Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

On 4/16/2021 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


That is actually a good rate. I have one coming due next month and the
rate today is .2%, down from the 2.84 I bought in at. I have a Money
Market account that used to pay a modest rate and last month I made 11
cents on it.

On 4/16/2021 9:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


Toyota Driver Notes and GM Right Notes..

Now paying 1.5%

On Fri, 16 Apr 2021 10:26:33 -0400, Ed Pawlowski wrote:

On 4/16/2021 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


That is actually a good rate. I have one coming due next month and the
rate today is .2%, down from the 2.84 I bought in at. I have a Money
Market account that used to pay a modest rate and last month I made 11
cents on it.


If you throw $ 2. million their way - you can get 1.5 % ..

https://www.kindredcu.com/Rates/GICs/

John T.

On 4/16/21 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


One thing I've found is an annuity called an SPDA (Single Premium
Deferred Annuity). It acts much like a CD except interest is deferred.

I got it thru my bank's brokerage dept. 5 years ago at 1.85%. It's
coming due soon, and I'm told I may be able to get 2.1% on a renewal
called a "Sec 1035 exchange". That way the interest stays deferred.
It's not FDIC insured as it's not held by the bank, but a highly rated
insurance co.

As always, YMMV

In article ,
says...

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

The rates for anything other than the stock market have been a joke for
many years.

If the CD is not paying 5% or more it is a waste of time and money to
fool with them.

I would just invest in a good mutual fund and let it go at that. They
may go up and down,but over a long time they go up.

It seems bad,but I have watched my IRA that is in mutual funds go up and
down in one day as much as I made in 2 months when working. Overall
they have made more than 10 % average per year in the last few years.
Some much more.

On 4/16/2021 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.



If you're fortunate to be able to deposit larger sums, and qualify for
membership in a credit union, many credit unions offer both regular and
"Jumbo" money market savings accounts (MMSA) that equal or beat your
0.4%. Many times the rate on the regular MMSAs escalates as the total
deposited meets a higher balance threshold. Right now, my credit union
pays 0.5% on "Jumbo" MMSAs, which require a minimum deposit of $100K.
You can make a certain number of withdrawals each month from a MMSA
without penalty, as opposed to what happens if you cash in a CD
prematurely. Just as with bank account deposit protection from the
FDIC, you get credit union deposit protection from the National Credit
Union Association (NCUA). I believe both follow the same policies for
maximum deposit amounts that are insured.

On Friday, April 16, 2021 at 9:11:45 AM UTC-5, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

I checked the inflation rate a few days ago. One source put it at 1.6%. It's been years
since I had money in the old government bond. EE?
You might want to look at balanced index funds. I've had some of my money in one of Vanguard's but
that particular one is closed to new investors. It has 60% of the money in stocks, 40% in bonds.
An article here about others.
https://investedwallet.com/best-vanguard-index-funds/
Consumer Reports years ago claimed it's better to get an index fund that just tracks a group of
stocks and/or bonds. Doing that cuts out the hot shot stock picker who might make a fortune one
year then go tits up the next.

In article ,
says...

If you're fortunate to be able to deposit larger sums, and qualify for
membership in a credit union, many credit unions offer both regular and
"Jumbo" money market savings accounts (MMSA) that equal or beat your
0.4%. Many times the rate on the regular MMSAs escalates as the total
deposited meets a higher balance threshold. Right now, my credit union
pays 0.5% on "Jumbo" MMSAs, which require a minimum deposit of $100K.
You can make a certain number of withdrawals each month from a MMSA
without penalty, as opposed to what happens if you cash in a CD
prematurely. Just as with bank account deposit protection from the
FDIC, you get credit union deposit protection from the National Credit
Union Association (NCUA). I believe both follow the same policies for
maximum deposit amounts that are insured.



Right now my credit union is paying .5% on most CDs and some other
accounts. I would not even crank up the car and go to them to set it up
at that rate.

The checking and money market accounts psy some interist but I only keep
a small ammount in them. Usually enought to pay off things like the
property tax, insurance and a few other things that may come due during
the year that are around 1 to 2 thousand dollars. I do keep 2 or 3
thousand in the money market as 'mad money' incase I find something I
want to buy.

In about a week or less I can get the money out of the IRA or some stock
that I am playing with if I need money to cover some unexpected expense.

On 4/16/2021 11:37 AM, Dean Hoffman wrote:
On Friday, April 16, 2021 at 9:11:45 AM UTC-5, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

I checked the inflation rate a few days ago. One source put it at 1.6%. It's been years
since I had money in the old government bond. EE?
You might want to look at balanced index funds. I've had some of my money in one of Vanguard's but
that particular one is closed to new investors. It has 60% of the money in stocks, 40% in bonds.
An article here about others.
https://investedwallet.com/best-vanguard-index-funds/
Consumer Reports years ago claimed it's better to get an index fund that just tracks a group of
stocks and/or bonds. Doing that cuts out the hot shot stock picker who might make a fortune one
year then go tits up the next.


Lot depends on your age and tolerance for risk.

You are not going to get any interest rates anywhere near inflation rate
and I think inflation is much higher than quoted. Government plays
games in trying to show inflation rate is low such as if price of beef
spikes then people will eat chicken so they say inflation in meat prices
did not go up.

I think index funds are probably the best bet for balanced safety/risk.

On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK posted for all of us to digest...


Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

You might think about getting a financial advisor. I have one and he is not
only my money guy but also my goto guy. If I have a problem I call him and he
handles it or gives me advice.

I recall there was an earlier discussion IRT this topic.

The inflation rate is higher than being touted. Look at gasoline, lumber, food.
Utilities are petitioning for rate increases.

--
Tekkie

On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

writes:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Have you actually read their (Exxon Mobile) annual report? Have you followed the
production curves on EIA? https://www.eia.gov/

"Scott Lurndal" wrote in message
...
writes:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a
CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Have you actually read their (Exxon Mobile) annual report?

Have you followed the production curves on EIA? https://www.eia.gov/

Irrelevant to the prospects of a much better return than CDs.

On Sat, 17 Apr 2021 07:08:04 +1000, cantankerous trolling geezer Rodent
Speed, the auto-contradicting senile sociopath, blabbered, again:

FLUSH the trolling senile asshole's latest troll**** unread

--
Norman Wells addressing trolling senile Rodent:
"Ah, the voice of scum speaks."
MID:

On 4/16/21 4:00 PM, wrote:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Best strategy is to diversity your retirement funds: Some in the
stocks/mutual funds, some in bonds, some in FDIC-insured cash account.

Best case is you have enough cash to weather the market going into the
crapper for an extended time and bonds going upside down.

I'm working on convincing my wife we should move some out retirement
funds into tangible assets- Porsche 911 Carrera, top-of-the-line F-150
4WD, 42 foot ketch, matched pair of engraved English shotguns.

--
Why is it that the people who want more government control over your
life are the same ones who want you to be disarmed?

On Friday, April 16, 2021 at 5:11:36 PM UTC-5, Wade Garrett wrote:
On 4/16/21 4:00 PM, wrote:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Best strategy is to diversity your retirement funds: Some in the
stocks/mutual funds, some in bonds, some in FDIC-insured cash account.

Best case is you have enough cash to weather the market going into the
crapper for an extended time and bonds going upside down.

I'm working on convincing my wife we should move some out retirement
funds into tangible assets- Porsche 911 Carrera, top-of-the-line F-150
4WD, 42 foot ketch, matched pair of engraved English shotguns.

Add this to your list.
https://www.harley-davidson.com/us/en/motorcycles/cvo-tri-glide.html
https://hiconsumption.com/best-motorcycle-roads-in-america/

--
Why is it that the people who want more government control over your
life are the same ones who want you to be disarmed?

On 2021-04-16 at 08:11:41 MDT, "AK" wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

Depending on the term, that's a very good rate. US Treasury yields aren't
competitive with that until you get to 3 years or more.

https://www.treasurydirect.gov/instit/instit.htm

I don't think that is even better than the inflation rate.

CPI has been 2.6% for the past 12 months.


https://www.bls.gov/opub/ted/2021/consumer-prices-increase-2-6-percent-for-the-12-months-ending-march-2021.htm


Most CDs and other low-risk investments have provided very low returns, often
at or below the inflation rate, since the 2008 financial crisis. It's called
"financial repression".

If you want a low-risk inflation hedge, the simplest and best is (IMHO) the I
Series Savings Bond, although it provides only partial protection from
inflation.


https://www.treasurydirect.gov/indiv/research/indepth/ibonds/res_ibonds_iratesandterms.htm

If you are willing to take on risk to get a higher yield, you might consider a
dividend stock mutual fund. For example, Vanguard's Equity Income Fund is
currently yielding 2.4%.

https://investor.vanguard.com/mutual-funds/profile/VEIPX

But be aware that the stock market has been *very* "exuberant" for the past
year, and many stock market analysts are nervous €” even more nervous than
usual.

On Fri, 16 Apr 2021 20:34:16 GMT, (Scott Lurndal)
wrote:

writes:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Have you actually read their (Exxon Mobile) annual report? Have you followed the
production curves on EIA? https://www.eia.gov/

I just cash the dividend checks and watch the price go up. When it
starts going the other way I will think about dumping it.
I wouldn't have it as the only egg in my basket but it is not a bad
oil play so far.
In the mean time, throw the OP a bone on another stock with a decent
yield.

On Fri, 16 Apr 2021 18:11:30 -0400, Wade Garrett
wrote:

On 4/16/21 4:00 PM, wrote:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Best strategy is to diversity your retirement funds: Some in the
stocks/mutual funds, some in bonds, some in FDIC-insured cash account.

Best case is you have enough cash to weather the market going into the
crapper for an extended time and bonds going upside down.

I'm working on convincing my wife we should move some out retirement
funds into tangible assets- Porsche 911 Carrera, top-of-the-line F-150
4WD, 42 foot ketch, matched pair of engraved English shotguns.

The shotguns are probably the only ones you are not going to lose a
lot of money on.

writes:
On Fri, 16 Apr 2021 20:34:16 GMT, (Scott Lurndal)
wrote:

writes:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Have you actually read their (Exxon Mobile) annual report? Have you followed the
production curves on EIA? https://www.eia.gov/

I just cash the dividend checks and watch the price go up. When it
starts going the other way I will think about dumping it.
I wouldn't have it as the only egg in my basket but it is not a bad
oil play so far.
In the mean time, throw the OP a bone on another stock with a decent
yield.

PEP
TD
T

In Tekkie© writes:
[snip]

The inflation rate is higher than being touted. Look at gasoline,
lumber, food.

Lumber is... horrendously higher than a year ago. Per a friend's
post a basic 4 by 8 plywood sheet went from $40 last year
to $80 now.

(I can confirm the current price).

But... if the Feds want to pull a rabbit out of their hat
and really make the Consumer Price Indenx (CPI) inflation
number look teensy, or even _negative_, what they should
do is...

.... is... put "dime bags" of heroin in it.

These are the same, or even _lower_ in price today
than they were three decades of The War On Drugs ago.

(Called "dime bags" because they go for a ten spot).

In fact, if you adjust for the potency, you get more
bang for the, umm, buck today.

The other scary part is that there's probably a lot more
heroin in consumer "market baskets" than many of the
official items...




--
__________________________________________________ ___
Knowledge may be power, but communications is the key

[to foil spammers, my address has been double rot-13 encoded]

On Sat, 17 Apr 2021 00:22:30 GMT, (Scott Lurndal)
wrote:

writes:
On Fri, 16 Apr 2021 20:34:16 GMT, (Scott Lurndal)
wrote:

writes:
On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK
wrote:

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
Buy a dividend paying stock. XOM is returning an 8.4% yield with a
pretty good up side potential on the price. People are not going to
stop buying oil any time soon.

Have you actually read their (Exxon Mobile) annual report? Have you followed the
production curves on EIA? https://www.eia.gov/

I just cash the dividend checks and watch the price go up. When it
starts going the other way I will think about dumping it.
I wouldn't have it as the only egg in my basket but it is not a bad
oil play so far.
In the mean time, throw the OP a bone on another stock with a decent
yield.

PEP
TD
T

See that was useful although I am not sure AT&T is all that wonderful
but you can't go wrong selling Americans sugar water. The yields are
still in the 2s.

On Sat, 17 Apr 2021 01:26:51 +0000 (UTC), danny burstein posted for all of us
to digest...


In Tekkie© writes:
[snip]

The inflation rate is higher than being touted. Look at gasoline,
lumber, food.

Lumber is... horrendously higher than a year ago. Per a friend's
post a basic 4 by 8 plywood sheet went from $40 last year
to $80 now.

(I can confirm the current price).

But... if the Feds want to pull a rabbit out of their hat
and really make the Consumer Price Indenx (CPI) inflation
number look teensy, or even _negative_, what they should
do is...

... is... put "dime bags" of heroin in it.

These are the same, or even _lower_ in price today
than they were three decades of The War On Drugs ago.

(Called "dime bags" because they go for a ten spot).

In fact, if you adjust for the potency, you get more
bang for the, umm, buck today.

The other scary part is that there's probably a lot more
heroin in consumer "market baskets" than many of the
official items...

Don't forget the Fentanyl by China both through Mexico.

--
Tekkie

On Friday, April 16, 2021 at 10:02:21 AM UTC-5, wrote:
On Fri, 16 Apr 2021 10:26:33 -0400, Ed Pawlowski wrote:

On 4/16/2021 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


That is actually a good rate. I have one coming due next month and the
rate today is .2%, down from the 2.84 I bought in at. I have a Money
Market account that used to pay a modest rate and last month I made 11
cents on it.
If you throw $ 2. million their way - you can get 1.5 % ..

https://www.kindredcu.com/Rates/GICs/

John T.
If I had 2 million, I probably would not need a CD.

:-)

On 4/16/21 10:11 AM, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.


https://www.amazon.com/Little-Book-C.../dp/1119404509

In article ,
lid says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.


I have not messed with the CD's in around 20 years. There is no profit
in those any more. I would rather take my chances with the mutual funds
in the IRA. I keep what I think I may want to spend for a year or so in
a money market account so if the stock market goes down for a year it
does not make much difference.

Starting next year I will have to take the RMD and it will be more than
I want to spend. Not too sure what to do with the excess money. Guess
I will look into the mutual funds and pick one to put the money in.

I do play around with the stock market with about 5 % of the money I
have just for the fun of it. So far I have been doing well with it by
concnetrating on just a couple of stocks that go up and down about every
day. I probably average buying and selling those couple of stocks about
once a week. Made enough last year to build a carport garage I had been
looking into for a few years.

On Sun, 18 Apr 2021 02:15:36 -0500, Jim Joyce
wrote:

You sound like the folks described above who are unable to manage their
money. That "good sized check" is costing you.

OK let's see how much it is costing me. Say I got $5000 back and it
was put in there evenly over a year. I put this in my financial
calculator using $416.67 a month for 12 months at .25%. (what my bank
pays) I lost a whopping $5.77.
That is pretty cheap insurance against having a windfall towards the
end of the year that blew out my withholding and got me stuck in
paying quarterlies or worse, some kind of penalty.
Said another way that is a Mocha Venti Frappachino starbucks.
I can afford it. I have plenty of cash on hand.

In article ,
says...

OK let's see how much it is costing me. Say I got $5000 back and it
was put in there evenly over a year. I put this in my financial
calculator using $416.67 a month for 12 months at .25%. (what my bank
pays) I lost a whopping $5.77.
That is pretty cheap insurance against having a windfall towards the
end of the year that blew out my withholding and got me stuck in
paying quarterlies or worse, some kind of penalty.
Said another way that is a Mocha Venti Frappachino starbucks.
I can afford it. I have plenty of cash on hand.



YOu are ok with that small amout.

Now try throwing the same numbers in that calculator and an interist
rate of 15 % over a period of 10 to 20 years and see how much it is
costing you in the long run.


You are allowed a certain ammout of under payment on the federal taxes.
I think it may eveh have something to do with the tax the year before,
but not sure.

On Sun, 18 Apr 2021 09:48:18 -0400, Ralph Mowery
wrote:

In article ,
says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.


I have not messed with the CD's in around 20 years. There is no profit
in those any more. I would rather take my chances with the mutual funds
in the IRA. I keep what I think I may want to spend for a year or so in
a money market account so if the stock market goes down for a year it
does not make much difference.

Starting next year I will have to take the RMD and it will be more than
I want to spend. Not too sure what to do with the excess money. Guess
I will look into the mutual funds and pick one to put the money in.

I do play around with the stock market with about 5 % of the money I
have just for the fun of it. So far I have been doing well with it by
concnetrating on just a couple of stocks that go up and down about every
day. I probably average buying and selling those couple of stocks about
once a week. Made enough last year to build a carport garage I had been
looking into for a few years.

Maybe I am just lazy or maybe I don't like paying short term capital
gains taxes but I try to buy stocks I will keep at least a year. Some
are just on autopilot. SWKS was a speculative play that worked out
nicely but it wasn't a CVCO that I bought before the housing crash for
$10 when Centex spun it off. Centex bought my pool.
CLNE was a scary dive to the bottom for me and I sat on a loser for
quite a while until they were able to blow the ballast tanks and now I
am looking at a double. I should have been dollar cost averaging that
one. Shares in February 2020 were two bucks and now it is over 11. T
Boone may have actually been holding them back.
Ironically the only loser I am holding is IBM and those are "zero
basis" shares so it is just losing what could have been not any real
money I spent.

On 4/18/2021 9:48 AM, Ralph Mowery wrote:
In article ,
lid says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.



I pay quarterly estimated in 4 equal payments because I don't like the
thought of dealing with my taxes 5x/year. There is a federal web site,
EFTPS at https://www.eftps.gov/eftps/index.jsp
where you can set up automated payments of federal quarterly estimated
income taxes and specify both the exact date and the exact amount you
want to pay each quarter. That way, you can better control your cash
flow by distributing your tax payments between your withholding amounts
and quarterly payment amounts. Never have had a problem with it and
have been doing it for more than 20 years. You provide the routing
transit number and account number of the checking account you want
payments to come from and the web site does the rest. Easy squeezy.
Many states that have state income taxes have a similar web site that
accomplishes the same thing. I set up my automated quarterly payments
the same day I submit my annual tax returns. That way, there's no way
to forget to pay.

On 04/18/2021 07:48 AM, Ralph Mowery wrote:
Starting next year I will have to take the RMD and it will be more than
I want to spend. Not too sure what to do with the excess money.

Pay tax on it I set it up so money is automatically withheld.

On 4/18/2021 11:30 AM, Ralph Mowery wrote:
In article ,
says...

OK let's see how much it is costing me. Say I got $5000 back and it
was put in there evenly over a year. I put this in my financial
calculator using $416.67 a month for 12 months at .25%. (what my bank
pays) I lost a whopping $5.77.
That is pretty cheap insurance against having a windfall towards the
end of the year that blew out my withholding and got me stuck in
paying quarterlies or worse, some kind of penalty.
Said another way that is a Mocha Venti Frappachino starbucks.
I can afford it. I have plenty of cash on hand.



YOu are ok with that small amout.

Now try throwing the same numbers in that calculator and an interist
rate of 15 % over a period of 10 to 20 years and see how much it is
costing you in the long run.


You are allowed a certain ammout of under payment on the federal taxes.
I think it may eveh have something to do with the tax the year before,
but not sure.



I got penalized for two years underpaying the state and was not told for
a couple of years which compounded the interest owed.

I had made the mistake of not filing quarterly with them figuring I
would just pay up at the end of the year. This was because they made it
difficult to establish quarterly payment. Form were not readily
available and when I had to do it several days of calling were necessary.

On 4/18/2021 9:48 AM, Ralph Mowery wrote:
In article ,
lid says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.


I have not messed with the CD's in around 20 years. There is no profit
in those any more. I would rather take my chances with the mutual funds
in the IRA. I keep what I think I may want to spend for a year or so in
a money market account so if the stock market goes down for a year it
does not make much difference.

Starting next year I will have to take the RMD and it will be more than
I want to spend. Not too sure what to do with the excess money. Guess
I will look into the mutual funds and pick one to put the money in.

I do play around with the stock market with about 5 % of the money I
have just for the fun of it. So far I have been doing well with it by
concnetrating on just a couple of stocks that go up and down about every
day. I probably average buying and selling those couple of stocks about
once a week. Made enough last year to build a carport garage I had been
looking into for a few years.


I had a pleasant surprise this year getting nearly $500 back from both
federal and state. Usually I have to pay the feds a few bucks and get a
little bit back from the state. What did it was not having to take the
RMD for 2020.

On Friday, April 16, 2021 at 12:06:42 PM UTC-4, Frank wrote:
On 4/16/2021 11:37 AM, Dean Hoffman wrote:
On Friday, April 16, 2021 at 9:11:45 AM UTC-5, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

I checked the inflation rate a few days ago. One source put it at 1.6%. It's been years
since I had money in the old government bond. EE?
You might want to look at balanced index funds. I've had some of my money in one of Vanguard's but
that particular one is closed to new investors. It has 60% of the money in stocks, 40% in bonds.
An article here about others.
https://investedwallet.com/best-vanguard-index-funds/
Consumer Reports years ago claimed it's better to get an index fund that just tracks a group of
stocks and/or bonds. Doing that cuts out the hot shot stock picker who might make a fortune one
year then go tits up the next.

Lot depends on your age and tolerance for risk.

You are not going to get any interest rates anywhere near inflation rate
and I think inflation is much higher than quoted. Government plays
games in trying to show inflation rate is low such as if price of beef
spikes then people will eat chicken so they say inflation in meat prices
did not go up.


Yet another right wing myth. At least that one won't create an insurrection.

On 4/18/2021 11:57 AM, rbowman wrote:
On 04/18/2021 07:48 AM, Ralph Mowery wrote:
*Starting next year I will have to take the RMD and it will be more than
I want to spend.* Not too sure what to do with the excess money.

Pay tax on it * I set it up so money is automatically withheld.



Even though the article is from 2016, the options are still valid:

https://www.marke****ch.com/story/wh...ses-2016-11-02

In article ,
says...
*Starting next year I will have to take the RMD and it will be more than
I want to spend.* Not too sure what to do with the excess money.

Pay tax on it * I set it up so money is automatically withheld.



Even though the article is from 2016, the options are still valid:

https://www.marke****ch.com/story/wh...ses-2016-11-02





While valid, they don't help me.

1. Invest--I may invest some in stocks but that still just gives me more
money with nothing I really want to do with it. The needs and wants of
me and the wife are not much.

2. Invest QLAC Have to live to 80 or 80 years old, I may not make it
that long.

3. Life Insurance I would have to die and that would not do me any
good. I don't have any on me or my wife. Waste of money for us at this
point in life being over 70 years old and the ammount of money we have.
Nursing home will probably get it anyway later in time.

4. Charity Again that is just giving the money away and will not help
me.

5 college fund of 529. Still will not help me, but do have one grandson
that may or may not go to college in about 10 years.

I will probably just spend it on things that I may want,but never
thought about buying or needing. Like just went through over $ 30.000
to build a carport garage and new larger lawn tractor to put in it. May
have the master bed room remodeled next year. Seems that about every 2
years the wife wanted another room redone or painted or new flooring.

On 4/18/2021 2:06 PM, trader_4 wrote:
On Friday, April 16, 2021 at 12:06:42 PM UTC-4, Frank wrote:
On 4/16/2021 11:37 AM, Dean Hoffman wrote:
On Friday, April 16, 2021 at 9:11:45 AM UTC-5, AK wrote:
Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.
I checked the inflation rate a few days ago. One source put it at 1.6%. It's been years
since I had money in the old government bond. EE?
You might want to look at balanced index funds. I've had some of my money in one of Vanguard's but
that particular one is closed to new investors. It has 60% of the money in stocks, 40% in bonds.
An article here about others.
https://investedwallet.com/best-vanguard-index-funds/
Consumer Reports years ago claimed it's better to get an index fund that just tracks a group of
stocks and/or bonds. Doing that cuts out the hot shot stock picker who might make a fortune one
year then go tits up the next.

Lot depends on your age and tolerance for risk.

You are not going to get any interest rates anywhere near inflation rate
and I think inflation is much higher than quoted. Government plays
games in trying to show inflation rate is low such as if price of beef
spikes then people will eat chicken so they say inflation in meat prices
did not go up.

Yet another right wing myth. At least that one won't create an insurrection.


Speaking of insurrections, looks like the democrat's eldest poster-girl has been busy trying to start a civil war.

https://populist.press/national-guar...more-violence/

A white conservative would be impeached for that ****.

On Sun, 18 Apr 2021 11:14:39 -0400, wrote:

On Sun, 18 Apr 2021 02:15:36 -0500, Jim Joyce
wrote:

You sound like the folks described above who are unable to manage their
money. That "good sized check" is costing you.

OK let's see how much it is costing me. Say I got $5000 back and it
was put in there evenly over a year. I put this in my financial
calculator using $416.67 a month for 12 months at .25%. (what my bank
pays) I lost a whopping $5.77.

Like Ralph said, if you're using .25% as your rate you're doing it wrong.
You can't swing a dead cat without hitting investment opportunities that
pay 5%, 8%, 10%, and if you're willing to play with stocks, 15-25% and up.

That is pretty cheap insurance against having a windfall towards the
end of the year that blew out my withholding and got me stuck in
paying quarterlies or worse, some kind of penalty.
Said another way that is a Mocha Venti Frappachino starbucks.
I can afford it. I have plenty of cash on hand.

Very conservatively, I'd say your $5000 refund is costing you at least
$500. You have plenty of cash on hand so $500 isn't going to affect you,
but I'd hate to see others follow your bad example if they didn't know any
better.

On Sun, 18 Apr 2021 09:48:18 -0400, Ralph Mowery
wrote:

In article ,
says...

Ideally, you'd want to come out as close to even as possible at tax time.
Whether you owe them or they owe you, the amount should be as small as
possible and everyone is happy, most notably the IRS.




I try to adjust my tax so I come out abut even. This year I did a fair
job in getting back about $ 650 from the feds and had to pay about $ 550
to the state.

I never did like to get much back from the feds. Being retired I don't
want to get into the problem of sending them quartly tax money so I have
some taken out every month from the pension money and a lump sum taken
out of the IRA money I take out.


I have not messed with the CD's in around 20 years. There is no profit
in those any more. I would rather take my chances with the mutual funds
in the IRA. I keep what I think I may want to spend for a year or so in
a money market account so if the stock market goes down for a year it
does not make much difference.

Starting next year I will have to take the RMD and it will be more than
I want to spend. Not too sure what to do with the excess money. Guess
I will look into the mutual funds and pick one to put the money in.

I do play around with the stock market with about 5 % of the money I
have just for the fun of it. So far I have been doing well with it by
concnetrating on just a couple of stocks that go up and down about every
day. I probably average buying and selling those couple of stocks about
once a week. Made enough last year to build a carport garage I had been
looking into for a few years.

All of that is a very good approach. About the only thing we do differently
at my house is that we invest about 95% in stocks, mostly US stocks but a
bit of international stuff sneaks in now and then, and about 3-4% in bonds
with the rest in a money market account so that we have a pool from which
to buy more stocks. Mutual funds aren't a bad choice, but the low risk and
low returns didn't do it for us. Lastly, CDs were decent back in the first
half of the 1980s, but they'd be a foolish choice in the last 20 years or
so.

They say the first million is the hardest, and that seems to have been true
for us. That milestone took about 15 years after starting from scratch, and
now 3 years later we're 70% of the way to the second, thanks to the magic
of compounding. Warren Buffett once joked that compounding should be
illegal. That got a good laugh from the crowd.