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Post by rhythmmethod on Oct 23, 2021 17:47:32 GMT
My unorthodox way around this is to own some FI CEF (as buy and hold) for income and hold cash as cash (not cash-like). In addition to some PIMIX and PTIAX. Shrugs shoulders. Not so unorthodox, rm. I often behave similarly. Not by design. I just wind up that way. I've traded in and out of Nuveen Short Dur (JSD) from time to time. Fairly stable B - to - BBB corporate paper. Of course, buying now misses the long slow climb-back from the Covid panic, but what can you do? Still, pays 6.8% (fully earned) with a -3 discount. Could be worse. Or another choice: good ol' Connecticut Light & Power (CNLPL) hands-down fave among widders, orphans & trust babies from Bangor to Honolulu. Tossing off 5.5% quarterly since Moses was in short pants.Thanks for the tip! I'll look into it!!
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Post by Chahta on Oct 23, 2021 19:34:38 GMT
"Due to a one-time distribution to shareholders of certain Schwab Money Funds, the funds’ stated yields are temporarily increased. Because this increase is temporary, investors should not rely on it for making investment decisions."
Thanks fish. I will not be surprised if we haven’t heard the last of this. I am more impressed that somebody looked for the 7 day yield of these funds in the first place. I use Portfolio Manager with a column showing SEC 30-day yield. That drew my attention to investigate at Schwab’s website. Looking at the website again I see the fishingrod quote.
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Post by rhythmmethod on Oct 23, 2021 20:16:18 GMT
Personal opinion only - "cash-like" is similar to being "pregnant-like" or "dead-like". I think it is or isn't.
Edit - Well, I do consider MF MM accounts to be cash. So there you go ;-)
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Post by Capital on Oct 23, 2021 20:32:22 GMT
Personal opinion only - "cash-like" is similar to being "pregnant-like" or "dead-like". I think it is or isn't. I would agree. Once the word "like" is placed at the end as a description it gets too subjective. One could argue that an investment in potatoes could be cash-like because a goat ate his/her cash and he/she ate the potatoes. Just think how that one could turn some investment boards upside down when that argument is made and refuted. I think we all know some posters on other boards that would go on for days talking about that one. FWIW the only thing I would consider cash-like that really is not cash would be funds held in a Mutual Fund Money Market Account. Everything else I can think of has too many un-cash-like attributes to be considered cash-like. Well that's my two cents; and, I won't dare repeat it at the Armchair.
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Post by steelpony10 on Oct 23, 2021 20:51:19 GMT
rhythmmethod , Capital , I don’t know about the funds Chahta mentioned but I believe “cash like” is a financial term for cash equivalents like treasuries and CD’s. There’s about 5-6 categories considered cash like. I often refer to our muni fund as cash like but I’m wrong because the ratings are too low. Apparently the 2.8% yield isn’t close enough to zip.* * I purchased a small D battery for a remote yesterday and at 3 dollars something it was close to what I paid to fill my automobile gas tank 50+ years ago. That endemic inflation helps drive up share prices long term for buy and holders.
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Post by Chahta on Oct 23, 2021 21:14:40 GMT
rhythmmethod , Capital , I don’t know about the funds Chahta mentioned but I believe “cash like” is a financial term for cash equivalents like treasuries and CD’s. There’s about 5-6 categories considered cash like. I often refer to our muni fund as cash like but I’m wrong because the ratings are too low. Apparently the 2.8% yield isn’t close enough to zip.* * I purchased a small D battery for a remote yesterday and at 3 dollars something it was close to what I paid to fill my automobile gas tank 50+ years ago. That endemic inflation helps drive up share prices long term for buy and holders. I was agreeing with RM mainly on his approach using PTY, PIMIX, PTIAX. I also have bank loan and high yield funds. But I also agree that cash is only cash; MM, CDs or anything where the principal is not in jeopardy. Anything I have in munis is considered invested. Someday I will turn it into cash. I don’t consider UST/ST bond OEFs as cash either.
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Post by Capital on Oct 23, 2021 21:15:33 GMT
rhythmmethod , Capital , I don’t know about the funds Chahta mentioned but I believe “cash like” is a financial term for cash equivalents like treasuries and CD’s. There’s about 5-6 categories considered cash like. I often refer to our muni fund as cash like but I’m wrong because the ratings are too low. Apparently the 2.8% yield isn’t close enough to zip. steelpony10 , your post got me more interested in this thing called cash and that thing called cash equivalents. Well I googled it and Google sent me to Investopedia. Seems I am all wrong about what is cash because cash is apparently only the green stuff that the Federal Reserve prints. Per the quite from the source: "Cash equivalents include bank accounts and marketable securities, which are debt securities with maturities of less than 90 days.1 However, oftentimes cash equivalents do not include equity or stock holdings because they can fluctuate in value" I have always thought of my checking accounts and CD as cash. I probably still will even though I'm wrong. If you look at the definition Money Market Mutual Funds are a Cash Equivalent as well as T-Bills and Commercial Paper maturing in or less than 90 days. For the record I was not calling Chahta wrong. I just have my own way of thinking about what is and is not cash. I grant that everyone else should have that right as well. Well I'm on the greener pastures now - and - those pastures ain't growing cash or bonds these days.
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Post by chang on Oct 24, 2021 0:43:21 GMT
Or another choice: good ol' Connecticut Light & Power (CNLPL) hands-down fave among widders, orphans & trust babies from Bangor to Honolulu. Tossing off 5.5% quarterly since Moses was in short pants. Er, with an average daily trading volume of 118 shares, I would be a little nervous holding several thousand shares.
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Post by richardsok on Oct 24, 2021 1:54:55 GMT
Agree. It's not a trading stock at all -- but a long term hold, something people have put granny's money in for income, and forgotten about.
I intend to put some of my wife's money into it as part of her lifetime income package to support her after I'm gone. She earns 5.5% a year and withdraws 4.5% per yr forever. There'll be other positions, of course, ( some growth, some preferreds, a bit of gold, maybe some PTY if I can catch it down near par one happy day) but CNLPL will be one of them.
I've never liked "set and forget" portfolios but am afraid I will have to create one for my wife some day. She's much younger than I am and healthy as a teenager.
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Post by chang on Oct 25, 2021 4:59:26 GMT
Agree. It's not a trading stock at all -- but a long term hold, something people have put granny's money in for income, and forgotten about. I checked out of curiosity, and discovered there are a number of preferred shares with very similar characteristics. How does one go about choosing a specific issue among these? The Connecticut Light & Power Co Pref Share PINX CNTHN The Connecticut Light & Power Co Pref Share PINX CNLPM The Connecticut Light & Power Co Pref Share PINX CNLHN The Connecticut Light & Power Co Pref Share PINX CNLHP The Connecticut Light & Power Co Pref Share PINX CNLTN The Connecticut Light & Power Co Pref Share PINX CNLTP The Connecticut Light & Power Co Pref Share PINX CNLHO The Connecticut Light & Power Co Pref Share PINX CNTHO The Connecticut Light & Power Co Pref Share PINX CNPWM The Connecticut Light & Power Co Pref Share PINX CNTHP The Connecticut Light & Power Co Pref Share PINX CNPWP The Connecticut Light & Power Co Pref Share PINX CNLPL The Connecticut Light & Power Co Pref Share PINX CNLTL
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Post by alvinthechipmunk on Nov 14, 2021 9:33:33 GMT
Agree. It's not a trading stock at all -- but a long term hold, something people have put granny's money in for income, and forgotten about. I checked out of curiosity, and discovered there are a number of preferred shares with very similar characteristics. How does one go about choosing a specific issue among these? The Connecticut Light & Power Co Pref Share PINX CNTHN The Connecticut Light & Power Co Pref Share PINX CNLPM The Connecticut Light & Power Co Pref Share PINX CNLHN The Connecticut Light & Power Co Pref Share PINX CNLHP The Connecticut Light & Power Co Pref Share PINX CNLTN The Connecticut Light & Power Co Pref Share PINX CNLTP The Connecticut Light & Power Co Pref Share PINX CNLHO The Connecticut Light & Power Co Pref Share PINX CNTHO The Connecticut Light & Power Co Pref Share PINX CNPWM The Connecticut Light & Power Co Pref Share PINX CNTHP The Connecticut Light & Power Co Pref Share PINX CNPWP The Connecticut Light & Power Co Pref Share PINX CNLPL The Connecticut Light & Power Co Pref Share PINX CNLTL *********************************************************** That list is just nuts. When you choose one of those, just what are you getting? Must be a SERIES of issues, one after the other after the other, after the other.... I wouldn't touch it. It's just nuts. I'd sooner buy a CEF of domestic companies in Myanmar/Burma. Oy.
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