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 rose 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.

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.

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.

September 2023 Financial Asset Roundup

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

Asset	Aug 2023	Sep 2023	Change
Checking	7,065	4,335	-2,730
Money Market	55,926	62,668	6,742
Savings Bonds	231,585	232,596	1,011
Treasury Bills	40,000	62,000	22,000
CDs	84,656	54,644	-30,012
Brokerage	369,092	397,636	28,544
401k	289,242	294,230	4,988
Roth IRA	255,093	253,718	-1,375
IRA	1,295,040	1,291,162	-3,878
529 Savings	167,328	167,031	-297
Total Assets	$2,795,027	$2,820,020	$24,993
			0.89 %

The S&P 500 has rebounded a bit, rising 0.42% (+16.88% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for August unexpectedly rose to 3.8%, with 187,000 new jobs added. Oil prices rose to the $88 level (from $83) and production cuts from our good friends in Russia and Saudia Arabia could help drive that price above $100 next year. The $88 price translates to a local regular unleaded gasoline price of $3.59 and a heating oil price of $3.50 per gallon at my last fill-up. On the positive side, Goldman Sachs sees a lesser chance for a US recession over the next year with a soft landing for the economy looking more likely.

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 miscellaneous bills that pop up this time of year (estimated taxes, car repair, insurance, etc.). I also reinvested the funds from my maturing 13 week T-Bills (5.378%) and rolled them into new ones at 5.477%. The funds from my maturing Alliant 5.00% APY 6 month CD were transferred to my Fidelity Cash Management account to get a decent yield while keeping the cash liquid.

As for the non-financial, the school year has started as the youngest Frugalson is close to finishing an undergrad degree before deciding on grad school. It's a pretty remarkable milestone for someone who was in preschool when I started this blog in 2006. :)

August 2023 Financial Asset Roundup

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

Asset	Jul 2023	Aug 2023	Change
Checking	1,809	7,065	5,256
Money Market	57,612	55,926	-1,686
Savings Bonds	230,549	231,585	1,036
Treasury Bills	40,000	40,000	0
CDs	84,430	84,656	226
Brokerage	388,015	369,092	-18,923
401k	291,333	289,242	-2,091
Roth IRA	259,879	255,093	-4,786
IRA	1,321,087	1,295,040	-26,047
529 Savings	168,713	167,328	-1,385
Total Assets	$2,843,427	$2,795,027	-$48,400
			-1.70 %

The S&P 500 pulled back slightly, falling 1.89% (+16.39% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for July fell slightly to 3.5%, as the job market continued to gently cool off with 187,000 new jobs added. Oil prices rose to the $83 level (from $75), which translates to a local regular unleaded gasoline price of $3.64 per gallon at my last fill-up. The economic picture is further muddied with news of the FOMC raising rates by another 0.25%, a downgrade in US debt, and a slight uptick in inflation.

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 have that cash sitting in my checking account ready to help pay the bills from our summer vacation. I also made a modest addition to the fixed income holdings in my IRA with the July 10 year TIPS auction, which ended up with a lower-than-expected real yield of 1.495%.

As for the non-financial, Mrs. Frugalson and I are planning to enjoy a short getaway in the remaining time before school starts up again. We've also been talking a lot about what our retirement will look like as we're starting to see the end of our working lives approaching. After 30+ years of frugality, saving, and investing, it's looking like we'll both be retired within the next five years or so. While we've found our careers to be very fulfilling and rewarding, we're already looking forward to starting the next phase of our lives. If nothing else, it will be nice to leave the daily grind of the working world behind us.

July 2023 Financial Asset Roundup

Here are my current financial assets as of the market close on July 18th, 2023:

Asset	Jun 2023	Jul 2023	Change
Checking	3,755	1,809	-1,946
Money Market	58,140	57,612	-528
Savings Bonds	229,348	230,549	1,201
Treasury Bills	40,000	40,000	0
CDs	84,211	84,430	219
Brokerage	367,350	388,015	20,665
401k	272,516	291,333	18,817
Roth IRA	250,296	259,879	9,583
IRA	1,274,547	1,321,087	46,540
529 Savings	167,229	168,713	1,484
Total Assets	$2,747,392	$2,843,427	$96,035
			3.50 %

The S&P 500 has continued to outperform expectations, rising 4.98% (+18.63% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for June fell to 3.6%, with "only" 209,000 new jobs added. Oil prices fell to the $75 level (from $68), which translates to a local regular unleaded gasoline price of $3.29 per gallon at my last fill-up. It's also good to see inflation continuing to trend down with the US faring better than our peers.

On the financial front, my assets have hit an all-time high, surpassing the previous high from June 2023. I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. I reinvested the funds from my maturing 13 week T-Bills (4.919%) and rolled them into new ones at 5.388%. I took a distribution from my S Corp and stashed those funds in my Fidelity Cash Management account. I'm also planning on dipping my toe into the 10 year TIPS auction this week, with a likely par rate of 1.5%+.

As for the non-financial, we recently returned from an enjoyable family vacation with great weather. And much like last year, we were fortunate to avoid the Canadian wildfires and the 39 day heat wave (and counting) in the South. I can only imagine the number of vacations that have been ruined by the scorching summer temps around the globe, scary stuff!

June 2023 Financial Asset Roundup

Here are my current financial assets as of the market close on June 12th, 2023:

Asset	May 2023	Jun 2023	Change
Checking	6,411	3,755	-2,656
Money Market	51,646	58,140	6,494
Savings Bonds	228,152	229,348	1,196
Treasury Bills	60,000	40,000	-20,000
CDs	63,985	84,211	20,226
Brokerage	323,881	367,350	43,469
401k	255,080	272,516	17,436
Roth IRA	243,958	250,296	6,338
IRA	1,244,141	1,274,547	30,406
529 Savings	167,427	167,229	-198
Total Assets	$2,644,681	$2,747,392	$102,711
			3.88 %

The S&P 500 has been on a nice run, rising 4.86% (+13.01% YTD) since the last update:

(chart courtesy of nasdaq.com)

On the jobs front, the unemployment rate for May rose to 3.7%, with 339,000 new jobs added. Oil prices fell to the $68 level (from $72) in spite of announced production cuts, which translates to a local regular unleaded gasoline price of $3.35 per gallon at my last fill-up. On a positive note, a deal was made to resolve the debt ceiling "crisis", which means we at least won't default on our debt.

On the financial front, my assets have hit an all-time high, surpassing the previous high from December 2021. I did the usual Fidelity 401k transaction (FSKAX) and Vanguard VTI purchase in my taxable brokerage account. I took the funds from my maturing 13 week T-Bills (4.903%) and rolled them into new ones at 5.378%. I also took a distribution from my S Corp and stashed those funds in my Fidelity Cash Management account.

One very unusual thing also happened since the last update: we subscribed to the PlanVision financial planning service. Mrs. Frugalson and I have actually been talking about what our retirement will look like. While I think I have a pretty good handle on investments, taxes, healthcare, Social Security, estate planning, etc., I decided to have another set of eyes on our situation after reading positive things about PlanVision on the bogleheads.org forum. I'm not really sure what to expect, but it's worth trying at $239 for the first year. I don't plan on being a high-maintenance client, so hopefully it will be a win-win for both of us.

As for the non-financial, it's almost time for our summer vacation next month. I'm looking forward to going someplace new and trying to not think about work for a bit. :)