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Interest is dismal, but have extra money, worth dumping some money I to one for about 2%? Inflation is probably even more than that.
Where do gun owners drop investments?
I wouldn't waste my time with CD's. They are safe, but that's about it. Depending on how much you have, you could look into a fixed indexed annuity. They make way better interest and are pretty safe. If you look into it, look for one with good interest and a good bonus. I just got into one with a 10 year term, and the bonus was 35%, highest I've ever seen.
P.S. Stay far far away from variable annuities...rip off.
That actually looks nice, but seems to be for retirement? Need to read more on it.
Looking for a place to store some money for my son that has better returns then a savings.
You can get shorter terms like 5-7 years also, but they usually pay less interest and have lower bonuses. I don't think of them as necessarily just for retirement, although I am retired. I look at them as places to stash money and forget about it for a while, then turn on an income stream.
Yeah, exactly what I am looking for, thanks for the Intel. Let me read up on them.
Interest is dismal, but have extra money, worth dumping some money I to one for about 2%? Inflation is probably even more than that.
Where do gun owners drop investments?
2% ??? If I can find one at 2%, I'd be all over it. Sad state when 2% is good. I just had a CD matured last week, it was making 0.05%.
9.62 for I savings bonds right now, TD website is a PITA to use and theres a 10K limit:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm
It's was goldman Sachs, and capitol one, 60 month and capitol one was a bit less duration
Like Allen said the iBonds look pretty good, treasury website is a fortress to get into. Think it goes till Oct?
But 9.62 is pretty good
Fixed short term annuities currently at about 3% for 2 years 3.5% for three.
You can also pull 10 or 20% out per year if needed without penalty.
I'm considering one as part of my "anchor" strategy, wasn't worth it when the rates are lower but probably is now.
My advisor recommended these when I asked about CDs.
There are some minimum investment sizes involved in the above, however.
Diamondback
05-08-22, 17:45
Fixed short term annuities currently at about 3% for 2 years 3.5% for three.
You can also pull 10 or 20% out per year if needed without penalty.
I'm considering one as part of my "anchor" strategy, wasn't worth it when the rates are lower but probably is now.
My advisor recommended these when I asked about CDs.
There are some minimum investment sizes involved in the above, however.
Before this whole mess started, several years ago I was considering "rolling CD's" (setting up a series so that one would expire and be renewed every month) to start building my finances then pivot to annuities once that foundation was solid... except that CD's and annuities are both "stores" of wealth not generators of it.
Before this whole mess started, several years ago I was considering "rolling CD's" (setting up a series so that one would expire and be renewed every month) to start building my finances then pivot to annuities once that foundation was solid... except that CD's and annuities are both "stores" of wealth not generators of it.
I put $85k in the annuity I mentioned. The 35% bonus came to $29,750, that's just up front free money. It's going to make about 5-6%. You can definitely make more in the market when it's going well, but right now it's tough. People have been taking a beating for the last month. I lost about $76k of value in just over 30 days. Man, I hope the bottom is soon. Right now my wife, who studied a year with Vector Vest, has got us in dividend stocks. Got out of tech before the Nas ate it. The dividend stocks don't seem to lose value as badly as say an Amazon (tech), which has lost over $1k/share over the last month (Bezos lost over $20 billion of value). Guys like Warren Buffet and his partner are big into dividend stocks...it's really helps our cash flow, being all retired and such. I look at annuities as a safe haven for money you're not going to use for a while. The right ones with no fees, a decent % and bonus can grow, just not as fast as stocks/ETF's in a booming market. I miss Trump.
Diamondback
05-08-22, 18:16
Don't we all, Tom. Don't we all...
2% ??? If I can find one at 2%, I'd be all over it. Sad state when 2% is good. I just had a CD matured last week, it was making 0.05%.
I can remember around 1980/81 getting 15% on one year term CDs. I had all of my college money locked up and the interest was incredible. But as that was our "normal" nobody knew it would come to an end way too soon.
Without context, looking at the rates for bonds and their perceived safety, isn’t helpful.
1.The rate of inflation as reported by BLS thus far in 2022 is 8.5%. More importantly, inflation is rising at a pace not seen in decades. This standalone data point makes CDs and other types of bonds holding futile.
2. The higher rates for bonds represents risk for purchasers. The higher the rate the bigger the risk.
3. The massive, ever growing national debt is bigger than GDP. Debt is going up and GDP down.
4. If or when the US dollar stops being the global currency (see Federal Reserve numbers below), the dollar will see hyperinflation far worse than in the Weimar Republic Mark case.
5. The share of USD as global reserve has been declining. The Federal Reserve “…the dollar comprised 60 percent of globally disclosed official foreign reserves in 2021. This share has declined from 71 percent of reserves in 2000”. The bigger picture topic is what the Federal Reserve calls “The widespread confidence in the U.S. dollar as a store of value”.
6. Federal Reserve statement ”The bulk of these official dollar reserves are held in the form of U.S. Treasury securities, which are in high demand by both official and private foreign investors.” It’s about trust in the US ability to pay back bond money. When China, and/or international Central Banks decide to dump their bonds to get some money back.. poof…or no bang for buck.
Federal Reserve Bank of St. Louis on debt
https://fred.stlouisfed.org/series/GFDEGDQ188S
BLS official inflation statistics
see the chart on their site. (https://www.bls.gov/opub/ted/2022/consumer-prices-up-8-5-percent-for-year-ended-march-2022.htm)
Federal Reserve on Global currency
https://www.federalreserve.gov/econres/notes/feds-notes/the-international-role-of-the-u-s-dollar-20211006.htm
Encyclopedia Brittanica on Weimar hyperinflation
https://www.britannica.com/place/Weimar-Republic/The-Ruhr-and-inflation
Bonds aren’t doing any better than stocks.
I have a running joke with my finance guy, I always tell him to get out of the market and buy gold. He laughs at me and continues managing my money.
Last meeting was the first time he answered, we are, when I told him to buy gold.
He thinks there is at least another 3 months before there will be buying opportunities.
I can remember around 1980/81 getting 15% on one year term CDs. I had all of my college money locked up and the interest was incredible. But as that was our "normal" nobody knew it would come to an end way too soon.
The difference was that inflation at the time was also high. (But interest was still higher).
That has flipped, and even 3.5% is still depreciating. But better than sitting in cash, MM, or a CD ladder.
Bonds aren’t doing any better than stocks.
I have a running joke with my finance guy, I always tell him to get out of the market and buy gold. He laughs at me and continues managing my money.
Last meeting was the first time he answered, we are, when I told him to buy gold.
He thinks there is at least another 3 months before there will be buying opportunities.
Gold is fine as a flat store of value. Which, admittedly is ideal for the greatest risk we are currently facing.
But it does not appreciate, the currency devaluates around it.
The age old rule was that " at any given time in history an ounce of gold will buy a tailored suit in London". Which has held true. To satisfy myself, I plotted the price of a half ton Ford pickup truck from the earliest F1 to recent F-150's. Similar base trim, etc.
Pretty much correlates with the price of gold. IE: The currency deflated, and gold has the same buying power it did since the late 50's. But not more.
The exception would be products which are entering consumer space (TVs, computers, etc. Drones which started at $250k are now $200 in hobby shops, etc).
To me this does not mean to avoid gold, but now is not the time to enter. It does have a (small) place in a portfolio. BTW, personally I do not feel gold will be that useful in SHTF scenarios. Too heavy, and in any scenario dollars are useless, ammo will be far more marketable as barter. And if SHTF does not come to pass, you have stuff to shoot along the way!
If you can wait 5 to 10 years. Put it in the market. I would put a quarter of what you have to invest in now. If it drops another 5%, drop another equal amount in. If it drops a massive amount in one day through in half of what you have in.
Rinse and repeat.
You will be doing great when the market recovers. It always recovers. Because if it doesn't. Your money is worthless anyway.
Bonds aren’t doing any better than stocks.
I have a running joke with my finance guy, I always tell him to get out of the market and buy gold. He laughs at me and continues managing my money.
Last meeting was the first time he answered, we are, when I told him to buy gold.
He thinks there is at least another 3 months before there will be buying opportunities.
I think it’ll take a while for gold. It’s impossible to time markets and herd behavior. For me it’s gold and land.
Gold is fine as a flat store of value. Which, admittedly is ideal for the greatest risk we are currently facing.
But it does not appreciate, the currency devaluates around it.
The age old rule was that " at any given time in history an ounce of gold will buy a tailored suit in London". Which has held true. To satisfy myself, I plotted the price of a half ton Ford pickup truck from the earliest F1 to recent F-150's. Similar base trim, etc.
Pretty much correlates with the price of gold. IE: The currency deflated, and gold has the same buying power it did since the late 50's. But not more.
The exception would be products which are entering consumer space (TVs, computers, etc. Drones which started at $250k are now $200 in hobby shops, etc).
To me this does not mean to avoid gold, but now is not the time to enter. It does have a (small) place in a portfolio. BTW, personally I do not feel gold will be that useful in SHTF scenarios. Too heavy, and in any scenario dollars are useless, ammo will be far more marketable as barter. And if SHTF does not come to pass, you have stuff to shoot along the way!
"Quality firearms" (because crap will always be crap) and ammo are the safe places I put my money.
I have a friend who put $100k into various markets and went on a roller coaster ride and lost so much during one of those crashes that what remains of his investment is about half.
Around the same time I probably put $50k into firearms, and even though I've flipped a few my investment has probably tripled.
I can remember around 1980/81 getting 15% on one year term CDs. I had all of my college money locked up and the interest was incredible. But as that was our "normal" nobody knew it would come to an end way too soon.
A few of those and a money market account and life was good.
Treasury I bonds just annihilate bank CD's at a time like now for that money... the rest, might as well just chuck it into the market at random if you don't need that cash anytime soon.
Beyond that, high interest checking accounts for money needed near term is going to trump nearly all of those.
If I had the discipline to actually sell firearms instead of developing emotional attachments to the stupid things, that would have been an excellent investment vehicle for me.
The_War_Wagon
05-09-22, 08:59
Interest is dismal, but have extra money, worth dumping some money I to one for about 2%? Inflation is probably even more than that.
Where do gun owners drop investments?
https://i.ibb.co/rfHh280/popcorn-fart.jpg
junk silver & fractional gold - the 1st Natl. Bank of War Wagon (.50 fatboy) is full of the stuff & always looking to add more
I bought $5000 of I bonds last week. I thought the website was easy enough to use. I figured the worst I could do over the next 12 months was about 5%, so a pretty decent investment. And hopefully it will be higher.
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everready73
05-09-22, 10:17
9.62 for I savings bonds right now, TD website is a PITA to use and theres a 10K limit:
https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm
This is what i was going to recommend. You get that rate until Nov i believe. I am guessing the rate after that will still be decent
10k max per year, but you can also buy one for your wife if applicable.
There is a penalty of one quarter interest if you withdrawal early. Just make sure you read over everything
If you don't expect to need the money for at least a year, but preferably >5 years, then $10k to I-Bonds is currently a no-brainer.
CD's are not investment vehicles, they are merely a manner to have emergency cash on hand for _____ whatever. Associates of mine keep around 100-150k for quick access/fun money, others a bit more. The real money is in other profitable long term investments.
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