Without specifics it’s difficult to say. You can run your 2021 taxes both ways to see what (if any) tax impact it has in the contribution year. You undoubtedly know the benefits of the different types, but usually for retirement dollars the expectation is you’re going to withdraw them at a lower tax rate. Doesn’t hurt to do the math - I do every year (how much am I putting in, what is the net change in my tax bill for that contribution).
Also assuming you have some savings/emergency fund. I really should have said
Emergency fund > tax-deferred retirement investment > post-tax retirement investment > after-tax investments (speculative or otherwise)
You’re also likely to get a range of opinions.
There’s chatter one of the major banks is insolvent. Has anyone heard anything concrete on this?
The only thing I read related to the very large international bank that holds most of the bonds in many of the Russian companies - concerned about whether or not Russia would make their bond payments. Treasury was allowing if so they should not be insolvent, assuming that would tip them over which I don’t think their last stress test looked bad IIRC
@alphawave7 now I’m curious what the rumor is. VTB or Sperbank in Russia? Maybe (IDGAF ).
Deutsche Bank? Ehh they’re in for a rough run but don’t appear insolvent.
No major US banks AFAIK.
Bank failures are almost always a delightful non-event in the US. OCC/FDIC close them on a Friday, by Monday morning they had a Vegas wedding and are open for business under new/stable ownership.
I know for sure there’s services for Bitcoin backed IRAs, vaults, etc. and you’ll have to find which one is best for you. To my knowledge, Bitcoin is the only one out of the long list of other crypto that have such services. As for transferring all your money to Coinbase, that’s completely up to you. If you do go that route, then just spend what you’re comfortable losing with, and do a lot of research in what your buying. Ask questions! Most importantly, practice self-custody. Not your keys, not your coins. Not your keys, not your coins. That’s the biggest rule that I cannot stress enough. Take pride that you own your asset and not the DTC.
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Woof. 245k in 2017 could have bought you:
A) A Tesla Roadster FE reservation (which would still be pending 5 years later)
B) what would now be worth >4mn in TSLA stock
Nice way to get interest free loans for half a decade… who wants to make a shitty website and try to start another company? Atlis Motors? Oh wait, that scam already left port and made 7mn… https://www.atlismotorvehicles.com/
Reminder that i-bond rates reset on May 2nd
The I-bonds seem like a no brainer.
One should buy before May. Lock in the 7.12 and then the 9.6
Why wouldnt you just buy in May after the rate goes up?
I’m new to these but it looks like the rate locks every 6 months. So if you buy in Apr you get 6mos at 7% and then next 6mos at 9%. If you buy in May you get 6mos at 9%, not knowing what comes after that. Same unknown if you buy now (you don’t know what comes after the 9%) but at least you lock in a full year of “known” ~8% return.
Does anyone happen to know if I-bond purchases are considered tax deductible IRA contributions?
Correct. I just bought some in December at the current rate(s), I’m waiting until May 2nd / betting that the next inflation print is as-high-or-higher, if only for it to reverse for the rest of you.
New to me - if so you would have to buy them inside your IRA account (vs from Treasury Direct).
New to me also…and I have not been able to determine that there is another way to acquire these outside of Treasury Direct.
Aside from your tax returns or the bank, same
I bought a bunch of XLP today (to hold).
Yes, this is why. I’m betting the next rate will be lower. I was shocked it was higher this time.
Figuring out our next S179 to soak up this and next years tax liability. Already burnt through the MX’s depreciation.