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Started By
Message
Where to park $150k short term and $50k long term?
Posted on 5/6/22 at 7:59 am
Posted on 5/6/22 at 7:59 am
In savings account now. $150k of it is for house build if things turn around or house purchase if the right house pops ups. $50k is long term. Don’t feel really secure having in savings with a debit card connected to it.
Do we expect CDs rates to increase in the future?
I know everyone does, but I want something not too risky. That being said, I understand I won’t make a killing, just want a decent return.
Thanks for the hep
Do we expect CDs rates to increase in the future?
I know everyone does, but I want something not too risky. That being said, I understand I won’t make a killing, just want a decent return.
Thanks for the hep
9
Posted on 5/6/22 at 8:37 am to Tiger In the Swamp
Probably under a tree in your back yard.
Posted on 5/6/22 at 9:00 am to Tiger In the Swamp
Banks are not going to give their customers jack shite on CDs. Fed could raise rates to 6% and CDs might offer 1.5-2%.
Posted on 5/6/22 at 9:03 am to Fe_Mike
quote:
Probably under a tree in your back yard.
and lose a guaranteed 7% in inflation...no thanks
Posted on 5/6/22 at 9:06 am to Tiger In the Swamp
I would put $10,000 of it ($20,000 if you're married) in to ibonds. Current interest rate on those is 9.62% for the next six months, to be adjusted again in November based on current inflation numbers. Best guarantied return you can find.
Posted on 5/6/22 at 9:48 am to jfw3535
quote:
I would put $10,000 of it ($20,000 if you're married) in to ibonds
I changed my emergency fund strategy after reading about ibonds on the Money Board. I feel like an idiot for keeping it in a "high interest money market" for the last 15 years.
Posted on 5/6/22 at 9:55 am to jfw3535
Long term $ park some in ibonds while rates remain high. I'd put the rest in VTI or another low cost index ETF in a Roth IRA or taxable brokerage if Roth isnt an option.
Short term $ not many good options gonna either have to take risk or let inflation eat away at it.
Short term $ not many good options gonna either have to take risk or let inflation eat away at it.
Posted on 5/6/22 at 10:08 am to Tiger In the Swamp
You can park it in my bank account, I’ll take care of it.
Posted on 5/6/22 at 10:16 am to jamiegla1
quote:
I changed my emergency fund strategy after reading about ibonds on the Money Board. I feel like an idiot for keeping it in a "high interest money market" for the last 15 years.
well dammit now I feel like an idiot because I've never heard of them until right now. Can you share your experience for a fellow noob?
Posted on 5/6/22 at 10:33 am to Tiger In the Swamp
You can get 2% on 1-yr brokered CDs right now.
Posted on 5/6/22 at 10:35 am to iAmBatman
quote:
and lose a guaranteed 7% in inflation...no thanks
I heard a guy on CNBC yesterday say that while you may lose 6%-8% by staying in cash, that's better than losing 15%-20% in the market.
I've got a bunch in the market, not selling, but holding a decent amount in cash in a Wealthfront savings account. Not sure how long it will be in there and will maybe start chunking some back into the market if it tanks.
Posted on 5/6/22 at 10:58 am to Chucktown_Badger
quote:
I heard a guy on CNBC yesterday say that while you may lose 6%-8% by staying in cash, that's better than losing 15%-20% in the market.
good point but you only lose if you sell. it definitely sucks. that is the risk in equities. even my dividend payers. yes great dividends and i am re-investing them to get more shares cheaper and thus my dividend keeps rising each month. However, if these principal downswings do not bounce back soon i can recover that amount via dividends but it will take awhile. at that point i will stop reinvesting and stock pile the divs to make up for possible principal downswings. no way am i selling with any principal loss until my dividends have made up for it.
This post was edited on 5/6/22 at 10:59 am
Posted on 5/6/22 at 11:00 am to WG_Dawg
Yep it’s actually very easy. Just go to treasuredirect.gov and create an account. I did it all on my phone in minutes.
You can put in $10K per year if single and $20K if married. It pays out interest based on the rate of inflation. You don’t make money with this. You just don’t lose the value of your money due to inflation.
When you put money in, you can’t touch it for a year so make sure you’re good with that. After a year, it pays out monthly. You can pull it out at any time but will lose the previous 3 months interest. After 5 years, you can pull it without losing the previous 3 months interest.
My emergency fund in Capital One money market essentially eroded away thousands due to inflation. I knew it was happening but wasn’t aware of ibonds until last November.
You can put in $10K per year if single and $20K if married. It pays out interest based on the rate of inflation. You don’t make money with this. You just don’t lose the value of your money due to inflation.
When you put money in, you can’t touch it for a year so make sure you’re good with that. After a year, it pays out monthly. You can pull it out at any time but will lose the previous 3 months interest. After 5 years, you can pull it without losing the previous 3 months interest.
My emergency fund in Capital One money market essentially eroded away thousands due to inflation. I knew it was happening but wasn’t aware of ibonds until last November.
Posted on 5/6/22 at 11:05 am to Tiger In the Swamp
150k in a stable coin. 50k in bitcoin.
Posted on 5/6/22 at 11:22 am to jamiegla1
quote:
I feel like an idiot for keeping it in a "high interest money market" for the last 15 years.
I Bonds haven't been very attractive except for the last 6-12 months so you probably weren't missing out on much for that 15 years.
Posted on 5/6/22 at 11:40 am to bod312
How do these compare to something like FIPDX (Inflation-Protected Bond Index Fund)?
Posted on 5/6/22 at 12:25 pm to Tiger In the Swamp
short term QYLD
Posted on 5/6/22 at 1:23 pm to bod312
quote:
I Bonds haven't been very attractive except for the last 6-12 months so you probably weren't missing out on much for that 15 years.
Dont they always keep up with inflation? That 0.6% money market cost me $4K over that period of time compared to an ibond that simply kept my principle the same
Posted on 5/6/22 at 1:43 pm to jamiegla1
nvm
This post was edited on 5/6/22 at 1:46 pm
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