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EugeneJ posted:My mom has some "Universal Life" policy that has a $100,000 payout when she dies. I looked into these, and apparently they were marketed in the 1980s with 3 benefits: Are you being serious? A CD? May well just cash it out, toss an extra $20 on it, and stuff it into a pillow case. Current rates are horrible for CDs. You could have suggested to 1035 exchange the cash value into a fixed annuity, at least with those you'll be getting full percentage points of interest. That's not even considering that the current cash value may be enough to keep the policy in place with no growth through her life expectancy. You can PM me if you actually want help with any of this, doesn't sound like she does, but I'm just putting that offer out there.
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Jul 12, 2017 17:19
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Hoodwinker posted:Very true. Who can you trust? Only the horses, I've found. Only the horses. Christopher Reeves trusted horses. Just saying, you can't even trust a horse. Best to stick with ponies.
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Jul 12, 2017 17:23
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Tiny Brontosaurus posted:The ones in my child pedagogy textbook in college v If anyone's library gives them EBSCO / JSTOR access they may be able to find something. It was priceless when I was at a community college with no library to speak of.
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Jul 12, 2017 17:49
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v Sorry for the useless answer, it's something I found interesting but didn't pursue professionally so I don't have access to any journals about it
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I only read this thread but thought this might be appreciated
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Jul 12, 2017 18:49
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22 Eargesplitten posted:If anyone's library gives them EBSCO / JSTOR access they may be able to find something. It was priceless when I was at a community college with no library to speak of. This isn't a derail because this is about being GWM with learnin', ok mods?!? Google Scholar is surprisingly robust and has a lot of free resources, I often rely on it during my freelance writing when helping students in academia who don't know the difference between a mommy blog post on vegan alternative treatments to cancer and a robust medical article on the potential hazards of vaping tobacco. No logins required if you sort by "include only those with a PDF" or something like that. You might not have access to the whole enchilada (some articles are blocked or only accessible thru a database login) but it's a solid starting point for lit reviews, mining other sources, etc if you want to try and find a little more objective info on any given topic
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Jul 12, 2017 18:53
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i wonder if there's any big bwm stories with memeing that aren't bwl separately? i mean, the act itself is free but it's done by foolish people, so there has to be a correlation
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Jul 12, 2017 19:02
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tastefully arranged labia posted:I only read this thread but thought this might be appreciated What are you doing to that poor bird?! Put that back! Right away!
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Jul 12, 2017 19:53
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Solice Kirsk posted:Are you being serious? A CD? May well just cash it out, toss an extra $20 on it, and stuff it into a pillow case. Current rates are horrible for CDs. You could have suggested to 1035 exchange the cash value into a fixed annuity, at least with those you'll be getting full percentage points of interest. That's not even considering that the current cash value may be enough to keep the policy in place with no growth through her life expectancy. You can PM me if you actually want help with any of this, doesn't sound like she does, but I'm just putting that offer out there. Current rates at 2.25% with her balance at $40k would give her $900 annually in interest (plus more as it starts to compound) If she lives to 90 she will have paid $70,000 for a $100,000 life insurance policy - if she takes it out and puts it in the CD, she'll have paid $40,000 that will grow to $70,000 without any further premium payments It's basically a wash, but why bother with the premium payments if they're likely to grow as she ages? I don't want her to take out a reverse mortgage to pay $800/month for her premiums, and knowing her she'd do that to keep the policy alive
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Jul 12, 2017 20:38
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Are interest rates for things like savings accounts and CDs ever going to be worth much again? When I was a kid I remember learning all this stuff about the magic of compound interest, but I haven't seen more than a 1% return on something I'd feel safe parking my money in as a layperson in my entire adulthood.
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Jul 12, 2017 20:40
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Tiny Brontosaurus posted:Are interest rates for things like savings accounts and CDs ever going to be worth much again? When I was a kid I remember learning all this stuff about the magic of compound interest, but I haven't seen more than a 1% return on something I'd feel safe parking my money in as a layperson in my entire adulthood. It's based largely on the Fed rate. So, if the Fed ever raises rates a significant amount it will. Are you including an IRA as something you don't feel is safe? Because you shouldn't be. Even a crazy conservative mostly cash allocation will be better than 1%. Leon Trotsky 2012 fucked around with this message at 20:47 on Jul 12, 2017 |
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Jul 12, 2017 20:42
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Leon Trotsky 2012 posted:It's based largely on the Fed rate. So, if the Fed ever raises rates a significant amount it will. Oh no I was doing some extreme generalization of course. IRAs are great.
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Jul 12, 2017 20:53
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Tiny Brontosaurus posted:Are interest rates for things like savings accounts and CDs ever going to be worth much again? When I was a kid I remember learning all this stuff about the magic of compound interest, but I haven't seen more than a 1% return on something I'd feel safe parking my money in as a layperson in my entire adulthood. Savings accounts have never really been the place to get the magic of compound interest. Back when savings accounts had higher interest rates, lending interest rates and inflation were also much higher making it all pretty much a wash. Sure you used to be able to find 5% savings accounts, but your mortgage was 12%. You'll never beat inflation in a zero-risk account.
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Jul 12, 2017 20:55
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Guinness posted:Savings accounts have never really been the place to get the magic of compound interest. Back when savings accounts had higher interest rates, lending interest rates and inflation were also much higher making it all pretty much a wash. Yeah but as a kid I didn't have a mortgage 
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Jul 12, 2017 20:57
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Well now that I'm locked in at 3.375%, can interest rates please rocket back up? Oh wait, that'll make my home value drop.
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Jul 12, 2017 21:12
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No Butt Stuff posted:Well now that I'm locked in at 3.375%, can interest rates please rocket back up? Just arrange for a famous person to die there. Permanent boost in $$$
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Jul 12, 2017 21:17
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I guess I could invite Lowtax over. He can't have too many years left.
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Jul 12, 2017 21:24
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No Butt Stuff posted:I guess I could invite Lowtax over. He can't have too many years left. She said famous.
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Jul 12, 2017 21:55
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KingSlime posted:This isn't a derail because this is about being GWM with learnin', ok mods?!? Before this topic gets overlooked, Sci-hub is the place to go when you don't have access to the millions of dollars required for academic journal access. The guy who invented modern journal ripoff practices is a real evil fucker: https://www.theguardian.com/science/2017/jun/27/profitable-business-scientific-publishing-bad-for-science The woman who runs Sci-Hub is pretty cool though: http://bigthink.com/neurobonkers/a-pirate-bay-for-science
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Jul 12, 2017 22:00
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Tiny Brontosaurus posted:Are interest rates for things like savings accounts and CDs ever going to be worth much again? When I was a kid I remember learning all this stuff about the magic of compound interest, but I haven't seen more than a 1% return on something I'd feel safe parking my money in as a layperson in my entire adulthood. Synchrony (formerly GE Capital) has 1.25%+ CDs, or did pretty recently at least. I think their savings accounts are decent too. They're FDIC insured, you just have to be willing to deal with an internet bank. Not saying it's a great idea or even a great rate, but I use it for extra cash I want semi-liquid
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Jul 13, 2017 00:32
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took a picture for this thread
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Jul 13, 2017 00:35
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Guinness posted:You'll never beat inflation in a zero-risk account. TIPS?
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Jul 13, 2017 00:43
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literally no such thing as a zero risk account FDIC insured? but you have to price in the risk the FDIC implodes cuz orangeman crony was embezzling all the money allocated or something idiotic like that literal blocks of gold? lol tomorrow we find a russian gold mine with 90% of the gold in the world treasury bonds? tips? lol orange avatar of cocaine
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Jul 13, 2017 01:23
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moana posted:took a picture for this thread 
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Jul 13, 2017 01:30
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I've never yet met a baby who was a good poster.
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Jul 13, 2017 01:56
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They just shitpost a lot and cry if you call them out on it.
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Jul 13, 2017 02:00
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moana posted:took a picture for this thread Extremely forums poster John Smith voice: You should be charging that human rent because they live in your house and consume your goods. I hope you're keeping a running tab of what they owe you so you can present the bill to them when they can assume fiduciary responsibility.
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Jul 13, 2017 02:18
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Cloks posted:Extremely forums poster John Smith voice: You should be charging that human rent because they live in your house and consume your goods. I hope you're keeping a running tab of what they owe you so you can present the bill to them when they can assume fiduciary responsibility.
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Jul 13, 2017 03:37
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EugeneJ posted:Current rates at 2.25% with her balance at $40k would give her $900 annually in interest (plus more as it starts to compound) What year does the inforce illustration show the premiums increasing? Is there a life insurance need? If she want's insurance she can look into a guaranteed UL policy or something. The premiums never go up for that, but they're structured to lose all cash value at a certain point and you can exchange the old policy towards the new one. Insurance isn't an investment and treating it like one isn't always the best idea.
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Jul 13, 2017 03:39
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DarkHorse posted:Synchrony (formerly GE Capital) has 1.25%+ CDs, or did pretty recently at least. I think their savings accounts are decent too. They're FDIC insured, you just have to be willing to deal with an internet bank. Pro tip, GSBank offers 1.2% on their savings account. Why park it in a CD when you can have it liquid!
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Jul 13, 2017 04:37
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curufinor posted:Yeah, all the vocational stuff is taught in a nice modern way in, say, Korea. In America, there is still, i think, a literal plurality who teach kids checkbooks and not anything online and useful. Do the better schools have better saving face classes? That seems to be the most important thing to learn in Eastern business.
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Jul 13, 2017 09:34
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Korean education system in particular went from mud huts to calculusin10thgrade in like 50 years, so a lot of the face bullshit is from people who were mostly educated in mud huts (ok, pitiless concrete schools). Doesn't say that the creative thinking is there, but if you studiously avoid workplaces with people age >40 in them it'll be ok
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Jul 13, 2017 09:47
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I feel like grad school is a classic bwm step in life but it doesn't get as much love as horses dying of thinkingofants https://www.reddit.com/r/personalfinance/comments/3393fr/i_have_no_idea_how_to_pay_for_grad_school/
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Jul 13, 2017 11:01
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Someone might have already mentioned this but the American banking system is still backwards enough that the most convenient free way to transfer money between people is, a lot of the time, a check (especially if your bank will instantly grant you access to a portion of it while it processes). Balancing the checkbook is fairly useless but knowing how checks work is still valuable, at least until we have the fast and easy bank to bank transfers the rest of the developed world has had for decades. I kinda thought checks were pretty self-explanatory too but I have several friends who are very smart yet can't figure them out, and come to me and ask "Ok what the heck do I put in the 'memo' line? Is that legally binding? Do I put my account number on this thing? Wait it's already on it?! How did it get there??"
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Jul 13, 2017 14:11
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At least if I have friends who use my bank, I can send them money that way. If they use a different bank, then it's impossible and I give up.
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Jul 13, 2017 14:12
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No Butt Stuff posted:At least if I have friends who use my bank, I can send them money that way. If they use a different bank, then it's impossible and I give up. I use a bank and a credit union (trying to shift all the way to the credit union but it's a pain to get everything moved over so it's just sorta split now) and the bank has bank-to-bank transfers with other banks for a lovely fee, and the credit union supposedly has it for free but they use some third-party servicer whose website is horribly broken and doesn't accept any account number I ever enter into it 
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Jul 13, 2017 14:14
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ate all the Oreos posted:Someone might have already mentioned this but the American banking system is still backwards enough that the most convenient free way to transfer money between people is, a lot of the time, a check (especially if your bank will instantly grant you access to a portion of it while it processes). Balancing the checkbook is fairly useless but knowing how checks work is still valuable, at least until we have the fast and easy bank to bank transfers the rest of the developed world has had for decades. Just venmo it grandpa. And the "for"/"memo" line on a check is where you put a joke like "eating a bug" or "gymnastic lessons"
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Jul 13, 2017 14:40
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C.H.O.M.E posted:Just venmo it grandpa. I thought venmo had a fee, or at least had a day or two lag transferring the money into your bank account so you can actually use it. Like if it doesn't need to be instant (and the other person has an account) I usually use PayPal because bank transfers in the US with paypal are free, but then getting the money out of paypal and into your actual bank can take one to three days for reasons.
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Jul 13, 2017 14:45
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C.H.O.M.E posted:Just venmo it grandpa. Venmo is owned by Paypal.
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Jul 13, 2017 14:47
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I dutifully balanced my checkbook once, as my mother had taught me, the first month after I left home. Then I realized it was perfectly pointless because of itemized bank statements. This was over 20 years ago. It hasn't become more important since then.
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Jul 13, 2017 14:52
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It's probable that we shouldn't call it 'balancing a checkbook' anymore because even people who write checks probably aren't filing out the register and then checking it against their bank statement, but the basic concept that it is trying to teach you is reconciling your transactions with your assets so that you know where your money is going and that there aren't any mistakes. That is actually a pretty significant and valuable lesson that a lot of people probably don't get until they gently caress up whatever self-management they have developed and overdraw/bounce payments and get to deal with the fallout from doing so. It's also the second half of the budgeting process that a lot of people miss; many people do the 'make a budget' thing and then are sloppy about following through and confirming where all their spending has actually occurred. Not that we are any better at teaching people that first step, either.
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Jul 13, 2017 14:56
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