Retired military, I thank you for your service. You deserve a good Retirement.
Is anyone rich here?
- Thread starter tom999w
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mopowers
Well-Known Member
How do you feel about the covered call fund, SPYI? I've held a good amount for a while in and individual brokerage account and have made some good dividends. Makes me nervous holding it, but the monthly dividends make it hard to sell.
Guess we should move to Missouri, lol. Minimum 23k on insurance for house, camp, airplane, cars, boats, life insurance etc. Oh and $6k a year for a drug and dental plan even though we get "Free" health care in Canada. 17k a year for property taxes house and camp. Power bills, phones, alarm monitoring, heating oil, car parts, fuel, grandkids, renovations... the list is long. Oh ya and food is always great. Takes a minimum of 100k pretax...
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Our home insurance is $1500.00 a year, real estate tax $1350.00 a year. Health insurance is about 2 grand a year. My monthly bills including food and gas for the vehicle's is around $2800 a month.
I don't have life insurance. Everything is paid for and if I pass first then the wife can collect my ss and drop hers, our burial is already paid for.
mopowers
Well-Known Member
Plunking your retirement fund in CD's and savings accounts just because you're afraid of a downturn means you're doing nothing but losing buying power to inflation. (And making the banks happy). If anything, maybe look into a low cost target fund. I just looked, and Vanguard offers a 2035 target fund with a 0.08% ER. Not what I would do, but at least you'll see gains.
So, Dan, you can't live on 36 grand apparently either...
I'm making 4.10% on my cd's, and that's for a 9 month term.
Savings is for a emergency, that way I don't need to touch my cd's. I'm making more than 0.08% on my Savings account.
I live on that easy. We don't live beyond our means and I usually can put back a little money on the side every month
Add up your own numbers Dan...
mopowers
Well-Known Member
Do you even know what an expense ratio is? That's what I was referencing with the 0.08%.
4.10% is not much, but if it works for you, continue wishing you had an A-body.
btw- Here are the returns on that target fund I mentioned. Again, definitely not what I would do, but it'd blow a savings and CD away. I'm sure crackedback and others have much better options.
Our rsp's and mutual fund, that we haven't donated into in over 20 years did almost 20% last year.... returning everything and then some that we'd withdrawn to buy the Wife's 3400 mile x 67 Formula S with and cover our years expenses. Unless you're living day to day, the bank certainly isn't a place for your funds... may as well stuff your mattress.
Different group (neos) than the incompetent YM
I'd rather own SPLG and sell my own calls if that is the approach chosen, especially in a retirement account.
Spyi is OK. It still trails the index in returns. I guess if you were doing reinvestment it would be close to equal. The best thing is the price remains somewhat stable since inception. Non retirement account, that dividend heads straight to the bottom line as income fed and state. Unless they are designating it somehow as return of capital.
mopowers
Well-Known Member
Thank you! I typically do low cost index growth and SP funds for my retirement accounts. The SPYI was just for some extra cash that wasn't doing anything in a non-retirement account. I appreciate the feedback.
What's the index for that fund, anyway?
You're right though, the share price doesn't fluctuate much, though I am up about 10% (ave.) since buying in. That doesn't count the dividends, which is considered return of capital. That's another reason I bought it (saves a ton on taxes vs typical ordinary dividends). I really need to sit down an figure out the covered call deal myself though. I know you explained it to me before. I just need to spend some time learning it to be comfortable enough to give it a shot.
BSB67
Well-Known Member
I’m not really following.
The market has never gone down for 12 years. Market down is rarely greater than 50%. I would say we’ve lived through the worst market down period, the 2000’s. If you had $30k at the start of that period, and continued to put $5k into the market each year, you’d probably have $100K in 12 years, maybe more. Then probably be $200K in another 7 years.
1 of the problems in Australia if you make a profit on Bitcoin or shares & you sell them in the first 12 month's you pay 50% gains tax with bitcoin if say it hit 1 million you must pay on the amount it even if it goes to zero. My cousin got slugged for $45,000 Tax Ill stick with Precious metal
Index is SPX
ETF is SPY (SPY + I for income SPYI)
SPYI has monthly options.
CC's are pretty easy, just know you are giving up the upside if the underlying moves up hard.
My mom was a "i can't lose my money" depression era kid. I got it. She got suckered into annuities in her 40's, she lived to 82. I wish she would have listened to me.
Nobody knows where the market is headed. I think next year is going to be a tough. Lately the recoveries are swift. One of these drops will be followed with a few years of flattish returns, will it be the next one. I don't know...
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Probably so. I'm to old to worry about it now as I'm going to be 66 in a month
Heck yeah, that's gotta feel good.
I wish
I'm glad you are going to get to retire then, as I'm sure that you know the older we get the faster the time goes
I don't know anything about annuities
A friend and I had the perfect idea years ago. Macon and Bibb county have an ordinance that says you cannot serve alcohol and have nude dancing in the same establishment. There's a pair of buildings on the east side of Bibb County that are mirror images and are less than 5' apart on one side. We had talked about knocking both facing walls out and replacing them with thick glass. Bar in one building with bikini servers and nude dancing in the other so you could look right out one building into the other. lol
jeff alder
Well-Known Member
We did the rental property gig for 30 years. That was enough! I would love to invest 12K and add 1k a month and end up with love 300K in 11 years. Chances are slim that would happen.
timk225
Well-Known Member
I'm surprised more people haven't talked much about the crypto markets. I found Bitcoin in early '13 and have been into it ever since. I've mined, I've tried the buy low / sell high thing, I've made some money here and there, but DAMN if I knew in early '09 what I know now, I'd be a billionaire. The volatility of crypto is what makes it useful for the buy low / sell high thing. You just have to guess it right. And after 12 years, with all my research and having been through several big crypto up / down price cycles, it is an educated guess at best. Some say that crypto "is not an asset / is not a commodity" etc. It doesn't have to be. If I can buy for X and sell for X+, I have more dollars.
Back in March when prices were down, I put in $14K across bitcoin, solana, xrp, cardano, chainlink, and doge. Since then, my account has been from $14K to 19 to 15 to 17 to 19. I'm hoping to sell it all for 30-40 when prices top out in this price cycle, which could be in 6 months to 3 years. Just got to watch the markets, do research, and hope for the best. Try to learn and guess right.
I've heard of people making big money in options and calls / puts, but I know nothing about it so I don't do that.
I watch a few youtube channels like Michael Bordenaro and ClearValueTax, and a lot of other YT videos on the economy, the markets, the banking system, where our money comes from, etc. It's a huge house of cards. Right now we are in a bad spot. If interest rates go up, this happens. If interest rates go down, other things happen. And neither is particularly good.
I never had much in my IRA or 401K, about $6500 total, but when I hit my birthday this spring, it really jumped into my mind what I need to be doing. I'm now putting 20% of my pay into my Roth 401K, and I'll be raising that to 30-40% in a few months once one other bill is paid off. I have some other sources of income from rental duplexes and other things, so my job isn't paying for my whole life. I've got 15 years until I hit 70 (damn I'm getting old!), and I've got to load up the 401K and maybe an IRA HARD until then!
Back in March when prices were down, I put in $14K across bitcoin, solana, xrp, cardano, chainlink, and doge. Since then, my account has been from $14K to 19 to 15 to 17 to 19. I'm hoping to sell it all for 30-40 when prices top out in this price cycle, which could be in 6 months to 3 years. Just got to watch the markets, do research, and hope for the best. Try to learn and guess right.
I've heard of people making big money in options and calls / puts, but I know nothing about it so I don't do that.
I watch a few youtube channels like Michael Bordenaro and ClearValueTax, and a lot of other YT videos on the economy, the markets, the banking system, where our money comes from, etc. It's a huge house of cards. Right now we are in a bad spot. If interest rates go up, this happens. If interest rates go down, other things happen. And neither is particularly good.
I never had much in my IRA or 401K, about $6500 total, but when I hit my birthday this spring, it really jumped into my mind what I need to be doing. I'm now putting 20% of my pay into my Roth 401K, and I'll be raising that to 30-40% in a few months once one other bill is paid off. I have some other sources of income from rental duplexes and other things, so my job isn't paying for my whole life. I've got 15 years until I hit 70 (damn I'm getting old!), and I've got to load up the 401K and maybe an IRA HARD until then!
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