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The cryptocurrency exchange Gemini is currently paying 8% APY on their USD-backed stablecoin, GUSD. (A stablecoin is a cryptocurrency that's pegged to a real-world currency.) The rate should last about as long as the current bull market in crypto. My close friends think Gemini has zero chance of defaulting. (And they're paranoid enough to be worried about other exchanges.) (USER WAS PUT ON PROBATION FOR THIS POST)
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Oct 17, 2021 20:13
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I think I've used up my "does not belong in this thread" tokens so instead I'll just say: lol
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Oct 17, 2021 20:19
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The cryptocurrency exchange in my butt is currently paying 8% APY on its USD-backed stablecoin, poo poo. (A stablecoin is a cryptocurrency that's pegged to a real-world currency.) The rate should last about as long as the current bull market in crypto. My close friends think my butt has zero chance of defaulting. (And they're paranoid enough to be worried about other exchanges.) Buy my poo poo now!
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Oct 17, 2021 20:38
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Is your butt deflationary, or inflationary? Economists continue to predict inflationary butts having better performance among anacondas, according to sworn affidavits.
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Oct 17, 2021 20:42
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https://www.coindesk.com/business/2020/08/04/genesis-crypto-lending-rebounds-in-2q-firm-acknowledges-unsecured-loans/ posted:Genesis' Crypto Lending Rebounds in 2Q; Firm Acknowledges Unsecured Loans Please don't risk emergency or earmarked funds on this, or make it the basis of your long-term saving strategy.
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Oct 17, 2021 20:48
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Cugel the Clever posted:my butt is currently pegged
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Oct 17, 2021 22:47
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Xom posted:The cryptocurrency exchange Gemini is currently paying 8% APY on their USD-backed stablecoin, GUSD. (A stablecoin is a cryptocurrency that's pegged to a real-world currency.) The rate should last about as long as the current bull market in crypto. My close friends think Gemini has zero chance of defaulting. (And they're paranoid enough to be worried about other exchanges.) instead of investing in buttcoins you should invest in T&A instead, see thread title
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Oct 17, 2021 23:06
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I've been experimenting with covered call ETF's recently (QYLD) for the dividend yield, and I'm wondering if it's even worth it for me to continue buying more. The monthly dividends are nice and my thought process was to DCA each month and let it compound until retirement. I'm still several decades away from retirement, so is dividend investing in my IRA really even worth it right now?
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Oct 17, 2021 23:09
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Xom posted:The cryptocurrency exchange Gemini is currently paying 8% APY on their Gemini is SoFi with $2 billion USD cash in the bank
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Oct 18, 2021 00:27
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pokeyman posted:The middle ground, as you might've guessed, is paying the mortgage sooner but not asap, then investing the remainder. Set up a lil spreadsheet or find a calculator so you can see what different scenarios look like. Thank you, that's really good advice! I've done some spreadsheeting and it makes it very obvious that investing the majority of my extra funds is the smartest choice over the long term, even with worse-case returns. For pure peace of mind I'll pay a tiny bit extra on the mortgage (future-proofing against any extreme mortgage rate changes), with at least 3.5/4 of my extra funds into investing. As time goes on I might get more comfortable not putting anything extra on the mortgage and going full tilt on investing, will see.
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Oct 18, 2021 09:17
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Got one, thanks! fatman1683 fucked around with this message at 21:39 on Oct 18, 2021 |
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Oct 18, 2021 14:15
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I had a defined benefit pension at a former employer. When I left 6 years ago, the lump sum payout for immediate distribution was $40k. It is now $100k due to me being that much closer to retirement as well as dropping interest rates. I understand the lump sum calculation is a function of interest rates, higher rates = lower lump sum. So I've been thinking about timing the market and taking the distribution and rolling it into my new employer's 401k. I confirmed with my 401k custodian that they can do this. I'm trying to wrap my mind around whether it's a good idea or not. Initially I was concerned about the viability of the pension fund (public company). But it seems well funded according to the annual letter they send out. Plus the PBGC guarantees your payout will be there so I'm not as concerned on the front. I would still like to have control over the money to invest how I see fit according to my preferred asset allocation. But on the other hand, having a guaranteed monthly payment when I retire also sounds good. Presumably the pension calculation would be superior to an annuity I tried to purchase on my own, the logic there being that the pension is calculated using a wide range of participants' age/health (both sick and healthy) where-as an annuity likely has participants who are in good enough health to worry about outliving their assets. Has anyone gone through this process before?
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Oct 18, 2021 17:53
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spf3million posted:I had a defined benefit pension at a former employer. When I left 6 years ago, the lump sum payout for immediate distribution was $40k. It is now $100k due to me being that much closer to retirement as well as dropping interest rates. Don't time the market. (I don't have a good enough understanding of pensions to provide any other thoughts one way or another).
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Oct 18, 2021 17:57
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fatman1683 posted:So it seems like HMBradley has gone invite-only, does anyone have a couple of invites they can share for myself and my wife? Thanks! PM'd you, let me know if it doesn't work.
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Oct 18, 2021 19:17
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no_tears posted:I've been experimenting with covered call ETF's recently (QYLD) for the dividend yield, and I'm wondering if it's even worth it for me to continue buying more. The monthly dividends are nice and my thought process was to DCA each month and let it compound until retirement. I'm still several decades away from retirement, so is dividend investing in my IRA really even worth it right now? At first I thought you were talking about buying into a fund that focuses on companies that pay good dividends, which has historically been a worse proposition than buying a whole-market fund, although not a terrible proposition. However, I looked into QYLD, and instead it turns out that I have no idea what this fund is supposedly doing. Here's its performance since inception, compared to the total U.S. market fund VTI:  
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Oct 18, 2021 19:32
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That is just price action not including dividends. Granted it's still bad, but not as bad, if you include dividends.
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Oct 18, 2021 20:07
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spf3million posted:I had a defined benefit pension at a former employer. When I left 6 years ago, the lump sum payout for immediate distribution was $40k. It is now $100k due to me being that much closer to retirement as well as dropping interest rates. I took a lump sum pension payout (but for less money - low 5 figures). My primary concern was keeping track of the account, and keeping all my information up to date, and hoping they don't make an administrative error over the next 40 years or whatever. Also a nonzero chance that they do a pension buyout and transfer your pension to an annuity company of their choosing, and you lose PBGC protection anyway. Though some (all?) states have separate annuity guarantees as well, which I believe applies to both annuities you purchase yourself and pension buyout annuities. If you want to see the difference, you can try getting a quote for a deferred annuity for the actual pension stream of payments.
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Oct 18, 2021 20:17
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ranbo das posted:That is just price action not including dividends. Granted it's still bad, but not as bad, if you include dividends. Right, but what is it doing? It's clearly not buying and holding, or even engaging in the kind of moderate turnover you might expect as corporations rise into and fall from the "good dividend payers" list. The fund is playing some kind of financial wizard game. I would not trust any such thing.
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Oct 18, 2021 20:29
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It builds wealth, Charlie
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Oct 18, 2021 21:13
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Kylaer posted:Right, but what is it doing? It's clearly not buying and holding, or even engaging in the kind of moderate turnover you might expect as corporations rise into and fall from the "good dividend payers" list. The fund is playing some kind of financial wizard game. I would not trust any such thing. It’s selling covered calls on a portfolio. They’re collecting and distributing the premiums from that activity.
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Oct 18, 2021 21:13
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I mean, it's not mysterious. You can just look it up. https://www.globalxetfs.com/funds/qyld/ quote:The Global X Nasdaq 100 Covered Call ETF (QYLD) follows a “covered call” or “buy-write” strategy, in which the Fund buys the stocks in the Nasdaq 100 Index and “writes” or “sells” corresponding call options on the same index. The Global X Nasdaq 100 Covered Call ETF (QYLD) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the CBOE Nasdaq-100 BuyWrite V2 Index.
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Oct 18, 2021 21:13
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Wizard games. That fund may in fact be skilled at it but it sounds more suitable for the active trading thread than this one.
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Oct 18, 2021 21:18
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Y'all got any more of them HMBradley invites?
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Oct 18, 2021 21:23
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Smashing Link posted:Y'all got any more of them HMBradley invites? Sent you one.
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Oct 18, 2021 21:50
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fatman1683 posted:Sent you one. 3% looks good to me, thanks!
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Oct 18, 2021 22:20
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Is there a better safe way to park cash than I bonds? My partner is buying them, but I’m the one paying tuition at an overseas university over a year later. He won’t have a job at that point, so his tax bracket will only be determined by the interest. (I can’t buy them because I have medicaid until I move, and thus can barely own any assets.) I think the right plan is just to have him gift me the bonds but he’d still have to pay taxes on interest right?
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Oct 22, 2021 00:30
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I’m holding munis in taxable. Come at me.
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Oct 22, 2021 00:41
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Loucks posted:I’m holding munis in taxable. Come at me. I know nothing of municipal bonds. Is this a bad idea or something?
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Oct 22, 2021 03:50
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Taxable munis at a high tax rate perform worse than traditional tax-free munis (generally), but the higher yield in taxable munis is good for tax-advantaged accounts -- it's just dang unoptimized and inefficient! If he's holding munis in a taxable account then you're doing the right thing if you're concerned about taxes. Unless I'm confused
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Oct 22, 2021 04:01
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Munis are really only better than nonmunis if you're in the top tax bracket so 
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Oct 22, 2021 04:47
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jokes posted:Taxable munis at a high tax rate perform worse than traditional tax-free munis (generally), but the higher yield in taxable munis is good for tax-advantaged accounts -- it's just dang unoptimized and inefficient! You've definitely got me confused. Taxable municipal bonds is a contradiction in terms, I thought, because the whole point of them is that they're tax advantaged. Although the advantage is basically negligible even so. moana posted:Munis are really only better than nonmunis if you're in the top tax bracket so  That emote doesn't belong here, this is the moneyhaver thread.
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Oct 22, 2021 13:03
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IAWTP, but as long as the US continues to crush every attempt at improving general material conditions I might as well turn into a wealth-hoarding dragon in hopes of not having to work as whatever the post-apocalyptic version of a Walmart greeter will be in a few decades.
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Oct 22, 2021 13:18
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moana posted:Munis are really only better than nonmunis if you're in the top tax bracket so Could you expand on this? Just out of curiosity, no here.And can you buy them at Vanguard?
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Oct 22, 2021 13:53
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Loucks posted:IAWTP, but as long as the US continues to crush every attempt at improving general material conditions I might as well turn into a wealth-hoarding dragon in hopes of not having to work as whatever the post-apocalyptic version of a Walmart greeter will be in a few decades. Just a walmart greeter
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Oct 22, 2021 14:00
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Residency Evil posted:Could you expand on this? I have never compared the returns of bond funds or have done the tax calculation, but: I assume that the argument is that the municipal bonds tend to have lower returns so the way it works out is that avoiding tax on the bonds by buying municipal bonds is only worth it if you have to pay a high tax on the returns. Residency Evil posted:And can you buy them at Vanguard? https://investor.vanguard.com/mutual-funds/tax-exempt silence_kit fucked around with this message at 14:08 on Oct 22, 2021 |
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Oct 22, 2021 14:03
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silence_kit posted:I assume that the argument is that the municipal bonds tend to have lower returns so the way it works out is that avoiding tax on the bonds by buying municipal bonds is only worth it if you have to pay a high tax on the returns. This is exactly right. Depending upon your state and the fund you don’t have to be in the top bracket for it to work out in your favor, but if you’re down at 22% it’s not worth it. The other consideration is that at some income level you simply run out of tax sheltered space and have to decide between loving up your allocation or accepting that some bonds have to live in taxable. Anyway if anyone is sharpening their pitchforks over this please note that my posts are all rp and I’m actually a dyslexic Denny’s waitress.
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Oct 22, 2021 14:51
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The “never in taxable” rule of thumb with bonds is much less of a slam dunk than it first seems, especially with low interest rates meaning that bonds are paying out coupons in the ballpark of dividends. It gets weird if your tax sheltered allocations are subject to tax on withdrawal because it means you need to account for that tax when doing your allocations (not all the money you see on the statement is yours).
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Oct 22, 2021 15:26
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silence_kit posted:I have never compared the returns of bond funds or have done the tax calculation, but: Loucks posted:This is exactly right. Depending upon your state and the fund you don’t have to be in the top bracket for it to work out in your favor, but if you’re down at 22% it’s not worth it. The other consideration is that at some income level you simply run out of tax sheltered space and have to decide between loving up your allocation or accepting that some bonds have to live in taxable. Thanks guys. Sounds like this is a problem that's tough to have when your bond allocation is only at 10% and have plenty of space to rebalance in tax-free/deferred accounts.
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Oct 22, 2021 15:36
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Loucks posted:This is exactly right. Depending upon your state and the fund you don’t have to be in the top bracket for it to work out in your favor, but if you’re down at 22% it’s not worth it. The other consideration is that at some income level you simply run out of tax sheltered space and have to decide between loving up your allocation or accepting that some bonds have to live in taxable. You're right, but it's a little more fundamental that this. Muni bonds have less return because they have an added benefit (tax exempt). If two bonds are being offered that have identical risk levels except one is tax exempt, investors would demand a higher return from the nonexempt bond that's roughly equal to the value of the tax exemption. This is why Muni bonds have a lower return. The thing is, that tax exemption is valued differently based on your tax rate, with the higher your tax rate the more valuable it is. The price adjustment from the tax exemption is based on whoever benefits MOST. Therefore, the returns on Muni bonds are lowered compared to similar bonds by an amount roughly equivalent to the tax savings of someone in the highest tax bracket. If you aren't in the highest tax bracket, they're a bad investment because you get lower returns for a similar level of risk compared to other potential investments.
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Oct 22, 2021 16:21
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I just accepted a new job and learned that the life insurance offered by my employer is whole life. Should I be concerned? If it’s not cost to me, it’ll just be the employer who is getting ripped off, right?
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Oct 25, 2021 20:09
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