Money and Investing (formerly Pfizer Stock prices)
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My goal in life is not to leave an inheritance to my kids. My obligation to them has been met by preparing them with the knowledge and resources from infancy to young adulthood required to be productive and well adjusted members of society; from what I see so far that is happening.
My financial resources are here now solely for the benefit of me and my SO, both for our comfort and enjoyment now, and to keep us from being a burden on them as we age; if there is anything left over when we no longer need such and it's passed on to them that's fine. My father had the same philosophy and my inheritance from him, that I value above any financial inheritance, is the metal the doctors removed from his wounds (and gave to him) and the military metals he received during the battle of the bulge. I was very lucky in my service not to receive the former and not the man he was to earn the later.
Buying real estate, either for renting with all the hassles that such entails, or sitting on it waiting for it to increase in value, is not part of my plan; living off the fruits of my financial, low maintenance investments is (although I do spend time voting for boards of directors and proposals for companies I own stock in).
My financial resources are here now solely for the benefit of me and my SO, both for our comfort and enjoyment now, and to keep us from being a burden on them as we age; if there is anything left over when we no longer need such and it's passed on to them that's fine. My father had the same philosophy and my inheritance from him, that I value above any financial inheritance, is the metal the doctors removed from his wounds (and gave to him) and the military metals he received during the battle of the bulge. I was very lucky in my service not to receive the former and not the man he was to earn the later.
Buying real estate, either for renting with all the hassles that such entails, or sitting on it waiting for it to increase in value, is not part of my plan; living off the fruits of my financial, low maintenance investments is (although I do spend time voting for boards of directors and proposals for companies I own stock in).
Ok, Treasury just changed interest rate on these bonds. (adjusted every Nov1 & May1)
Since inflation is 7.12% (according to Treasury is 7.12%) the rate on these bonds is 7.12% if you bought the bonds today and the rate is adjusted on May 1. If you bought the bonds when I 1st posted (Aug 2021) you would get the old rate of 3.54% until Feb 1 then the new rate of 7.12% for 6 months after that.
Why it's a no brainer that you should own these bonds — bonds that no one seems to know about:
IMHO, if you have a percentage of your portfolio in bonds — these should be included.
There is no risk* on these bonds as face value + accrued interest can not decrease due to market conditions.
* no risk unless US Treasury defaults — which if it does your concerns will be much bigger than just not being able to cash US Gov't obligations.
OR
If you if you want to have some emergency ready cash or you will need cash in the future and the cash has to be there (keep in mind cannot cash these 1st year owned and 3 month penalty for 4 years after that).
Interestingly, the penalty is on interest rate on 3 months prior to cashing — so say inflation is zero. The bonds bought today will pay zero and if you cash them in the penalty will be 3 months of zero. If you cash anytime from years 5-30 there is no penalty.
Go to tresurydirect.gov for details and FAQ's
Since inflation is 7.12% (according to Treasury is 7.12%) the rate on these bonds is 7.12% if you bought the bonds today and the rate is adjusted on May 1. If you bought the bonds when I 1st posted (Aug 2021) you would get the old rate of 3.54% until Feb 1 then the new rate of 7.12% for 6 months after that.
Why it's a no brainer that you should own these bonds — bonds that no one seems to know about:
IMHO, if you have a percentage of your portfolio in bonds — these should be included.
There is no risk* on these bonds as face value + accrued interest can not decrease due to market conditions.
* no risk unless US Treasury defaults — which if it does your concerns will be much bigger than just not being able to cash US Gov't obligations.
OR
If you if you want to have some emergency ready cash or you will need cash in the future and the cash has to be there (keep in mind cannot cash these 1st year owned and 3 month penalty for 4 years after that).
Interestingly, the penalty is on interest rate on 3 months prior to cashing — so say inflation is zero. The bonds bought today will pay zero and if you cash them in the penalty will be 3 months of zero. If you cash anytime from years 5-30 there is no penalty.
Go to tresurydirect.gov for details and FAQ's
As I posted, "If you want to park an extra $10K ".
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine
(took about 10 minutes for the whole thing) every year.
That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine
(took about 10 minutes for the whole thing) every year.That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
As I posted, "If you want to park an extra $10K ".
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine(took about 10 minutes for the whole thing) every year.
That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine
(took about 10 minutes for the whole thing) every year.That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
But I can't really call it parking since there is some risk. If I could I'd put all of this in your I bond idea .
Yeah too bad about the limit but I assume the low limit, as with other low limits, e.g., $6K for Roth contributions,is there so as not to benefit "the wealthy".
BTW, the interest is State & local tax free and you can wait until you cash the I Bonds to pay Fed taxes or pay every year.
Ps. Not really relevant to this discussion but if you want to do something really nice for your teenage kids — during their teen years and college mine worked during the summer. I opened and deposited (I matched their earnings) the amount they made into a Roth account. They got to keep all their earnings and spend on whatever they wanted (they earned it). The Roth account was a brokerage account which gave me the opportunity to explain ETF's stocks and bonds, aggressive vs conservative investing etc.
BTW, the interest is State & local tax free and you can wait until you cash the I Bonds to pay Fed taxes or pay every year.
Ps. Not really relevant to this discussion but if you want to do something really nice for your teenage kids — during their teen years and college mine worked during the summer. I opened and deposited (I matched their earnings) the amount they made into a Roth account. They got to keep all their earnings and spend on whatever they wanted (they earned it). The Roth account was a brokerage account which gave me the opportunity to explain ETF's stocks and bonds, aggressive vs conservative investing etc.
As I posted, "If you want to park an extra $10K ".
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine(took about 10 minutes for the whole thing) every year.
That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
I went to the site which is set up once (and forever), entered the amount and clicked on a button to buy for me. Then I did the same for my SO and then for my kids. I plan to do this time consuming and large effort routine
(took about 10 minutes for the whole thing) every year.That said, right now I keep (I park if you will) about $100K in liquid accounts that I can get to in a day or two, as "emergency and/or new opportunity" money that is in (laughably called ) high yield savings of 0.4%. A small percentage of that is now in 7.12% and more percentage of that will be there next year and then the year after that, etc.
Just curious, where do you park yours?
Ie. Statement, e mail etc
( I keep most of my assets in 2 financial institutions with the ability to sign on and get a consolidated look at all assets)
Can this be done with a .gov account
For I Bonds nothing is paper unless you want to print out the transaction history.
You can get paper bonds (I don't know why anyone would want to do that unless you are giving them as a gifts to someone other than your kids).
When I gift the bonds to my kids what I did was have them each set up a treasury account online and I transfer the electronic gift I Bonds to their account.
For some reason they have to "unlock" their account for me to transfer in to it (very strange) and that has to be done once and it has to be done with a notarized form (even stranger) that they mail in to the treasury.
Other than that it is straightforward and only takes a couple of minutes to set up.
For the Roth accounts we all went to my broker and set it up there. Transfers from my brokerage account to their Roth brokerage account takes literally seconds. They can get paper records from the brokerage but why bother. For example the only paper checks I use are QCD's (Qualified Charitable Contributions) I make from my IRA's (they subtract out from my RMD's). Any paper checks from reg checking are only for taxes (property, fed& state) and when i buy a car.
With both the treasury account and the brokerage accounts everything is in a drop down once set up.
You can get paper bonds (I don't know why anyone would want to do that unless you are giving them as a gifts to someone other than your kids).
When I gift the bonds to my kids what I did was have them each set up a treasury account online and I transfer the electronic gift I Bonds to their account.
For some reason they have to "unlock" their account for me to transfer in to it (very strange) and that has to be done once and it has to be done with a notarized form (even stranger) that they mail in to the treasury.
Other than that it is straightforward and only takes a couple of minutes to set up.
For the Roth accounts we all went to my broker and set it up there. Transfers from my brokerage account to their Roth brokerage account takes literally seconds. They can get paper records from the brokerage but why bother. For example the only paper checks I use are QCD's (Qualified Charitable Contributions) I make from my IRA's (they subtract out from my RMD's). Any paper checks from reg checking are only for taxes (property, fed& state) and when i buy a car.
With both the treasury account and the brokerage accounts everything is in a drop down once set up.
A new law passed which will have significant repercussions for those who use PayPal and Venmo-
Once annual transactions reach an aggregate total of $600.00, the activity will be reported if IRS.
SMH
Here is a link
https://newsroom.paypal-corp.com/20...eporting-Requirements-Your-Questions-Answered
Once annual transactions reach an aggregate total of $600.00, the activity will be reported if IRS.
SMH
Here is a link
https://newsroom.paypal-corp.com/20...eporting-Requirements-Your-Questions-Answered