Quote:
Originally Posted by CoachKandSportsguy
hyperinflation is usually preceded with a highly devalued currency, or very weak currency in a highly connected world. given the USD strength, not quite sure that hyper inflation is in the cards, given that the US has the most resilient economy in the world due to large diversified and creative environment.
granted that the stock market valuations will return to earth, which is NOT the economy, and the sh1tcos with stupid valuations versus highly negative cash flows and insolvencies should and will crash, (CVNA is one that is the poster child today) the market will correct and then inflation will drop back to 2-4%.
But CDs are repackaged T bonds with the banks taking a cut. . never invest in CDs at a bank any more. Learn to use treasury direct to buy treasury bonds, and keep them at your brokerage account, where you can sell them if desired/needed. Learn about TIPs bonds versus standard treasury bonds. . . learn about high quality dividends ETFs for diversified stock market income, SPYD, XLU for utility income, which is partially guaranteed by government statute, and REITS / Oil&Gas royalty trusts. . . no need to buy individual stocks for dividends because the individual equity risk is much higher than a diversified portfolio for simple management.
40% stocks /60% bonds has been the most ideal portfolio for the last 40 years, now its a different style investment regime, more focused on low bond interest rates and more towards very conservative equities and other equity like yielders
good luck walking in the investment jungle
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Personally, I would suggest the use of MYGA’s (multi year guaranteed annuities) vs purchasing a CD. These are CD-like investments with fixed terms, sold by insurance companies that pay FAR more than a bank CD. Currently, a 5-year MYGA pays 3.5% (not all annuities are bad). While not insured by the FDIC, they are insured by the State of Florida up to $250,000 in case of default. The interest is not taxed yearly but instead is taxed at the end of the term chosen. You can roll over to another MYGA and delay the taxes further into the future. Many offer a 10% annual withdrawal of principal each year starting the second year of the contract without penalty. I currently own several MYGA’s as a small portion of my retirement and non-retirement assets and have been very pleased compared to the paltry CD offers. Do a Google search and you can get current rates. No, I am in no way affiliated with the insurance industry. I just refuse to accept the low rates offered by banks.