Money Investing megathread extravaganza - Page 886

**DaFace** · 06:35 PM

A place to talk about investing stuff.

**Buehler445** · 12-22-2022, 05:19 PM

Quote:

Originally Posted by Rain Man

My in-laws did something back in the 1980s that I thought was pretty smart. When inflation spiked in early 1980s they put a bunch of money into long-term CD ladders. Then inflation went down and for 10+ years they were getting something like 8 percent risk-free on their investment returns in 3 percent inflation. I'm trying to figure out when they peak so I can do the same now. That's the key to success.

My FIL came to me in 2015 and asked me what I thought he should do with some money. Of course this was out of the blue with no associated detail. So I was like, "uhhh... What money are we talking about?"

Oh back in the 80's I put some money in a 15% CD and it's coming out now...

My ****ing brain exploded all over my damned basement.

WTF? 15%? If anyone took a picture of my face I'm sure it'd be a meme today.

I'm trying to remember. I think I told him to pay off all debt.... Don't have any... Well, I'd stick it in an ETF.

So I had to ask him how the hell he got a CD a 15%. Like ****ing seriously. He said, yeah, I scraped together every nickel I could scrounge and stuffed it in there. I needed the money (obviously he didn't - see the no debt comment), but I didn't figure I could get 15% on the farm (I think he did but he isn't doing any math and I didn't argue).

15%.....

HonestChieffan · 12-22-2022, 06:47 PM

Quote:

Originally Posted by Buehler445

My FIL came to me in 2015 and asked me what I thought he should do with some money. Of course this was out of the blue with no associated detail. So I was like, "uhhh... What money are we talking about?"

Oh back in the 80's I put some money in a 15% CD and it's coming out now...

My ****ing brain exploded all over my damned basement.

WTF? 15%? If anyone took a picture of my face I'm sure it'd be a meme today.

I'm trying to remember. I think I told him to pay off all debt.... Don't have any... Well, I'd stick it in an ETF.

So I had to ask him how the hell he got a CD a 15%. Like ****ing seriously. He said, yeah, I scraped together every nickel I could scrounge and stuffed it in there. I needed the money (obviously he didn't - see the no debt comment), but I didn't figure I could get 15% on the farm (I think he did but he isn't doing any math and I didn't argue).

15%.....

I was living in Denver, my son was a baby (41 now) And I got a check from the company for moving expenses a couple months before. I called the broker I had an account with and said I had a few grand to sock away. He said call your bank...I stoped at bank that afternoon and got a 12 mo CD for 16.5%

That year, operating loans from Farm credit hit a max of 22% for a few days, most operating loans were 15-17%

Jimmy Carter was President.

**Rain Man** · 12-22-2022, 07:41 PM

Quote:

Originally Posted by Buehler445

My FIL came to me in 2015 and asked me what I thought he should do with some money. Of course this was out of the blue with no associated detail. So I was like, "uhhh... What money are we talking about?"

Oh back in the 80's I put some money in a 15% CD and it's coming out now...

My ****ing brain exploded all over my damned basement.

WTF? 15%? If anyone took a picture of my face I'm sure it'd be a meme today.

I'm trying to remember. I think I told him to pay off all debt.... Don't have any... Well, I'd stick it in an ETF.

So I had to ask him how the hell he got a CD a 15%. Like ****ing seriously. He said, yeah, I scraped together every nickel I could scrounge and stuffed it in there. I needed the money (obviously he didn't - see the no debt comment), but I didn't figure I could get 15% on the farm (I think he did but he isn't doing any math and I didn't argue).

15%.....

Times of change are times of opportunity. In all seriousness, it seems like a 99.9 percent winner to buy some long-term CDs now if we can get 5 percent or more. It seems like the Fed is really intent on getting inflation back down to 2 percent or so. Right?

**Buehler445** · 12-22-2022, 08:28 PM

Quote:

Originally Posted by Rain Man

Times of change are times of opportunity. In all seriousness, it seems like a 99.9 percent winner to buy some long-term CDs now if we can get 5 percent or more. It seems like the Fed is really intent on getting inflation back down to 2 percent or so. Right?

Not currently.

From what I've read they're planning on raising it again. I saw a headline (admittedly didn't read the article) that inflation is over and the fed is dumb for continuing to raise it.

I read somewhere that the Fed Chairman like worships at the alter of Volker, so who knows.

BWillie · 12-22-2022, 11:21 PM

Quote:

Originally Posted by Rain Man

Times of change are times of opportunity. In all seriousness, it seems like a 99.9 percent winner to buy some long-term CDs now if we can get 5 percent or more. It seems like the Fed is really intent on getting inflation back down to 2 percent or so. Right?

Where can I get 5%?

**Buehler445** · 12-22-2022, 11:23 PM

Quote:

Originally Posted by BWillie

Where can I get 5%?

One of my local banks has a MMSA at I think 4.

Typically if you lock it up longer they'll give you a higher rate. Asking about multi-year CDs and it can probably get you there.

myselff77 · 12-23-2022, 12:04 PM

Anyone been tucking any money into I bonds the last year?

ChiefChoop · 12-23-2022, 12:11 PM

Quote:

Originally Posted by myselff77

Anyone been tucking any money into I bonds the last year?

Yes

myselff77 · 12-23-2022, 01:34 PM

Quote:

Originally Posted by lewdog

This is a useful link for calculating what you'll have saved for retirement (at what age you choose) and can be used to predict how long your money may last. You can manipulate variables to see how much you should be contributing, what you plan to live on in retirement and how you'll need to adjust if you're behind your goals.

https://www.nerdwallet.com/investing...ent-calculator

I always worry I do not save enough to retirement, but whenever I play around with these calculators, it makes it appear I am in good shape. I don't think I've done anything special. I have contributed to the 401k for over 20 years beginning straight out of college. It goes to a handful of funds and I pretty much keep eyes off it. I started at 6% because of a company match to that point and would raise it a percentage or two whenever I received a raise. I now direct 18% of my salary to the 401k and opened a RothIRA two years ago.

So, I hope these calculators are correct, but I guess time will tell. Anyone willing to share percentages they direct towards retirement savings accounts?

Hog's Gone Fishin · 12-23-2022, 02:18 PM

Ain't no friggin way I'd tie up money for 5% a YEAR.

Or even 50% a year

Not if you have time to trade.

BWillie · 12-23-2022, 02:36 PM

Quote:

Originally Posted by Hog's Gone Fishin

Ain't no friggin way I'd tie up money for 5% a YEAR.

Or even 50% a year

Not if you have time to trade.

Ya but then I have to read the wall street journal or something or pay some guy 30k a year to manage my shit...with no guarantee it will even increase. There is peace of mind in knowing you will just get it for sure.

**Rain Man** · 12-23-2022, 02:48 PM

Quote:

Originally Posted by BWillie

Where can I get 5%?

I wasn't saying that you can get it now, but I think it's possible that it'll climb that high.

**Rain Man** · 12-23-2022, 02:49 PM

Quote:

Originally Posted by myselff77

Anyone been tucking any money into I bonds the last year?

Yeah, I'm all over that. I wish the contribution limit wasn't so low.

Peter Gibbons · 12-23-2022, 04:29 PM

Quote:

Originally Posted by myselff77

I always worry I do not save enough to retirement, but whenever I play around with these calculators, it makes it appear I am in good shape. I don't think I've done anything special. I have contributed to the 401k for over 20 years beginning straight out of college. It goes to a handful of funds and I pretty much keep eyes off it. I started at 6% because of a company match to that point and would raise it a percentage or two whenever I received a raise. I now direct 18% of my salary to the 401k and opened a RothIRA two years ago.

So, I hope these calculators are correct, but I guess time will tell. Anyone willing to share percentages they direct towards retirement savings accounts?

Early in my career I prioritized retirement and always made a point to do 15%. It became even harder once married and kids started coming but were able to do it. Now, 30+ years later, we don’t have any debt and live frugally. We now are saving well over 60% of our income (test run for retirement). It seems unfair that we have so much surplus now and scraped by so much much when younger but youth is also wasted on the young so I guess it all works out.

**lewdog** · 12-24-2022, 05:23 PM

Quote:

Originally Posted by myselff77

I always worry I do not save enough to retirement, but whenever I play around with these calculators, it makes it appear I am in good shape. I don't think I've done anything special. I have contributed to the 401k for over 20 years beginning straight out of college. It goes to a handful of funds and I pretty much keep eyes off it. I started at 6% because of a company match to that point and would raise it a percentage or two whenever I received a raise. I now direct 18% of my salary to the 401k and opened a RothIRA two years ago.

So, I hope these calculators are correct, but I guess time will tell. Anyone willing to share percentages they direct towards retirement savings accounts?

I feel the same. It's just so hard to imagine getting to a certain number and it doesn't make sense until you start running the scenarios. Starting early is key.

It sounds like you're doing great. Starting right out of college is huge and it's part of what I missed. I didn't start my career until I was 26 and then didn't start investing heavily until my early 30's, so I am a bit behind in terms of compounding interest years.

If you plan to live a similar lifestyle in retirement to your current, then 15-20% of your income should accomplish that if you give yourself decades to invest. A ROTH is huge and something I'm always doing too.

I put 15-20% of my income into retirement accounts. I just started a ROTH 401k in addition a standard ROTH IRA. I am trying to build a large tax-free investment vehicle for retirement so my taxable income in retirement can be fairly low.

I still wonder what Social Security will bring for me (or not at all!) in my retirement plan. I plan it at $0 because I don't believe in the system lasting, but if I actually do collect my calculated SS amount, I'd be golden in retirement.

06-27-2016, 11:23 AM
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $1846899	Investing megathread extravaganza A place to talk about investing stuff. Last edited by DaFace; 02-19-2021 at 06:35 PM..
Posts: 51,884

12-23-2022, 12:04 PM	#13282
myselff77 Starter Join Date: Aug 2019 Casino cash: $3290400	Anyone been tucking any money into I bonds the last year?
Posts: 412

12-23-2022, 02:18 PM	#13285
Hog's Gone Fishin Fish are scared of me Join Date: Nov 2001 Casino cash: $1530477	Ain't no friggin way I'd tie up money for 5% a YEAR. Or even 50% a year Not if you have time to trade.
Posts: 40,378