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literally this big posted:I wrote up a bit about two more high yield CD/savings accounts, Service Credit Union’s Holiday Club savings account ($3k @ 3%) and American Heritage Credit Union’s promotional CD ($2k @ 4% for 4 months). I just got done chatting with customer service reps about each. I appreciate your postings , I keep running into the issue that most of the standard offer ones , like Service, basically are for military and former military (and locals). I get it, just a bummer to look and be like “oh nice, this could be worth looking at,” and then I check and I def won’t qualify.
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Aug 18, 2020 03:46
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Vinny the Shark posted:Would it be a huge mistake to bring down my deferred comp contributions to 3% (the minimum my employer requires) for maybe 6-8 months and use that money to pay off my mortgage and a few other things? Maybe. What interest rate is your mortgage at? There's psychological value in paying down your debt, so sure, maybe, but if its a low interest rate it may not be worth it.
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Aug 18, 2020 03:56
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Just a heads up, American Express has also just lowered their HYSA interest rate from 1.0% to 0.8%. Pretty much the only reason I signed up. Oh well.
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Aug 18, 2020 14:00
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Vinny the Shark posted:I've been putting away 15% of my pre tax income into my deferred compensation program at work since May of 2013. I have a healthy amount built up- nearly $70k- and I've been putting $200 a month into a roth IRA as well since June 2019. I earn a little over $50k gross per year. I wouldn't if I were you. If you're that close then you're not really paying much interest at all by now. Unless your rate is somehow astronomical just stay the course and keep doing a good job. If you only have $5k + regular payments left you will be mortgage free anyways in a few years. What was your term, current maturity (payoff) date, and interest rate?
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Aug 18, 2020 15:04
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Has anyone tried the 1.3% savings from Affirm? I gather that it's a low-service product (lower than Marcus) but ooh that rate.
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Aug 18, 2020 22:06
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Happiness Commando posted:Maybe. What interest rate is your mortgage at? There's psychological value in paying down your debt, so sure, maybe, but if its a low interest rate it may not be worth it. H110Hawk posted:I wouldn't if I were you. If you're that close then you're not really paying much interest at all by now. Unless your rate is somehow astronomical just stay the course and keep doing a good job. If you only have $5k + regular payments left you will be mortgage free anyways in a few years. What was your term, current maturity (payoff) date, and interest rate? The interest rate is rather low- 3.125%. I owe a little over $15k right now and I've been paying this off very aggressively. I have a 15 year loan I took out in December of 2016 and if I stay my course without diverting retirement funds towards the mortgage I would have this paid off by late spring/early summer of 2022. If I divert my retirement funds I don't know exactly when I'll have the mortgage paid off, but doing so would mean an extra $450 per month going towards the loan, easy. I estimate that I could have it paid off by May/June of next year. I'm already paying quite a bit extra against it each month, but this would really put me over the top quickly. I'll admit that my reasons for doing this are mostly psychological, not financial. I absolutely despise paying interest with a passion, and my house just doesn't feel like it's mine as long as I owe money on it. I figure that 6-8 months of effectively pausing my retirement contributions is a brief enough period of time that I could make up for it with the increased contributions I could make with 20 years ahead of me.
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Aug 18, 2020 23:00
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Vinny the Shark posted:The interest rate is rather low- 3.125%. I owe a little over $15k right now and I've been paying this off very aggressively. I have a 15 year loan I took out in December of 2016 and if I stay my course without diverting retirement funds towards the mortgage I would have this paid off by late spring/early summer of 2022. If I divert my retirement funds I don't know exactly when I'll have the mortgage paid off, but doing so would mean an extra $450 per month going towards the loan, easy. I estimate that I could have it paid off by May/June of next year. I'm already paying quite a bit extra against it each month, but this would really put me over the top quickly. Your feelings are valid and it isn't a bad idea, I just wouldn't miss out on retirement limit to pay it off earlier than you are. It is more optimal to not pay it off faster at 3.125%. I would only do it after maxing your IRA and such m
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Aug 19, 2020 00:40
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Feelings are overrated, max your retirement savings.
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Aug 19, 2020 01:06
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You will always owe property taxes, the government can eminent domain away your property, your house will never truly be yours, you can own the earth and still all you'll own is earth until
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Aug 19, 2020 01:09
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Chad Sexington posted:To just assess gold as a store of value using this chart with no accompanying historic context is pretty funny. It's probably more accurate to say that, at least since 1971, gold has been a hedge against monetary crisis. That's why you see it sort of uncouple from inflation between 1980-2000 and reemerge after the dot com bubble. Sir, this is the buy and hold thread.
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Aug 19, 2020 10:15
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enojy posted:Just a heads up, American Express has also just lowered their HYSA interest rate from 1.0% to 0.8%. Pretty much the only reason I signed up. Oh well. Yeah it sucks, but crazy enough it’s still better than the 0.1% interest most bank savings account have stayed at for over 10 years now. Hopefully, whenever interest rates go up (which would be a sign of Economic recovery as well) banks like AmEx and Ally will raise their savings rates again too. Not that I expect that anytime soon.
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Aug 19, 2020 11:36
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doingitwrong posted:Sir, this is the buy and hold thread. Well I did roll those gains into AMZN, which I plan to hold so  And AAPL, which I'll probably flip after the split.
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Aug 19, 2020 13:06
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Duckman2008 posted:Yeah it sucks, but crazy enough it’s still better than the 0.1% interest most bank savings account have stayed at for over 10 years now. Is there any real difference between these bolded two from a savings perspective? I'm looking for any sort of savings account that's better than the pathetic yield I'm getting from my local credit union. My father recommended AmEx due to the (then) higher rate of 1%, and that his has credit cards with them. The rate was obviously the bigger deal. I see Ally mentioned often in the thread, is there something they offer for an internet savings account that would make them more attractive than AmEx?
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Aug 19, 2020 19:52
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The major HYSAs which off the top of my head are Ally, Amex, Capital One, and Marcus (GS), basically move together since the underlying macroeconomic conditions and benchmark rates are the same. I personally think Marcus' web interface is better than Ally's. I haven't used the others so cannot speak to that. Capital One has physical branches (Cafes loool) and the other three are entirely online.
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Aug 19, 2020 20:03
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I use Discover Savings since it's usually at the top of the market and last to drop their rates. No physical locations but they transfer to my checking account within about 3 business days when I need it!
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Aug 19, 2020 20:07
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I'm thinking about investing in gold  e: I slept with the windows open last night because it was so loving hot so now everything in my house smells like smoke and everything sucks Mu Zeta fucked around with this message at 21:40 on Aug 19, 2020 |
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Aug 19, 2020 21:27
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Mu Zeta posted:I'm thinking about investing in gold Should invest in water. And almonds.
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Aug 19, 2020 21:35
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doingitwrong posted:Should invest in water. And almonds. Nestle already owns all his water.
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Aug 20, 2020 01:22
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Anti-Hero posted:Is there any real difference between these bolded two from a savings perspective? Other than personal preference they are mostly the same.
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Aug 20, 2020 03:09
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doingitwrong posted:Should invest in water. And almonds. Those are the same thing in California.
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Aug 20, 2020 03:26
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jokes posted:Those are the same thing in California. Almonds are how you concentrate your water wealth to make it easier to transport and trade large quantities of it. Water is more liquid though. 
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Aug 20, 2020 05:13
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Mu Zeta posted:I'm thinking about investing in gold
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Aug 20, 2020 05:56
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KYOON GRIFFEY JR posted:The major HYSAs which off the top of my head are Ally, Amex, Capital One, and Marcus (GS), basically move together since the underlying macroeconomic conditions and benchmark rates are the same. I personally think Marcus' web interface is better than Ally's. I haven't used the others so cannot speak to that. Capital One has physical branches (Cafes loool) and the other three are entirely online. I ditched Capital One for Amex a few years ago because Capital One had a consistently lower rate than the others and I have an Amex card. There really isn't an advantage there, unfortunately. They have the same login (now, finally) but they are run by separate entities so there's no real integration. When I opened that account it earned 5%. What a marvel.
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Aug 20, 2020 09:53
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Anti-Hero posted:Is there any real difference between these bolded two from a savings perspective? I have some money in SmartyPig (a Sallie Mae subsidiary). They're at 1.2% up to $2500, 1.1% up to $10k, and 0.9% after that. Depending on how much you're going to park, it's a decent service with a fine interface.
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Aug 20, 2020 14:18
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Good-Natured Filth posted:I have some money in SmartyPig (a Sallie Mae subsidiary). They're at 1.2% up to $2500, 1.1% up to $10k, and 0.9% after that. Depending on how much you're going to park, it's a decent service with a fine interface. Is this a bank where they can change the rate or a CD ?
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Aug 20, 2020 15:27
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If anyone's looking for a podcast to listen to, thread favorite Ben Felix – creator of videos like https://www.youtube.com/watch?v=K3lP3BhvnSo has a podcast, The Rational Reminder, that he co-hosts with one of his financial advisor co-workers (who sounds kinda like Barney the accountant from Parks and Rec). I've been listening to it for the last few weeks, and its pretty good. They talk about evidence driven investing (index funds and stuff), related macroeconomic trends, and have very interesting interviews with economists and other advisors. It presents a fascinating look at how they, as advisors, view everything we talk about in the thread. The show is nominally about Canadian personal finance, but most of the material (and guests) is applicable to the US and wider.
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Aug 20, 2020 16:51
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Duckman2008 posted:Is this a bank where they can change the rate or a CD ? It's a bank. The rate is subject to change and has changed from when I initially opened an account there (the lower tier was 1.5% when I first opened it several years ago).
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Aug 20, 2020 17:47
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What is an APR that you can pay just the monthly while prioritizing retirement savings? I'm approaching my high interest debt being paid off. Going into the new year, the rest is going to be about 3k at 8.75%. I could pay that off in ~3-4 months (500/m extra) or start working towards maxing my IRA. After that will be my student loans at ~4.5% and my medical debt that currently at 1k and 0%. I'm guessing the real answer is pay it off in the first quarter and use all that extra for the rest of the year and just make extra payments on student loans as I can. Like I'm going to be ending the year with 41k in retirement savings at 32. I feel like this next year I should be really throwing cash at my retirement vehicles. This year I'm saving 13,000 and would love to bump it up to more. cheese eats mouse fucked around with this message at 18:07 on Aug 20, 2020 |
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Aug 20, 2020 18:05
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I'd say to pay off the 8.75% as soon as possible. Paying off debt at x% APR is equivalent to investing in something with x% guaranteed rate of return and 8.75% guaranteed return is something I don't think anyone would turn down. You can definitely slow roll your medical debt, but your student debt is in the hazy in-between so it's your call. In general, I'd say 5% is around where the decision gets murky.
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Aug 20, 2020 18:20
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There is no perfect answer but IRAs are a special "use it or lose it" case. That means the question is not merely a comparison of rates, but a comparison between the benefit of making a contribution now and letting it earn over your working life, vs. never making that contribution and reducing your interest expense on the debt instead.
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Aug 20, 2020 18:33
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But also consider that paying off debt is like making a Roth contribution since you are paying it with after-tax money and "returns" you gain do not get taxed.
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Aug 20, 2020 18:36
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If you can pay it off in 3-4 months, you can then take that 500/mo for early 2020 and put it in your 2019 IRA space. I would probably do that. As stated, 8.75% is pretty dope returns, and it's guaranteed. You can still contribute to your IRA as late as tax filing day for the previous year.
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Aug 20, 2020 18:39
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I want to save enough money to buy a house in cash, but I'm not sure what to do except keep it all in a savings account, in the meantime. Same for my truck, ought to go ahead and pay it off. I don't keep a budget, I used to keep a ledger of everything but I know it will be high maintenance, I'm very OC about stuff like that.
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Aug 20, 2020 20:32
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excellent bird guy posted:I want to save enough money to buy a house in cash, but I'm not sure what to do except keep it all in a savings account, in the meantime. Same for my truck, ought to go ahead and pay it off. I don't keep a budget, I used to keep a ledger of everything but I know it will be high maintenance, I'm very OC about stuff like that. CDs are ideal for holding money for a specific time frame for a specific expense like buying a house.
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Aug 20, 2020 20:52
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Unless you live somewhere where homes are extremely cheap, buying a house in cash is usually not a great move considering the bank will loan you money at very low interest rates to buy a house.
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Aug 20, 2020 22:13
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Good-Natured Filth posted:I have some money in SmartyPig (a Sallie Mae subsidiary). They're at 1.2% up to $2500, 1.1% up to $10k, and 0.9% after that. Depending on how much you're going to park, it's a decent service with a fine interface. The rates are good but man anything tied to Sallie Mae can go to hell.
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Aug 21, 2020 04:43
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KYOON GRIFFEY JR posted:Unless you live somewhere where homes are extremely cheap, buying a house in cash is usually not a great move considering the bank will loan you money at very low interest rates to buy a house. Right, good point. I think a 50% down payment would be ideal though as that would negate having debt over your head for the rest of your life. My sort of big master plan perfect scenario was to save $1,000 a week back while working but it just stays in a savings account
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Aug 21, 2020 13:13
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20% is fine. You avoid PMI and get in to your house sooner than if you shoot for 50%. You still have a rent obligation hanging over your head.
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Aug 21, 2020 13:19
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KYOON GRIFFEY JR posted:20% is fine. You avoid PMI and get in to your house sooner than if you shoot for 50%. You still have a rent obligation hanging over your head. Right, I think with buying a house comes 1 major consideration: Knowing where you want to live the rest of your life. I don't know yet, I am living in hotels and airbnbs and move all over the country for work. Putting off a house for another 4 or 5 years would be fantastic. But in the meantime, I guess a cd.
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Aug 21, 2020 14:23
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Sounds like you got it locked down!
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Aug 21, 2020 15:30
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