Where to Invest Money Right Now?

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Originally Posted by Kevo

I did say a couple times that I'm glad you aren't my CPA. Given your continued refusal to read or engage with the actual subject at hand or address the sources ("stupid ass links" to IRS.gov and the Bogleheads wiki) about the subject at hand, that point stands.

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OK fuckwad. last time i'm engaging with you. Your ability to read and comprehend what is written is pathetic. I said it at the very beginning and I'm saying it again. You get money from 401ks to self directed IRAs. then you move it to Roth. if it goes into a Roth its taxable, or was taxed.

You are so busy breaking your arm patting yourself on the back for your "pro-rata rule," which is so esoteric as to be hysterical to anyone who practices in this area, is just pathetic. It's called reading for content. you might try it sometime. And yah. You and your 12 dollars can go find a cpa that'll put up with your high opinion of yourself. Have at it bud.

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Originally Posted by Kevo

Marshall Tucker should be by anytime to tell you that you're wrong and call you a dipshit

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Yeah that guy is like that loan pimp liv2ski...does his business reputation no favors by ranting on in an unprofessional manner on social media. You wonder if he treats his clients the same way (at best he does it behind their backs). Best thing for you to do is throw him on block. Other honest mags can help with advice. Its amazing how bad some 35-70 yr old adults behave online.

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Originally Posted by Marshall Tucker

OK fuckwad. last time i'm engaging with you. Your ability to read and comprehend what is written is pathetic. I said it at the very beginning and I'm saying it again. You get money from 401ks to self directed IRAs. then you move it to Roth. if it goes into a Roth its taxable, or was taxed.

You are so busy breaking your arm patting yourself on the back for your "pro-rata rule," which is so esoteric as to be hysterical to anyone who practices in this area, is just pathetic. It's called reading for content. you might try it sometime. And yah. You and your 12 dollars can go find a cpa that'll put up with your high opinion of yourself. Have at it bud.

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Yes, if you take pre-tax money from a traditional 401k or IRA and then move it to a Roth IRA it is taxable event. No way around taxation in that scenario. I agree with you on that.

You continually fail to acknowledge the use case for a backdoor Roth IRA contribution in which after tax money first needs to enter a traditional IRA before being converted to a Roth IRA.

But what does that even accomplish? It allows a subset other the population who cannot benefit from a traditional IRA contribution or a regular Roth IRA contribution to contribution $6k per year to a Roth IRA through a legal, backdoor process.

Is it an edge case? Sure, there is a small portion of income earners who can benefit.

Is it so esoteric as to be hysterical to any CPA who practices in this area? For the sake of the CPA's clients, I'd certainly hope not. The process for reporting these backdoor Roth IRA conversions and calculating pro-rata taxes is clearly outlined on IRS form 8606- https://www.irs.gov/pub/irs-pdf/f8606.pdf

Are there people who do benefit from such a contribution? Definitely.

Is it important to make sure that pre-tax and after tax money do not commingle in the same traditional IRA during the process of making such a contribution so that the pro rata rule doesn't apply? 100%

Is it something that a CPA working who work with individual income earners should be familiar with? Absolutely, or a portion of said CPA's clients may be missing out on $6k per year of Roth IRA contributions that they otherwise would be able to make.

So ummmm yeah I don't care about Roth IRAs, I'm just looking for some investment advice, as per the thread title?

Where to put 10 or 20k right now so that it yields a decent return with low risk? I have a decent chunk of change sitting in a "savings" account earning like 0.06% :rolleyes2

I'm with Joe.

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Originally Posted by Diamond Joe

So ummmm yeah I don't care about Roth IRAs, I'm just looking for some investment advice, as per the thread title?

Where to put 10 or 20k right now so that it yields a decent return with low risk? I have a decent chunk of change sitting in a "savings" account earning like 0.06% :rolleyes2

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Those I-bonds...

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Originally Posted by BobMc

Undervalued high yielding midstream stocks.

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I still like these.

This thread is such a bummer. You guys should have made a backdoor Roth thread pages ago.

Who do we go to for one time financial advice? I spoke with the free FA from Chase, he told me to max Roth and then speak with a tax accountant. Thank you for wasting my time, an email would have been sufficient.

We have 25k sitting in an account doing nothing. Emergency funds and debt are exactly where they need to be. No real need for liquidity over the next two years. Is there a canonical primer on the whitebread method for squirreling away and compounding over 20+ years?

ETA joe beat me to it

Did you already throw $10K into I-bonds? Or if you need more liquidity, a high yield savings account will beat that 0.06%. Check bank rate. Citi and Ally are paying .6%, others more

https://www.treasurydirect.gov/indiv...nds_glance.htm

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Current rate: 9.62% for bonds issued May - October 2022
Redemption Information
Minimum term of ownership: 1 year
Interest-earning period: 30 years or until you cash them, whichever comes first
Early redemption penalties:
Before 5 years, forfeit interest from the previous 3 months
After 5 years, no penalty

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I'll throw "AOM/AOA and chill" into the ring...

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Originally Posted by skaredshtles

Those I-bonds...

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This is the only thing I can come up with.

Edit - not sure how / why his post automatically changed from treasuries to I-bonds when I quoted him?

Edit to edit - looks like he changed his post but there was a delay.

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Originally Posted by klauss

Did you already throw $10K into I-bonds? Or if you need more liquidity, a high yield savings account will beat that 0.06%. Check bank rate. Citi and Ally are paying .6%, others more

https://www.treasurydirect.gov/indiv...nds_glance.htm

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Wow, 9.62% sure beats the shit out of 0.06%! How are bonds able to deliver that kind of return?? To an investing JONG like myself, 9.6% sounds like what you would expect from a higher risk investment, like stocks. I thought bonds were much lower, like 2-3%?

Bitcoin's gotta be tempting for folks who can live with pyramid schemes.. If it bounces back..
Attachment 416718


If it doesn't...
Attachment 416719

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Originally Posted by Diamond Joe

Wow, 9.62% sure beats the shit out of 0.06%! How are bonds able to deliver that kind of return?? To an investing JONG like myself, 9.6% sounds like what you would expect from a higher risk investment, like stocks. I thought bonds were much lower, like 2-3%?

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Thanks Al Gore!

https://www.treasurydirect.gov/news/...m_comibond.htm

The way I understand I bonds is that they are adjusted for inflation, so when you redeem the $X you put in, you get $X adjusted for inflation, so I really can't call that a profitable investment unless you compare it to negative rates or a hedge against 3rd party risk.



But WTF do I know? I'd never willingly give the U.S. Govt a single dime more than I have to.

Yet as a home for ones emergency fund, IBonds seem wildly more better than anything else mentioned in here. As long as ones emergency doesn’t hit within the first 12 months.
Then again, I’m certainly quite open to more suggestions.


Sent from my iPhone using TGR Forums

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Originally Posted by Diamond Joe

So ummmm yeah I don't care about Roth IRAs, I'm just looking for some investment advice, as per the thread title?

Where to put 10 or 20k right now so that it yields a decent return with low risk? I have a decent chunk of change sitting in a "savings" account earning like 0.06% :rolleyes2

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Boring stock

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Originally Posted by klauss

Check bank rate. Citi and Ally are paying .6%, others more

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Thanks, just transferred my Ally no-penalty CD at 0.55 to my Ally savings at 0.6.

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Originally Posted by Garbowski

Thanks, just transferred my Ally no-penalty CD at 0.55 to my Ally savings at 0.6.

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You do realize keeping $$$ at 0.6% when inflation is north of 5.6 % means your $$’s buying power is shrinking at a rate > 5%

goal is to invest at a rate greater than inflation to stay ahead.

As for where to invest? Inflation resistant stocks that payout a dividend greater than the rate of inflation, utilities come to mind….

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Originally Posted by M_R

You do realize keeping $$$ at 0.6% when inflation is north of 5.6 % means your $$’s buying power is shrinking at a rate > 5%

goal is to invest at a rate greater than inflation to stay ahead.

As for where to invest? Inflation resistant stocks that payout a dividend greater that the rate of inflation, utilities come to mind….

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Is that liquid enough for emergency savings? Or do you just take the inflation hit with that money?

Reading this thread reminds me of reading the nutrition thread. I'm never going to be as fit as DTM or as financially savvy as Kevo or MT, depending on the days drama.

IMO, having $25k in the bank that is losing a little less than the inflation rate is a pretty damn good investment right now. Witness even conservative dividend stocks getting slaughtered (P&G, costco, etc).

If I had a 1-2 yr horizion I think an S&P index fund will be fine but god only knows what'll happen in the next 6 months. Me? I've picking at a few small things on the way down, keeping a lot of cash, and like everyone, wondering when the bottom's gonna get here. More specifically, liquidated a large IRA balance invested in an aggressive stock fund, transferred cash trustee-to-trustee to fidelity in late feb; and have been investing that cash in OTC port at Fidelity selectively. We've certianly lost some value but far less than what NAS-deck on the whole has done. Also on a much smaller scale moving from trad IRA to Roth within the same asset base.


And BTW, Kevo did not say anything in his paragraph above I didn't say in the one or two sentences before that. Not one. Now, if you're paying me $250 an hour live, you can damn well bet I'm the most gracious, nicest guy on earth. When someone on a message board sorta related to skiing, starts writing about stuff that to a professional, he has no idea what he's saying (example: walking through the creation of basis in an IRA without understanding that is what he is doing right after saying basis has nothing to do with tax). Then saying someone is out of their league.

Well. That's quite another matter. And quite honestly, I don't give a shit what people here might think about that.

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Originally Posted by Marshall Tucker

IMO, having $25k in the bank that is losing a little less than the inflation rate is a pretty damn good investment right now. Witness even conservative dividend stocks getting slaughtered (P&G, costco, etc).

If I had a 1-2 yr horizion I think an S&P index fund will be fine but god only knows what'll happen in the next 6 months. Me? I've picking at a few small things on the way down, keeping a lot of cash, and like everyone, wondering when the bottom's gonna get here. More specifically, liquidated a large IRA balance invested in an aggressive stock fund, transferred cash trustee-to-trustee to fidelity in late feb; and have been investing that cash in OTC port at Fidelity selectively. We've certianly lost some value but far less than what NAS-deck on the whole has done. Also on a much smaller scale moving from trad IRA to Roth within the same asset base.


And BTW, Kevo did not say anything in his paragraph above I didn't say in the one or two sentences before that. Not one. Now, if you're paying me $250 an hour live, you can damn well bet I'm the most gracious, nicest guy on earth. When someone on a message board sorta related to skiing, starts writing about stuff that to a professional, he has no idea what he's saying (example: walking through the creation of basis in an IRA without understanding that is what he is doing right after saying basis has nothing to do with tax). Then saying someone is out of their league.

Well. That's quite another matter. And quite honestly, I don't give a shit what people here might think about that.

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Copy that. And since I only understood half of that, my last question: What kind of tax/investment advisor do I want if I want to pay a fee, not buy any products through said advisor? Look at my total picture and see where I'm missing the boat.

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Originally Posted by zion zig zag

Copy that. And since I only understood half of that, my last question: What kind of tax/investment advisor do I want if I want to pay a fee, not buy any products through said advisor? Look at my total picture and see where I'm missing the boat.

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You need to look for a fiduciary adviser.

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Originally Posted by skaredshtles

You need to look for a fiduciary adviser.

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That would be a ‘certified financial planner’ in this case, right?

Z3, Personally, I'm not big on either investment advisors or CFPs. I'm not convinced that you'll do much better with them than if you kept what you have in the standard 60-40 portfolio with a major provide-or and left it alone. But, that's totally your call.

My suggestion, which is just that, is to find a small local CPA / sole practitioner, in your area, and meet/discuss your concerns. If it's a reputable CPA they'll do that initial meeting for free. Cheers MT