*BUMP* :)
While this is possible, I don’t think this approach is advisable.
Everyone is free to chose their own path. But if you don’t even have a “plan” you might find yourself lost.
Link takes me to a 404 not found
The guy got lucky with a haphazard approach .
Most people who do that end up with nothing
BS Business Insider story is BS.
Investing in CDs (and precious metals) will, over time, only get you the rate of inflation.
Sure, you can luck out, and lock in a high rate when inflation is high. But the opposite can happen, too.
For the average passive investor (most of us), stocks and (maybe) real estate is the only way to go to beat inflation in the long run. Buy quality and hold it.
OK, bombard me with your BS stories to the contrary...
> I’ve been putting my money in CDs, 4-5%. <
Well, okay. But after taxes, you might get lucky and just keep up with inflation.
CD’s are good for short-term investments. I’d go with low-cost stock index funds for anything longer. But that’s just me.
1.3 million? Imagine what this guy would have if he weren’t a financial moron.
Worked all his life and saved his money. Sounds like a plan to me.
If I have $616,000 in 2020, invest and have a 5% yield each year, this means I have $753,614 in 2024. Oh, this also means I only kept up with inflation, no increase in spending power.
Bowling. The only sub-economic sport.
He makes cash money on the side. He lives on SS. And he does not use his savings. Had he left his money in the stock market in 2008 it would have gone back to where it was then tripled. But the simple strategy of leaving savings in the bank and not touching it works well even at 4%. I bet his property taxes are hurting.
Living frugal and making it a habit to save something from every paycheck is good advice, but a haphazard investment plan might not work well for everyone.
I’m healthy because I don’t smoke or drink
Eventually, he won’t be healthy, and that’s when a lot of that money will go “bye bye”.
Story disappeared. Sounded simultaneously to scrambled and good to be true.
So, basically you’re saying you’re broke.
Sorry - I am very skeptical about the financial claims in this post.
Short term investment grade CDs and debt rarely pay more than the inflation rate, and often go negative, after paying taxes and management fees.
Investment grade CDs and debt were almost all negative during the eight year Obama regime, after the Federal Reserve decided to assist our first Black Marxist President with 0% to 1.0% interest rates.
Unless the author of this post bought long term U.S. Treasury and financial debt BEFORE Obama was elected, there is no way the author enjoyed superior returns during the last 20 years.
“I have about $750,000 in cash, and my home is worth $600,000.”
Not sure about his investment choices but the end result indicates he certainly executed Step 1 well.
Step 1 is to put a hefty chunk aside - say 10-20% or more of your salary - to invest for retirement. Not easy as I can say from experience. I was slow out the gate but finally got on board.
So you don't "have" $1.3 million, you have $750,000 and an nonliquid asset of $600,000.
If you don't plan on selling the house, you have only $750,000 to live off of, not $1.3 million.
If you sell the house, then you will either buy something more expensive or much smaller, or you will increase your monthly expenses by several thousand dolllars in rent.
-PJ
He was not getting no 5% Bank interest in 2008, Skippy.
PFL