Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I'd rather do something now than wait until next spring when I do my taxes.
So how would the money get into an I bond account that I'd open if the investment firm doesn't send it there directly?
The investment firm sends you the money, and then you follow the steps to purchase the I-Bonds. But the bigger question is what would you (your investment firm) be liquidating to buy the I-Bonds?
So, you have 15k in a non-retirement account that lost 18% this year, but only gained 1.5% - 2.5% in previous years? That doesn't sound right. The S&P 500 index is down about 15-16% this year, so that makes sense on the downside. But if you are invested in stocks, your account should have gone up about 27% last year, not just 2%. In 2020, the market was up over 18%.
If that is the case, I'd sure want to know what they bought in your portfolio, as you were way underperforming vs. the market. If your account only gained about 2% in 2020 and 2021, I'd close my account with them right away and find someone else. Or educate yourself and do it yourself.
I'd also want to know what kind of annual fee they are charging. You might be better off in I-Bonds and low fee index funds.
Yes, I have money that is more heavy in stocks that historically has averaged more than 11% (but lost money this year). I would leave that money alone. The money that is only gaining 1%-2% on good years is less risk.
You dont have to buy CD,money market accounts will be paying more soon as Fed will raise discount rate by 75 basis points NEXT WEEK ,here is the list- https://accounts.bestrates.com/savin...7717cbec101cc9
Once you figure the Fed is done raising rate,then you can buy a CD
Do you think it's a good idea considering the bear market we're in now? I'm age 60 and have $15,000 in non-IRA accounts that have lost about 18% this year and only have averaged a 1.5%-2.5% gain. I do have other money in an IRA account that lost this year but historically has done well that I may let ride out.
One way to look at it is at the current inflation rate - you are guaranteed to lose about 6% per year for 5 years - (3% CD - 9% inflation). If you want a decent, low risk return, suggest munis - probably better rate and not locked into a low rate and the gain is tax free.
Do you think it's a good idea considering the bear market we're in now? I'm age 60 and have $15,000 in non-IRA accounts that have lost about 18% this year and only have averaged a 1.5%-2.5% gain. I do have other money in an IRA account that lost this year but historically has done well that I may let ride out.
3% is "not bad" right NOW. But, in the very short future, that 3% could be easily surpassed by 4 or 5 or 6 or 7% (or more) within 2023. If you lock in your CD at 3% how are you going to feel when the market is offering double?
As far as "riding out" your IRA, you definitely should. If you pull that during the "loss" you "lock-in those losses."
Then again, it's only $15,000. Your penalty on a 5-year CD is typically 1 year's worth of interest, so we're talking $450 give or take. If the interest rates blow up, that might be worth breaking the CD and paying the penalty.
IMO it's a valid option for some. If you want to guarantee some kind of return and aren't the kind that has an interest in chasing the last percent it's fine. Set it and forget it if you wish.
Investing has had zero interest for me. I have someone that handles mine and he knows that I'm never going to get upset over him not chasing the last dollar.
I'm down some but I have more important things to worry about. He called the other day just touching base. I said I wasn't checking and are my checks going to continue comingg? He said yes and I said, fine.
If for some reason things got so bad that they no longer were, I'd simply steal what I needed.
If you want to go through retirement not worrying about dying as the person with the most money left over to give to others, go for it.
3% is "not bad" right NOW. But, in the very short future, that 3% could be easily surpassed by 4 or 5 or 6 or 7% (or more) within 2023. If you lock in your CD at 3% how are you going to feel when the market is offering double?
As far as "riding out" your IRA, you definitely should. If you pull that during the "loss" you "lock-in those losses."
Then again, it's only $15,000. Your penalty on a 5-year CD is typically 1 year's worth of interest, so we're talking $450 give or take. If the interest rates blow up, that might be worth breaking the CD and paying the penalty.
What does your fiduciary recommend?
I thought before scheduling a meeting with the fiduciary that I'd get some unbiased opinions. He would probably encourage me not to withdraw monies from their care.
I thought before scheduling a meeting with the fiduciary that I'd get some unbiased opinions. He would probably encourage me not to withdraw monies from their care.
By law, a fiduciary is supposed to make decisions to benefit YOU. Not themselves.
At least, that's the way it's supposed to work...
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
