Picking up Nickels

Tuesday, March 12, 2024

March 2024 Financial Asset Roundup

Here are my current financial assets as of the market close on March 11th, 2024:

Asset Feb 2024 Mar 2024 Change




Checking 2,748 4,974 2,226
Money Market 60,591 65,233 4,642
Savings Bonds 235,979 236,751 772
Treasurys 90,000 90,000 0
CDs 51,018 51,184 166
Brokerage 398,308 396,908 -1,400
401k 352,962 365,734 12,772
Roth IRA 277,427 284,416 6,989
IRA 1,401,769 1,429,404 27,635
529 Savings 173,572 175,352 1,780
Total Assets $3,044,374 $3,099,956 $55,582
      1.83 %

The S&P 500 has continued to reach all-time highs, rising 1.91% (+7.30% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for February rose to 3.9%, with a stronger-than-expected 275,000 new jobs added. Oil prices rose slightly to the $78 level (from $77), while gasoline prices are starting their usual seasonal price increase. The $78 price translates to a local unleaded regular gasoline price of $3.09 at my last fill-up.

On the financial front, my assets have again hit an all-time high, surpassing the previous high from February 2024! I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. My 13 week T-Bills (5.409%) matured and were rolled into new ones at 5.384%. I also took a distribution from my S Corp and next month I am planning on redeeming my November 2016 I Bonds with a 0% fixed rate and replacing them with April 2024 I bonds with a 1.3% fixed rate. I also have a Alliant 5.00% APY 12 month CD maturing in early April and am considering proactively replacing that with the current Alliant 17 month @ 5.40% APY CD deal before the end of March.

As for the non-financial, my 2023 business tax returns are done and my personal returns are in progress. It's always a relief when all of that work is done. On the plus side, I'm looking forward to the later sunsets, warmer weather, and spending a nice Easter holiday with family.

Tuesday, February 13, 2024

February 2024 Financial Asset Roundup

Here are my current financial assets as of the market close on February 12th, 2024:

Asset Jan 2024 Feb 2024 Change




Checking 2,856 2,748 -108
Money Market 56,933 60,591 3,658
Savings Bonds 235,279 235,979 700
Treasurys 90,000 90,000 0
CDs 50,855 51,018 163
Brokerage 365,621 398,308 32,687
401k 332,409 352,962 20,553
Roth IRA 269,484 277,427 7,943
IRA 1,360,546 1,401,769 41,223
529 Savings 172,879 173,572 693
Total Assets $2,936,862 $3,044,374 $107,512
      3.66 %

The S&P 500 finally broke the 5000 barrier, rising 4.98% (+5.28% YTD) since the last update:

(chart courtesy of nasdaq.com)

There's a lot to like about the US economy right now: a strong labor market, strong GDP growth, surging consumer sentiment, moderating inflation, stock market all-time highs, record domestic energy production, and more. The past year has been a great time to be an investor, with my assets up 19% since February 2023.

On the jobs front, the unemployment rate for January remained at 3.7% for the third month, which was a blowout result with 353,000 new jobs added. Oil prices rose to the $77 level (from $72) with conflict in the Middle East not helping matters. The $77 price translates to a local unleaded regular gasoline price of $3.02 and a heating oil price of $3.45 at my last fill-up.

On the financial front, my assets have again hit an all-time high, surpassing the previous high from January 2024 and breaking the $3m milestone! That's a pretty remarkable achievement considering I hit $1m in November 2013 and $2m in February 2020. Of course, I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. My 13 week T-Bills (5.446%) matured and were rolled into new ones at 5.394%. My only other move of note was taking a distribution from my S Corp.

As for the non-financial, my 2023 business tax returns are in progress and I have all of the info on hand to complete my personal returns. At this point I'm trying to survive the current snow storm and am prepping for a big work project next month. :)

Thursday, January 11, 2024

January 2024 Financial Asset Roundup

Here are my current financial assets as of the market close on January 10th, 2024:

Asset Dec 2023 Jan 2024 Change




Checking 3,037 2,856 -181
Money Market 77,604 56,933 -20,671
Savings Bonds 234,411 235,279 868
Treasurys 90,000 90,000 0
CDs 30,741 50,855 20,114
Brokerage 382,410 365,621 -16,789
401k 316,737 332,409 15,672
Roth IRA 261,095 269,484 8,389
IRA 1,320,282 1,360,546 40,264
529 Savings 170,209 172,879 2,670
Total Assets $2,886,526 $2,936,862 $50,336
      1.74 %

The S&P 500 continues to approach record levels, rising 3.48% (+0.29% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for December remained at 3.7%, beating expectations with 160,000 new jobs added. Oil prices rose to the $72 level (from $70) while the 2024 oil price forecast looks positive due to record level domestic production. The $72 price translates to a local unleaded regular gasoline price of $3.09 at my last fill-up.

On the financial front, my assets have hit an all-time high, surpassing the previous high from December 2023. I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. My 13 week T-Bills (5.509%) matured and were rolled into new ones at 5.404%. Treasury yields dropped as 2024 interest rate cuts are apparently on the table, so I also locked up some cash in a Alliant 5.40% APY 17 month CD and a Alliant 5.30% APY 23 month CD as comparable brokered CD rates at Fidelity and Vanguard plummeted below 5% APY.

As for the non-financial, I'm already getting my 2023 tax prep started and continue to deal with the severe storms that seem to be arriving here every couple of weeks. I look forward to the post-holiday doldrums to be over and the arrival of spring weather.

Tuesday, December 12, 2023

December 2023 Financial Asset Roundup

Here are my current financial assets as of the market close on December 11th, 2023:

Asset Nov 2023 Dec 2023 Change




Checking 6,507 3,037 -3,470
Money Market 62,309 77,604 15,295
Savings Bonds 222,700 234,411 11,711
Treasurys 82,000 90,000 8,000
CDs 55,011 30,741 -24,270
Brokerage 372,409 382,410 10,001
401k 296,023 316,737 20,714
Roth IRA 248,336 261,095 12,759
IRA 1,258,448 1,320,282 61,834
529 Savings 165,956 170,209 4,253
Total Assets $2,769,699 $2,886,526 $116,827
      4.22 %

The S&P 500 has hit new highs for the year, rising 4.69% (+20.39% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for November fell to 3.7%, with 199,000 new jobs added. Oil prices fell to the $70 level (from $77). The $70 price translates to a local unleaded regular gasoline price of $2.99 and a heating oil price of $3.65 at my last fill-up.

On the financial front, my assets have hit an all-time high, surpassing the previous high from July 2023. I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account and took a distribution from my S Corp and the proceeds from my maturing 13 week T-Bills at 5.446% and put that cash in my Fidelity Cash Management account to earn some interest while staying liquid. My 13 week T-Bills (5.477%) matured and were rolled into new ones at 5.409%. Finally, my Penfed 3.50% APY 5 year CDs matured and I laddered that money into the following:

As for the non-financial, I'm trying to catch up as Christmas and a new year are only a few weeks away. It wasn't that long ago when I was dining outside in shorts and a t-shirt with Mrs. Frugalson, hard to believe the holidays are here already. :)

Monday, November 13, 2023

November 2023 Financial Asset Roundup

Here are my current financial assets as of the market close on November 10th, 2023:

Asset Oct 2023 Nov 2023 Change




Checking 4,028 6,507 2,479
Money Market 70,168 62,309 -7,859
Savings Bonds 233,573 222,700 -10,873
Treasury Bills 62,000 82,000 20,000
CDs 54,825 55,011 186
Brokerage 359,882 372,409 12,527
401k 289,677 296,023 6,346
Roth IRA 247,088 248,336 1,248
IRA 1,256,503 1,258,448 1,945
529 Savings 164,868 165,956 1,088
Total Assets $2,742,612 $2,769,699 $27,087
      0.99 %

The S&P 500 has been on a nice run over the past week, rising 1.31% (+15.00% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for October rose again to 3.9%, with a below expectations 150,000 new jobs added. Oil prices fell to the $77 level (from $85). The $77 price translates to a local unleaded regular gasoline price of $3.39 at my last fill-up.

On the financial front, I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. I took a distribution from my S Corp and put that cash in my checking account to help pay my rising auto and homeowners insurance bills. I also invested in new 13 week T-Bills at 5.446% (with autoroll) and will have some at 5.462% maturing later this month. My I Bond allocation dipped a bit as I sold some January 2017 issue bonds with a 0% fixed rate and have scheduled a purchase of November 2023 replacements with a 1.3% fixed rate. Another pending event will be the maturing of my Penfed 3.50% APY 5 year CDs early next month, with those funds likely used to construct a Treasury ladder with 1,2,3, and 5 year rungs.

As for the non-financial, Thanksgiving and Christmas are right around the corner and I am not prepared at all for either one. At this point, I'm still trying to adjust to the cold temperatures and the switch from Daylight Saving Time.

Wednesday, October 18, 2023

September 2023 CPI-U numbers released: Hold off on I Bond purchase


The U.S. Bureau of Labor Statistics released the September 2023 Consumer Price Index (CPI-U) inflation data last week, which increased by 0.249% over the past month.

As always, now is one of the best times to consider purchasing I Bonds. The reason for this is that we now know what the rate of return for October 2023 I Bonds will be for both the first and second six month periods, which is important since I Bonds must be held for 12 months before they can be redeemed.

Using the CPI-U data from March 2023 (301.836) and September 2023 (307.789) (courtesy of inflationdata.com), we can calculate the variable rate for the second 6 month period for October 2023 issue I Bonds.


That means these bonds would earn the current rate of 4.30% (using 0.9% fixed & 1.69% variable) for the first 6 months and 4.86% (combined 0.9% fixed & 1.97% variable) for the second 6 months. In the current interest rate environment, an October I Bond purchase isn't compelling when compared to something like the 52 Week T-Bills @ 5.488% APY issued on 10/5/2023.

In my opinion, I would pass on October 2023 I Bonds and reevaluate them after the rate reset in November. Based on the spread between I Bonds and TIPS, David Enna of tipswatch.com projects that the new fixed rate will fall in the range of 1.40% to 1.70%, a nice increase over the current 0.9% and the first time above 1% since 2007. If that's the case, I'll seriously consider purchasing before the end of 2023 followed up by another potential purchase in April 2024 once the March 2024 CPI-U numbers are released.

Wednesday, October 11, 2023

October 2023 Financial Asset Roundup

Here are my current financial assets as of the market close on October 10th, 2023:

Asset Sep 2023 Oct 2023 Change




Checking 4,335 4,028 -307
Money Market 62,668 70,168 7,500
Savings Bonds 232,596 233,573 977
Treasury Bills 62,000 62,000 0
CDs 54,644 54,825 181
Brokerage 397,636 359,882 -37,754
401k 294,230 289,677 -4,553
Roth IRA 253,718 247,088 -6,630
IRA 1,291,162 1,256,503 -34,659
529 Savings 167,031 164,868 -2,163
Total Assets $2,820,020 $2,742,612 -$77,408
      -2.74 %

The S&P 500 has pulled back, falling 2.88% (+13.51% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for September remained at 3.8%, with a scorching hot 336,000 new jobs added. Oil prices fell to the $85 level (from $88) with upward pressure from the Hamas attack on Israel dialing up tensions in the Middle East. The $85 price translates to a local regular unleaded gasoline price of $3.59 at my last fill-up.

On the financial front, I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. I took a distribution from my S Corp and put that cash in my Fidelity Cash Management checking account to try to get a bit of yield on that cash. I'm also starting to wonder if we're going to see some short-term 6% CD deals at some point as the tax-equivalent yield of T-Bills are getting close to that level. Is it possible we could see an old-fashioned holiday CD deal from Penfed this year?

Finally, the September 2023 CPI-U numbers are scheduled to be released tomorrow, so a follow-up post about the impact on Series I savings bonds is in my queue.