Market Watch

[Paystar]

Wish I understood more about how things like that work. The banking/financial topic makes my head spin. When I hear CD I think about music. Lol.

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it. I got RIPPED OFF when I bought my first home when I was 19. Then it was a steep learning curve by the time I bought my current property.

 

[Cahaba Valley Farm]

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it. I got RIPPED OFF when I bought my first home when I was 19. Then it was a steep learning curve by the time I bought my current property.

I have been asking myself the same question here lately. I don't know if I would have really paid much attention to it or taken it seriously when I was back in school. The older I become the more I become a believer in the best education is the one you give yourself. Whenever something is spoon fed to us we just don't appreciate it as much.

 

[2manyrocks]

Part of the problem is the finance textbooks tend to be written from a mathematics perspective instead of a practical, real world view. The math part turns students off when they actually find the real world stuff interesting. The key, IMO, is to talk about the real world issues and then introduce the math solutions as ways to analyze various choices and how they impact the budget.

 

[Cahaba Valley Farm]

Part of the problem is the finance textbooks tend to be written from a mathematics perspective instead of a practical, real world view. The math part turns students off when they actually find the real world stuff interesting. The key, IMO, is to talk about the real world issues and then introduce the math solutions as ways to analyze various choices and how they impact the budget.

Agreed!

 

[jyoutz]

Why not a money market? Just asking.

I also put some money into a money market to have some liquidity, but it pays 4% instead of the 5% 14 month CD and the rates can change with a money market account. My CD is guaranteed to pay 5% for the term.

 

[Milo]

And here is a complaint I have had since my kids went to school.....instead of all the stupid stuff they teach kids in school, why do they not teach them from an early age about banking, investments, mortgages, etc???

My schooling never had anything like that, nor did my parents teach me anything about it.....

My SIL teaches high school and actually covers a lot of this using real world examples. He tells the students "you've moved away from home so you're on your own, your salary is $6,000 per month, illustrate where and how you plan to live." The first obstacle for some is when they learn they will take home less than $5,000, from a $6,000 salary. Then there's rent, utilities, transportation (they soon realize the new SUV they were planning on is out of the question), food and entertainment, clothing, on and on.

We did the same with our children and actually they loved learning it. We'd show them pay stubs with what my wife made and what came out. Then what costs to budget for; house payments and mortgage interest, budgeting for taxes, utilities, escrows for car and home maintenance, grocery, and more. They were most astounded by how much was withheld from pay and the amount of money we were paying in interest on our home (the rate was 14% IIRC at the time).

 

[newbury]

I must have grown up in the wrong school system.
In rural Vermont I still remember scanning the newspaper ads to come up with meals to fit a budget as school homework in about 6th grade. We had to buy basics, beef, chicken, flour etc. While others bought steak for 90 cents/lb I bought chuck roast for 50 cents per pound.
Of course by that time I was "self employed" selling greeting cards to pay for my addiction to fishing equipment, I saved coins for months to buy a Garcia Mitchel spinning reel.

 

[Cahaba Valley Farm]

I also put some money into a money market to have some liquidity, but it pays 4% instead of the 5% 14 month CD and the rates can change with a money market account. My CD is guaranteed to pay 5% for the term.

I would suggest looking at long term treasuries when the rates top out.

 

[jyoutz]

I would suggest looking at long term treasuries when the rates top out.

Thanks. I will do that.

 

[newbury]

As I've mentioned before, treasuries can be bought for no charge with some limitations via the website at Treasury direct.
Recent auction results can be found here:
Announcements, Data & Results — TreasuryDirect

For me as a newbie to it it was a slight pain to set up, but there are no brokerage fees.
Right now a lot of people are just riding the roller coaster in the shorter term notes - getting about 5.4% to 5.6% waiting for the longer bonds and notes to top out.

 

[ultrarunner]

Yep… 6, 9 and 12 months at one of the banks offering CD all paying 5%

Lots of commercial mortgages will be resetting and higher rates are already causing sleepless nights combined with highest vacancy rates in the nation if the news stories are accurate.

 

[D&D]

I also put some money into a money market to have some liquidity, but it pays 4% instead of the 5% 14 month CD and the rates can change with a money market account. My CD is guaranteed to pay 5% for the term.

Wow, a .gov employee with a years salary tucked away in one account and still have money to place in money markets. And no one understands why taxes are so high.

 

[D&D]

Yep… 6, 9 and 12 months at one of the banks offering CD all paying 5%

Lots of commercial mortgages will be resetting and higher rates are already causing sleepless nights combined with highest vacancy rates in the nation if the news stories are accurate.

The commercial vacancies are all around us. That bubble burst is likely to make a huge mess.

 

[drumminj]

Wow, a .gov employee with a years salary tucked away in one account and still have money to place in money markets. And no one understands why taxes are so high.

This comment seems unwarranted.

Some people (working in both public and private sector) live below their means and save money. I don't think jyoutz has given anyone here a reason to attack him.

 

[Blue Mule]

So yes my 1980s and 90s public education didn't teach us about CDs, investments, banking, etc. So I did a little "Googling" on the topic.

So currently let's say you get a CD at 5% fixed. You have $10,000 you can put into it. It's a five year CD. So, the money is going to earn $500 bucks annually for five years. At the end of the term your $10k turned into $12.5k.

So you're sitting on the money for FIVE YEARS and can't use it, and when that time is up you've only gained $2,500 bucks?? And, if inflation continues that $2,500 is, in practical terms, nothing? That sounds like a horrible proposition. First of all, nobody knows what's going to happen in five years. Hell I might not be alive in five years. Second, with market volatility like it is, that gain from the CD might actually turn out to be worse than if you'd used that cash to remodel a house or buy something you need while the item is cheaper. I just can't see myself finding a CD useful. When rates were low it would definitely not be worth it but even today I don't really see the benefit.

Turns out I see why my 1980s education didn't teach me CDs and investments. All those things are is gambling, and gambling is illegal in Kentucky.

 

[jyoutz]

Wow, a .gov employee with a years salary tucked away in one account and still have money to place in money markets. And no one understands why taxes are so high.

You had to make such a rude comment. None of anyone’s business but it is from an inheritance.

 

[D&D]

This comment seems unwarranted.

Some people (working in both public and private sector) live below their means and save money. I don't think jyoutz has given anyone here a reason to attack him.

An Attck vs an observation based on data given

 

[D&D]

You had to make such a rude comment. None of anyone’s business but it is from an inheritance.

You put your business out there but I’m being rude

 

[jyoutz]

You put your business out there but I’m being rude

I talked about available rates, you made a snide comment.

 

[D&D]

Turns out I see why my 1980s education didn't teach me CDs and investments. All those things are is gambling, and gambling is illegal in Kentucky.

In reality, it’s all gambling. Stock market, real estate, banking sometimes it’s just a matter of the lesser of evils. Real estate has been the safer bet in the past.