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Author: donmanning Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: SWYSX vs. ING Direct Date: 7/16/2004 2:29 AM
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I'm trying to do a true "apples to apples" comparison of the yields of the Schwab ultra-short bond fund SWYSX (2.65% Trailing Twelve Month Yield, 2.24% TTM yield after expenses) versus ING Direct CD's (2.6% for one-year CD) and ING Direct 2.1% Money Market. Seems like ING Direct is the way to go to avoid risk of rising interest rates, either CD's or Money Market, depending on liquidity needs. Does this comparison sound correct?
Thanks for any comments.
DonFool
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Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10469 of 35400
Subject: Re: SWYSX vs. ING Direct Date: 7/16/2004 9:20 AM
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"I'm trying to do a true "apples to apples" comparison of the yields of the Schwab ultra-short bond fund SWYSX (2.65% Trailing Twelve Month Yield, 2.24% TTM yield after expenses) versus ING Direct CD's (2.6% for one-year CD) and ING Direct 2.1% Money Market. Seems like ING Direct is the way to go to avoid risk of rising interest rates, either CD's or Money Market, depending on liquidity needs. Does this comparison sound correct?
Thanks for any comments."

Not sure this is truly apples to apples, but the reasoning is sound.

A simple principle, if you think it is more likely than not interest rates will rise during the period you expect to have the money invested, if you can get yields that are equal or better in an instrument not negatively affected by rising interest rates than in an instrument that is, go for the former. In a falling interest rate environment, the opposite is true.

Of course, guessing if interest rates will rise or fall is the problem. If I hadn't decided interest rates had fallen too low a couple hundred basis points above their bottom, I would have made better choices.

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Author: Foolferlove Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 10470 of 35400
Subject: Re: SWYSX vs. ING Direct Date: 7/16/2004 9:47 AM
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I'm trying to do a true "apples to apples" comparison of the yields of the Schwab ultra-short bond fund SWYSX...

I once used a short-term bond fund (with check writing ability) for emergency money and other shortly-needed money. Took out some funds to buy some windows, slowly replaced it, then took out some more for car repairs, replaced it. Was low on funds in the checking account, so moved a few hundred from the bond fund to the bank.

Only later did I realize that each of those transactions was a potentially taxable event and would become a line on my Schedule D. Had multiple lots to deal with due to all the "buying and selling". Ug. It wasn't worth the extra .3% (or whatever) I would earn over a savings account. So off to ING I went... :) just something (small) to consider...

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