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I’m losing money by keeping it in a savings account. I’m losing money by keeping it in a brokerage account. I don’t want to change jobs to get a higher salary b
by bigyikes 4y ago
I’m losing money by keeping it in a savings account. I’m losing money by keeping it in a brokerage account. I don’t want to change jobs to get a higher salary because I fear getting laid off.
When there is no winning move, it definitely feels like a recession.
- fshbbdssbbgdd 4y agoDepending on your time horizon, I-bonds could be good.
- paulpauper 4y ago10 year treasury bonds looking good. The last time it was at 4.2% was in 1998
- devoutsalsa 4y agoStocks are almost certain to be a better investment over a 10 year period. Not risk free of course.
- Invictus0 4y ago$10k cap
- spywaregorilla 4y agoper year*
- fshbbdssbbgdd 4y agoYeah, $10k/year adds up. Can be a good place to put your dry powder. Also there’s ways to invest more: 1. Family 2. Tax return 3. LLC
- neilv 4y agoYou can also get your US tax refund in I-bonds, up to a max. that's separate from the $10K purchase max.
- slaw 4y agoYou can buy I-bonds up to $5k with tax refund. https://www.treasurydirect.gov/savings-bonds/buy-a-bond/ https://www.treasurydirect.gov/savings-bonds/buy-a-bond/
- bushbaba 4y agoA married couple with no kids can buy 40k. 10k each. And 10k as gifts to each other. However each person can only redeem/cash out 1/4th each year. So it’ll take 2 years to cash it out.
- deleted 4y ago[deleted]
- rr808 4y ago> When there is no winning move That is the interesting thing, yes all assets are falling in value, but wages are rising. Its bringing back equality after years where hoarding assets was a great move.
- civilized 4y agoIs it increasing equality, or is it just making everyone poorer while preserving relative inequality?
- theGnuMe 4y agoIt makes you poorer and increases inequality.
- hammock 4y agoWages are not rising as fast as prices unfortunately
- voisin 4y agoThey’re still rising faster than any investment asset class, so inequality is shrinking.
- MichaelZuo 4y ago
- ddlutz 4y agoAlly saving account rates are > 2%. You are not "losing money" in that your total account value is going up, but your purchasing power is going down as it's lower than inflation.
- nyolfen 4y agoyes, that is in fact what people mean by 'losing money'
- digianarchist 4y agoIf only Ally allowed non-citizens and non-Green Card holders to open accounts. I've got my emergency fund in Robin Hood. They pay 3% on cash in the brokerage account.
- type-r 4y agoand in exchange all they ask is that you don't expect FDIC insurance
- digianarchist 4y ago> With the brokerage cash sweep program, the uninvested cash in your brokerage account (cash intended for investing but that you have not yet invested or spent) is swept to program banks, where it becomes eligible for FDIC insurance up to $1.5 million or $250,000 per program bank,
- reducesuffering 4y agoRobinhood requires a $5/month subscription to go from 1.5% to 3% interest. Only starts being relatively worth it at $7k cash, assuming ~40% marginal tax bracket. And since others are paying 2.3% currently, really it's only worth it at like $15k. Like another commenter said though, 3-month US treasuries are paying 4% and exempt from state tax.
- carlivar 4y agoWhy do that when treasuries are over 4% and exempt from state income tax?
- paulpauper 4y agoI’m losing money by keeping it in a savings account. You are losing in real terms but not nominal But this depends on your consumer preferences and cost of living. You are only losing 7%/year in CPI is your expenses are concentrated in food, energy , or used cars. High inflation is tough because it means everyone loses in real terms. Nowhere to hide.
- enw 4y agoWhat about assets? At least if the asset prices go up you can recoup.
- toomuchtodo 4y agoAsset prices go down when interest rates go up. Equities, real estate, even bonds (refer to bond funds getting decimated over the last year). Safe havens are cash or paying down debt with an interest rate over inflation. (not investing advice, educational purposes only)
- valleyer 4y agoIs there precedent for being sued for giving unlicensed investing advice in an anonymous, two-sentence Web forum comment?
- yourapostasy 4y ago> … paying down debt with an interest rate over inflation. In a stagflation scenario though, wouldn’t paying down debt on any vehicle carrying a rate over what you can yield on the market still net out better for you overall?
- toomuchtodo 4y agoShort answer, likely. Long answer, it depends.
- imtringued 4y agoThe thing about inflation and higher interest rates is that only successful businesses that actually have inflation adjusted revenue streams benefit. Not any random company.
- dylan604 4y agoAnd here people are losing jobs going, yup, recession is real. Perspective is everything. If you have a job and continue to make your same salary, the recession isn't nearly the same thing to you. To know people are actively losing jobs and bitching about not become richer as fast as you were yesterday just comes across as very tone deaf.
- bamboozled 4y agoCurrently working for a US company but living abroad and getting paid in a local currency, which is getting hammered compared to the USD. This has had a weird side effect in that I've become a lot cheaper to hire recently. I was told this has made us the least likely to get laid off and we've avoided it so far. Many people I know who are getting paid in USD have been rubbing it in quite hard lately, honestly I'm happy for them but it's also kind of unfair their mortgages have been greatly reduced while mine hasn't changed at all. There is always a silver lining...
- dylan604 4y agoFor a couple of years now, I've been threatening to live abroad while still remotely working for US companies and getting paid in USD. Taking the digital nomad show international so to speak. You could move around to your advantage where the USD is strong. I have one attachment that is keeping from doing it, otherwise, I'd be typing this comment from a beach on the other side of the globe.
- bamboozled 4y agoThat's good for you, but the company who is paying you in USD isn't getting you cheaper. In my situation it makes better economical sense to keep my employed over someone getting paid in USD.
- dylan604 4y agoWhy does the company get me cheaper? My value is not dependent on my geographic location. My value is what knowledge/skill/experience that I bring to the company. This has always been a remote gig, well before pandemic made it chic for everyone to be remote. The assumption that my compensation has anything to do with location location location is solely on you.
- nly 4y agoNot switching jobs is probably a mistake... The job market is incredibly tight, so it's the perfect time. Once the layoffs start it'll be harder to find work.
- orev 4y agoWhen layoffs start, the lazy companies use a last-in-first-out approach, so switching jobs now likely makes one a higher risk to be laid off.
- nly 4y agoThe stock market is down, which makes it a good time to start buying Outside the US it's worse because of the strong dollar.