Vanguard Federal Money Market Fund offers 4.24% yield and Same Day Accessibility for Stock Investments

 The US interest rates have been stubbornly high for more than 18 months.  In the past, I looked for high-yield savings account or Certificate of Deposits (CD).  I put most of my cash in CDs.  Lesson learned - annual return was only about 5% and money was parked and locked in the CD accounts until accounts matured.  When there was opportunity to invest in a dividend-paying stock, I had no good cash available on-hand.

Fast-forward to the year 2024.  I found an almost equivalently CD-safe altenartive - high-yield money market funds offered by Charles Schwab - Schwab Prime Advantage Money Fund (SWVXX) and Schwab Prime Advantage Money Fund - Ultra Shares (SNAXX).  The money market funds are more risky than CD, yet can become available to you after one business day.

Collecting 5% interest by simply waiting was quite appealing and effortless, until the one-business day delay waiting requirement started to point to the opportunity loss to be able to bottom-fish stock equities.  In late 2023,  looked into money market funds offered by Vanguard Brokerage, as I like Vanguard mutual funds and ETFs.

In my opinion, Vanguard money market funds are the most appealing, because of

• the funds' low fee
• the high interest rate return
• the immediate availability of the money to invest in stock equities - no 1-day wait requirement
• by default, cash in Vanguard Brokerage account is deposited into Vanguard Federal Money Market Fund automatically.

Here is an example:

• Say you have $5k in your Vanguard Brokerage Account.  By default, the money is automatically into Vanguard Federal Money Market Fund.
• On Day 1, you do not know what to buy, thus simply earn interest.
• On Day 2, you are interested to purchase $2k of ABC shares.  In Vanguard, the Federal Money Market Fund would be available to you on the same business day.  

There is no more 1 business-day wait.

***A catch is that US citizenship is required to open a Vanguard Brokerage account.

Experiment: Build a Website to Show Best Water Bottles from Amazon - https://best-waterbottle.com/

I have desired to collaborate with my best friend for anything interesting.  He is a geek and I enjoy marketing and knowledge sharing.  I lost track of how many water bottles I have purchased for myself and my kids, because they keep either breaking them or losing them.  

So my best friend built Best Water Bottles.

This is the first collaboration and will not be the last.  😉

The Enabler of Big Travel by Credit Card Bonus Points - Chase Sapphire Reserve Card

Am I referring to the Chase personal credit card that carries a $550 annual fee?  You are correct.

Typically, a foundation of FICO score 740+ is strongly recommended to apply for approval of any Chase credit card

I have had Chase Sapphire Reserve for over three years.   

                                                    Chase Sapphire Reserve Card

The following is a quick break-down of its major benefits and why $550 annual fee is worth the investment.

1. Out of $550, $300 credit would be issued annually to compensate for travel related expense (flight, hotel, car rental) -> $250
2. Global entry or TSA fee, about $80 would be re-imbursed up to $100 once every four years -> $170
3. A $5 DoorDash credit is issued to your DoorDash every calendar month -> $170 - $60 = $110
4. Priority Pass membership covers two adults and one kid.  Assume each airport priority lounge pass is $10 per visit per person.  Three vacations for two adults and one kid would amount to $10x3x3x2 (round trip) = $180.  
1. $110 - $180 = -$70.    We make a value gain of $70!
2. $170 - $180 = -$10.    No Global entry or TSA fee would be reimbursed during year 2-4.
5. Unlike American Express membership points which can earn 60% redemption value only, Chase Ultimate Reward points are versatile; it can be redeemed to cash at 100:1, or be transferred to Chase travel partners such as Hyatt, United Airlines, Southwest Airlines.
6. Chase Sapphire Reserve allows 50% more in Ultimate Reward points in redemption of flights/hotels
7. If your significant other has Chase Sapphire Preferred which carries a $95 annual fee, it would be less expensive to apply for an authorized Chase Sapphire Reserve card, because its annual fee for authorized user is only $75
8. 3x for dining expenses and travel expenses.
9. Free primary driver insurance is offered for each car rental
10. There is no foreign transaction fee.  Chase also gives you the best currency exchange rate for the day, when you use the card overseas for purchases.

If you are not sure what to do with the Ultimate Reward points, simply accumulate them first.  You always have an option to redeem for cash anytime.

If you do not travel, however, Chase Sapphire Reserve card would not be of much value to you.

Getaway at Hyatt Alila Ventana Big Sur

During the last seven years, regarding vacations, we have made several luxurious yet affordable travels. speaking from the perspective of a California middle-class family, made possible due to the combination of timely credit card award miles, accumulation of points from normal household and business spending, staying true to maximum three international family vacations annually, and keeping cashflow more positive .  Technically, there is no free travel, because the travel points can be redeemed as cash.  It is about trade-off between more cash and more big travel fun.  We would always choose the latter.

Out of these vacations, the first and foremost memorable one would be our getaway at Hyatt Alila Ventana Big Sur.  Alila Ventana is an all-inclusive resort.  We redeemed 90,000 Hyatt points for a three-days-two-nights experience, which would typically cost $2000 per day.  So, we essentially paid $1200 ($900 + Chase Sapphire Reserve +50% redemption) for the $4000 experience at Alila.

Evening view of Alila Ventana Big Sur

Our room has a fireplace

Smiles for nice dinner and vibe

Tips about booking and staying at Alila Ventana Big Sur

1. Adult-only.  i.e. no kids are allowed
2. Redeem room using Hyatt points one year ahead to capture the standard rate room availability.
3. Tesla charger stations are conveniently located at the entrance of the resort. 👍
4. Three-course meals are included for breakfast, lunch and dinner.  The meals are not fancy, yet very decent and professionally prepared for a relax getaway.
5. Best to call in early to reserve seats for dinner.
6.  Don't need to bother to bring laptop or iPad.  The internet connection is spotty.
7. Three-nights four days would be about right, considering the first day check-in at 3pm and last day check-out at 10am.
8. Our favorite activities were pool-swimming, hot-tubbing, trail-hiking and listening to the tranquility.
9. Free golf-cart transportation to dining is available upon request.
10. Even though checking out at 10am, lunch is still covered for the last day.

It was a much-needed getaway for couple from the Bay Area work responsibility, kid responsibility, cooking responsibility and any other types of responsibility.  We looked for an opportunity to refresh our mindset and amend our relationship.  This one has served our needs.  We only wished the stay would have one more night.

Amazon Prime Big Deal Days 2024 - Apple iPad WiFi vs Costco Online Deals

I have been a fan of Amazon, Costco and HomeDepot.  They have their pros and cons

• Reliable Delivery (Amazon - 30 days, Costco - 90+ days, HomeDepot - 90 days)
• Easy Refund (Amazon - UPS, Wholefood, Costco - in-store, HomeDepot - in-store)

Prices are competitive among three of them.  But there are exclusive items sold only at Costco and HomeDepot which make it difficult to compare.

Finally, Amazon Prime Deal Days is here.  Immediately I compared with Costco and ordered two iPad 9th generation Wi-Fi only, to be picked up in Costco store.

Originally I was planning to purchase two Chromebooks during the Amazon Prime Deals Day for my two kids without spending a fortune.  Considering this $199.99 after $120 discount, ease of iOS software upgrade and myriad of iOS iPad apps available to be download for kids education, iPad 9th generation is the winner.

Costco

Amazon

Costco in-store pick-up is my final pick, because Costco has a 60-days electronics return policy, 30 more days than Amazon's.  I would make a trip to Costco to pick up these two expensive items, than delivery to my home address.  If ordered via Amazon, Wholefood in-store pickup would be the choice of shipping for expensive items.

Many items on Amazon Prime Days are on sale.  My buying strategy is:

• purchase the item if the items are easily return-able to Wholefood/UPS store of your choice, non-bulky, non-expensive, 
• or, purchase the item if you can make up your mind within 14 days to keep it or not
• or do NOT buy the item if you do not need the item.

I am going to continue bargain-hunting at Amazon.  Have you been waiting like me?

Next gift is iPad 9th generation case $9.99 where you can select different case color.