2025
#111
One question. The sentence I highlighted. It might be hard for you to put yourself in the mode for this, but if you were there right now, where would you put money to reduce risk and get any kind of return? I'm just curious because I really don't think there is any place at the moment other than perhaps high dividend yielding stocks. Bonds suck... wwyd?
-Dividend stocks
-Class B apartments
#112
Gets Weekends Off
Joined APC: Jun 2015
Posts: 1,637
I bonds
I’ve been considering putting some “cash” in government iBonds. The fixed portion of the rate will reset in May and should be a little higher. The variable portion floats based on inflation.
The benefit to these are they are state tax exempt and should be a higher ROR than TIPS.
The downside is the max you can buy is $10k/SSn a year, and redeeming early forfeits 3 months interest.
To me these seem as safe as a CD/Money market, but maybe a little higher rate or return with tax efficiency. Anyone ever get into these?
https://treasurydirect.gov/indiv/res...res_ibonds.htm
#threaddrift
The benefit to these are they are state tax exempt and should be a higher ROR than TIPS.
The downside is the max you can buy is $10k/SSn a year, and redeeming early forfeits 3 months interest.
To me these seem as safe as a CD/Money market, but maybe a little higher rate or return with tax efficiency. Anyone ever get into these?
https://treasurydirect.gov/indiv/res...res_ibonds.htm
#threaddrift
#113
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,540
One question. The sentence I highlighted. It might be hard for you to put yourself in the mode for this, but if you were there right now, where would you put money to reduce risk and get any kind of return? I'm just curious because I really don't think there is any place at the moment other than perhaps high dividend yielding stocks. Bonds suck... wwyd?
#114
I’ve been considering putting some “cash” in government iBonds. The fixed portion of the rate will reset in May and should be a little higher. The variable portion floats based on inflation.
The benefit to these are they are state tax exempt and should be a higher ROR than TIPS.
The downside is the max you can buy is $10k/SSn a year, and redeeming early forfeits 3 months interest.
To me these seem as safe as a CD/Money market, but maybe a little higher rate or return with tax efficiency. Anyone ever get into these?
https://treasurydirect.gov/indiv/res...res_ibonds.htm
#threaddrift
The benefit to these are they are state tax exempt and should be a higher ROR than TIPS.
The downside is the max you can buy is $10k/SSn a year, and redeeming early forfeits 3 months interest.
To me these seem as safe as a CD/Money market, but maybe a little higher rate or return with tax efficiency. Anyone ever get into these?
https://treasurydirect.gov/indiv/res...res_ibonds.htm
#threaddrift
#115
You're right, it is hard to think about how I'd act 30 years into the future, but at least for now I'm fairly certain of 2 things. First, assuming a retirement at age 65, it is very possible that either me or my wife or both could live to 95, so that's still a 30 year time horizon (almost the same horizon from today until my retirement). Second, given where I am now and projecting things forward, it's likely that I will end up with a net worth exceeding $10 million (in todays dollars, I know). Those 2 things tell me that the non-real estate portion of my portfolio will still be heavily weighted towards stocks. By dialing back risk I would tend to have more in lower risk mutual funds, even just an S&P index fund or something similar, as opposed to a broader array of higher risk, higher return mutual funds I hold today. I also plan to be able to have enough cash + real estate income to be able to go through a 2-3 year downturn without needing to pull a penny from investments to allow time for the values to recover. I would imagine that the majority of the money I have at age 65 will not be spent by me or my wife, but rather will pass on to our kids and grandkids to build generational wealth.
#116
Gets Weekends Off
Joined APC: Jun 2015
Posts: 1,637
Duuuuuuuude... 1.68%??? I had some years ago. The rates are horrible and even after a reset they won't be worth anything. You can do so much better. I just happened to be looking at a Vanguard statement and the Short Term Investment Grade Admiral Fund (VFSUX) has an estimated yield of 2.22% and that is waaaaaay more liquid than government bonds. (Still has the end of day settlement of mutual funds). dyodd this is not investment advice, etc etc etc
#117
Gets Weekends Off
Joined APC: Apr 2018
Posts: 2,979
Take this for what it's worth, but were I in your shoes at your age, I would get absolutely as much money as I can into ROTHS and into real estate. Even at 60 I am thinking about it, but the tax ramifications could be a yuge winner when you retire. The leftists are gonna rape you if you don't shelter as much as you possibly can because 30 years from now $400k is chump change. (dyodd, not investment advice, etc etc etc)
#118
You're right, it is hard to think about how I'd act 30 years into the future, but at least for now I'm fairly certain of 2 things. First, assuming a retirement at age 65, it is very possible that either me or my wife or both could live to 95, so that's still a 30 year time horizon (almost the same horizon from today until my retirement). Second, given where I am now and projecting things forward, it's likely that I will end up with a net worth exceeding $10 million (in todays dollars, I know). Those 2 things tell me that the non-real estate portion of my portfolio will still be heavily weighted towards stocks. By dialing back risk I would tend to have more in lower risk mutual funds, even just an S&P index fund or something similar, as opposed to a broader array of higher risk, higher return mutual funds I hold today. I also plan to be able to have enough cash + real estate income to be able to go through a 2-3 year downturn without needing to pull a penny from investments to allow time for the values to recover. I would imagine that the majority of the money I have at age 65 will not be spent by me or my wife, but rather will pass on to our kids and grandkids to build generational wealth.
#119
Roll’n Thunder
Joined APC: Oct 2009
Position: Pilot
Posts: 3,540
Take this for what it's worth, but were I in your shoes at your age, I would get absolutely as much money as I can into ROTHS and into real estate. Even at 60 I am thinking about it, but the tax ramifications could be a yuge winner when you retire. The leftists are gonna rape you if you don't shelter as much as you possibly can because 30 years from now $400k is chump change. (dyodd, not investment advice, etc etc etc)
#120
Gets Weekends Off
Joined APC: Apr 2016
Posts: 393
Take this for what it's worth, but were I in your shoes at your age, I would get absolutely as much money as I can into ROTHS and into real estate. Even at 60 I am thinking about it, but the tax ramifications could be a yuge winner when you retire. The leftists are gonna rape you if you don't shelter as much as you possibly can because 30 years from now $400k is chump change. (dyodd, not investment advice, etc etc etc)
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