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Fed goes big again with third-straight 75-basis-point rate hike


Monte1076

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4 minutes ago, DB2point0 said:

Can you not move your money into different funds?

Sure which ones all but one is losing money, Fix Rate Bonds along with the S&P 500 all are losing money, but I only lose if I withdraw. Stability Fund is a interest account and it makes a cool 15 dollars everyday not much but very safe

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7 hours ago, Wild74 said:

Sure which ones all but one is losing money, Fix Rate Bonds along with the S&P 500 all are losing money, but I only lose if I withdraw. Stability Fund is a interest account and it makes a cool 15 dollars everyday not much but very safe

Savings and CD account interest rates are in the toilet. They're fractions of a percent in a lot of cases, unless you want to go with one of those "online" banks, which I don't really trust.

401k accounts are dropping hard. I was talking to a buddy of mine who suggested I look into something called "I Bonds". They're more long-term, but the ROI is supposed to be pretty good. The interest rate is adjusted every six months, and right now it sits at 9.62%, and it will be adjusted in October.

https://www.forbes.com/advisor/investing/what-are-i-bonds/

They're supposed to be backed by the government, take that as you will, but there's a maximum dollar amount of them you can purchase yearly, Something like $10,000.

Right now, even a 3-month treasury bill will net you a little over 3% interest. A one year one would net just over 4%.

https://www.bankrate.com/rates/interest-rates/treasury/

Edited by Monte1076
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12 hours ago, BlahBlah said:

The rich want low interest rates .  That way they can borrow more money at little cost.  Which causes more inflation.  

Middle class needs higher interest rates so  it will end inflation.   

Class warfare at its finest.   

Borrowing money at low interest rates does not cause inflation, it creates economic growth.   Idiots in power printing money in order to buy votes from stupid people causes inflation.  

  • Crybaby 1
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2 hours ago, Monte1076 said:

Savings and CD account interest rates are in the toilet. They're fractions of a percent in a lot of cases, unless you want to go with one of those "online" banks, which I don't really trust.

401k accounts are dropping hard. I was talking to a buddy of mine who suggested I look into something called "I Bonds". They're more long-term, but the ROI is supposed to be pretty good. The interest rate is adjusted every six months, and right now it sits at 9.62%, and it will be adjusted in October.

https://www.forbes.com/advisor/investing/what-are-i-bonds/

They're supposed to be backed by the government, take that as you will, but there's a maximum dollar amount of them you can purchase yearly, Something like $10,000.

Right now, even a 3-month treasury bill will net you a little over 3% interest. A one year one would net just over 4%.

https://www.bankrate.com/rates/interest-rates/treasury/

I have one and my wife has one ...

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9 hours ago, Wild74 said:

Sure which ones all but one is losing money, Fix Rate Bonds along with the S&P 500 all are losing money, but I only lose if I withdraw. Stability Fund is a interest account and it makes a cool 15 dollars everyday not much but very safe

In a recession $15 /day is better than losing 15,000.  I’ve been in cash/money market since Dec1.  

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2 hours ago, Monte1076 said:

Savings and CD account interest rates are in the toilet. They're fractions of a percent in a lot of cases, unless you want to go with one of those "online" banks, which I don't really trust.

401k accounts are dropping hard. I was talking to a buddy of mine who suggested I look into something called "I Bonds". They're more long-term, but the ROI is supposed to be pretty good. The interest rate is adjusted every six months, and right now it sits at 9.62%, and it will be adjusted in October.

https://www.forbes.com/advisor/investing/what-are-i-bonds/

They're supposed to be backed by the government, take that as you will, but there's a maximum dollar amount of them you can purchase yearly, Something like $10,000.

Right now, even a 3-month treasury bill will net you a little over 3% interest. A one year one would net just over 4%.

https://www.bankrate.com/rates/interest-rates/treasury/

So move into something that will make you 3% until this recession is over.

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Just now, Monte1076 said:

Do you like them? I'm starting to research things to put some money into after I pay off my house. I want to do some home improvements, but I also want to invest for the future.

I was at the bank coffee shop a while back and one of the bank's retired VPs and a couple of other high rollers were taking about them and that they had gone up to the new rate ... they said they were a good deal very safe ... You have to buy them online and a lot of older people aren't comfortable doing that .... Two $10K bonds will yield over $18 hundred in interest in one year ... that's almost half my property taxes ... lol ...

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9 minutes ago, KirtFalcon said:

I was at the bank coffee shop a while back and one of the bank's retired VPs and a couple of other high rollers were taking about them and that they had gone up to the new rate ... they said they were a good deal very safe ... You have to buy them online and a lot of older people aren't comfortable doing that .... Two $10K bonds will yield over $18 hundred in interest in one year ... that's almost half my property taxes ... lol ...

I've been considering it, but I don't know exactly how long-term I'm going to want to go with them. I'm about to turn 46, so even if I let them go for 10 years, that's still a decent amount of interest to gain.

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12 minutes ago, Monte1076 said:

I don't know. Something to consider. Problem is taxes. Isn't there a tax hit for taking money out of my 401k, even if I transfer it to another investment?

If the fund is in your 401k account, no.  Our plan has all kinds of funds within our account.  If you withdraw the money from the account, yes you will pay tax/penalty.  

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21 minutes ago, DB2point0 said:

If the fund is in your 401k account, no.  Our plan has all kinds of funds within our account.  If you withdraw the money from the account, yes you will pay tax/penalty.  

You can transfer money between qualified accounts as long is it's done the right way and you never take posession of it yourself. There is a procedure for it, but be careful ... I did it after I retired for the 2nd time ....

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28 minutes ago, DB2point0 said:

If the fund is in your 401k account, no.  Our plan has all kinds of funds within our account.  If you withdraw the money from the account, yes you will pay tax/penalty.  

My 401k's are all index funds, I believe. So as it stands now, with these market downturns, I'm still losing money.

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