Investing, Stock Market and Retirement Planning Thread

[Miami Vice]

Seems that the fear of Deutsche Bank going Lehman is picking up. I'm getting more calls about limiting exposure to them.

Hedge funds pull business from Deutsche Bank
https://www.ft.com/content/42ec5f88-862 ... 7d9515ad15

Thats the other side of our trades. We act as agent for our clients, and the DB prime brokerage division borrows securities on behalf of the hedge funds. The PB is involved because they're the ones ultimately on the hook for what the hedge funds borrow. Our clients view them as "safer" than dealing directly with a hedge fund, since we know what a major PB's credit/leverage situation looks like but not a hedge fund's.

So not only are they potentially losing their supply by transacting thru DB, but DB is losing them as a customer on the other side.

[columbia]

As a precautionary measure, I moved some money from my stock fund to a vanilla treasury fund this AM....

[columbia]

Variable rate on I Bonds jumping up to 2.76% in November...

http://seekingalpha.com/article/4012796 ... november-1

[Reveutopique]

Soooo I picked up Technical Analysis for Dummies. Dont know why but I'm scared.

[NTP66]

Source of the post This is exactly why Target Date funds were created, you dodint.

Not sure what the problem is. My LifeCycle 2040 Fund returned .73% profit last year.

That raises the question of why you are holding any bonds in a Roth. My current (and retirement) plan is:

IRA/403b: bonds ( + stock if IRA isn't already filled up with bonds)
Roth: stock
Taxable: stock

I'll only dip into the Roth (if necessary) once my IRA has been drained. Only at that point will I own any bonds in my Roth account.

The ER on TIAA's target funds continues to rise at work, and after being told that they were 'adding many funds', it turns out that they actually did nothing more than remove a few non-VG funds.

That said, I am moving most of my 403b money into VINIX, using my wife's 403b for the international stock allocation. Really wish VTSAX were available, but this is probably the second best option available of any group.

[MrKennethTKangaroo]

Bump

THe markets are going to crap their pants for the next two weeks. This gentleman for one things trump is a grade A jagoff but that is neither here nor their. This is america, and this gentleman is a capitalist. When people are crapping there pants, its time to capitalize. Any thoughts on how to bet on volatility? TVIX? Something else? THis is america, lets make money out of people's misfortune

[Dickie Dunn]

Orange juice futures.

[tifosi77]

Looking good, Billy Ray.

[Dickie Dunn]

Go to cash and use said cash to vacation in Mexico while it's worth 20+ pesos.

[Viva la Ben]

Buy GOLD!

[NTP66]

I wonder how many people are going to offload their stocks or drastically change their retirement AA as a result of this? I'm heavily weighted towards equities (not @Tomas level), and it didn't even cross my mind to consider a change.

[columbia]

[NTP66]

^This.

[NTP66]

Andrews FCU is offering an 84-month CD @ 3.01% APY through November 30th. Minimum $5k, EWP of 180 days. This is the best rate I've seen since that ridiculous 7% rate many months ago, so I may jump on it.

[dodint]

Yeah, I'm not touching anything right now. That ship sailed about 24 hours ago.

[columbia]

Mr. Market has calmed down.
Good boy, you get a cookie.

[Viva la Ben]

The Mexican peso is at a 20 year low...that means we should buy them right?

[NTP66]

Based on the few articles I've read this morning, it sounds like some actually expect interest rates to increase pretty rapidly by 2018-2019 under the orange man's plans. That said, that 84-month CD's EWP is low enough that even if I did pull the money out after 24 months, the effective interest rate would still be 2.25%, which is higher than any other current 24-month CD.

[slappybrown]

Andrews FCU is offering an 84-month CD @ 3.01% APY through November 30th. Minimum $5k, EWP of 180 days. This is the best rate I've seen since that ridiculous 7% rate many months ago, so I may jump on it.

3 pts for 7 years is a panic play IMO.

[slappybrown]

Based on the few articles I've read this morning, it sounds like some actually expect interest rates to increase pretty rapidly by 2018-2019 under the orange man's plans. That said, that 84-month CD's EWP is low enough that even if I did pull the money out after 24 months, the effective interest rate would still be 2.25%, which is higher than any other current 24-month CD.

Ah got ya. That makes it more reasonable, though I probably woudl still stick where Im at personally.

[NTP66]

@slappybrown: Panic play on whose part, mine or the credit union? I'm always looking to maximize my returns on liquid assets, and that low EWP makes it very attractive at almost any point in time past 6 months.

[slappybrown]

Right, with the penalty being minimal it makes more sense. I was saying that getting locked in for 7 years for 3 pts isn't a great RoR IMO. They're offering the product as a direct result of the election to seize on fears IMO.

[columbia]

I keep my "savings" in VBILX (half treasuries/half corporate bonds). There's some short term risk, but you'll never that get that return in a savings account and it's pretty liquid.

[slappybrown]

Whats the deal with the implementation of the Trump tax plan, would that presumably apply only in 2018 or can they put through the new rates for 2017 upon entering office in January?

[NTP66]

Right, with the penalty being minimal it makes more sense. I was saying that getting locked in for 7 years for 3 pts isn't a great RoR IMO. They're offering the product as a direct result of the election to seize on fears IMO.

Gotcha. I'd never lock myself into a CD that didn't have a low EWP. FWIW, here are the effective rates at the end of the listed terms:

1 Year 1.50%
2 Years 2.27%
3 Years 2.53%
4 Years 2.66%
5 Years 2.74%
6 Years 2.79%
7 Years 3.01%

Now I just have to convince my wife to follow suit.