A headline passed across my Twitter feed yesterday that seemed like a good bank account signup bonus: "$500 Bonus for New Money Market Account at Capital One." $500 is a lot of money, so I clicked through to check out what the requirements were. As usual, there were some deposit requirements, in this case a $50,000 deposit of outside money, held in the account for 6-8 weeks … [Read more...] about What goes into a good active savings strategy?
I've been an enthusiastic fan of high-interest checking and savings accounts ever since you could earn 6% APY on your PayPal account balance back in the early 2000's (unfortunately I was in college at the time and barely had two quarters to rub together at 6% APY). The boring reason is that the more work your risk-free assets are able to do, the less work your riskier … [Read more...] about Winners and losers from changes to Consumers Credit Union Free Rewards Checking accounts (and why it matters)
Modestly improved investor education and extensive marketing have made investors today more conscious of the costs of their investment decisions, and helped promote the use of index-tracking mutual funds and exchange-traded funds as opportunities to reduce expenses and allow investors to keep more of their investment returns. While cost-consciousness is a clear positive for … [Read more...] about Index construction is the most important, least understood part of the indexing revolution
I wrote last month about Vanguard's announcement of commission-free ETF trading coming "in August." Well, it's August, and commission-free ETF trading is here! Which ETF's are commission-free to trade? You can find the full list of commission-free ETF's here, but as a rule of thumb, it is supposed to include essentially all non-inverse and non-leveraged ETF's. Potential uses … [Read more...] about Vanguard commission-free ETF trading is here
In the wake of the Republican smash-and-grab tax heist of 2017, many American corporations have had to decide what to do with their freshly repatriated profits and newly distended profit margins, so news junkies have been treated to an extended conversation about investment, payroll, and capital structure. This conversation has been complicated by the insistence of one … [Read more...] about The stock buyback “controversy” is everything wrong with the finance sector in a nutshell