I have always used 8% as my goal for my returns over time so any portion of money I can lock in above that rate I tried to do that.
"Crumbs," perhaps, in relative terms. But it's a "sure thing" amidst the economic storm, perhaps a prolonged one at that. And you only have to hold for one year. Most important, contextually, again, the opportunity for a married couple is a $40k investment in 2022 as October closes. $10k each as the 2022 annual limit, and then reciprocating/exchanging gifts of $10k each in October that are then transfered in 2023, counting as each's 2023 contribution limit. So 9.62% for $40k at 6 months plus 6.50% for the second 6 months, with a continuing benefit that the next rate adjustment in April 2023 would extend the attractive interest rate for at least another 6 months. There's also a tax advantage, as you avoid state tax on the gains.
I don't care if it's crumbs or not. I'll take whatever I consider a good return anywhere I can find it.
On the bright side.....SSO at $39.60. Back to the high return is now 88% ($74.47). Getting close to the target zone!
Cramer’s week ahead: Take any chance to sell stocks during busy week of earnings — CNBC
Cramer's comments come after stocks fell on Friday to end a volatile week of trading, just one day after the market snapped a six-day losing streak.apple.news
Interesting that Cramer suggest to sell stocks next week. I assume that he expect a fall to the next level. I don’t think he normally tell people to sell, kind of late unless he expects 3,000 level. It’s a tough time holding stocks.
I know many don’t like his recommendations but I like all input.
Wow, 9.62% is crumbs. I think my retirement projections, I used 5%.
So my 8% was not conservative
5% based on 50% equity, 35% fixed income and 15% cash allocation after retirement.
I use the same projection of 5% compound interest for my retirement plan. I also chose a 3.5% interest rate to calculate yearly/monthly earnings to cover expected expenses. I try to be as conservative as possible.
I think he's referring more to the 10K part of it than the 9.62% part of it. Personally, I don't care what the amount is, a good return is a good return. I'm not so snooty that I won't care about 10K and what I can get for it.
Yeah the 9.62% is great as well even if it goes own to ~6.5%. To TKs point though its much smaller amount that you can diversify with and would be great if they removed the $10k cap
There's a bill taking shape to increase the I-Bond annual limit to $30k to promote retirement investing and security. So perhaps $60k per couple annually plus the reciprocal gifting option.
Expectations re: earnings reports are still too optimistic. Wait til 1Q23 for reality to set in.Cramer’s week ahead: Take any chance to sell stocks during busy week of earnings — CNBC
Cramer's comments come after stocks fell on Friday to end a volatile week of trading, just one day after the market snapped a six-day losing streak.
Interesting that Cramer suggest to sell stocks next week. I assume that he expect a fall to the next level. I don’t think he normally tell people to sell, kind of late unless he expects 3,000 level. It’s a tough time holding stocks.
I know many don’t like his recommendations but I like all input.
We use 7.5% on all retirement calculations. Once we get closer to actual retirement and create our 3 buckets of assets, each bucket will use a different RoR metric with our long-term bucket still using 7.5%.
Also hoping to see 401k and IRA contribution limits get nice increases for 2023. That should be announced soon.
Funny no one asked for this in the last 10 years. Hopefully, it’s a short term trade.
Only reason I am conservative on assumptions is based on market blips like we are having now. If you are down 25% on your portfolio like most people you need it to rebound by 33% just to get back to where you were (Of course this doesn't take into account DCA or additional funds being played)
Looking at the average returns of the stock market, 7.5% is already conservative.
Always depends on time in the market for what you are shooting for and how you adjust your investments
9.62% to tie up $10K is crumbs to me. But like I said I have long time horizon. If it was $100K limit would be a no-brainer.
Seems conflicted to some extent, the "tie up" comment. You may be young. And expecting a strong equities market for the next 24-months and beyond. Ok. Perhaps that plays out. But a guaranteed return of 8.06% for 12 months (9.62+6.50), as is, is pretty solid, regardless of the amount invested. Plus, chances are inflation will be elevated beyond that 12-month window, ensuring an extended nice rate of return for another 6- to 12-months. Further, if one has a sizeable, healthy, diverse portfolio, I-Bonds are typically in play, long term as part of one's bond allocation.
Interesting. We use Capital One but also have a brokerage account with E-Trade.
I am. I am in the accumulation stage so I am buying at a better price per share.Is everybody feeling good today?
Very revealing Rutgersdave! LOL!Cramer’s week ahead: Take any chance to sell stocks during busy week of earnings — CNBC
Cramer's comments come after stocks fell on Friday to end a volatile week of trading, just one day after the market snapped a six-day losing streak.
Interesting that Cramer suggest to sell stocks next week. I assume that he expect a fall to the next level. I don’t think he normally tell people to sell, kind of late unless he expects 3,000 level. It’s a tough time holding stocks.
I know many don’t like his recommendations but I like all input.
Tom1944, The stock market is a leading indicator of the direction of the economy. The Market is down 25% +, GDP is negative two quarters in a row(which up till now has been the definition of a recession), and many other indicators are pointing to a recession. The only question is how severe and how long will the recession last. If the Fed gets it right (10-20% probability) we will have a mild and relatively short recession, If the fed gets it wrong,(60-90% probability) then the recession could be severe and extended. The Biden administrations policies are directly responsible for where we are heading and it is not good any way you look at it.
We have seen this before! Fed is going to get its way and every hike they do puts more pressure on earnings.
What I am hearing is the expectation is for about a 10% increase across all limits.
