/biz/ - Business & Finance

[Anonymous No.13800530]

If I park $3,000,000 in an ally savings account with 2.25% interest rate I'm getting $67,500/year in interest

Is this not broken? My father is looking for a retirement plan and basically has $3million in real estate equity but wants to retire why shouldn't he just sell all and park the 3 mil in this account? Even after taxes on savings interest it's still decent money plus he gets SS how safe a plan is this?

[Anonymous No.13800563]

Lel because the old fuck isn't getting 3 mill he will get maybe 1 for his 50+ year old real estate

[Anonymous No.13800568]

$3M in real estate equity and its yielding less than 2.25%?

[Anonymous No.13800664]

>>13800563
Okay retard replace the x and y values the question is still the same

[Anonymous No.13800666]

hi

[Anonymous No.13800748]

>>13800530

1. If the bank goes bankrupt(the probability when shit hits the fan is over 20%) you're only insured on 250k from the FDIC. So it's only good when times are good
2. Depends what inflation is. They said inflation is below 2% but everything continues to go up in price for the things you need to live off of so are you actually making money?

You're literally better off taking 10% of the 3 mil and buying bitcoin and sitting on it for years. I guarantee you'll make a lot more money off the 10% risk.

[Anonymous No.13800839]

>>13800530
hi

[Anonymous No.13800953]

Invest in Ford and get 7% dividend

[Anonymous No.13801001]

>>13800748
Thanks, thats a good point I didn't know the FDIC only covers $250k

But if you split up $200k across several accounts then you'd be fine

[Anonymous No.13801020]

>>13800530
what if you put it in a high interest ETF like SPYD or SCHD? Get 4%, fuck the bank, diversify your risk

[Anonymous No.13801034]

>>13800839
>>13800530
who is this cheesy fella

[Anonymous No.13801105]

>>13800530
>Is this not broken?
Felt broken to me when I first learned that everyone’s returns are based on a flat %. That’s how the rich gets richer, after avoiding progressive taxes.

[Anonymous No.13801457]

>>13800530
yea it's broken because it means once you're rich enough you'll never run out of money and you'll always get more money faster than most hard working wagies
the joke is it takes a lifetime of work for wagies that want to escape from waging to reach that level of wealth (with few exceptions), so once they do reach it they no longer have the youth to enjoy it

[Anonymous No.13801484]

>>13800530
this is literally a commie subversion thread

[Anonymous No.13802296]

why not put it in bndw and get near garunteed 5%?

[Anonymous No.13802319]

s&p500 has averaged 8% a year over the last 100 yrs has it not? Why would you not put it in that?

2.25% is barely beating inflation

[Anonymous No.13802353]

>>13800530
Put it in vanguard 50-50 stocks bonds, withdraw 3% yearly, and you'll still beat inflation

[Anonymous No.13802387]

>>13802319
>>13802353
how risky are these approaches?

[Anonymous No.13802593]

>>13800530

>investing 3mil in a bank instead of index funds

Safe withdrawal rate for an index fund is about 4.5% per year, or as low as 3% for super-safe mode.

That's $90k to $135k and basically just as safe as keeping it in the bank, as long as you don't stupidly sell after a stock market crash.

[Anonymous No.13802673]

>>13802593

Also not only would index funds pay your father, but the principal would survive after him and allow you to live a life on easy mode as well. As long as you don't fuck it up.

Bank interest would not pay as well and would not always beat inflation.

[Anonymous No.13802696]

>>13802593
Based. I'd do index funds but my boomer father wouldn't understand and he'd want something that is boomer tier comprehension

[Anonymous No.13802724]

>>13801105
> progressive tax
I love left word play

[Anonymous No.13802781]

>>13800530

Keeping it all in the bank is brainlet as fuck. If hyperinflation ever happens you get completely and utterly JUSTed

[Anonymous No.13802815]

>>13802387
Not very since they've manged to withstand the test of time. That said, the market will likely enter a recession within the next year so it might not be the best time to jump into the index market.

[Anonymous No.13802878]

>>13800530
Well yeah... Like any fucking guy who's on life support can put a million dollars into a savings account and not have to work ever again. Most people don't have 3,000,000 you asshole. You must be a really great person in real life. Like I mean it because you're dumb but it's okay. As long you're a good person with a good heart you deserve every penny and I'm sorry for being bitter. ...I don't even give a fuck about money I just want more so maybe someone decent will like me.

[Anonymous No.13803013]

>>13802696

Just tell him that an index fund is "investing in America as a whole" because it is buying every important US company.

[Anonymous No.13803138]

>>13802696
How the fuck is your dad set to acquire 3mil yet doesn't know what index funds are? They're a Boomer staple.

[Anonymous No.13803226]

>>13802878
If you put 5% of your paycheck in an employer-matched 401k for 40 years you'll have 4 million without ever saving a penny in your savings account. Plenty of wagies will make it but that's just called "retirement"

[Anonymous No.13803239]

>>13801034
Name's Chuchu.

[Anonymous No.13803624]

>>13801484
what are you doing to that doggo??

[Anonymous No.13803704]

>>13803226
Pensions & 401k's are a scam, Derivates market collapse will bankrupt the sector.

[Anonymous No.13803884]

>>13800530
>>13800748
>>13801001
wealthfront has a high yield savings account that is FDIC insured to up to 1 million