The banks in the bank list are in order (it fills up $245k in each then moves on). When I tried to change the bank list they didn't offer me an alternative but said I could pick a different bank from the list to be my first. Not sure how this works if you have over $245k in there.
[Debt ceiling discussion mega-thread]
Re: [Debt ceiling discussion mega-thread]
T-bills
[Thread merged into here --admin LadyGeek]
What level of risk is associated with t-bills and this current debt ceiling default looming. I belive it's likely to be addressed, but I'm far from the smartest guy in the room... I have a significant $$ in bills with various maturities. Thoughts?
What level of risk is associated with t-bills and this current debt ceiling default looming. I belive it's likely to be addressed, but I'm far from the smartest guy in the room... I have a significant $$ in bills with various maturities. Thoughts?
Re: T-bills
See this link (Debt ceiling discussion mega-thread) for more discussion: viewtopic.php?t=395322
Re: [Debt ceiling discussion mega-thread]
I merged doogan's thread into the ongoing discussion.
(Thanks to the member who reported the post and provided a link to this thread.)
(Thanks to the member who reported the post and provided a link to this thread.)
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Re: [Debt ceiling discussion mega-thread]
So a silver lining in all of this..... I have been wanting to get rid of dividend producing holdings in taxable but I also have not wanted to add to my income for this year as I will continue working until June 23rd and have a huge bonus coming (the reason I'm staying that long...have to be employed to receive the bonus) and with the market drops, I can actually do some tax loss harvesting, dumping dividend creating funds (SCHB and VTI) and purchasing non-dividend creating BRK/b shares. So the lower the market goes, the more conversions (so to speak) I can do and the happier I'll be going forward. Next year will start Roth conversions and every avoidance of dividend income will be quite welcome.
Bogle: Smart Beta is stupid
Re: [Debt ceiling discussion mega-thread]
I like it. I have to believe that even if the payoff is late, you will get an extra interest payment. Even the IRS pays interest on late refunds.
Re: T-bills
Nobody knows. Some speculation upthread that interest on treasury debt and redemption of treasury debt will have priority. To minimize chaos in the global financial system. To be safe, have funds in a FDIC insured bank account to pay the next couple of months of anticipated expenses. Protecting against a temporary glitch in payment of treasury debt interest of a pause in redemptions. If there is a long term or permanent default on treasury debt (a very remote possibility) our problems will be much greater than losing money on what we thought was a risk free investment.doogan wrote: ↑Wed May 24, 2023 5:53 am [Thread merged into here --admin LadyGeek]
What level of risk is associated with t-bills and this current debt ceiling default looming. I belive it's likely to be addressed, but I'm far from the smartest guy in the room... I have a significant $$ in bills with various maturities. Thoughts?
Re: T-bills
Risk & reward go hand in hand. Considering that 1-month T-Bill is trading at 6.263% yield is saying something.ehh wrote: ↑Wed May 24, 2023 8:12 amNobody knows. Some speculation upthread that interest on treasury debt and redemption of treasury debt will have priority. To minimize chaos in the global financial system. To be safe, have funds in a FDIC insured bank account to pay the next couple of months of anticipated expenses. Protecting against a temporary glitch in payment of treasury debt interest of a pause in redemptions. If there is a long term or permanent default on treasury debt (a very remote possibility) our problems will be much greater than losing money on what we thought was a risk free investment.doogan wrote: ↑Wed May 24, 2023 5:53 am [Thread merged into here --admin LadyGeek]
What level of risk is associated with t-bills and this current debt ceiling default looming. I belive it's likely to be addressed, but I'm far from the smartest guy in the room... I have a significant $$ in bills with various maturities. Thoughts?
Time is the ultimate currency.
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Re: [Debt ceiling discussion mega-thread]
I just don't think it would work out the way you imagine. Your access to information is slower than the rest of the market. You're just not going to be able to jump out and in fast enough based on publicly accessible information to turn a profit.
And if stocks are only 40% of your portfolio anyway, then any loss would also be pretty muted, not to mention temporary.
What happens if a deal is announced, you miss a one day bump, buy back in higher, then the economy tanks anyway because less gov't spending leads to recession? Then you've lost X% on top of whatever the market loses later on.
The comparison of the market to real life Nazi Germany is I think a good illustration of the allure of market timing. The rest of life rewards you for being proactive, so if you're a successful and bright individual, you're used to your actions leading to positive outcomes. But Mr Market only consistently rewards those who do nothing.
Re: [Debt ceiling discussion mega-thread]
And, when money is cheap, make smart use of leverage.PoorHomieQuan wrote: ↑Wed May 24, 2023 11:35 am But Mr Market only consistently rewards those who do nothing.
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: [Debt ceiling discussion mega-thread]
tl;dr for now. Just wanted to cross post this, as it relates to the debt ceiling:
Yield jump from 5/31 to 6/1
Yield jump from 5/31 to 6/1
If I make a calculation error, #Cruncher probably will let me know.
Re: [Debt ceiling discussion mega-thread]
Dang!!Kevin M wrote: ↑Wed May 24, 2023 1:06 pm tl;dr for now. Just wanted to cross post this, as it relates to the debt ceiling:
Yield jump from 5/31 to 6/1
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: [Debt ceiling discussion mega-thread]
Janet Yellen Warns It Is ‘Almost Certain’ U.S. Would Miss Payments in Early June
The Treasury secretary says her agency isn’t getting ready for a potential debt default
https://www.wsj.com/articles/yellen-say ... g-8ceaee1e
The Treasury secretary says her agency isn’t getting ready for a potential debt default
https://www.wsj.com/articles/yellen-say ... g-8ceaee1e
Re: [Debt ceiling discussion mega-thread]
The Treasury should use ChatGPT to prioritize payments. There's nothing too big for AI. Just sayingexodusing wrote: ↑Wed May 24, 2023 1:18 pm Janet Yellen Warns It Is ‘Almost Certain’ U.S. Would Miss Payments in Early June
The Treasury secretary says her agency isn’t getting ready for a potential debt default
https://www.wsj.com/articles/yellen-say ... g-8ceaee1e
Time is the ultimate currency.
Re: [Debt ceiling discussion mega-thread]
Or they could issue callable consols - bonds with a maturity date. These are clearly legal under the debt ceiling law. They may be unusual, but that's better than the market disruption we're seeing from a potential default (let alone the consequences of an actual default) or risking violating the President's obligation to "take Care that the Laws be faithfully executed".
Apologies if this has been discussed.
Apologies if this has been discussed.
Risk of VMFXX breaking buck from Debt Ceiling Crisis Jun 2023
Let's say there is a technical default, what could happen to VMFXX? Nothing? Or it could break the buck? How bad could a loss be, if any?
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Re: [Debt ceiling discussion mega-thread]
The purpose would not be to turn a profit. The purpose would be to avert a huge loss in a bad scenario where the US defaults and no quick solution is found.PoorHomieQuan wrote: ↑Wed May 24, 2023 11:35 am
I just don't think it would work out the way you imagine. Your access to information is slower than the rest of the market. You're just not going to be able to jump out and in fast enough based on publicly accessible information to turn a profit.
Like I said, in my case it is hypothetical...I would take a huge tax hit by selling , so if I did sell it would be a panic reaction. I am not selling. I am retired and I keep the rest of my portfolio in safe investments that should be enough (I hope) to comfortably fund my retirement anyway. So if the stock market falls 90% in the next decade I am not horribly worried, at least not for personal reasons (of course I would be for society).And if stocks are only 40% of your portfolio anyway, then any loss would also be pretty muted, not to mention temporary.
All I intend to do is to move my cash from FZDXX to Fidelity's FDIC insured cash management account next Monday for liquidity reasons. I will give up a little yield.
Anything can happen. That is the nature of the future. The question one must ask, with limited info. available, is which scenario leaves you more exposed. Thus the Jew in Germany in the 30s analogy. Hitler becomes chancellor. You and your family can leave everything you have worked for behind other than the shirts on your backs and pray that a friendly country will accept you because you are a doomsayer, or you can "stay the course" and hope things get better. You stay the course. The Nuremberg laws are then passed. You face the same decision. Then Kristallnacht. What is the right decision, and when? These are easy questions to answer in retrospect but not easy at all a priori. (I am not equating a stock market crash with the Holocaust....just pointing out that making big decisions with limited information about a potential looming crisis and just a lot of opinions floating around about the future is not black and white).What happens if a deal is announced, you miss a one day bump, buy back in higher, then the economy tanks anyway because less gov't spending leads to recession? Then you've lost X% on top of whatever the market loses later on.
That is not true. That is recency bias (unless you are Japanese, or maybe Russian these days...there are other examples as well). Even recently in the US, it took 17 years for the Nasdaq to regain its March 2000 high in real terms, and at the bottom it lost something like 80% of its value. The Dow finally got back to its 1929 peak in 1954 (in 1933 it was down 89%). Even if one truly believes that was the worst possible scenario that is a bit too long to wait to be rewarded for a 70 y o retiree such as myself (or almost anybody really).But Mr Market only consistently rewards those who do nothing.
Last edited by protagonist on Wed May 24, 2023 2:59 pm, edited 8 times in total.
Re: [Debt ceiling discussion mega-thread]
Here is an article on this not behind a paywall: Yellen says it’s ‘almost certain’ debt ceiling deadline would be in early June | The Hillexodusing wrote: ↑Wed May 24, 2023 1:18 pm Janet Yellen Warns It Is ‘Almost Certain’ U.S. Would Miss Payments in Early June
The Treasury secretary says her agency isn’t getting ready for a potential debt default
https://www.wsj.com/articles/yellen-say ... g-8ceaee1e
If I make a calculation error, #Cruncher probably will let me know.
Re: [Debt ceiling discussion mega-thread]
So what will happen to my VGIT (intermediate term treasury ETF) when US government defaults?
Re: [Debt ceiling discussion mega-thread]
Maybe it'll see inflows from folks fleeing treasury-only money market funds that have broken the buck and who have no clue where else to put the darn money.
"The only thing that makes life possible is permanent, intolerable uncertainty; not knowing what comes next." ~Ursula LeGuin
Re: [Debt ceiling discussion mega-thread]
Pardo2K's post has been merged into the ongoing discussion.
Subject: [Debt ceiling discussion mega-thread]
Subject: [Debt ceiling discussion mega-thread]
Re: [Debt ceiling discussion mega-thread]
Rip in space time
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
Re: [Debt ceiling discussion mega-thread]
Would a very short term bond etf allow you to avoid a "break the buck" scenario? Where a money market fund goes below its $1.00 NAV and triggers a panic selloff?
60% VT 40% BNDW (no bonds in Roth)
- GeraniumLover
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Re: [Debt ceiling discussion mega-thread]
Fidelity will let you opt out of any of the banks on the list, you just need to call them to do it. Took me about 5 minutes.hkcj wrote: ↑Wed May 24, 2023 5:03 amThe banks in the bank list are in order (it fills up $245k in each then moves on). When I tried to change the bank list they didn't offer me an alternative but said I could pick a different bank from the list to be my first. Not sure how this works if you have over $245k in there.
- GeraniumLover
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Re: [Debt ceiling discussion mega-thread]
No they are not insured by the FDIC. In most cases, they'd be insured by the SIPC. But tI don't think they'd cover investment losses.
Re: [Debt ceiling discussion mega-thread]
SIPC works nothing like FDIC. It's essentially insurance against fraud by the broker, which, for the big brokers, is essentially impossible.GeraniumLover wrote: ↑Wed May 24, 2023 5:00 pmNo they are not insured by the FDIC. In most cases, they'd be insured by the SIPC. But tI don't think they'd cover investment losses.
SIPC only has about $5 billion vs $128 billion in FDIC. SIPC is private insurance and not backed by the Fed or US Government.
Vanguard's settlement fund has over $100 billion by itself. A 1% loss (i.e. $0.99 on the $1.00) would use up 20% of the SIPC fund if it worked like FDIC.
Re: [Debt ceiling discussion mega-thread]
I just want to point out FDIC and SIPC works differently.exodusNH wrote: ↑Wed May 24, 2023 5:10 pmSIPC works nothing like FDIC. It's essentially insurance against fraud by the broker, which, for the big brokers, is essentially impossible.GeraniumLover wrote: ↑Wed May 24, 2023 5:00 pmNo they are not insured by the FDIC. In most cases, they'd be insured by the SIPC. But tI don't think they'd cover investment losses.
SIPC only has about $5 billion vs $128 billion in FDIC. SIPC is private insurance and not backed by the Fed or US Government.
Vanguard's settlement fund has over $100 billion by itself. A 1% loss (i.e. $0.99 on the $1.00) would use up 20% of the SIPC fund if it worked like FDIC.
FDIC: Banks take deposits and invest in treasuries. When SVB failed to meet withdrawal, FDIC will take over and guarantee your deposit. FDIC may have to sell bank's assets at a loss and use FDIC's fund to cover such loss.
SIPC: brokerage firms are required to separate your assets. Not like mutual funds that can participate in securities lending. Your shares in VTI is separated out and brokerage firms do not use it to invest. If your shares in money market lost money, brokerage firms do not have to make you whole. There is a big disclaimer everywhere: your investment might lose money. Not their fault if you didn't read or plead ignorance. SIPC won't step in because there is no fraud. So you're on your own with your investments if money market funds break the buck.
Time is the ultimate currency.
Re: Risk of VMFXX breaking buck from Debt Ceiling Crisis Jun 2023
Nobody knows.
Some opine the treasury will prioritize timely payment of interest and timely payment of maturing bills/bonds - to minimize global financial chaos.
Here is a short statement Vanguard posted today: https://investor.vanguard.com/investor- ... transcript
As you might expect not much detail. Sara Devereux, the global head of Vanguard fixed income group does say
Interesting situation, isn't it?we’ve been working on this for a while. Since January, we’ve been taking precautionary steps in our portfolios in case that actually did happen.
Re: [Debt ceiling discussion mega-thread]
As in wormhole
Global stocks, IG/HY bonds, gold & digital assets at market weights 75% / 19% / 6% || LMP: TIPS ladder
- nisiprius
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Re: [Debt ceiling discussion mega-thread]
If there is a technical default lasting a few days, I think we will find that there are things buried in the fine print that will give mutual funds, brokerages, etc. wiggle room. For example, I think every mutual fund--so I think that would include money market [mutual] funds--actually are only required to settle within ten calendar days of redemption. And I don't know what the legalities involving NAV are, I think they could suspend the usual method of determining NAV and substitute something else... actually do it now and maybe get sued later, sort of thing.
I mean, when the Flash Crash hit, it turned out that they were able to reverse all of the transactions associated with it. There are apparently a lot of things brokerage and fund companies can do but "never" do.
I mean, when the Flash Crash hit, it turned out that they were able to reverse all of the transactions associated with it. There are apparently a lot of things brokerage and fund companies can do but "never" do.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
Re: [Debt ceiling discussion mega-thread]
All the more reason for ETFs.nisiprius wrote: ↑Wed May 24, 2023 6:49 pm If there is a technical default lasting a few days, I think we will find that there are things buried in the fine print that will give mutual funds, brokerages, etc. wiggle room. For example, I think every mutual fund--so I think that would include money market [mutual] funds--actually are only required to settle within ten calendar days of redemption.
Imagine trying to claw back funds that a few million Joe Investors got out of your MMF because you used an incorrect NAV calculation.And I don't know what the legalities involving NAV are, I think they could suspend the usual method of determining NAV and substitute something else... actually do it now and maybe get sued later, sort of thing.
I mean, when the Flash Crash hit, it turned out that they were able to reverse all of the transactions associated with it. There are apparently a lot of things brokerage and fund companies can do but "never" do.
IMO suspension of withdrawals, if not an overall trading halt, is far more likely than NAV games if the market cannot effectively price Treasuries.
Anyway this is all pretty theoretical stuff at this point...
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Re: [Debt ceiling discussion mega-thread]
I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
- stevewolfe
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Re: [Debt ceiling discussion mega-thread]
Are you eligible for a Vanguard cash plus account? https://investor.vanguard.com/investmen ... nvestmentsVartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
- stevewolfe
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Re: [Debt ceiling discussion mega-thread]
Fitch put US credit rating on negative watch tonight: https://www.cnbc.com/2023/05/24/fitch-u ... iling.html.
Re: [Debt ceiling discussion mega-thread]
You might try writing your representatives in Washington, DC to let them know how you're feeling.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
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Re: [Debt ceiling discussion mega-thread]
Thank you for this. I have recently seen it, and it may be something I should look into more. However I do have more than $1.25 million involved. Also for some reason I have just never fully trusted these sort of things. I've seen a few of these offerings before advertising $1.25 million or so in FDIC protection, but I just feel like there may be some fine print or some sort of "catch", so I've never felt like it was as good and ironclad as I'd necessarily want. But that may just be undue paranoia on my part. I don't know.stevewolfe wrote: ↑Wed May 24, 2023 7:39 pmAre you eligible for a Vanguard cash plus account? https://investor.vanguard.com/investmen ... nvestmentsVartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Re: [Debt ceiling discussion mega-thread]
It's undue paranoia. The products have been around forever. They basically shuffle your money between different FDIC accounts to keep you under the $250k limit.VartAndelay wrote: ↑Wed May 24, 2023 7:50 pmThank you for this. I have recently seen it, and it may be something I should look into more. However I do have more than $1.25 million involved. Also for some reason I have just never fully trusted these sort of things. I've seen a few of these offerings before advertising $1.25 million or so in FDIC protection, but I just feel like there may be some fine print or some sort of "catch", so I've never felt like it was as good and ironclad as I'd necessarily want. But that may just be undue paranoia on my part. I don't know.stevewolfe wrote: ↑Wed May 24, 2023 7:39 pmAre you eligible for a Vanguard cash plus account? https://investor.vanguard.com/investmen ... nvestmentsVartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
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Re: [Debt ceiling discussion mega-thread]
Ok, thank you.exodusNH wrote: ↑Wed May 24, 2023 7:54 pmIt's undue paranoia. The products have been around forever. They basically shuffle your money between different FDIC accounts to keep you under the $250k limit.VartAndelay wrote: ↑Wed May 24, 2023 7:50 pmThank you for this. I have recently seen it, and it may be something I should look into more. However I do have more than $1.25 million involved. Also for some reason I have just never fully trusted these sort of things. I've seen a few of these offerings before advertising $1.25 million or so in FDIC protection, but I just feel like there may be some fine print or some sort of "catch", so I've never felt like it was as good and ironclad as I'd necessarily want. But that may just be undue paranoia on my part. I don't know.stevewolfe wrote: ↑Wed May 24, 2023 7:39 pmAre you eligible for a Vanguard cash plus account? https://investor.vanguard.com/investmen ... nvestmentsVartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Re: [Debt ceiling discussion mega-thread]
Does the prospectus for VUSXX state that it is 100% safe under any condition? I don't use MM funds except for brief settlement stays so I have to confess, that was the one fund whose prospectus I have not read.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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Re: [Debt ceiling discussion mega-thread]
I highly doubt it would say that, but what bothers me is that I don't really feel like there is any totally "safe" option for me in this bizarre scenario.
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Re: Risk of VMFXX breaking buck from Debt Ceiling Crisis Jun 2023
this part was interesting:ehh wrote: ↑Wed May 24, 2023 5:50 pm Here is a short statement Vanguard posted today: https://investor.vanguard.com/investor- ... transcript
As you might expect not much detail. Sara Devereux, the global head of Vanguard fixed income group does sayInteresting situation, isn't it?we’ve been working on this for a while. Since January, we’ve been taking precautionary steps in our portfolios in case that actually did happen.
and regarding the equity markets:Sara Devereux: Well, we’ve been taking a number of steps within our bond and money market funds, such as not investing in Treasuries where the maturity dates fall in the potential default window whenever we can avoid it.
Since the government will ultimately make good on its debt, managing the risk of default is largely an operational exercise in timing cash flows. We at Vanguard are mitigating that risk for investors so they can tune out the noise and stay focused on the long term.
That said, there will be volatility, and no one can totally escape that, which is true for all asset managers, not just Vanguard.
Greg Davis: Yeah, unfortunately, we’ve seen volatility many times before. Although an actual debt default would be very unique and, hopefully, we don’t go there.
The message we’re giving to our investors has been consistent because it stands the test of time: If you’re already well diversified in an allocation that suits your goals, your time horizon, and your risk tolerance, then of course, stay the course
That includes maintaining the appropriate level of cash reserves, which will help prevent needing to sell securities in a potential down market. But the other thing we want people to remember is that volatility goes both ways—up and down. Time in the markets is better than trying to time the markets. So that’s our thoughts.
It's hard to accept the truth when the lies were exactly what you wanted to hear. Investing is simple, but not easy. Buy, hold & rebalance low cost index funds & manage taxable events. Asking Portfolio Questions |
Re: [Debt ceiling discussion mega-thread]
Because there isn't. It's unprecedented.VartAndelay wrote: ↑Wed May 24, 2023 8:07 pmI highly doubt it would say that, but what bothers me is that I don't really feel like there is any totally "safe" option for me in this bizarre scenario.
Re: [Debt ceiling discussion mega-thread]
You know that investment can lose money right? You know that you don’t have to invest right? You know the risk of default since January 2023 right? You should be furious at yourself.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Time is the ultimate currency.
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Re: [Debt ceiling discussion mega-thread]
I have needed to keep significant cash or cash-like funds for a pending real estate purchase since well before January 2023, and it still hasn't closed yet.H-Town wrote: ↑Wed May 24, 2023 8:20 pmYou know that investment can lose money right? You know that you don’t have to invest right? You know the risk of default since January 2023 right? You should be furious at yourself.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Re: [Debt ceiling discussion mega-thread]
You should move the fund to bank account to avoid any risk of default. Don’t play with fire.VartAndelay wrote: ↑Wed May 24, 2023 8:23 pmI have needed to keep significant cash or cash-like funds for a pending real estate purchase since well before January 2023, and it still hasn't closed yet.H-Town wrote: ↑Wed May 24, 2023 8:20 pmYou know that investment can lose money right? You know that you don’t have to invest right? You know the risk of default since January 2023 right? You should be furious at yourself.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Time is the ultimate currency.
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Re: [Debt ceiling discussion mega-thread]
I already have multiple bank accounts with about $250k each. I didn't open more because I read that opening too many bank accounts could result in problems.H-Town wrote: ↑Wed May 24, 2023 8:37 pmYou should move the fund to bank account to avoid any risk of default. Don’t play with fire.VartAndelay wrote: ↑Wed May 24, 2023 8:23 pmI have needed to keep significant cash or cash-like funds for a pending real estate purchase since well before January 2023, and it still hasn't closed yet.H-Town wrote: ↑Wed May 24, 2023 8:20 pmYou know that investment can lose money right? You know that you don’t have to invest right? You know the risk of default since January 2023 right? You should be furious at yourself.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Re: [Debt ceiling discussion mega-thread]
Well, use those multiple bank accounts for your pending real estate purchase.VartAndelay wrote: ↑Wed May 24, 2023 8:41 pmI already have multiple bank accounts with about $250k each. I didn't open more because I read that opening too many bank accounts could result in problems.H-Town wrote: ↑Wed May 24, 2023 8:37 pmYou should move the fund to bank account to avoid any risk of default. Don’t play with fire.VartAndelay wrote: ↑Wed May 24, 2023 8:23 pmI have needed to keep significant cash or cash-like funds for a pending real estate purchase since well before January 2023, and it still hasn't closed yet.H-Town wrote: ↑Wed May 24, 2023 8:20 pmYou know that investment can lose money right? You know that you don’t have to invest right? You know the risk of default since January 2023 right? You should be furious at yourself.VartAndelay wrote: ↑Wed May 24, 2023 7:37 pm I will say it again: I will be furious if I lose my money in VUSXX. I feel that I have been boxed into a corner and do not see a better option for me to store this money right now. If I actually lose money because of this, I will be completely furious.
Unless you are buying North Dakota or something, I guess.
"The best tools available to us are shovels, not scalpels. Don't get carried away." - vanBogle59
Re: [Debt ceiling discussion mega-thread]
I’m sure this has been discussed, but wanted to ask.
I’m think of moving my money from fidelity treasury money market to their cash account. Would this be prudent or paranoid? Would it even be helpful in the event of a default?
I’m think of moving my money from fidelity treasury money market to their cash account. Would this be prudent or paranoid? Would it even be helpful in the event of a default?