., available balance does not update after selling the stock for many hours) so I do not recommend it. Also E-trade has many more MF options without transaction fees than Wellstrade. Thanks, I looked through Welltrade list this evening and came to the same conclusion on fund availability. Plus I already opened e*trade accounts. |
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