3 ms·

I’m not a finance expert but don’t you need something like $350000 in the bank to make $1500/mo in interest? https://www.calculator.net/interest-calculator.htm

• UncleOxidant 3y ago
  Yep. In a CD or a money market account of some sort. 26 week to 1 year Treasury bills are paying around 5.5%.
• wenc 3y ago
  Wouldn't most people with $350k and long investment horizon rather invest that in stocks? (actually asking, I have not idea, just a notion). $350k seems like a lot of money to leave in a money market account as opposed to in a diversified portfolio of stocks/bonds in a tax advantaged account. I'm thinking long term growth. Inflation rates go up and down (i-bonds were not attractive until recently) and so do interest rates. The current 5% rate may not last for long.
  • UncleOxidant 3y ago
    If I got a $350K windfall right now I'd probably put about 70% of it into tbills (6 month to 1 year paying ~5.5% right now) and another 20% into 2 to 5 year treasury notes (paying ~4.7% right now) with the remainder going into an S&P 500 ETF like VOO. I'd DCA into stocks & etfs as the tbills matured. You're right, these 5% rates probably won't last long (though some pundits are saying we're going to be seeing 6+% due to high demand and stubborn inflation so who knows...) but a 5.5% yield on ultra safe treasuries is too hard to pass up right now plus there's no state tax on that interest.