Savings/investments/bonds Master Thread.

[Euclid]

It is missing the first word.

2 words, but yeah.

Same scummy idea though.

[Dan]

How is this not an MLM

Because you don't pay to join and you don't get downstream benefits?
And it's run by Goldman Sachs and not Sungames or MHA?

[aygart]

2 words, but yeah.

Same scummy idea though.

Why is this worse than any other referral incentive?

[Euclid]

Why is this worse than any other referral incentive?

The only reason why someone would sign up is for the 5.15% interest. And the only way to maintain it is to refer more people. Which eventually fails because there's a limited number of eligible people in the US. That leaves anyone far enough downstream with 3 months of 5.15%. Big whoop - you can get that with treasuries or a CD.

It's a bait & switch with the structural issues of an MLM.

[Euclid]

And it's run by Goldman Sachs and not Sungames or MHA?

There were some "legit" companies that have run MLMs. e.g. Tupperware. The issue with MLMs is that the structure fails.

[Euclid]

It's a great deal for anyone that gets in early enough, and has a wide network. Like Dan

[Euclid]

Seems like you're limited to 5 referrals for calendar year. Which does obviate my "MLM" concerns.

It's a good deal. Though be sure to pull out when the bonus rate is up, because their regular rate is pedestrian.

[ExGingi]

Seems like you're limited to 5 referrals for calendar year. Which does obviate my "MLM" concerns.

It's a good deal. Though be sure to pull out when the bonus rate is up, because their regular rate is pedestrian.

At this point, 4-week t-bills with automatic rollover might be better.

[aygart]

There were some "legit" companies that have run MLMs. e.g. Tupperware. The issue with MLMs is that the structure fails.

You are not understanding what MLMs are, how they work, and what makes many fail.

[ExGingi]

At this point, 4-week t-bills with automatic rollover might be better.

Also VMRXX and VMFXX are currently at a 7-day yield over 5%! Both are available to retail investors on E*Trade. I wouldn't be surprised if some other Money Market funds will be there within a week or two.

[Euclid]

You are not understanding what MLMs are, how they work, and what makes many fail.

Let's go with the assumption that there are unlimited referrals (which I got wrong, so this is purely theoretical now). I'll try to explain my thought process:

There's a finite number of eligible people who can take part in a MLM which is why it ultimately fails, because eventually the (main) revenue stream dries up - the initiation fee. Additionally, there are no more buyers of the product since everyone are sellers, so the other revenue stream trickles to a stop.

Similar idea here - the only way to actually make money (at least more than any other similar financial instrument), is to keep on referring people in order to maintain the interest rate. Eventually you run out of people to refer since everyone (you know) is already a Marcus customer, which leaves you earning only 4.15% which is much lower than what you can get elsewhere. This is the aspect that made me compare it to a MLM.

[aygart]

Let's go with the assumption that there are unlimited referrals (which I got wrong, so this is purely theoretical now). I'll try to explain my thought process:

There's a finite number of eligible people who can take part in a MLM which is why it ultimately fails, because eventually the (main) revenue stream dries up - the initiation fee. Additionally, there are no more buyers of the product since everyone are sellers, so the other revenue stream trickles to a stop.

Not every MLM has the initiation free as the main revenue stream.

The successful MLMs are the ones that incentivize selling the product. If everyone joined that sounds like the put all competitors out of business

[Spoon]

4 week T- bills 5.723%

T-bills currently outshine anything out there.

[Josef.koney]

4 week T- bills 5.723%

I'm still not understanding how to buy these things. I have to be online that day they sell them? Is it like they run out?

[HoKo]

I'm still not understanding how to buy these things. I have to be online that day they sell them? Is it like they run out?

https://www.investopedia.com/articles/bonds/08/treasuries-fed.asp

[Ver hut gazugt]

Let's go with the assumption that there are unlimited referrals (which I got wrong, so this is purely theoretical now). I'll try to explain my thought process:

There's a finite number of eligible people who can take part in a MLM which is why it ultimately fails, because eventually the (main) revenue stream dries up - the initiation fee. Additionally, there are no more buyers of the product since everyone are sellers, so the other revenue stream trickles to a stop.

Similar idea here - the only way to actually make money (at least more than any other similar financial instrument), is to keep on referring people in order to maintain the interest rate. Eventually you run out of people to refer since everyone (you know) is already a Marcus customer, which leaves you earning only 4.15% which is much lower than what you can get elsewhere. This is the aspect that made me compare it to a MLM.

I would add the cost/time of trying to get referrals as well. I would not want that headache.

[Spoon]

I'm still not understanding how to buy these things. I have to be online that day they sell them? Is it like they run out?

There are a couple of step by step guides upthread but basically you buy them through your brokerage account like a stock under the bonds or fixed income section. There is a announcement date which is when the option to buy will appear and the auction date which can be 1-4 days later. You must buy anytime between those two dates til 10am of the auction date. That's it

[Josef.koney]

https://www.investopedia.com/articles/bonds/08/treasuries-fed.asp

Thanks!

[Josef.koney]

There are a couple of step by step guides upthread but basically you buy them through your brokerage account like a stock under the bonds or fixed income section. There is a announcement date which is when the option to buy will appear and the auction date which can be 1-4 days later. You must buy anytime between those two dates til 10am of the auction date. That's it

So like this?
Are there extra charges using them instead of direct?
They only let 3 months and more?
I'm assuming the us Treasury  is the t bill?

[gozalim]

So like this?
Are there extra charges using them instead of direct?
They only let 3 months and more?
I'm assuming the us Treasury  is the t bill?

the shorter term ones come available tomorrow. there's a 'window' during which you can place the order
see https://thefinancebuff.com/treasury-bills-cd-money-market.html#htoc-order-window
and https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf