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would appreciate any opinions on investing 30% of $130,000 roth ira money to I-bonds. I am 78 yrs. young And wife is 75 years no debt good health 68 Camaro no heirs but only 2,000 @ month income 4.3% money seems like a good return. Hello to OJ Catch 22 excuse the typing if this font is shouting. too late to learn for an oulder guy regards from 83301 potato head country
Reply to @Anonymous: Can't do it. I don't know if IRA custodians will allow savings bonds in the IRAs, but even if they do, you're limited to $5K/year per SSN in book entry form, and another $5K per SSN (for 2011 only; after this year, no more paper savings bonds). I Savings Bonds In Depth (US Treasury)
Regarding the rate - don't be seduced by it. That's the (fixed) real rate of return (the return you get after considering the effects of inflation) plus the inflation rate. For the past year, I bonds have been sold with a real rate of return of 0.00%. That means that you're just treading water. Your bond will be worth no more at maturity than the cash you buy it with is worth now. It will simply grow at the rate of inflation.
The 4.6% rate will change six months (give or take) from when you purchase the I-Bond. That rate simply reflects the inflation rate for the six months preceeding May 1st. It's an anomaly. Look at the inflation table used by the Treasury in setting I-Bond rates. The table shows 1/2 year rates (now showing 2.3% for a half year - high by recent historical standards).
would like ideas on investing $130,000 already in an self-directed Roth Ira. 78 years young no heirs but would like to get 3-5 % return.just wife me and cat in that order regards
Happened to stumble across your question regarding your Roth. MSF offered excellent info just below, regarding the I-bonds. Being as you have found your way this far through MFO, you should post the related question in the "funds discussion" section here. Also, you do not need to discuss monetary amounts if you choose not to. As to the self directed Roth; we do not know what your investment choices may be; as to whether the IRA is via a bank or a major vendor as Fidelity, Vanguard or other. A second area regards what other investments are already in place that caused you to consider I-bonds as a companion to other mutual funds? If you have some types of bond mutual funds, you may already have ownership of some I-bond/TIPS within the fund(s).
As to potatoes, not 50 miles away will be the annual potato festival this fall. Although MI is known for autos, there is a very large agri business in place, from fruits to major crop types. For example, the majority of U.S. product based blueberries are from MI.
The Camaro has been a good buy and hold, eh? Wish I still had my 66 SS Chevelle that cost $2,292 w/tax, fresh from the factory.
Although we are a few generations apart (63 years here), I do remember using the crank phone to contact an operator to dial another 3 digit phone number.
circa33, do consider posting your question to the "funds" section where you will obtain full exposure to the fine thinkers here.
Reply to @catch22: Your '66 Chevelle must have been a lot better than my '65. All kinds of parts, knobs, screws, little springs, kept falling off - I'd just open the truck and toss'em in. Wondered when the steering wheel would go... Then the trunk started to leak... The original tires got 11,000 miles and I was no hot-rodder... At about 36,000 the paint on the roof started to peel... If there were really 8 days in a week, that's when the @%#$ thing was made.
I didn't have the problems with the '66, you mentioned. Although tire wear was a problem; but that was self imposed. Too much racing ! Not far from where we live was where the Chevelles were built. The local adage was "hope your car wasn't built on a Friday, near a holiday period and especially around the Thanksgiving to New Year period.
I will note that 2 weeks after I started work in a GM stamping plant; I found that a week before Thanksgiving and until the week just following New Year day; that all of the pop/soda vending machines had all flavors removed that would not provide a good base "mix" for whiskey/vodka. My first attention to this was when I went to get a root beer and the label had been changed, and no root beer. I asked a few questions and readily found the reason mentioned above.
Since the mid/late 90's much of the quality control has improved as the robots are doing much of the work now; and the last I knew, they did not drink alcohol on the job and no pot either...:) An engine plant placed a new high tech. assembly line a few years ago and from the bare block to placing many pieces and tool work; the first 150 functions are performed without a human hand touch. Sidenote: the highest standard/tolerance/precision vendor for the work is a private German company. No U.S. companies could quarantee and/or match the precision machining.
'Course, this is part of the circumstance that the talking heads and others don't seem to understand from past years or today and jobs. This same engine plant is to receive $387 million of GM monies for new work. This expenditure will create only 150 jobs. 25 years ago, a similar inflation adjusted expenditure would have created many jobs.
So, some manufacturing will find increases in the coming years; but much of the work force will be skilled repair (robotics) and very little of the old school/high school graduate only level employment. This replacement via robotics has been in place for 20 years now. Eventually, someone may actually understand the implications.
Well, just a little idle chit chat from me. Take care, Catch
Comments
(PS- yeah, I like Dilbert a lot too)
LOL
roth ira money to I-bonds. I am 78 yrs. young And wife is 75 years
no debt good health 68 Camaro no heirs but only 2,000 @ month
income 4.3% money seems like a good return. Hello to OJ Catch 22
excuse the typing if this font is shouting. too late to learn for an oulder guy
regards from 83301 potato head country
Can't do it. I don't know if IRA custodians will allow savings bonds in the IRAs, but even if they do, you're limited to $5K/year per SSN in book entry form, and another $5K per SSN (for 2011 only; after this year, no more paper savings bonds).
I Savings Bonds In Depth (US Treasury)
Regarding the rate - don't be seduced by it. That's the (fixed) real rate of return (the return you get after considering the effects of inflation) plus the inflation rate. For the past year, I bonds have been sold with a real rate of return of 0.00%. That means that you're just treading water. Your bond will be worth no more at maturity than the cash you buy it with is worth now. It will simply grow at the rate of inflation.
The 4.6% rate will change six months (give or take) from when you purchase the I-Bond. That rate simply reflects the inflation rate for the six months preceeding May 1st. It's an anomaly. Look at the inflation table used by the Treasury in setting I-Bond rates. The table shows 1/2 year rates (now showing 2.3% for a half year - high by recent historical standards).
regards
Happened to stumble across your question regarding your Roth. MSF offered excellent info just below, regarding the I-bonds.
Being as you have found your way this far through MFO, you should post the related question in the "funds discussion" section here. Also, you do not need to discuss monetary amounts if you choose not to.
As to the self directed Roth; we do not know what your investment choices may be; as to whether the IRA is via a bank or a major vendor as Fidelity, Vanguard or other.
A second area regards what other investments are already in place that caused you to consider I-bonds as a companion to other mutual funds? If you have some types of bond mutual funds, you may already have ownership of some I-bond/TIPS within the fund(s).
As to potatoes, not 50 miles away will be the annual potato festival this fall. Although MI is known for autos, there is a very large agri business in place, from fruits to major crop types. For example, the majority of U.S. product based blueberries are from MI.
The Camaro has been a good buy and hold, eh? Wish I still had my 66 SS Chevelle that cost $2,292 w/tax, fresh from the factory.
Although we are a few generations apart (63 years here), I do remember using the crank phone to contact an operator to dial another 3 digit phone number.
circa33, do consider posting your question to the "funds" section where you will obtain full exposure to the fine thinkers here.
Regards,
Catch
Your '66 Chevelle must have been a lot better than my '65. All kinds of parts, knobs, screws, little springs, kept falling off - I'd just open the truck and toss'em in. Wondered when the steering wheel would go...
Then the trunk started to leak...
The original tires got 11,000 miles and I was no hot-rodder...
At about 36,000 the paint on the roof started to peel...
If there were really 8 days in a week, that's when the @%#$ thing was made.
I didn't have the problems with the '66, you mentioned. Although tire wear was a problem; but that was self imposed. Too much racing !
Not far from where we live was where the Chevelles were built. The local adage was "hope your car wasn't built on a Friday, near a holiday period and especially around the Thanksgiving to New Year period.
I will note that 2 weeks after I started work in a GM stamping plant; I found that a week before Thanksgiving and until the week just following New Year day; that all of the pop/soda vending machines had all flavors removed that would not provide a good base "mix" for whiskey/vodka. My first attention to this was when I went to get a root beer and the label had been changed, and no root beer. I asked a few questions and readily found the reason mentioned above.
Since the mid/late 90's much of the quality control has improved as the robots are doing much of the work now; and the last I knew, they did not drink alcohol on the job and no pot either...:) An engine plant placed a new high tech. assembly line a few years ago and from the bare block to placing many pieces and tool work; the first 150 functions are performed without a human hand touch. Sidenote: the highest standard/tolerance/precision vendor for the work is a private German company. No U.S. companies could quarantee and/or match the precision machining.
'Course, this is part of the circumstance that the talking heads and others don't seem to understand from past years or today and jobs. This same engine plant is to receive $387 million of GM monies for new work. This expenditure will create only 150 jobs. 25 years ago, a similar inflation adjusted expenditure would have created many jobs.
So, some manufacturing will find increases in the coming years; but much of the work force will be skilled repair (robotics) and very little of the old school/high school graduate only level employment. This replacement via robotics has been in place for 20 years now. Eventually, someone may actually understand the implications.
Well, just a little idle chit chat from me.
Take care,
Catch
...as we are underlings.
Ah, that silly billy Shakespeare...a man for all, um, calamities
well done, mindy
I'm still laughing
best, hawk