CDs/Fixed Income other Low Risk Fixed Income

[BLADEMDA]

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http://forums.studentdoctor.net/threads/f-u-account.1089948/

Since we started that thread in 2014 I have significant fixed income/savings/CDs in quite a few online banks.
The rates are much better online than at the brick and mortar banks.

In this rising rate environment (2 rate hikes by the FED expected this year) I was wondering where you all are parking that non equity portion of your portfolio? Doze likes TIPS, Treasuries, Short Term Bonds but I'm just not enthusiastic about those right now.

Anyone else care to chime in?

 

[BLADEMDA]

Mutual funds and ETFs tracking TIPS indexes offer easy, cheap access to inflation-protected bonds -- but they also come with some risks. Broad TIPS funds, which hold TIPS of all maturities, tend to have a longer "duration" -- a measure of interest-rate sensitivity. (When rates rise, bond prices fall.) In these funds, rising interest rates "could wipe out any inflation protection you get," Boccellari says.

Schwab US TIPS ETF (symbol SCHP), for example, tracks an index that includes all TIPS with at least one year left until maturity. The fund's duration is about 7.7 years, meaning that investors can expect the fund's value to drop 7.7% if interest rates rise by one percentage point.

Funds focused on shorter-term TIPS can offer inflation protection with less interest-rate risk.Vanguard Short-Term Inflation-Protected Securities ETF (VTIP) and Pimco 1-5 Year U.S. TIPS Index ETF (STPZ), for example, both focus on TIPS maturing in less than five years and have a duration between two and three years. While the Pimco ETF has fees of 0.2%, the Vanguard ETF's 0.1% expense ratio makes it one of the cheapest TIPS funds available -- a key benefit in an era of ultra-low yields.

FlexShares iBoxx 3-Year Target Duration TIPS Index ETF (TDTT) offers a different approach. The ETF tinkers with the weightings of various TIPS in the portfolio to maintain a consistent duration of about three years, so investors always know how much interest-rate risk they are taking. In a traditional fund, duration can vary quite a bit as interest rates and the average maturity of portfolio holdings fluctuate.



Read more at http://www.kiplinger.com/article/in...me-to-invest-in-tips.html#i6YEhJgqOTs4FQqo.99

 

[BLADEMDA]

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[urge]

http://forums.studentdoctor.net/threads/f-u-account.1089948/

Since we started that thread in 2014 I have significant fixed income/savings/CDs in quite a few online banks.
The rates are much better online than at the brick and mortar banks.

In this rising rate environment (2 rate hikes by the FED expected this year) I was wondering where you all are parking that non equity portion of your portfolio? Doze likes TIPS, Treasuries, Short Term Bonds but I'm just not enthusiastic about those right now.

Anyone else care to chime in?

What kind of returns are you talking about?

1%?

 

[BLADEMDA]

What kind of returns are you talking about?

1%?

Well, CDs are paying 1.2-2.25% these days depending upon duration of the term. But, they have zero risk. Any ideas for low risk investments with returns in the 3% range?

 

[urge]

Well, CDs are paying 1.2-2.25% these days depending upon duration of the term. But, they have zero risk. Any ideas for low risk investments with returns in the 3% range?

No, unfortunately.

 

[gasdoc77]

I bought some Ginnie Maes that have an avg "estimated" maturity of 5 years. The mortgages backing them are insured so if people default the bond just pays faster. It kicks back some principle and interest continuously while I hold it. I think I am getting about 3.5%?

 

[BLADEMDA]

http://money.cnn.com/tools/retireyoung/



http://www.bankrate.com/calculators/retirement/retirement-plan-income-calculator.aspx

(Are you on track?)

 

[deleted126335]

Interesting time to revive this thread. Fixed income has rallied. Rates are near all time lows. The yield curve has flattened considerably. The least bad thing right now is probably EE Bonds if and only if held a full twenty years. TIPS yields are negative out to about 7 years. Not enthusiastic at current prices. Just plain suc%s.

Edited to add: CDs out to about 5 years are probably best for tax deferred accounts and vanguard limited term tax exempt for taxable account at this time.

 

[fakin' the funk]

deleted

 

[fakin' the funk]

Since we started that thread in 2014 I have significant fixed income/savings/CDs in quite a few online banks.
The rates are much better online than at the brick and mortar banks.

In this rising rate environment (2 rate hikes by the FED expected this year) I was wondering where you all are parking that non equity portion of your portfolio? Doze likes TIPS, Treasuries, Short Term Bonds but I'm just not enthusiastic about those right now.

Anyone else care to chime in?

How do you have time to post this in between your 300 central lines and 150 Exparel surgical TAP blocks today?

 

[fakin' the funk]

In this rising rate environment (2 rate hikes by the FED expected this year) I was wondering where you all are parking that non equity portion of your portfolio? Doze likes TIPS, Treasuries, Short Term Bonds but I'm just not enthusiastic about those right now.

Risk and return are related.

Right now, there's no such thing as a 3% return on a no-to-low risk investment. Let alone, 3% after-tax, which is the return that matters.

Go on Bogleheads forums and find the tons and tons of threads with people asking: "Where should I park my money I definitely need to be there for a house down payment in 3 years?" A situation many of us are in. The answer is, universally, there's no free lunch, risk and return are related, if you need it risk free you're gonna get **** returns like in online savings accounts or shorter term CDs, and if you want higher returns you gotta risk it.

 

[deleted126335]

Well, CDs are paying 1.2-2.25% these days depending upon duration of the term. But, they have zero risk. Any ideas for low risk investments with returns in the 3% range?

EE bonds will pay 3.53% tax deferred and state tax free if and only if held a full 20 years. Been buying the max for me and my wife for about six years. 10K per person per year. Can double that amount if you title another account in the name of a trust I believe. 20 year nominal treasuries are paying about 2.1%.

CDs have liquidity risk- hard to sell without taking a haircut if you need the cash. That is why they pay better than treasuries of comparable maturity. Of course if held in a tax deferred retirement account and one is not retired, one shouldn't need liquidity, except for rebalancing.

 

[urge]

EE bonds will pay 3.53% tax deferred and state tax free if and only if held a full 20 years. Been buying the max for me and my wife for about six years. 10K per person per year. Can double that amount if you title another account in the name of a trust I believe.

Is the motivation for this an expected stock market crash?

Wouldn't gold fare better if the market crashes? Even if it doesn't crash, it should keep up with inflation.

 

[BLADEMDA]

How do you have time to post this in between your 300 central lines and 150 Exparel surgical TAP blocks today?

Clearly, you are being an arse slim. As I have posted I currently do 5 central lines per week since my hospital went to PICC lines about 8 years ago. These days Central Lines are discouraged by Infectious Disease so they are placed only when indicated then removed as soon as possible.

As for 150 TAP blocks per day I have never posted that statement. I have performed maybe 400 TAP blocks so far with great success. Like many on SDN I do a great many blocks per day but that is norm in many practices circa 2016 especially ones where you supervise a great number of CRNAs. FYI, once you get good at blocks they take maybe 5-6 minutes each to perform; the longest part of any single shot block is the set-up/preparation time and not the block itself.

 

[BLADEMDA]

Is the motivation for this an expected stock market crash?

Wouldn't gold fare better if the market crashes? Even if it doesn't crash, it should keep up with inflation.

The chart of the GDX ETF (Gold miners) since February:

 

[deleted126335]

Is the motivation for this an expected stock market crash?

Wouldn't gold fare better if the market crashes? Even if it doesn't crash, it should keep up with inflation.

The way to maximize the return for the risk that you take in your portfolio is to take your risk on the equity side. Fixed income is for safety. All of my fixed income is short term high quality/intermediate term high quality.
Vanguard muni bond funds, CDs, Vanguard short term bond index for liquidity, TIPs, EE Bonds, and I Bonds.
I consider I bonds and TIPs to be insurance against unexpected inflation. Since I have a chunk of money that I don't feel that I will need to live on or need for rebalancing in the fixed income pot, I use CDs- I am paid to take liquidity risk. Better yields than treasuries with comparable safety. EE Bonds can never drop in value, and I anticipate being able to hold a full 20 years. If interest rates go up in the next year or two, they are fully liquid and I can sell with no loss and deploy into other fixed income investments. The big chunk of Vanguard short term bond index is very high quality debt that I can use for buying stock in a market sell off.

 

[deleted126335]

The chart of the GDX ETF (Gold miners) since February:

Why don't you post a five year chart?😉

 

[BLADEMDA]

EE bonds will pay 3.53% tax deferred and state tax free if and only if held a full 20 years. Been buying the max for me and my wife for about six years. 10K per person per year. Can double that amount if you title another account in the name of a trust I believe. 20 year nominal treasuries are paying about 2.1%.

CDs have liquidity risk- hard to sell without taking a haircut if you need the cash. That is why they pay better than treasuries of comparable maturity. Of course if held in a tax deferred retirement account and one is not retired, one shouldn't need liquidity, except for rebalancing.

Why I bonds over a 5 year CD? I bonds pay 1.64% and must be held 5 years or you lose 3 months interest. A 5 year CD is paying around 2.00% and can be liquidated early with a penalty of 5 months interest (Ally bank). The 5 year CD seems like a better deal.

 

[deleted126335]

All fixed income instruments have an expected inflation rate that is reflected in their prices. I bonds and TIPs are insurance against unexpected inflation. I expect to pay something for insurance. Unfortunately the price of that insurance is very dear, otherwise I would own Lots more TIPs.

A Long term TIPs ladder that matches a major chunk of lifetime expenses is probably the safest choice for a retiree or soon to be retiree. Unfortunately it is just too expensive for me to take the plunge at this point. I am praying for a repeat of the liquidity crisis of 2008 where Long term TIPs yields briefly skyrocketed. I have a huge chunk of Vanguard Short term Bond index sitting in a rollover IRA if this ever happens.

 

[Doctor4Life1769]

Well, CDs are paying 1.2-2.25% these days depending upon duration of the term. But, they have zero risk. Any ideas for low risk investments with returns in the 3% range?

CDs aren't liquid. I believe in the era of low interest rates, I think it's a waste.
I have 10K parked in aspiration's hybrid account making 1% and it's liquid.
I agree with personal capital and I have it.

 

[BLADEMDA]

CDs aren't liquid. I believe in the era of low interest rates, I think it's a waste.
I have 10K parked in aspiration's hybrid account making 1% and it's liquid.
I agree with personal capital and I have it.

I disagree with you. At Ally Bank CDs can be cashed in early and thus are liquid. The Penalty for Cashing in the CD early (less than 24 month CD) is loss of 60 days of interest. That sounds liquid to me.


https://www.ally.com/bank/raise-your-rate-cd/

As for savings accounts look at this one paying 1.05% which is fully liquid:

https://www.synchronybank.com/banking/products/high-yield-saving/?UISCode=0000000;jsessionid=8246307629bb27c034674d8d3f90:XW MQht c45EGk7W

Synchrony Bank High Yield Savings Accounts offer:

• Award-winning rates — that go beyond the national average+
• Easy withdrawals online, over the phone or with an ATM card
• Control of your money through our online banking portal or by speaking with one of our Banking Representatives.
• No monthly service fee if you keep a $30 minimum balance
• Peace of mind through FDIC insurance up to $250,000 per depositor, per insured bank, for each ownership category

 

[BLADEMDA]

CDs aren't liquid. I believe in the era of low interest rates, I think it's a waste.
I have 10K parked in aspiration's hybrid account making 1% and it's liquid.
I agree with personal capital and I have it.

https://www.aspiration.com/summit

Nice account- Checking and Savings all in one with a very good interest rate.

 

[BLADEMDA]

 

[BLADEMDA]

To pull out a few examples, JPMorgan Asset Management's 2016 Guide to Retirement reports that someone age 40 with an annual household income of $100,000 should have 2.6 times that amount put away for retirement. By age 60, the bank estimates, that multiple should be 7.3. At Fidelity, the latest "savings factors" released in fall 2015 call for a 40-year-old worker to have saved an amount equivalent to three times his salary, and by age 60, eight times salary. (See charts below for others.)

Hitting those multiples can seem like a tall order. Despite swelling ranks of 401(k) millionaires, many people have saved far less. A quarter of workers say their family has less than $1,000 in savings and investments, according to the 2016 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald & Associates. Only 14 percent said their family has set aside $250,000 or more.

 

[BLADEMDA]

Look at the chart above. For the average Anesthesiologist who wants to retire at age 65 (some of you have stated that age is 55) the amount of savings needed is close to the $4.3 million mark if you use a base salary of $300,000.

$300K x 14.2= $4.26 million saved by age 65.


$350K x 14.7= $5.145 Million saved by age 65

 

[pgg]

To pull out a few examples, JPMorgan Asset Management's 2016 Guide to Retirement reports that someone age 40 with an annual household income of $100,000 should have 2.6 times that amount put away for retirement. By age 60, the bank estimates, that multiple should be 7.3. At Fidelity, the latest "savings factors" released in fall 2015 call for a 40-year-old worker to have saved an amount equivalent to three times his salary, and by age 60, eight times salary. (See charts below for others.)

Hitting those multiples can seem like a tall order. Despite swelling ranks of 401(k) millionaires, many people have saved far less. A quarter of workers say their family has less than $1,000 in savings and investments, according to the 2016 Retirement Confidence Survey from the Employee Benefit Research Institute and Greenwald & Associates. Only 14 percent said their family has set aside $250,000 or more.

This chart is ridiculous.

So, a 40y with an income of $100K needs to have $260K saved but the same 40y with an income of $300K needs $1.26M saved? The second 40 yo, who is earning 3x as much money as the other guy, somehow needs to have another million in savings at that point? Despite having far greater ability to accelerate saving toward whatever goal he might have?

These numbers are completely fabricated ... by JP Morgan, probably with the intent of convincing high earners they haven't saved enough and should turn their portfolio management over to a qualified institution. Like JP Morgan.

What a bunch of crap.

 

[pjl]

This chart is ridiculous.

So, a 40y with an income of $100K needs to have $260K saved but the same 40y with an income of $300K needs $1.26M saved? The second 40 yo, who is earning 3x as much money as the other guy, somehow needs to have another million in savings at that point? Despite having far greater ability to accelerate saving toward whatever goal he might have?

These numbers are completely fabricated ... by JP Morgan, probably with the intent of convincing high earners they haven't saved enough and should turn their portfolio management over to a qualified institution. Like JP Morgan.

What a bunch of crap.

What is worse, if you make 600k, you likely need something even more crazy like 19x your income at retirement, so 11.4 mil.

These graphs never take into account that it is spending rate that matters, not income.


Sent from my iPad using SDN mobile app

 

[Doctor4Life1769]

I disagree with you. At Ally Bank CDs can be cashed in early and thus are liquid. The Penalty for Cashing in the CD early (less than 24 month CD) is loss of 60 days of interest. That sounds liquid to me.


https://www.ally.com/bank/raise-your-rate-cd/

As for savings accounts look at this one paying 1.05% which is fully liquid:

https://www.synchronybank.com/banking/products/high-yield-saving/?UISCode=0000000;jsessionid=8246307629bb27c034674d8d3f90:XW MQht c45EGk7W

Synchrony Bank High Yield Savings Accounts offer:

• Award-winning rates — that go beyond the national average+
• Easy withdrawals online, over the phone or with an ATM card
• Control of your money through our online banking portal or by speaking with one of our Banking Representatives.
• No monthly service fee if you keep a $30 minimum balance
• Peace of mind through FDIC insurance up to $250,000 per depositor, per insured bank, for each ownership category

I don't like paying fees though.
1.05% is good. I don't think there's a whole lot of difference between 1.0 and 1.05% though

 

[Arch Guillotti]

Clearly, you are being an arse slim.

Lighten up slim.

 

[BLADEMDA]

This chart is ridiculous.

So, a 40y with an income of $100K needs to have $260K saved but the same 40y with an income of $300K needs $1.26M saved? The second 40 yo, who is earning 3x as much money as the other guy, somehow needs to have another million in savings at that point? Despite having far greater ability to accelerate saving toward whatever goal he might have?

These numbers are completely fabricated ... by JP Morgan, probably with the intent of convincing high earners they haven't saved enough and should turn their portfolio management over to a qualified institution. Like JP Morgan.

What a bunch of crap.

I didn't dive into the numbers but I assume JP Morgan is using 80% of pre-retirement income as the basis for their calculations. Of course, nobody needs to live off 80% x 600K but that is what the numbers are likely using for the data.

 

[BLADEMDA]

Spending Determining income needs during retirement is a complex equation. During working years, the goal was to save and accumulate as much as possible for the future. Now the challenge becomes managing a portfolio by withdrawing some money for today’s expenses and investing the rest for tomorrow. COMMON MISCONCEPTIONS “I’ve already hit my savings target. I should be fine in retirement with the lower cost of living.” • Spending may not decrease at all in the first few years of retirement. Some expenses tend to decline with age—while others remain steady or increase. Page 23 “As long as I withdraw a steady amount, I will be okay.” • Withdrawing assets in volatile markets early in retirement can ravage a portfolio. Adjust your plan and strategy regularly. Page 22 • There is potential danger in investing too conservatively or withdrawing too aggressively. Either may increase the risk of tapping into principal and running out of money. Page 24

 

[deleted126335]

The stakes on portfolio allocation are very high for the early retiree or soon to be retiree. Many things can happen, but only one thing will happen. A bad decision on asset allocation or a bad draw of market returns at this time in the investor's life may have a huge impact on lifestyle for the rest of the person's life.

 

[deleted50478]

The stakes on portfolio allocation are very high for the early retiree or soon to be retiree. Many things can happen, but only one thing will happen. A bad decision on asset allocation or a bad draw of market returns at this time in the investor's life may have a huge impact on lifestyle for the rest of the person's life.

Well, if the market drops 20% in your first 3 years of retirement, it's probably wise to go back to work, at least part time or locums, to avoid selling low unless your portfolio is larger than it really needs to be.

 

[pjl]

Spending Determining income needs during retirement is a complex equation. During working years, the goal was to save and accumulate as much as possible for the future. Now the challenge becomes managing a portfolio by withdrawing some money for today’s expenses and investing the rest for tomorrow. COMMON MISCONCEPTIONS “I’ve already hit my savings target. I should be fine in retirement with the lower cost of living.” • Spending may not decrease at all in the first few years of retirement. Some expenses tend to decline with age—while others remain steady or increase. Page 23 “As long as I withdraw a steady amount, I will be okay.” • Withdrawing assets in volatile markets early in retirement can ravage a portfolio. Adjust your plan and strategy regularly. Page 22 • There is potential danger in investing too conservatively or withdrawing too aggressively. Either may increase the risk of tapping into principal and running out of money. Page 24

The goal for me at least is to have low risk relatively fixed income to cover my basic needs/fixed costs like tax, and a little extra.
Save car purchases/big purchases for later if the market becomes decimated for a year or two.
Whatever is left over will just be more or less for my grandkids anyways, I personally have no concerns over "running out" while I am alive.


Sent from my iPad using SDN mobile app

 

[Mman]

I personally use VWITX for my after tax bond allocation. Returns per year last 1, 5, 10, and 39 years are 3.69%, 4.92%, 4.48%, and 5.57%. Intermediate term bonds aren't terribly sensitive to interest rate changes and the tax free nature is ideal for after tax accounts.

It's not guaranteed 3% tax free return in any given year, but pretty close over a several year time frame. The odds of it being a terrible investment are pretty low.

For cash I use CapOne360 MMA with current yield of 0.76%.

 

[Mman]

Spending Determining income needs during retirement is a complex equation. During working years, the goal was to save and accumulate as much as possible for the future.

It is complex, but for high earners it's also why using a fixed percentage of your annual income isn't very useful to think about. My family and I live on a relatively paltry percentage of my gross annual income. I mean taxes are a huge chunk, maybe 43% or so. Things like malpractice and disability insurance and other related expenses eat up a chunk. Then actual savings for retirement and college for kids are maybe another 30%. When you get down to the nitty gritty math, actual living expenses are maybe 18-20% of the total gross income. When I retire, I won't have to pay things like malpractice and disability and I won't have to save for retirement and I won't have to pay nearly as high a percent in taxes. Living expenses might be the same (or even higher if we splurge more), but the overall decrease in costs means I will require a lot less cash flow than now.

The higher your current wagers, the lower percentage of them you likely need to plan on needing in retirement. Ballpark example, if you earn 100K per year right now you might plan on needing $50-60K per year in retirement. If you earn $1M per year now, you might plan on needing $250K per year in retirement. It's a lot more in absolute terms, but far lower percentage relatively speaking.

 

[pjl]

I personally use VWITX for my after tax bond allocation. Returns per year last 1, 5, 10, and 39 years are 3.69%, 4.92%, 4.48%, and 5.57%. Intermediate term bonds aren't terribly sensitive to interest rate changes and the tax free nature is ideal for after tax accounts.

It's not guaranteed 3% tax free return in any given year, but pretty close over a several year time frame. The odds of it being a terrible investment are pretty low.

For cash I use CapOne360 MMA with current yield of 0.76%.

I use CapOne360 checking account for a better rate since I have to have tax payments basically on hand so hit the top rate there. It is 0.9.

There are better rates around, but I have been with them a long time and never had issues, which is acceptable for me.

Edit* your post made me check, the MMA is 1% now. that is a couple more pennies a year.

Sent from my iPad using SDN mobile app

 

[deleted126335]

Well, if the market drops 20% in your first 3 years of retirement, it's probably wise to go back to work, at least part time or locums, to avoid selling low unless your portfolio is larger than it really needs to be.

Going back to work after being retired from the practice of medicine is not easy. Would you hire a 60+ year old anesthesiologist who now wants to go back to work because the market tanked who hadn't done a case in two years? 🙁 Just getting a medical license back is not a given if fully retired. Let alone finding someone willing to employ you.

The key is having a strategy that makes it far less likely that one would need to make that choice. That entails multiple things.

1. continuing to work par time and not completely retiring from medicine for a much longer period of time than originally planned. So that you can go from maybe 20% FTE to a 40% FTE if necessary. Much easier to do than coming back from full retirement.

-P.S. that means you won't be completely rid of us old fart grandfathers for a very long time.

2. Holding a much larger amount of safe assets that pay virtually nothing in this environment so that a market meltdown makes it less likely that it will be necessary to go back to work.

3. Greatly dialing down one's lifestyle and one's income expectations from the portfolio.

4. Praying.

BTW 20% pullbacks are not all that rare. You have to construct a portfolio and choose an income withdrawal rate and save enough that will tolerate more than that. It is possible to do everything right as far as saving in investing one's whole life and because of bad allocation and/or bad string of returns at exactly the worst time be seriously f#cked when one is least likely to be able to recover.

 

[BLADEMDA]

I use CapOne360 checking account for a better rate since I have to have tax payments basically on hand so hit the top rate there. It is 0.9.

There are better rates around, but I have been with them a long time and never had issues, which is acceptable for me.

Edit* your post made me check, the MMA is 1% now. that is a couple more pennies a year.

Sent from my iPad using SDN mobile app

Very smart to use Capital One 360 Checking: https://home.capitalone360.com/online-checking-account

I keep a large checking account in my bank where they pay me 0.01% for the privilege. The bank is local, near my home and I've used them for 20 years. But, you guys are smart to avoid using the standard brick and mortar bank where the interest is just a few dollars per month. I guess old habits die hard because I really don't need that brick and mortar bank any longer. I like being able to walk into the bank and deal with any problems on my accounts: Fraud, Wire out money, Safe Deposit Box, etc. but those things are definitely costing me money in terms of lost interest.

 

[Mman]

Very smart to use Capital One 360 Checking: https://home.capitalone360.com/online-checking-account

I keep a large checking account in my bank where they pay me 0.01% for the privilege. The bank is local, near my home and I've used them for 20 years. But, you guys are smart to avoid using the standard brick and mortar bank where the interest is just a few dollars per month. I guess old habits die hard because I really don't need that brick and mortar bank any longer. I like being able to walk into the bank and deal with any problems on my accounts: Fraud, Wire out money, Safe Deposit Box, etc. but those things are definitely costing me money in terms of lost interest.

My wife and I maintain accounts at local branches of big banks (BofA, WF, etc) for things like a home equity LOC, safe deposit, etc. But that's just peanuts. Direct deposit your paycheck into one of their accounts and it's basically free. The big cash savings sit in much higher yield online banks.

 

[BLADEMDA]

I use CapOne360 checking account for a better rate since I have to have tax payments basically on hand so hit the top rate there. It is 0.9.

There are better rates around, but I have been with them a long time and never had issues, which is acceptable for me.

Edit* your post made me check, the MMA is 1% now. that is a couple more pennies a year.

Sent from my iPad using SDN mobile app

Reading online reviews and digging deep into the Capital One 360 FAQs is that they do not provide outgoing wires with their accounts. Also, they offer Cashier’s checks and ACH transfers, but those are limited to a total $100,000 per month. Of the four online banks I looked into, Cap One 360 is the only one that does not offer outgoing wires. One other bank (Discover Bank) states that they have a ACH transfer limit of $250,000 per month. Other banks don’t mention any dollar limits for ACH or Cashier’s checks in their FAQs, but that doesn’t mean they don’t have limits, they just aren’t telling you what they might be.

http://wealthpilgrim.com/capital-one-360-review-ing-direct-gone-wrong/

Is the above correct about Capital one? $100K ACH transfer limit per month? At my online banks that is the daily transfer limit not the monthly one.

 

[urge]

Reading online reviews and digging deep into the Capital One 360 FAQs is that they do not provide outgoing wires with their accounts. Also, they offer Cashier’s checks and ACH transfers, but those are limited to a total $100,000 per month. Of the four online banks I looked into, Cap One 360 is the only one that does not offer outgoing wires. One other bank (Discover Bank) states that they have a ACH transfer limit of $250,000 per month. Other banks don’t mention any dollar limits for ACH or Cashier’s checks in their FAQs, but that doesn’t mean they don’t have limits, they just aren’t telling you what they might be.

http://wealthpilgrim.com/capital-one-360-review-ing-direct-gone-wrong/

Is the above correct about Capital one? $100K ACH transfer limit per month? At my online banks that is the daily transfer limit not the monthly one.

How much money do you plan to move around? Billions?

 

[Mman]

Is the above correct about Capital one? $100K ACH transfer limit per month? At my online banks that is the daily transfer limit not the monthly one.

I've ACH transferred >$100K in a single transaction from CapOne360 to my bricks and mortar checking account.

 

[BLADEMDA]

How much money do you plan to move around? Billions?

Depending on the situation I may need to shift as much as $300K or more in a month. If the market were to drop 20% then my assets would need re-allocation and a $100K MONTHLY transfer limit would be a big problem.

 

[pjl]

Depending on the situation I may need to shift as much as $300K or more in a month. If the market were to drop 20% then my assets would need re-allocation and a $100K MONTHLY transfer limit would be a big problem.

Without going into too much detail...I have never seen those limits except for when I first opened account and asked them to remove them. Took a 5 minute phone call.

I have the same emotional connection to a local bank, which is the same one my parents opened an account for me at when I was born. I enjoy the look on the tellers face when she asks for more digits on my account number because it is the lowest one she has ever seen. Paychecks go into that, then transfer to online or vanguard.




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[deleted126335]

Depending on the situation I may need to shift as much as $300K or more in a month. If the market were to drop 20% then my assets would need re-allocation and a $100K MONTHLY transfer limit would be a big problem.

Margin account


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[BLADEMDA]

I've ACH transferred >$100K in a single transaction from CapOne360 to my bricks and mortar checking account.

Money Market Account:

https://www.capitalone.com/bank/expectmore/

 

[bkell101]

Hey guys, finishing up residency soon and going to be joining the real world after fellowship...finally decided to take some initiative and educate myself on personal finance after being told by an advisor "don't worry about all that stuff, that's why guys like you pay guys like me" (most of my Roth IRA's were put in mutual funds with loads of 5.7% and expense ratios between 1.5-2.6% and nearly all had 12-b1 fees as well)....I read white coat investor then a book by boggle and now I'm reading 4 pillars of investing . I'm still at the infancy stage of finance, but some decisions to make and hoping I could get some advice....

My wife recently left p and g with a profit sharing trust that holds about 45k in a mixture of preferred and common company stock. She is 100% vested. The tax deferred company plan is split between a savings plan and the profit sharing trust. The profit sharing trust has the option of moving the stick into index funds or bonds. The more I read the more it seems like I should do this. Is there any reason not to take all of that money and divvy it up between index funds and short term bonds?

Are there possible advantages to keeping shared of preferred company stock in a tax deferred plan? Seems like all the eggs are in one basket

second question is...where do suggest keeping savings for a down payment on a house?
(I have only about 100k left in school debt at 3.5%)

My wife and I plan on saving for 2-3 years and having at least 20% down to put down on our first home.

Thanks!!!

 

[caligas]

What are you guys using for your bond portfolio? I am 90 equity, but my bonds are a mix of ETF funds: AGG, MUB, and LQD.

Supposedly the downside of using bond etfs is that the share price gets hit when interest rates go up, but the reality is any bond holding could suffer from that, it's just more in your face with the bond etf. There is also some question of liquidity and bond etfs, but I doubt if this applies to treasury etfs.