If you have 100k savings, How will you invest?

[anandam2012]

7 minutes ago, Tellugodu said:

JP MORGAN Chase offering 5.70% callable CD now. It’s callable , hence bit high rate.

what is callable?

[Konebhar6]

4 minutes ago, Tellugodu said:

It’s a money market fund. People generally park their money for few months to year when they are awaiting big purchase/expense in this kind of funds. This fund is one of the best in category since it offering 5.20% with monthly payment on 15th of every month which can be reinvested . 

Very similar to Fidelity's SPAXX which gives similar returns. with DIV paid monthly.

[Tellugodu]

5 minutes ago, anandam2012 said:

what is callable?

After certain time (generally after 6 months in a one year CD) bank has right to call the CD on specific dates to end the CD and return back the principal and interest,  let’s say in 8th month instead of 12 th month. But the time we are in now where interest rates won’t come down anytime near future, people are taking risk to buy callable CD’s for bit higher reward.

[pavone]

Depends on,

- do you need to access this money short term? Or is this for retirment?

- what is your risk profile?

- what kind of returns are you expecting?

First always consider tax advantaged vehicles then go for others. DM me to discuss specifics. Good luck bro

 

Use this as a basic guide,

1a. 6 months emergency fund (in HYSA or short term TBills like 4-week or 8-week)

1b. Young families with liabilities- term life insurance with living benefits. A must and in addition to insurance from work (avoids gofundme). Get it when you dont need it because you cant get it when you need it.

2. Traditional 401k upto emp match or max out roth 401k (if emp has one). 

3. Roth IRA or back door Roth IRA for high earners (family income > 210k)

4a. College planning: 529 plan (if 7yrs or less to college) or IUL if > 5yrs to college. (Ymmv based on savings and funding plan)

4b. Rich person Roth: Properly structured, max funded IUL for tax free supplemental income (as bond portion alternative), tax free legacy transfer and self completing insurance with living benefits. Whole life for infinite banking

5. Brokerage account: long term investments, low cost index funds, dividend stocks etc

6. Play money: Crypto, meme stocks, Casino etc

7. After age 50, Piecemeal roth conversion of 401k (bond portion) to annuities for guaranteed retirement income. This will make income guaranteed and tax free. 

*The more money you have as tax-free income, the less money you pay in taxes on 401k withdrawls and social security income. 

** my strategy is to dollar cost average into low cost index funds in my retirement accounts until age 50.

***This is a general idea and is not the same for all. It should be planned based on one's unique situation. Please treat this for educational purposes only

[no01]

If your living in a state where there is State tax, then whatever interest you earn on HYSA, CD's, I-bonds etc u need to pay state tax as well. Fed tax is standar in all of them....T-bills tho main advantage is there is no state tax. So if you are living in CA, NY, IL then T-bills seems to be best bet. 

CD's or HYSA aithe you have to pay state tax, so though returns may be little higher than T Bills, if u add all these taxes, then end of the day T Bills may be a better option. Again, I am talking abt states where there is State tax
 

[Pandubabu]

2 hours ago, Konebhar6 said:

If i know this, I would have heavily shorted the stock market. S&P has support at 4125, 3850. 

Keep some cash aside and keep looking for opportunities in the market. I said in other threads as well, keep an eye on utilities. They have come down a lot ... I love their charts. Usually steady growth and decent div. Keep an eye on the stocks you like and if they come to levels you like, buy them.

Q1 lo Ani specific ga chpthe doubt vachi adiga bro..

[raccharambola]

13 hours ago, Deadp0ol2 said:

Stocks

dabbulu pogottukoneeka? 

[Konebhar6]

57 minutes ago, Pandubabu said:

Q1 lo Ani specific ga chpthe doubt vachi adiga bro..

Prastutam unna situation ni batti, my guess.

[idibezwada]

i would go trade a box

[former]

3 hours ago, pavone said:

Depends on,

- do you need to access this money short term? Or is this for retirment?

- what is your risk profile?

- what kind of returns are you expecting?

First always consider tax advantaged vehicles then go for others. DM me to discuss specifics. Good luck bro

 

Use this as a basic guide,

1a. 6 months emergency fund (in HYSA or short term TBills like 4-week or 8-week)

1b. Young families with liabilities- term life insurance with living benefits. A must and in addition to insurance from work (avoids gofundme). Get it when you dont need it because you cant get it when you need it.

2. Traditional 401k upto emp match or max out roth 401k (if emp has one). 

3. Roth IRA or back door Roth IRA for high earners (family income > 210k)

4a. College planning: 529 plan (if 7yrs or less to college) or IUL if > 5yrs to college. (Ymmv based on savings and funding plan)

4b. Rich person Roth: Properly structured, max funded IUL for tax free supplemental income (as bond portion alternative), tax free legacy transfer and self completing insurance with living benefits. Whole life for infinite banking

5. Brokerage account: long term investments, low cost index funds, dividend stocks etc

6. Play money: Crypto, meme stocks, Casino etc

7. After age 50, Piecemeal roth conversion of 401k (bond portion) to annuities for guaranteed retirement income. This will make income guaranteed and tax free. 

*The more money you have as tax-free income, the less money you pay in taxes on 401k withdrawls and social security income. 

** my strategy is to dollar cost average into low cost index funds in my retirement accounts until age 50.

***This is a general idea and is not the same for all. It should be planned based on one's unique situation. Please treat this for educational purposes only

Is IUL a really good retirement vehicle?

[pavone]

31 minutes ago, former said:

Is IUL a really good retirement vehicle?

It is a great tool in overall financial portfolio for its flexibility and tax benefits. Check out my short educational video series here- https://www.edgefinancials.com/IUL-Education/.

Let me know if you still have questions. 

[former]

12 minutes ago, pavone said:

It is a great tool in overall financial portfolio for its flexibility and tax benefits. Check out my short educational video series here- https://www.edgefinancials.com/IUL-Education/.

Let me know if you still have questions. 

So this is useful if you make so much money? 

401K, HSA, & ROTH IRA --> if you still have money left then IUL? 

I am guessing your suggestion invest into IUL instead of the Brokerage and invest yourself.

[pavone]

9 minutes ago, former said:

So this is useful if you make so much money? 

401K, HSA, & ROTH IRA --> if you still have money left then IUL? 

I am guessing your suggestion invest into IUL instead of the Brokerage and invest yourself.

Mostly yes, as not everyone has all those tax-advantaged accounts..  Particularly, IUL can replace bond portion of the retirement portfolio. Since, roth has funding limits and not everyone has roth 401k, IUL can be leveraged for tax free distributions using loans. Also, Brokerage/invest yourself dont have tax advantages.

Another advatange is cash can be accessed anytime and some benefits are,

- For people retiring early, they dont have access to retirement accounts until 59.5 without penalties.

- Can provide liquidity when you find a high return investment opportunity.