Oh for sure.
I wasn’t actually going to gift him the books.
He doesn’t need to know how to use the coupon of a bond to work out its yield to maturity or work out how to use dividends to price a security.
I would recommend them for anyone who is into financial markets though. You learn so, so much including niche information about investing.
US Treasury is selling some short-term T-bills at yields in excess of 5% (e.g. 5.5% for 4-week T-bills).
I noted that as well. As you touched on earlier, I think the 4 week is abnormally inflated over debt ceiling fears, meaning that it may drop substantially at the next auction, particularly if it looks like a debt ceiling deal is on the way.
For example, comparison between recent 4-week and 13-week investment rates. 13-week has remained fairly constant at near 5.3%. However 4-week had a sharp jump from 3.9% to 6.0% during the week between 4/27 and 5/4. The 4/27 auction at 3.9% matures before the debt ceiling expiration. The 5/4 auction at 6.0% matures just after the debt ceiling expiration.
13-week – 4/24 = 5.2%, 5/1 = 5.3%, 5/8 = 5.3%,
4-week – 4/20 = 3.3%, 4/27 = 3.9%, 5/4 = 6.0%, 5/11 = 5.7%
I expect the tbill rate to be very similar to expectations of the federal rate, which is currently at 5.1%. The paper at https://www.researchgate.net/figure/Federal-funds-rate-and-the-3-month-T-bill-rate_fig2_233024156 found a correlation of 0.99 for 13-week. 5.3% for 13-week seems reasonable, if one more rate hike is expected. 5.7% to 6.0% for 4-week suggests other influences.
7.5% is above anything I have seen. Which bank offers this?
7.5% is above anything I have seen. Which bank offers this?
Capital One offered a $1k bonus on $100k deposit to performance savings account (not a CD, as listed earlier) in addition their usual APY, which is currently at 3.75%. You can withdraw the sign-up bonus after 3 months. If the APY remained a 3.75%, this would be $924 over 3 months in addition to the $1k bonus, for a total of $1924. $1924 on $100k over 3 months is equivalent to a 7.92% APY. However, my deposit was in limbo for a couple days with the transfer, and I will not withdraw exactly on the day I hit 3 months, so my effective APY will below a little below the theoretical 7.92%, which is why I said 7.5%. I used past tense because the offer expired yesterday. If you want to contact them to see they can extend, the bonus is SPRING23 and is described at Up to $1000 Bonus | Capital One .
Maybe your Dad would be open to some new ideas… just not the idea of a family member being his money manager. Is CFA your field? Or just a hobby?
Just looked at my notice from Social Security describing the check they will be sending me. It deducts my Medicare premium. I don’t want that as my company pays Medicare directly (and it is tax-advantaged to do so). Does anyone know how to have SS not deduct the Medicare premium?
Oh, I definitely wouldn’t recommend active management in equities (which is what my firm specializes in) so I don’t think I could be his money manager when I don’t really believe it makes sense tor him.
For institutional clients, active management makes sense but for retail investors, he’d be better off putting it an index and leaving it at that.
For fixed income, I can definitely see a rationale for active management for sure.
We know a gal that got her nursing license at age 60 and worked home health until recently (age 88 now).
The judge obviously enjoys her work, status, and lifestyle. Good for her to challenge if indeed she is still ‘sharp as a tack’.
We have many specialty physicians working into 70’s and even into 80’s - although they seem to do know how to scale back their work. I have seen retired MDs going to CEU (continuing education units) just to keep up a bit.
For people w/o pensions, an option is utilizing a financial planner that knows annuities WELL, and one can purchase annuities out of qualified retirement funds. (A huge reduction on personal financial risk). We have done so, and currently have about 35% of assets in qualified retirement and 31% in annuities. The rest of assets are some cash, taxable investments, Roth IRAs, and real estate (real estate is about 20% and is our home).We draw monthly living expenses off of the annuities - when we can do so w/o penalty – we currently have 5 annuities with different maturity dates. We are 66/fully retired, and each have SS.
At the way we have investments and spending, we won’t run out of money unless long term care in nursing home (we each have LTC policies) - but I am pretty confident if either DH or I need LTC, we can do well living near RN daughter and have care coming in to private residence or some home care arrangement – DDs would be motivated to preserve the estate so there is money for them/their families.
You probably do need to talk to someone at SS - you can do an online chat with medicare.gov - and that can refer you to someone to phone in to – they really want to have it paid out of SS checks though. If you are already paying Medicare directly, they might start deducting it out of your SS check but then send you reimbursements.
Best to try to get it set up the way you want it to work, but I have no guarantees on this, truly. The government doesn’t want to get stiffed and they find it best to do it this way.
Medicare premiums must come out of Social Security payments. However your company can set up an HRA (Health Reimbursement Account) to get tax benefits.
@Ptondad, I will investigate. Thanks.
Not the best? Sounds pretty darned good to me!
It’s weird.
I hang out on a forum called Bogleheads and on the net worth threads, it seems like every other person has millions in savings. There’s some selection bias going on there.
Having said that, I don’t feel rich but I realize I’m still pretty fortunate in the scheme of things.
In part, there are many more considerations when one’s net worth is in the millions – hence spending time on the web thinking things through – than when one’s net worth is in six figures.
From a CNBC article:
| Age of head of family | Median net worth | Average net worth |
|---|---|---|
| Less than 35 | $13,900 | $76,300 |
| 35-44 | $91,300 | $436,200 |
| 45-54 | $168,600 | $833,200 |
| 55-64 | $212,500 | $1,175,900 |
| 65-74 | $266,400 | $1,217,700 |
| 75+ | $254,800 | $977,600 |
Here is an article the gives the net worth of the top 10% and the top 1%. So Bogleheads and probably CC include a bias towards folks in the top 10%.
Let me guess… the bogleheads demographic is a tad older, like buying MSFT after the IPO in the late eighties kind of older, so you have plenty of time to catch up. 
It’s interesting how there’s such a huge difference between median and average. It seems like average is so skewed by a few ultra-wealthy people that it is a very misleading number.
Some of them are definitely on the older side (college in the 70s kind of older).
But I remember a few who had $10m+ saved. One or two posters in their 40s had $19m+ saved (and their post histories checked out with their job descriptions at lucrative firms).
And when you compare it to those users, my parents have saved a very good amount but nowhere near $19 million+.
I don’t feel like I’ve had any particular different upbringing to your standard middle-class kid though. Which is why it’s interesting when people say I’m not middle-class. But that’s a tangent for another day.
I hang out on that forum from time to time. The young people who have saved a LOT also seem to have jobs that pay amazing salaries/bonuses. It’s not too hard to save a lot if you make a lot … but some people who make a lot spend a lot. So there will always be people with a little & people with a lot, even when those people earn the same amount of money. Best to take what information might help you in your own life & not worry about comparing yourself to others.