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Cash bucket options (short term needs). CD tents, Bond tents etc. dynamic situation.

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  • #31
    Originally posted by jacoavlu View Post

    curious what do you mean “it helps” ?

    is there particular language in rules and regs that you think such actions would help with the legitimacy of this tactic?

    im an ibond maxi and would happily own more, but I find myself wondering why other people haven’t been doing this before
    Other people have been doing this. You need a name when you register for an entity account. Having a DBA, LLC, or other entity name makes it clear it's a business entity. There's no difference from the rules and regs point of view. A legit sole prop is legit regardless. You can point to your Schedule C if anyone questions, but the entity name makes people not even question it.

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    • #32
      Originally posted by Harry Sit View Post
      It helps if you register a DBA for the sole prop and get a business license from the city or county when it's required. It makes it clear the sole prop is separate from the owner even if it uses the owner's SSN as its tax ID. It can hold assets separately from the owner. The investment income is passed back to the owner for tax purposes.
      Yes, and the first thing i did prior to buying was double check with my CPA.

      Like TLH and BDR and withdrawal strategies in retirement there are arbitrary rules and it helps to know these rules.

      If i get audited, or something I will just involve my CPA.

      I am a simple doc and wish things were simpler.

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      • #33
        Considering using SoFi as a HY savings account for liquidity tor around 100-200, anyone see any red flags with this?
        https://www.sofi.com/banking/?campai...beDkCsfg6KhbHq

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        • #34
          “ (plan to retire in next 1-5 years)”
          Regarding building SORR:
          The enemy you are fighting is inflation.
          I-Bonds is the only clear “winner” here.
          CD’s and bond ladders lock up money and don’t really mitigate the inflation risk. Chew on the thought process of not chasing yields with safe cash. I have no clue what inflation will be over the next 5 years.
          You need to have your cash plan for the next 6 to 10 years. Five years or more AFTER you retire.

          If you want CD’s, a bond ladder or I-Bonds great.
          What you don’t want is changing your process in chasing yields. You become a market trader with your “safe money”. Don’t think that is in your best interest. Any plan will work, but no clue which will be best.

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          • #35
            Originally posted by jacoavlu View Post

            i have been on an island telling people here to brainlessly buy their ibonds right along with doing their backdoor Roth every year. But people wanna over analyze it
            Wish you had spoken up more vociferously earlier on then!

            I've only invested in the era of UpOnly(TM) - so likely new regime going forward, which makes bonds undesirable for yield.

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            • #36
              To OP: stablecoins are another way to add yield. I know it sounds scary because they are under the umbrella of "CRYPTO", but they are much "safer" and, more importantly, regulated by state/federal laws.

              I have a sizable amount at Gemini in GUSD and it has yielded 9% most of last year, and still giving ~7%. It may decrease in the future, but not a bad option for some cash savings.

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              • #37
                Originally posted by xraygoggles View Post
                To OP: stablecoins are another way to add yield. I know it sounds scary because they are under the umbrella of "CRYPTO", but they are much "safer" and, more importantly, regulated by state/federal laws.

                I have a sizable amount at Gemini in GUSD and it has yielded 9% most of last year, and still giving ~7%. It may decrease in the future, but not a bad option for some cash savings.
                I will read more about it. I know several of the WCI forum members use this, but I have little understanding of exactly how this works. Do you have a good resource to read about stable coins?

                If nothing else, I am interested in understanding a little bit more about it.

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                • #38
                  Originally posted by Tangler View Post

                  I will read more about it. I know several of the WCI forum members use this, but I have little understanding of exactly how this works. Do you have a good resource to read about stable coins?

                  If nothing else, I am interested in understanding a little bit more about it.
                  This post is pretty good tbh: https://forum.whitecoatinvestor.com/...-random-topics

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                  • #39
                    Sorry to keep beating a dead horse but does anyone here use Sofi?

                    Sofi HY savings for liquidity?

                    I am strongly considering using this company but I want to do my due diligence.

                    Sofi? What is good? 1.25% for a HY savings seems too good to be true, what is the catch?

                    Here is a review from Nerd wallet.

                    https://www.nerdwallet.com/reviews/banking/sofi

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                    • #40
                      Originally posted by Tangler View Post
                      Sorry to keep beating a dead horse but does anyone here use Sofi?

                      Sofi HY savings for liquidity?

                      I am strongly considering using this company but I want to do my due diligence.

                      Sofi? What is good? 1.25% for a HY savings seems too good to be true, what is the catch?

                      Here is a review from Nerd wallet.

                      https://www.nerdwallet.com/reviews/banking/sofi
                      1.25% too good to be true lol that’s what 0.75% after tax?

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                      • #41
                        Originally posted by jacoavlu View Post

                        no, individual treasuries. You can buy Treasuries directly at all the major brokerages, and also on Treasury Direct. On brokerage you can buy directly at auction, or on secondary market.
                        Looked this morning at the VG brokerage and it looks like you can buy CDs and Treasuries. I need to read more. The VG site is a little cumbersome and complex for this simple doc but I frankly think a 3 mo to 1 year treasure bond(s) might be what I am looking for for this money.

                        Has anyone here navigated the VG brokerage and purchased bonds? How did you do it? Did you have any issues? Resources?

                        Thanks

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                        • #42
                          Originally posted by jacoavlu View Post

                          1.25% too good to be true lol that’s what 0.75% after tax?
                          good point.

                          Comment


                          • #43
                            Originally posted by Tangler View Post

                            Looked this morning at the VG brokerage and it looks like you can buy CDs and Treasuries. I need to read more. The VG site is a little cumbersome and complex for this simple doc but I frankly think a 3 mo to 1 year treasure bond(s) might be what I am looking for for this money.

                            Has anyone here navigated the VG brokerage and purchased bonds? How did you do it? Did you have any issues? Resources?

                            Thanks
                            If you have ibonds you have treasury direct and buying T bills at auction is simple there.

                            Comment


                            • #44
                              Originally posted by jacoavlu View Post

                              If you have ibonds you have treasury direct and buying T bills at auction is simple there.
                              OK, I will check it out. I thought it would be easier at VG but perhaps I am just foolish.

                              Here is another ignorant question: They are bought at auction? Is that similar to buying ETFs at the VG brokerage?

                              I will keep trying to figure it out. Thanks

                              Comment


                              • #45
                                Originally posted by Tangler View Post

                                OK, I will check it out. I thought it would be easier at VG but perhaps I am just foolish.

                                Here is another ignorant question: They are bought at auction? Is that similar to buying ETFs at the VG brokerage?

                                I will keep trying to figure it out. Thanks
                                at auction is straight from the tap. Buying from the gov. There are active bidders. You are committing to buy at the high rate

                                At brokerage you can buy at auction. But also secondary market. Meaning already owned by someone else, which was originally bought at auction in the past

                                if held on brokerage you can sell on secondary market or hold to maturity

                                if held on treasury direct you can’t sell. Maybe you could transfer to brokerage to sell but that would be a pain. So only buy on TD if you plan to hold to maturity.

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