Money & Economics

Sybertiger said:
Yeah, I'm getting ready to move a chunk out of FZDXX to Fifth Third Bank but only until March 1, 2026 when the 4.75% ends. We'll see what to do next when March comes around. I'll likely move it back to Fidelity at that point. This is the first time in over 20 years I'll have a "real" bank account meaning local branches and ATM machines. Really no use for local bricks-n-mortar anymore unless you need to deposit cash which I don't deal with.
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What we did with my wife's retirement IRA money is buy CDs. we did the ladder CDs Fidelity offers. We bought a 2 year, 3 year, 4 year and 5 year. They avg. 4.5% and are semi-annual, we already had the 2 year mature last year, and 3 year will mature this year.
One thing that is nice about Brokage CDs is you can sell them. So since rates are lower now, these would sell for a good price. But, we did not buy these to sell, guess if we need them for an emergency...

We will almost make, in Interest, what one CD cost us within the 5 years of all the CDs.
 
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David L said:
What we did with my wife's retirement IRA money is buy CDs. we did the ladder CDs Fidelity offers. We bought a 2 year, 3 year, 4 year and 5 year. They avg. 4.5% and are semi-annual, we already had the 2 year mature last year, and 3 year will mature this year.
One thing that is nice about Brokage CDs is you can sell them. So since rates are lower now, these would sell for a good price. But, we did not buy these to sell, guess if we need them for an emergency...

We will almost make, in Interest, what one CD cost us within the 5 years of all the CDs.
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You would have had to declare and pay tax on that conversion from the IRA >>> CD's yes? Or are they still held within the IRA?
 
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When it’s already gone to the moon, what’s the next move? Mars?

 
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I keep looking for news that suggests the market isn’t overbought and that AI isn’t overhyped

And I remember each time that the market can stay irrational longer than you can stay solvent.

 
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Does that mean companies are learning it ain't go time for AI just yet?
 
Sybertiger said:
Does that mean companies are learning it ain't go time for AI just yet?
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Don’t know.
I think it’s much like the dotcom era.
Lots of possibilities and will eventually be big, but too much hype too soon
 
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bigredfish said:
You would have had to declare and pay tax on that conversion from the IRA >>> CD's yes? Or are they still held within the IRA?
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Yes they are held in the IRA, non-taxable, only when you remove any money from the Traditional IRA is it taxed.

When she retired she transferred/combined her company's Pension and her 401k in Fidelity into a Traditional IRA which kept its non-taxable status. Fidelity handled both her Pension and 401k in separate accounts prior to retirement. On the Pension side she could not dictate/choose which investments, Fidelity handled that. On her 401k she could, but only from the options Fidelity offered, which in her younger years she was more aggressive.

I asked the same question when this happened, do we have to pay taxes on any gains (Interest) made while in the IRA? No, as long as you keep it in the IRA.

When she turns 73 she will need to Take Out yearly RMD so we need to keep enough liquidity in the IRA so not to disturb the CDs or Annuities. I Think, maybe you are allowed to dip into those, not sure.

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David L said:
Yes they are held in the IRA, non-taxable, only when you remove any money from the Traditional IRA is it taxed.

When she retired she transferred/combined her company's Pension and her 401k in Fidelity into a Traditional IRA which kept its non-taxable status. Fidelity handled both her Pension and 401k in separate accounts prior to retirement. On the Pension side she could not dictate/choose which investments, Fidelity handled that. On her 401k she could, but only from the options Fidelity offered, which in her younger years she was more aggressive.

I asked the same question when this happened, do we have to pay taxes on any gains (Interest) made while in the IRA? No, as long as you keep it in the IRA.

When she turns 73 she will need to Take Out yearly RMD so we need to keep enough liquidity in the IRA so not to disturb the CDs or Annuities. I Think, maybe you are allowed to dip into those, not sure.

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Right, we did the exact same with my wife's 401K, though her's went to a managed brokerage account thats short term and overnight Treasury stuff. No stonks. (JPM). It's performing as expected at between 4.75% and 5%

Mine is still sitting in a 401K and I'm torn between doing the same thing or taking the hit all at once and rolling it over into my Roth
 
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bigredfish said:
While I understand the theory, I think this screams be careful what you wish for.
I think the longer you stretch reporting, the more opportunity for more fudging and marketing to effect perceived value.

I suspect most companies will love it

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Now it makes sense

 
bigredfish said:
Right, we did the exact same with my wife's 401K, though her's went to a managed brokerage account thats short term and overnight Treasury stuff. No stonks. (JPM). It's performing as expected at between 4.75% and 5%

Mine is still sitting in a 401K and I'm torn between doing the same thing or taking the hit all at once and rolling it over into my Roth
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Yeah I am glad you brought this stuff up. The wife and I was calculating/figuring should we pull out some of the money from the IRA, pay taxes now, it can go into a CD or same Money Market paying 4% Last year we were at the lowest tax bracket since we were teenagers.

We played with the numbers on a RMD at 73 based on how much she would estimated have in her IRA, then one at 74, 75 and so on. Her RMD does increase over time, for her/us.

My thought is, the money left in the IRA, for our kids, will be taxed when they inherit. They are in a very high tax bracket. If we pay a third in taxes than what they would have to pay, it will be more money in their pocket. Personally I don't get the benefit of IRAs at our age, a ROTH I do...

My father did it a bit different. He would give my wife and I a separate check, not every year but he did this a few times. This gift was non-taxable, on either end. So no gift tax. This amount has increased over the years. 2025 it is up to $19k

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Yep. Roth makes way more sense. Gives you a chance at recovering what you paid in tax for the initial withdrawal because no tax liability on earnings

Yes also we’re starting this year on gifting my daughter and her nieces.
I figure if we allocate 25-30% (or up to the max $19k each) of our interest/dividend earnings each year to them at say Christmas, we’re still growing our pile and remember we’re not touching the pile to live on anyway, So why not?
 
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