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RUTGERS95

RUTGERS95

Heisman
Sep 28, 2005
29,467
40,568
113
mildone said:
I see. Well, for sure we can see that you keep some self-congratulatory commentary sitting around so you can instantly use it to leap at opportunities to inform us of your high view of yourself. 🙂
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nope, just financially literate

one of the absolute dumbest things you can do is have money sit behind the inflation curve. Hell I'd bet even special ed kids understand that concept
 
RUTGERS95

RUTGERS95

Heisman
Sep 28, 2005
29,467
40,568
113
kyk1827 said:
The PPI data is interesting. I really hope they all some competent reporters in there to ask questions next week. Going to be the highest rates fed presser in some time
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RUTGERS95 said:
no way

if there is any facet of today's society that has so wholly let down the people they are intended to serve it's the media
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to add to that, one of the lead stories on cnbc right now is ....duh duh duh duhhhhhh..'

what silicon valley bank collapse means for future of climate finance


i mean you can't make up the stupidity of the media/left. try as you may, the left is really the ostrich class
 
R

RUschool

Heisman
Jan 23, 2004
49,910
14,001
78
mildone said:
So back on topic, and perhaps timely...

I'm curious about something. Presumably, at least some, if not most, of you keep a decent amount of cash sitting around in one or more domestic banks for liquidity reasons. How do you choose which bank(s) to keep that money in? Not talking about overseas banking which is a different and more complex discussion.

The larger banks (e.g. JPM Chase) pay crap for interest, but are arguably safer. Smaller banks (e.g. Capital One), especially pure online banks (e.g. Ally Bank), pay vastly better interest but are theoretically less safe (although still FDIC insured).

I mean, do y'all use Moody's or Fitch ratings or what? Or do you not GAF just so long as you split the cash across enough banks to limit balances at any one institution to the FDIC limit of $250K per person?

Not asking about anybody's specific choices (although if you want to name names, feel free). Just curious in people's selection methodology or thinking on the subject.
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Normally didn’t keep any cash in the bank except to pay the bills. However, I did buy some CD this year at the bank and move money in the online saving at 4.2%. I use the $250k limit for banks.

For my brokerage accounts, I have several accounts to bring it below the SPIC limit of $500k but I noticed I am over the limit of $500k at TD Ameritrade which is part of Schwab. Been thinking about moving some over to another brokerage. Most of the money in short term treasuries at the brokerages with some stocks, ready to pound on any opportunities.

I wonder what some of the multi millionaires, over $10-20 millions, on this board do with their brokerage accounts. My sister in law, since my brother is disabled, keeps all of her over $5 million assets at Fidelity Management, only in trusts for the kids . I guess Fidelity is safe? I stopped giving her advice and she didn’t want to keep watching the stock market even though she did well on my advice after 2008.
 
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RUAldo

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Sep 11, 2008
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RUinPinehurst said:
4-week Treasuries mainly for cash. Stagger them for liquidity. But also laddering 13-week Ts, too. In terms of cash, most brokerage accounts feature "settlement accounts" that offer attractive returns. Vanguard, for example, around 4.5%. Vanguard Federal Money Market Fund (VMFXX).
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Exactly my approach. I keep only enough money in the bank to pay bills. Entire cash pile sits in Fidelity MM and JPM MM - both are/were yielding about 4.45%. If I need cash for anything I just move it around from those accounts.
 
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Joey Bags

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Sep 21, 2019
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RUTGERS95 said:
no way

if there is any facet of today's society that has so wholly let down the people they are intended to serve it's the media
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During the congressional meeting last Friday one of the primary concerns from lawmakers and FDIC/Treasury/Fed was how to control the media narrative. So I would agree with your take, we likely won’t be getting any new information or a deeper dive into published info.
 
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T2Kplus20

T2Kplus20

Heisman
May 1, 2007
31,206
19,211
113
rutgersdave said:
Normally didn’t keep any cash in the bank except to pay the bills. However, I did buy some CD this year at the bank and move money in the online saving at 4.2%. I use the $250k limit for banks.

For my brokerage accounts, I have several accounts to bring it below the SPIC limit of $500k but I noticed I am over the limit of $500k at TD Ameritrade which is part of Schwab. Been thinking about moving some over to another brokerage. Most of the money in short term treasuries at the brokerages with some stocks.
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We use Capital One and Ally for our cash/CDs. The joint/married limit of $500k helps so we don't have to chop it up too much.

I still have all my recent equity payout in Fidelity. Their Money Market is at 4.23% (SPAXX).
 
RUinPinehurst

RUinPinehurst

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Aug 27, 2011
8,386
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T2Kplus20 said:
Short-term pain = amazing buying opportunity

A mild recession would come with many long-term benefits. Couldn't be any better timing for me. :)
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Interviewer squeezed poor TL, who resorted to weasel-speak with lots of "ah's" and "um's"....

In all seriousness, might not be the best time to buy more equities, says the guy who yesterday bought BAC.
 
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RUDead

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Sep 20, 2017
3,655
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T2Kplus20 said:
We use Capital One and Ally for our cash/CDs. The joint/married limit of $500k helps so we don't have to chop it up too much.

I still have all my recent equity payout in Fidelity. Their Money Market is at 4.23% (SPAXX).
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FYI: A lot of people I follow on Twitter think Ally is in deep doo doo
 
R

RUschool

Heisman
Jan 23, 2004
49,910
14,001
78
RUDead said:
FYI: A lot of people I follow on Twitter think Ally is in deep doo doo
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I saw them on one of those list. They were paying great dividends but too risky.

Any thoughts on the insurance companies like PRU? Are insurance companies in danger quite of few at 52 week low?
 
T2Kplus20

T2Kplus20

Heisman
May 1, 2007
31,206
19,211
113
RUinPinehurst said:
Interviewer squeezed poor TL, who resorted to weasel-speak with lots of "ah's" and "um's"....

In all seriousness, might not be the best time to buy more equities, says the guy who yesterday bought BAC.
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Meh, who knows what will happen in the near term. My current plan allows for patience and flexibility. I will add to my leveraged plays when/if they hit the right levels. I keep our core portfolio (funds and etfs) to certain allocation ranges, which can be adjusted as needed.

The big question is all our new cash. Stick to our schedule or not? Not sure yet. Got work to do this weekend.
 
J

Joey Bags

All-American
Sep 21, 2019
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rutgersdave said:
I saw them on one of those list. They were paying great dividends but too risky.

Any thoughts on the insurance companies like PRU? Are insurance companies in danger quite of few at 52 week low?
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I bank with Ally and love them and also saw them on those lists. They have a very high unrealized loss to revenue ratio, but are on a much more stable footing than SVB. Really only a problem if all their depositors woke up tomorrow and decided to move their cash which would be unlikely, but I’m keeping an eye on it.

Their biggest exposure, IMO, is a balance sheet heavy on auto loans.

Not really sure on the insurance industry drops, they traditionally thrive in a higher interest rate environment so perhaps this is the anticipated rate pause/cuts getting priced in?
 
R

RUDead

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Sep 20, 2017
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rutgersdave said:
I saw them on one of those list. They were paying great dividends but too risky.

Any thoughts on the insurance companies like PRU? Are insurance companies in danger quite of few at 52 week low?
Click to expand...

Not really hearing much either way on insurance companies, so can't say.
 
RUinPinehurst

RUinPinehurst

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Aug 27, 2011
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T2Kplus20 said:
Meh, who knows what will happen in the near term. My current plan allows for patience and flexibility. I will add to my leveraged plays when/if they hit the right levels. I keep our core portfolio (funds and etfs) to certain allocation ranges, which can be adjusted as needed.

The big question is all our new cash. Stick to our schedule or not? Not sure yet. Got work to do this weekend.
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On the other hand, 'Be greedy when others are fearful...."
 
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RUschool

Heisman
Jan 23, 2004
49,910
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78
Joey Bags said:
I bank with Ally and love them and also saw them on those lists. They have a very high unrealized loss to revenue ratio, but are on a much more stable footing than SVB. Really only a problem if all their depositors woke up tomorrow and decided to move their cash which would be unlikely, but I’m keeping an eye on it.

Their biggest exposure, IMO, is a balance sheet heavy on auto loans.

Not really sure on the insurance industry drops, they traditionally thrive in a higher interest rate environment so perhaps this is the anticipated rate pause/cuts getting priced in?
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Could be but banks were suppose to thrive in higher interest rate environment. I have some PRU that I brought recently since they were paying over 5% and now 6.2%. I’ll ask my nephew since he works at PRU and has a sh** load of stock. last time I asked he said they thrive at higher interest rates then why is the stock going down? It all depends on allocation and timing I guess.
 
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Morrischiano2

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Dec 3, 2019
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RUDead said:
It certainly doesn't matter to me.
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We’ve certainly adjusted. I have 500K in some **** Virginia Bank called Primus; paying 5% on a savings account (250 each for wife and I). Last Thursday we cut each balance to exactly 250 each and set auto transfers of interest directly to my Fidelity account.
 
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T2Kplus20

T2Kplus20

Heisman
May 1, 2007
31,206
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Morrischiano said:
You buying leverage ETFs with your bonus today?
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No, not today. Not at the appropriate levels yet. Gotta maintain CB discipline. CURE and LABU are holding up okay. So is TQQQ. UWM and SOXL need to drop further. SSO is nowhere close to my level to convert from VOO.

BOIL and DIG are getting interesting. Energy is getting annihilated today.
 
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Morrischiano2

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Dec 3, 2019
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T2Kplus20 said:
No, not today. Not at the appropriate levels yet. Gotta maintain CB discipline. CURE and LABU are holding up okay. So is TQQQ. UWM and SOXL need to drop further. SSO is nowhere close to my level to convert from VOO.

BOIL and DIG are getting interesting. Energy is getting annihilated today.
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Yes, with President Biden allowing drilling in Alaska, oil will be trending down.

Energy prices tanking with slow inflation obviously
 
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T2Kplus20

T2Kplus20

Heisman
May 1, 2007
31,206
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rutgersdave said:
Could be but banks were suppose to thrive in higher interest rate environment.
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BTW, I heard this all of 2022 and banks/financials were okay, but not great. I've never been directly involved in this sector, so I'm interested in thoughts on this. What's the story?
 
RUTGERS95

RUTGERS95

Heisman
Sep 28, 2005
29,467
40,568
113
Joey Bags said:
During the congressional meeting last Friday one of the primary concerns from lawmakers and FDIC/Treasury/Fed was how to control the media narrative. So I would agree with your take, we likely won’t be getting any new information or a deeper dive into published info.
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amazing right

yet no one asked if this was Stalinist Russia or Nazi Germany control over the media message. nuts
 
RUTGERS95

RUTGERS95

Heisman
Sep 28, 2005
29,467
40,568
113
rutgersdave said:
Could be but banks were suppose to thrive in higher interest rate environment. I have some PRU that I brought recently since they were paying over 5% and now 6.2%. I’ll ask my nephew since he works at PRU and has a sh** load of stock. last time I asked he said they thrive at higher interest rates then why is the stock going down? It all depends on allocation and timing I guess.
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inverted curve

high interest rates on a normal curve is great for banks and insurance companies but not so much when it's inverted. inverted curves kill insurance companies and hurt banks
 
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Morrischiano2

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Dec 3, 2019
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RUTGERS95 said:
inverted curve

high interest rates on a normal curve is great for banks and insurance companies but not so much when it's inverted. inverted curves kill insurance companies and hurt banks
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How does it hurt insurance companies (like NY Life and NW Mutual?)?
 
M

mildone_rivals

Heisman
Dec 19, 2011
55,607
51,272
0
RUTGERS95 said:
but to address the risk profile

moody's doesn't matter, the gov't has already told you that Chase, Citi, BofA, and Wells are as good as gov't debt
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They all pay crap for interest unless you use CDs. And even then their rates suck.

But theoretically one's money is safer with them, at least over $250K.
 
BIGRUBIGDBIGredmachine

BIGRUBIGDBIGredmachine

Heisman
Jan 12, 2015
37,854
37,782
113
mildone said:
Ha ha. No, y'all were mocking the little girl. It was hilariously obsessive and I made fun of you all back then.

Now we can move on. 😉
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now move along--or show your work🤷‍♂️
 
M

mildone_rivals

Heisman
Dec 19, 2011
55,607
51,272
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RUTGERS95 said:
nope, just financially literate

one of the absolute dumbest things you can do is have money sit behind the inflation curve. Hell I'd bet even special ed kids understand that concept
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You're very impressive; I'm sure special ed kids really appreciate you.

Okay, so where does a financially literate genius like you put money they can shift around instantly that sits ahead of the inflation curve without having to sell stuff at the wrong time?
 
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