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One year CDs are paying 4.8-5% right now. For me, that is the definition of no brainer
^^^ This, I have plenty of long term cash tied up in 401K, IRA & Roth. A CD Ladder for a 2 year span is looking pretty good right now.
Yield curve is pretty damn flat and most institutions are only putting short term money on the books, but not everybody got the memo. If you find longer term money paying up it could make sense to ladder out a bit longer. There’s some reasonable prognostication* that rates dip within the next year or so.
*not mine, I just spout back what I read and hear. I’m a terrible prognosticator.
Real estate depends on how much you need to finance. I wouldn’t look at it as an investment.
CD sounds good. Take my money! And they said I shouldn’t ask for financial advice from strangers in a sub thread of a niche side project Internet forum for a ski themed media company
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When you put it that way, we seem pretty insignificant.Quote:
Originally Posted by Johnny Utah
Buy Japanese Yen. Flip it next year or so.
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Where do you find this info? Cursory search showed ~4%Quote:
Originally Posted by schindlerpiste
This question. 4.15% for one year is the highest out there.Quote:
Originally Posted by ghosthop
Buy a lot of beer and make $ taking in the empties
Highest I've spotted for 1 yr CD has been 4%. Still, beats Crypto and METAQuote:
Originally Posted by Nobody Famous
Johnny Utah, Are you hitting annual max on 401k contribution? Do that. Get some 4% cds or >4% t-bills. In after tax account, buy share of VOO and VYM every Monday or every other Monday or mid month.
I hate paying rent and bought my first place in early 20's....but if you don't want to be a owner, don't do it just as an investment.
Sound advice right there, especially with any kind of employer matching.Quote:
Are you hitting annual max on 401k contribution?
Fidelity is quoting 1 yr T bills at 4.7% - just bought some.Quote:
Originally Posted by Toadman
Last 6 month tbill auction down from last one I bought:
High Rate: 4.520%
Investment Rate*: 4.689%
Although I would take 4% at credit union and not have to use treasury direct.
Core inflation is over 6% and you morons are buying 4.5% debt?
Attachment 434902
Remember that these are state tax free...if you live in one of those 9%+ rate states.Quote:
Originally Posted by TBS
First make sure you have 6-12 months expenses in an emergency fund kept in a money market account, then max out pre tax contributions and employee match to 401k/IRA. Any additional funds should be invested in something really exciting like VTI, VOO, VTSAX, etc. But this is the boring way to do it.
6-12 months is not necessary in an emergency fund unless you own a business that you rely on to pay the bills or are an independent contractor (consultant, musician, etc). Even then, it is way overkill in almost every instance.
Never mind it is probably unattainable for 80-90% of Americans in the first place.
Step away from bogleheads.org, that place isn't real life.
That's the conventional wisdom, but I've always thought that leaves a lot of money on the table. Because putting that money in a more risky (but still conservative) mutual fund will bring lots more in returns. And the risk of losing, say, 5-10% in a huge downtown isn't likely to screw up the money's purpose as an emergency fund. Plus, the people smart enough to have this emergency fund are not very likely to need it, and certainly not need all of it. Having $50k or whatever earning money market rates seems like a loss of income (because there are plenty of conservative mutual funds that routinely bring in way more than that, and are still completely liquid).Quote:
Originally Posted by Name Redacted
Emergency fund expenses will still pay you 3.25% to store...Quote:
Originally Posted by AdironRider
I don't disagree on what a money market account will pay out right now, it is just way over conservative to keep 6-12 months in a money market account in all but a few, very specific situations.
Emergency funds really depend on your situation and comfort level. Work for yourself with a variable income and mouths to feed? Probably best to keep a sizeable amount around, even if it only makes 3% or whatever right now.
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4% in an insured account seems like a good deal right now. It's not going to keep up with inflation but is anything that's low risk?
Some nice yields out there. I like MMM or Walgreens/boots.
Yeah, there’s always folks that argue against the EF. It was nice when the Covid shutdown hit to not really worry about it. If your a 6 month EF is too much for you to save up then maybe investing shouldn’t be your first priority anyway.
Given most of you all are middle aged and/or elderly dentists...and you are doing it right, a 6-12 month EF is noise and thus the lost opportunity cost is minusculeQuote:
Originally Posted by Name Redacted
Buy a 89 suburban, tell your wife to go fuck herself, clean out all the bank accounts, hit the road.
Get blackout drunk almost daily. Smoke cigs, ski, barely shower.
This ain’t the Bitcoin thread.Quote:
Originally Posted by byates1
I know Sally
There is untold adventure and excitement investing in a life on the road. The most important investment you can make is in yourself.
Yeah cause shitting in a bucket or a gas station bathroom and showering every 3 days is sooooo exciting.
Whateves, if it works for you that is wonderful.
Kinda like an ex-boss who at 68 years old transitioned from Bob to Cindy.
Lol. The more the money amount is “noise” the less efficient it is. If you are a dentist burning 6-figures a year, you could do more. If you are driving a used suburban showering at truck stops the number is a bit smaller.Quote:
Originally Posted by sirbumpsalot
Is was humor. A bit of levity. Lighten up nance.Quote:
Originally Posted by Bunion 2020
Is it just me or do gas station bathrooms seem a lot nicer these days?
Gas station coffee is also orders of magnitude better than it was 30 years ago.Quote:
Originally Posted by Conundrum
To be clear, I'm not anti emergency fund, but a year is way overkill. 3 months is more realistic.Quote:
Originally Posted by Name Redacted
Even for the plebes, where the average household income is in the 70k range, that is like 15-20k.
There are very few emergencies in life where 20 grand won't get you out of that pinch, especially if you are a dual income household (as in it is very unlikely you both are unemployed at the same time) and have health insurance. 1) If you lost your job your expenses will decrease (daycare, commuting, etc). 2) You will probably eliminate bigger ticket items like home improvements or vacations during that time. 3) You can always get a job doing something slightly less than your career aspirations to pay the bills temporarily. I know this is TGR and the dentists wouldn't like to entertain that but most people will when push comes to shove.
Statements like "you must have six months liquid cash or don't even bother investing" is more bullshit class division than anything helpful. If anything, one should be putting the 10-15% into a 401k then relying on a credit card for emergencies than building a massive cash reserve first.
And in terms of gas station coffee, the mid-atlantic seems to have it dialed. You can grocery shop at those places even so you can get some TP for the epic shit that will arrive after your gas station coffee.
Part of it is about saving up the 6 months EF before investing. Not some class warfare BS. Just financial diligence required to do it. If you are going to save for retirement, the EF should be a drop in the bucket anyway. And while it definitely depends on what you do for a living, and many other factors, like what kind of support network you have etc.Quote:
Originally Posted by AdironRider
The whole point is to not have to touch your investments when something bad happens. Remember 2008? Imagine if you broke your leg in a ski crash during that time. Your investments where all of your savings are, are all way down, you can't do your job, you have medical bills piling up, and your home value is down 25% and banks aren't loaning money to anyone. Where are you going to pull money from? Your stock market investments that just took a dive? Those credit cards with 20% interest rates?
Look, I didn't make this shit up, some other people did and I just follow it, or try to, with what little money I do have. You do you and I hope it works for you. This EF just helps me sleep at night. Some people are more risk takers with money. I've been broke as shit most of my life as a ski bum, and I'm trying to not be back there again.
Different strokes and all that but I am with you. And IMO investing (not gambling) is about slow and steady over a long span of time gradually racking up the savings, 20-40 years.
So D. was quitting your job? Hookers, blow and ski everyday for the win. Can’t put a price on experience….or STD’s
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