Savings/investments/bonds Master Thread.

[farmbochur]

have a considerable sum saved up in 2 fidelity Roth Iras, the accounts were opened about a yr ago, and since then i haven't invested the money at all as the market wasn't looking to pretty and I was scared to put it anywhere. however w interest rates high now, is there a risk free or low risk place I can put them to get some gains? like can they be in a
 high interest savings account  or  a t-bill etc. while still in a roth ?

any help would be appreciated, thanks

What's your plan?

A) To hold the money long term in a fixed income asset? You'll be hard-pressed to generate wealth without investing in risk bearing assets.

B) To hold the fixed income assets until the market bottoms out? Timing that is nearly impossible to time.

[free123cc]

I just bought a 17 week T-bill today @ 4.4%
Tomorrow is the auction for 4 and 8 week T-bills.

can i buy that in a fidelity roth ira?

[free123cc]

What's your plan?

A) To hold the money long term in a fixed income asset? You'll be hard-pressed to generate wealth without investing in risk bearing assets.

B) To hold the fixed income assets until the market bottoms out? Timing that is nearly impossible to time.

right now I'm still renting, and hope to buy a house in the next yr or two, so I was hoping to get some small return out of it (tax free), and obviously i don't want to play with that money. when I want to buy a house I would then pullout the principal (or maybe even the gain if it qualifies) and use that as part of my down payment,

if in the best case scenario my other savings continue to grow and i get some outside help and i dont need that money for my down payment, then once i buy a house i would then invest it for the long term (retirement) in that roth account

[CountValentine]

can i buy that in a fidelity roth ira?

Yes and it is simple.

[Mareh Makom]

Right now i am putting away $20 per child a week into voo on a robinhood recurring investment in order to save for their weddings (money should stay there for 20+ years). Can someone tell me why this is a stupid move? Is there a better way to go about savings of this kind?

[Euclid]

Right now i am putting away $20 per child a week into voo on a robinhood recurring investment in order to save for their weddings (money should stay there for 20+ years). Can someone tell me why this is a stupid move? Is there a better way to go about savings of this kind?

In theory, it's a great idea (even probably too little), but is very dependent on what you're investing in.

[Joel]

Right now i am putting away $20 per child a week into voo on a robinhood recurring investment in order to save for their weddings (money should stay there for 20+ years). Can someone tell me why this is a stupid move? Is there a better way to go about savings of this kind?

$20 per week is not enough

[Mareh Makom]

20 a week would come out to about 20k after 20 yrs... per child, and thats just the principal. Invested in the market with the average return of the S&P... ends up being at least close to 25k no? Not enough?

[Mareh Makom]

To be clear its being invested in VOO

[aygart]

20 a week would come out to about 20k after 20 yrs... per child, and thats just the principal. Invested in the market with the average return of the S&P... ends up being at least close to 25k no? Not enough?

25k is not enough for the cheapest wedding plus other marriage expenses today. Probably worse in 20 years

[sguitarist18]

But the total would be a lot more than that based on historical returns. Probably around $40k, no?

[CountValentine]

But the total would be a lot more than that based on historical returns. Probably around $40k, no?

S&P is around 7% adjusted for inflation. So around 45k.

[Shaya E]

S&P is around 7% adjusted for inflation. So around 45k.

Adjusting for inflation just influences buying power. Total dollar amount isn't affected. If I'm not mistaken, total dollar difference is more like 9/10%

[drosenberg88429]

25k is not enough for the cheapest wedding plus other marriage expenses today. Probably worse in 20 years

Per side? Sure it is. (Although bad rabbit hole to go down, especially if you live in Lakewood and have made weddings recently.)

[CountValentine]

Adjusting for inflation just influences buying power. Total dollar amount isn't affected. If I'm not mistaken, total dollar difference is more like 9/10%

10-11 and at 10% it would be around 66k.

[Mareh Makom]

Seems like a good plan then 

[dm123]

Right now i am putting away $20 per child a week into voo on a robinhood recurring investment in order to save for their weddings (money should stay there for 20+ years). Can someone tell me why this is a stupid move? Is there a better way to go about savings of this kind?

Not sure what your age or situation is or will be when you make the weddings iyh, but depending on it are you able to put the money into some type of tax advantaged account like IRA/401K/529/HSA/etc and tap into it for the wedding instead of a taxable robinhood (unless the robinhood is already a tax advantaged account)?

[hvaces42]

Per side? Sure it is. (Although bad rabbit hole to go down, especially if you live in Lakewood and have made weddings recently.)

Delusional, especially 20 years down the road.

[dm123]

Delusional, especially 20 years down the road.

A year ago a friend of mine made a wedding in Lakewood and we reviewed the all in cost from vort to sheva brachos - it was under $30K for their side (girl).
Mind you it was a year ago and everything was basic - no upgrades (except for a photographer at the vort).

Very important to know your own standards and expectations.

[CountValentine]

Very important to know your own standards and expectations.

Bingo!