10-06-2016, 03:02 AM
Use Vanguard for your IRA, and lobby your employer to use them for your 401(k). Their money market rate has skyrocketed to 0.46% in the past few months! I feel downright giddy seeing monthly interest measured in dollars rather than pennies.
The ideal asset allocation is now said to be 125-age in stocks with the rest in bonds/money market. I wouldn't own bonds at the moment since they'll lose value as interest rates finally climb.
If you don't take advantage of IRAs and 401(k)s you're missing out on tax deductions and tax-deferred income (or tax-free income for the Roth IRA). If you use cash, you're missing out on 2% cash back from Fidelity's or Citi's credit cards. (And 5% in rotating categories from Discover or Chase.)
Confiscation simply will not happen. It would be much more efficient for the government to just print money - that method steals from both bank accounts and mattresses through hyperinflation.
Social Security has not been confiscated - it's invested in bonds.
The ideal asset allocation is now said to be 125-age in stocks with the rest in bonds/money market. I wouldn't own bonds at the moment since they'll lose value as interest rates finally climb.
If you don't take advantage of IRAs and 401(k)s you're missing out on tax deductions and tax-deferred income (or tax-free income for the Roth IRA). If you use cash, you're missing out on 2% cash back from Fidelity's or Citi's credit cards. (And 5% in rotating categories from Discover or Chase.)
Confiscation simply will not happen. It would be much more efficient for the government to just print money - that method steals from both bank accounts and mattresses through hyperinflation.
Social Security has not been confiscated - it's invested in bonds.