Savings/investments/bonds Master Thread.

[ExGingi]

does the 10% max out after $300 spent, meaning that it maxes out at $30? is that per month?

Annually. Supposedly only the first year (2022) was supposed to be 10%, with subsequent being 5%, but we got 10% in 2022 and again in 2023. I am not aware of any timeframe that funds transferred into savings need to remain there in order to get the match, I kept until month's end when I got the match.

[buchir]

Don't sweat it. All 3 are great options for low cost index funds and allow "set-it-and-forget-it" auto-investing in IRA's (I'm assuming this is what you want so CMIIW). Discerning pros and cons is splitting hairs.

To my knowledge, Schwab does not allow auto investments for ETFs.

[whacked1]

Sure it's been asked a bunch, but I'm looking to setup a separate fund for each of my childrens weddings and have an automatic transfer monthly. Is this the right place? https://investor.vanguard.com/investment-products/list/all?strategy=all_in_one
And can you suggest which fund?
TIA

I personally setup a UTMA account and have it auto invest in Fidelitys s&p fund. I also sell at the end of the year if there were any gains that year to reset the basis. It was discussed here before.

[Euclid]

to reset the basis

I dont understand this - can you expound? I know what resetting the basis is - but why is that relevant for a UTMA account?

[Shaya E]

I dont understand this - can you expound? I know what resetting the basis is - but why is that relevant for a UTMA account?

UTMA accounts are accounts fully owned by the child. Children don't pay capital gain taxes on a significant amount of gain. (Not sure exactly what amount but over $1,000 for sure). Therefore, you want to realize that gain every year in order to avoid realizing it as an adult or over that tax-free limit.

[Euclid]

UTMA accounts are accounts fully owned by the child. Children don't pay capital gain taxes on a significant amount of gain. (Not sure exactly what amount but over $1,000 for sure). Therefore, you want to realize that gain every year in order to avoid realizing it as an adult or over that tax-free limit.

Ah. Thanks!

[whacked1]

I dont understand this - can you expound? I know what resetting the basis is - but why is that relevant for a UTMA account?

UTMA accounts are accounts fully owned by the child. Children don't pay capital gain taxes on a significant amount of gain. (Not sure exactly what amount but over $1,000 for sure). Therefore, you want to realize that gain every year in order to avoid realizing it as an adult or over that tax-free limit.

Right, I believe it increases every year. It has a scale, so the first xx amount if tax free (I think $1500 for 2023), the next jump is taxed at the child's tax rate, thereafter at the parents rate. If you have a business (and depending on the age of your child), your child can receive compensation from the business, so pretax dollars..... Speak to your accountant and obvisiosly dont solely take financial advice from a stranger on the internet.

One thing to note, is as Shaya E noted, the account belongs to the child. So it may affect him/her later in life (financial aid etc). Not 100% sure and wasnt a big concern for me.

[ExGingi]

This is in the middle of a longer thread that is worth reading regarding the risks to banks and the economy.

https://twitter.com/biancoresearch/status/1650168208832200705?s=20

[Euclid]

This is in the middle of a longer thread that is worth reading regarding the risks to banks and the economy.

https://twitter.com/biancoresearch/status/1650168208832200705?s=20

Why do the big banks not offer competitive rates? Relying on complacency and inertia of their customers?

[ExGingi]

Why do the big banks not offer competitive rates? Relying on complacency and inertia of their customers?

Mainly because they can get away with this. Think SVB clients. They have deposits far in excess of FDIC coverage, they want safety.

Did you read the entire thread?

[Yakov15]

Why do the big banks not offer competitive rates? Relying on complacency and inertia of their customers?

Did you try convincing anyone recently to move their money into a good dividend paying bank? How far did it get you?

[Yakov15]

Mainly because they can get away with this. Think SVB clients. They have deposits far in excess of FDIC coverage, they want safety.

Did you read the entire thread?

Also this. People with just a little in savings don’t bother and people with a lot in savings want the added protection.

[ExGingi]

Also this. People with just a little in savings don’t bother and people with a lot in savings want the added protection.

Correct.

[Realshlomo]

Did you try convincing anyone recently to move their money into a good dividend paying bank? How far did it get you?

Actually I've referred about 6 to 7 people to Wealthfront. Paying 4.3% with a referral you get an additional .5%

After I showed that I have money there and it's fdic insured they moved over.

[nucheiner]

Which is expected to have a higher yield this week, the 8-week or the 17 week?
(This weeks 13 week did pretty well 5.21% effectively; better than other short term options Cds or secondary market treasuries.)
@CountValentine or whomever

[nucheiner]

Which is expected to have a higher yield this week, the 8-week or the 17 week?
(This weeks 13 week did pretty well 5.21% effectively; better than other short term options Cds or secondary market treasuries.)
@CountValentine or whomever

Investment rate came out to 5.14 for 17Week. The week is auctioned tomorrow.

[Woofwoof]

Hello folks:

I am interested in locking up some funds in US Treasuries for 3, 6, and 9 months. I just went to my Fidelity account and got very confused over which one(s) to choose. Do I just pick the ones with the highest yields? Should I pick secondaries or new issues?

 Thank you for some guidance in advance.

[Spoon]

Hello folks:

I am interested in locking up some funds in US Treasuries for 3, 6, and 9 months. I just went to my Fidelity account and got very confused over which one(s) to choose. Do I just pick the ones with the highest yields? Should I pick secondaries or new issues?

 Thank you for some guidance in advance.

Look up thread

[Joe4007]

https://treasurydirect.gov/savings-bonds/i-bonds/

4.3% including a fixed rate of 0.9%

Does that mean existing holders will only get 3.4% or can existing also get the fixed?

[Shaya E]

https://treasurydirect.gov/savings-bonds/i-bonds/

4.3% including a fixed rate of 0.9%

Does that mean existing holders will only get 3.4% or can existing also get the fixed?

The current fixed rate is only for new purchases. Everyone else gets the fixed rate that they bought it at. So 0.4% if purchased within the last six months and 0 if bought before that (unless you bought it quite a while ago before they lowered it to zero.)