It's hard to pass up that guarantee.
Am I being a puss for having half of my money just collecting 5% interest?
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Last: 1 mo ago by chris1515
Not enough info to decide.
Small example:
If you're 18, yes.
If you're 68, no.
Small example:
If you're 18, yes.
If you're 68, no.
Mid 30s
Also depends on the amount of money.
$10,000? If young you're better off hoping it grows with some aggressive stocks.
$100,000? IMO only worth taking the 5% if you're very very bearish on the stock market.
$1,000,000? That's where it starts being a real question.
$10,000? If young you're better off hoping it grows with some aggressive stocks.
$100,000? IMO only worth taking the 5% if you're very very bearish on the stock market.
$1,000,000? That's where it starts being a real question.
If you are mid 30's and are talking about money you don't need for 5 years or more, then yes, you are being a puss. But if the "half" your money is being held for emergency cash, expected layoffs, buying a house or some other event in the next year or two, then maybe not.
Just curious what's the best way to go about consistent 5% guaranteed on 7 figures
Andrew Dufresne said:
Mid 30s
Even The Sisters think you are being a puss.
would it make any difference if he were to tell them he's not a homosexual
Sign of the times when collecting 5% risk-free is a let-down.
EliteZags said:
Just curious what's the best way to go about consistent 5% guaranteed on 7 figures
Right now? There's a number of high yield savings offering 4%+. With a few like Marcus Savings with referrals you can get bumped to 5%+.
insured up to that level of capital?
George Washington didnt cross the Delaware River and defeat the British for you to take a conservative cash position. Lever the **** up and invest.
Currently 5.3 percent interest on one year cds. Fdic insured up to 250k per person per bank. Easiest way to get this done is thru a broker that can put your money in different banks but still in your holding account.EliteZags said:
Just curious what's the best way to go about consistent 5% guaranteed on 7 figures
Like Edward Jones.
Retirement isn't for everyone OP
If you want to actually retire stop trying to time the market and just cost base average into the market and don't worry about diversifying into fixed income until you are 15-20 years away from that time.
If you want to actually retire stop trying to time the market and just cost base average into the market and don't worry about diversifying into fixed income until you are 15-20 years away from that time.
5.15% right now and up to $1m per account (250k fdic)
Betterment has fdic insured up to $2m at 4.5%
Betterment has fdic insured up to $2m at 4.5%
Suppose the million dollar question is how long do those rate stay substantial enough to stay in, and after that time will the market be cheaper to get into
Great point.
We just have a few accounts and total $$ in it is less than 20% of assets for household. Just a good way to diversify some investments IMO.
We are mid to late 30's.
We just have a few accounts and total $$ in it is less than 20% of assets for household. Just a good way to diversify some investments IMO.
We are mid to late 30's.
YES
I have about 5% of my portfolio in Goldman Sachs bonds at 5.9%
and even that I feel lame about
over time, the market will produce in equities a better return than 5%
unless you are 75 years old now.
I have about 5% of my portfolio in Goldman Sachs bonds at 5.9%
and even that I feel lame about
over time, the market will produce in equities a better return than 5%
unless you are 75 years old now.
This is similar to where we are. But we're planning on buying a house soon so a little more than 50% of our monthly investments are going into HYSAs....Aggie09Derek said:
Great point.
We just have a few accounts and total $$ in it is less than 20% of assets for household. Just a good way to diversify some investments IMO.
We are mid to late 30's.
IBKR pays 4.58% at the moment on free cash in your account.
T Bills are paying 5% or a little more are they not?EliteZags said:
Just curious what's the best way to go about consistent 5% guaranteed on 7 figures
Tough question. Watch CNBC and Fox Business channel and you will get competing views of whether or not now is the right time to hold cash or be in the market. They will disagree all day long.Andrew Dufresne said:
It's hard to pass up that guarantee.
OP, you are being emotional not a puss.
There is no room in investing for emotions. If you miss the 10 best days in the market over a 30 year period of time, your returns would be cut in half. Quit getting cute with it.
There is no room in investing for emotions. If you miss the 10 best days in the market over a 30 year period of time, your returns would be cut in half. Quit getting cute with it.
I'm still being a puss. I can't help but take that 5% risk free
I have a good friend that had another friend broker handling his account and in the crash of 2008 he told the broker friend to take his $ out of the market. He panicked. That was near the low point and he lost a lot of $ and some future gains because he panicked. He was 41. It took five years for the market to recover when he was 46. From 2013 until now the S&P 500 has averaged 12.4% annual average return.
He missed out on recovery his losses and making over 12% for the next 10 years.
He's now 56 and is forced to keep working because he's not comfortable he has enough savings to retire or at least do something else
So yes don't be a puss
He missed out on recovery his losses and making over 12% for the next 10 years.
He's now 56 and is forced to keep working because he's not comfortable he has enough savings to retire or at least do something else
So yes don't be a puss
It's not risk free. You're missing out on much bigger gains. But at the end of the day, it's none of our business. And at this point you're barely keeping up with inflation
I've got a little over $100k sitting in the TMCXX fund earning i believe 5.4 percent, but I'm buying a standby generator, have a wedding to pay for, etc. it really depends on your situation.
"But it is easier to purchase products that denote superiority than to be actually superior in economic achievement." - Thomas J. Stanley
Not a puss, just matters what you want to do.
I have 35% of net worth collecting the risk free rate right now and re-investing that amount into my vanguard account plus an additional 10% of principal per year into the fund. Funny think is that amount from the risk free rate is more than my first job out of A&M in 2007.
I have 35% of net worth collecting the risk free rate right now and re-investing that amount into my vanguard account plus an additional 10% of principal per year into the fund. Funny think is that amount from the risk free rate is more than my first job out of A&M in 2007.
You mean opportunity cost.txaggieacct85 said:
It's not risk free. You're missing out on much bigger gains. But at the end of the day, it's none of our business. And at this point you're barely keeping up with inflation
Thanks for the clarification
I have held EPD since '03. A yield above 7% pretty much for the duration.
5% is safe, but you can do better, safely, IMO.
5% is safe, but you can do better, safely, IMO.
Ronnie '88
I have a very large chunk of cash sitting in 5% savings accounts..... I realize this is less than ideal, but I wanted to be able to deploy immediately when needed (though I haven't seen any RE deals worth even a second look since this money has been sitting for 10 months....), so now I'm thinking of looking for better short term options and replacing our cars for cash (which I've wanted to replace since the Vid screwed up the industry and sent car prices into orbit) now that rates are like 7-10% to finance a purchase, but I've never liked the idea of paying cash for cars when so many 0-2% incentives were available in the past (I did finally purchase a nice ranch truck in april for 7k off msrp and 0.9% for 5 yrs), so I've been waiting and waiting for that to return for a new sedan for my wife and suv for me...
short answer, no I don't think you are, I think there are a lot of us out there wondering what to do with cash on hand... but I don't have the answers either...
short answer, no I don't think you are, I think there are a lot of us out there wondering what to do with cash on hand... but I don't have the answers either...
Have a long term investment strategy on how you want your money allocated over time, and stick to it regardless of market conditions or chatter. Timing the market or asset classes usually doesn't work, and just leaves added stress. Over time you will do better than most of those try to. Just invest in your strategy and leave it.
It isn't much more complicated than that IMO.
It isn't much more complicated than that IMO.
How do you feel about buying stocks for their dividends but seeing their stock price slide -10%?Andrew Dufresne said:
It's hard to pass up that guarantee.
Because the oil and gas companies out there could use another investor or two.
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