Savings/investments/bonds Master Thread.

[Euclid]

syndication probably should legally be only for accredited investors

I assume you didn't mean the literal definition of this.

or a gross income for each of the last two financial years of at least $250,000.

https://en.m.wikipedia.org/wiki/Accredited_investor

A good portion of the frum community would qualify

[ExGingi]

I assume you didn't mean the literal definition of this.
https://en.m.wikipedia.org/wiki/Accredited_investor

A good portion of the frum community would qualify

And unfortunately many who do not still put money into these kinds of things. With a good (experienced, proper due diligence and risk management), honest and transparent GP they might be OK. But unfortunately I am aware of people who shouldn't have put money in syndication that got burned (and they might even not be aware how and why things went wrong, thinking it's just bad luck on the deal they got into).

[whacked1]

What do you mean?

If your losses are greater than your passive income, you arent picking up the loss (with the exclusions of real estate professionals). So if you are an LP and the GP accelerates the depreciation on the property and now you have a large loss on your K1, unless you have other gains which can be offset, you don't really gain. (Disclaimer, you may be able to roll over to the following year, I'm not an accountant and it never applied to me as i file as a re pro). Here is a nice article breaking it down.

https://www.realized1031.com/blog/can-rental-depreciation-offset-ordinary-income#:~:text=The%20IRS%20does%20not%20allow,to%20depreciation%20or%20operating%20expenses.

[dm123]

Somebody comes to your house, you can show them a first-edition Shulchan Aruch. But you’re not going to say, hey, come look at my T-bills.”

People really don't show their guests their T-Bill collection? Not at all the impression I got from this thread! 

https://www.jta.org/2023/03/21/united-states/inside-the-auction-house-driving-the-rare-book-craze-in-the-orthodox-world

[Yakov15]

And unfortunately many who do not still put money into these kinds of things. With a good (experienced, proper due diligence and risk management), honest and transparent GP they might be OK. But unfortunately I am aware of people who shouldn't have put money in syndication that got burned (and they might even not be aware how and why things went wrong, thinking it's just bad luck on the deal they got into).

Lots of people do make good money with RE syndications though. And in general RE is far from the riskiest things out there, even if it’s not the best deal or the best GP. The people that got burned were in a standard deal with a normal GP? I’m curious what went completely wrong if you can share.

[yomo]

If your losses are greater than your passive income, you arent picking up the loss (with the exclusions of real estate professionals). So if you are an LP and the GP accelerates the depreciation on the property and now you have a large loss on your K1, unless you have other gains which can be offset, you don't really gain. (Disclaimer, you may be able to roll over to the following year, I'm not an accountant and it never applied to me as i file as a re pro). Here is a nice article breaking it down.

https://www.realized1031.com/blog/can-rental-depreciation-offset-ordinary-income#:~:text=The%20IRS%20does%20not%20allow,to%20depreciation%20or%20operating%20expenses.

I file as a real estate professional and don't get to deduct losses from non passive income. Are you sure?

[nucheiner]

Lots of people do make good money with RE syndications though. And in general RE is far from the riskiest things out there, even if it’s not the best deal or the best GP. The people that got burned were in a standard deal with a normal GP? I’m curious what went completely wrong if you can share.

My understanding is that there was a new kind of player, a "fundraiser" or something like that. This guy just had enough reputation to solicit (stupid) peoples money and pass to an inexperienced GP who otherwise was unable to get investors). So this worked well as long as everything was on a natural up and up and these guys looked smart.

[whacked1]

I file as a real estate professional and don't get to deduct losses from non passive income. Are you sure?

Yes, my real estate losses lower my agi from my w2.

[Fish Tank]

I file as a real estate professional and don't get to deduct losses from non passive income. Are you sure?

Time for a new accountant   

[yaakovely]

Yes, my real estate losses lower my agi from my w2.

I believe it lowers a spouses' income as well if filing jointly. Though, one must qualify as a real estate professional. The IRS has strict guidelines for what qualifies..

[whacked1]

I believe it lowers a spouses' income as well if filing jointly. Though, one must qualify as a real estate professional. The IRS has strict guidelines for what qualifies..

Correct on both parts.

[CountValentine]

Just bought my first CD. Can someone explain where I find the "open order period" and "trade date"?
ETA: Does the price I receive change?

[sillypainter]

Robinhood Gold now went up to 4.40%APY. Am loving it. You are insured up to 1.5 million FDIC because they partner with 6 banks, giving you 250kinusrance per bank.

[CountValentine]

Robinhood Gold now went up to 4.40%APY. Am loving it. You are insured up to 1.5 million FDIC because they partner with 6 banks, giving you 250kinusrance per bank.

Numerous places are over 5%. You don't want to play whac-a-mole?

[ExGingi]

Robinhood Gold now went up to 4.40%APY. Am loving it. You are insured up to 1.5 million FDIC because they partner with 6 banks, giving you 250kinusrance per bank.

Almost all brokerages have a bank deposit program, where they split the cash between multiple banks.

[sillypainter]

Numerous places are over 5%. You don't want to play whac-a-mole?

I opened with UFB, but i was never able to talk to someone by phone, so I quit. Robinhood sounds the most trustable so far.

[lazertek]

Numerous places are over 5%. You don't want to play whac-a-mole?

Current CD rates available through Schwab CD OneSource
See below for a selection of today's rates

Maturity Ranges   Rates up to
1-3 Month CDs   5.25% APY
4-6 Month CDs   5.32% APY
7-9 Month CDs   5.39% APY
10-18 Month CDs   5.35% APY
https://www.schwab.com/certificates-of-deposit

[zh cohen]

Robinhood Gold now went up to 4.40%APY.

Don't you have to pay a monthly fee for Robinhood Gold?

[ExGingi]

Current CD rates available through Schwab CD OneSource
See below for a selection of today's rates

Maturity Ranges   Rates up to
1-3 Month CDs   5.25% APY
4-6 Month CDs   5.32% APY
7-9 Month CDs   5.39% APY
10-18 Month CDs   5.35% APY
https://www.schwab.com/certificates-of-deposit

I was browsing around earlier this week and bought a CD, thinking that I am buying a 1 month CD, only the next day did I realize that the maturity date was in 2024... Was totally my fault. I played around with various parameters on the search.

[nucheiner]

On Schwab  the CD rates display the coupon rate and the APR rate. Can someone explain how the APR rate is higher than the coupon rate and which rate to use when comparing to Treasury rates ? (Fidelity does not give this data. also seems that different brokerages have have different offerings at times, so worth shopping around.)