New answers tagged savings
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I have to pay back my student loan. When is the best time to do it?
The best time to pay off a loan is ALWAYS NOW, UNLESS there are penalties for paying off the loan.
Call me old fashioned, but living debt free is the best way to live.
That new car and television can ...
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1
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When is it worth taking out a loan for something I could pay in cash?
Unless your goal is to gamble, you don't take a loan for something you could pay for in cash unless you have other needs for that cash that you won't be able to get a loan, or as good a loan, for. In ...
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When is it worth taking out a loan for something I could pay in cash?
First, you need to be good with money. If you buy an item for £1,000 but don’t pay yet, you must have the mind to understand the money is gone and you can’t spend it anymore, even though it is still ...
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Accepted
When is it worth taking out a loan for something I could pay in cash?
In the UK, if you buy something on credit (over £100, under £30,000 if I remember right) then the credit provider is jointly liable with the supplier for the product. If the supplier goes out of ...
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3
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When is it worth taking out a loan for something I could pay in cash?
When you get old (like I am) and have paid off your house and have no other loans, and there's a deal on buying a car (say 1.9% financing for 60 months) or furniture (0% financing for N years), then ...
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I have to pay back my student loan. When is the best time to do it?
OP is using the wrong (outdated) calculation.
The "twice study loan" rule of thumb was based on the old study loans which have to be repaid in 15 years. Since the duration has more than ...
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1
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When is it worth taking out a loan for something I could pay in cash?
If you require cash in the near future or can reliably expect large increases in your income then using a loan is sensible. A loan is also preferred when a fixed interest rate is near or below ...
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When is it worth taking out a loan for something I could pay in cash?
Theoretically you can make more on average by investing than borrowing. But there are two HUGE caveats:
In practice, most people are not as good at investing as they think they are. Humans are ...
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5
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When is it worth taking out a loan for something I could pay in cash?
If you can pay for it in cash, the only reason not to do so is because you are getting better return rates on the money where it is than the loan is charging you -- essentially, a leveraged position.
...
- 36.9k
5
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I have to pay back my student loan. When is the best time to do it?
Look up Mortgage Rates
It seems likely to me that your current loan rate is well below the current mortgage rate. In the US, a mortgage at 3% was considered historic lows, and in early 2023 Americans ...
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28
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I have to pay back my student loan. When is the best time to do it?
Anytime you can borrow money for less than 1% APR interest, the perfect time to pay that off is "upon your death". You will never be able to borrow money more cheaply in your whole life.
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37
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I have to pay back my student loan. When is the best time to do it?
That mortgage would be lowered by twice the amount of my student loan.
doesn't sound too bad, since the other place you can put the money is into "down payment" and that has between 1:1.5 ...
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0
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Doesn't the existence of FDIC incentivize savers to put their savings in the most risky bank?
How does FDIC remedy this conflict of incentives?
The Federal Reserve regulates banks, checking them for solvency. The FDIC relies on that regulation.
https://www.federalreserve.gov/publications/...
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1
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Where to put an inheritance of $1.4 million upon first receiving it
First things first: you need to figure out how much you need for yourself. You said 10-15 years but what if you are "unlucky" enough to live another 25? What about long-term care? Also, ...
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Where to put an inheritance of $1.4 million upon first receiving it
Where you should put it in day 1 is in the bank, in an instant access account. Because you have to put it somewhere.
Then take financial advice on a well diversified investment portfolio. Any ...
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42
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Where to put an inheritance of $1.4 million upon first receiving it
Sometime in the next year, I will receive an inheritance of 1.2 to $1.4 million. I am concerned about the safety of money in a bank with threats to USD thanks to fiat vulnerability. I live in the ...
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What is the way to get money managed without hiring a personal financial advisor?
This has pretty much already been answered by Warren Buffett's bet with managed funds.
Typically a managed fund takes 1-3% of the total value of the fund in fees every year, sometimes as much as 5%. ...
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Where to put an inheritance of $1.4 million upon first receiving it
If it were me I would invest almost all of it in publicly traded companies/S&P 500 index funds.
If I were you I would:
Find an FDIC insured savings account with at least 3.5% APY (they are pretty ...
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Where to put an inheritance of $1.4 million upon first receiving it
There are 2 takes on this:
Life is unique and you are already aged 75 (so immediately EOL).
You will not get another next life so use some of these money to live your remaining life the way you ...
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Where to put an inheritance of $1.4 million upon first receiving it
The most direct way to protect against inflation (or "fiat vulnerability" as you put it) is to buy inflation-tracking securities. Other securities that reduce your exposure to inflation are ...
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1
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What is the way to get money managed without hiring a personal financial advisor?
An equity-income mutual fund would be for long-term growth, plus dividend income, but current stock market declines are expected. Possibly balance the growth fund with a Treasury Bill fund because ...
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3
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What is the way to get money managed without hiring a personal financial advisor?
There are many "target date funds" which adjust their mixture (in investment, reinvestment, and automatic rebalancing) based on how far you are from the date at which you have said you need ...
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1
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Where to put an inheritance of $1.4 million upon first receiving it
No one knows the forward inflation rate. The six-month Treasury Bill is 5.09% annual rate. The most recent monthly CPI was 0.5% which could possibly suggest annual inflation of 6%. The six-month ...
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79
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Where to put an inheritance of $1.4 million upon first receiving it
If you have that much new money to invest, you really should be investing some of it in getting professional advice rather than asking the internet.
A good advisor (of one of the flavors that has a ...
- 36.9k
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Where to put an inheritance of $1.4 million upon first receiving it
To protect principal against inflation, US treasuries. (TIPS, IBonds, TBills, etc.)
To protect against sovereign default, gold bullion.
To grow your money with minimal risk, VTI.
To grow your money ...
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