you are correct in saying my point makes no sense to you if that is what you thought i was talking about. No risk wasn't even the topic. It's what will add to your bank accounts. Merely buying assets won't pay the electric bill. Pay your car insurance. My point is your "BANK account doesn't get any bigger buying assets alone. I have 3 marlin 30-30 rifles I bought 15-20 years ago. I view them as an asset since 175 bucks was the most I paid for the 3. Been offered 900-1000 for any of the 3. BUT none of them contributed to my bank accounts at any point they been in my safe . SELLING them is the only way my bottom line will increase. Much the way your 401 k that is sitting there and someone else is getting rich off of it trading the stocks. Until you cash out you gain nothing. IF you do get dispersments you pay taxes . But the amount is another 5 page thread..

The link below is long but it covers many areas of who invests in the market, who does not and the reasons why.
The reasons shared above are involved for sure but there are many other factors impacting why there is a reluctance to invest current funds into long term growth assets. Notice that many of the Gen Z group at this time don't plan to invest in market assets at all. There could be some real issues with longevity in the future with people living longer, less SSI, Medicare and limited assets to turn into living expenses.
Planning for retirement is like planning how to spend money while one is actively working. The funds saved along with SSI, pensions etc. are like an employer offering you wages. One needs to invest to have that employer working with you after you quite your active working career or careers. The good news for many is with fewer births, and working to eliminate undocumented workers, the service economy we have today may well provide part time work for millions well into their 70s and beyond.
https://www.philadelphiafed.org/-/m...cans-Dont-Invest-in-the-Stock-Market.pdf
Bryce

Again... it makes no sense. No, of course your bank account won't "grow" unless you sell the equities and transfer the money from your brokerage to your bank. Which takes 2 clicks of a mouse. If risk is not the issue, you're saying it makes more sense to lose out on a potential 40% gain from an ETF like QQQ that tracks the Nasdaq 100.... in exchange for a guaranteed 5% return from a CD...... because...... why exactly?

After one year I can sell those shares, take my $7900, and reinvest the original 20k just like you can take your $1000 and reinvest the initial 20k. But, I am pretty sure my $7900 will go further towards paying my electric bill and car insurance than your $1000 will.....

And if you honestly think that "someone else is getting rich off of it trading the stocks" in my 401K that I OWN, then you really simply do not understand how the market works.....

Not theoretical last year I put 13, 4xx in nividia today its 25,586.15 at close. So up 12,3140 in little over a year. Thats just the account with my largest stake in nividia. Only 120.xx share but I have more in dif6 accounts.
Yes it goes up and down was up more yesterday. Also have many others im up on all of them way above that CD.

But I have a longer time line and risk tolerance though.

In the last year it shows
Return of
+23.46% combined for my fidelity acounts. Im sure some did better some did worse. Next time I look i may be down 50% . I will be happier than seeing it go up i will buy more.



I can live with a few down years without loosing sleep. Infact I prefer the down years since I never stop buying and love buying on sale.
I have stocks and etfs that have gone up In value and pay more than those cds. Jepq pays monthly and has been about 10% i bout during the last dip and have reinvested the pay out. Just checked im up 19.18% on it.

I dont have a life changing amount invested in any single holding. But mu stocks have drastically larger returns over time than the cash I have sitting in money market accounts waiting for the next dip or other investment opportunity.

Nothing wrong with playing it safe especially when retired. But cds have not been keeping up with real inflation .

Personally I would keep a few years worth of expences in ladders cds and bonds along with some dividends paying investments and put the rest in growth for larger returns. Why so you have enough cash to ride out down markets and are not forced to sell at the bottom becuse you need funds.

To me its not an all in one way approach but layered using different tools for different jobs.

No different than pulling from a tax deferred, 401 or ira as well as a roth in the same year to keep income in a favorable amount for tax purposes and health insurance cost.

Yote you do realize my point in this post was hoping the fed released true inflation numbers so my IBONDS would get the max amount. Not cd investment versus market vs whatever else.
But you threw out QQQ I’ll throw out a scenario. Let’s say a person bought 20,000 in gold in 2017 Still has most of it. . What was the return? All on paper because he still has it
I’ll do the math for you

Purchase price 1,617 dollars per ounce
20,000 divided 1617 = 12.368 ounces

At today’s prices 4585
That’s 56,709.95 But because he hasn’t sold it he hasn’t gained one penny in any of his accounts

Or if you bought 40 acres for 70,000 5 years ago but turned down 220,000 last month does not make a person any richer. Still had to sell hay off it to pay taxes and insurance. That land isn’t making any money unless it is sold or something sold off of it. Point is some asset investments don’t pay squat unless sold. Apple and oranges
Have a great day !!!

jbyrd63,
I sat here a bit watching this thread before responding.
My take?
There has been a tremendous amount of hedging in options market lately for risk of 5% bond yields. Treasury options traders appear to be hedging against risk of a surge in long dated bond yields up to and through the 5% levels as oils prices continue to rise.
Risk appears to be leaning toward higher rates.
If that helps provide some market color for you.
Jim

Be nice to see savings bonds hit 12-15% again.
Made bank big time last time that happened.
All the suckers in debt will be screwed though.

I'm not sure you'd really like to see that.
What conditions would it take to achieve those rates ?

I'm pretty sure we don't want to find out

Maybe a big spike in gas prices like last time.(high oil prices)
How we wound up with japanese cars here now and the death of the NA gas guzzler.
Next one will likely see EVs take over.
Thanks Donny.

Boco EV's wont take over for a simple reason. The electric grid can't handle the amount of juice it would need to move and we dont have the generating capacity. The data centers are already eating up huge amounts of electricity. Going to have to start some more nuclear reactors and build infrastructure before that can happen.

Bryce, I glanced at your article quickly, but it did not seem to examine employment-based 401k or other investments made available as employee benefits. Based on the population segments they examine, I wonder if the disparities in stock market participation also mirror disparities in their types of employment (or lack of employment). Many young people gain their initial exposure to various types of investments and their benefits through an employer, and over time, see the results and continue participating. It would be interesting to see those numbers. (Employment-based investment as a bridge to later investment as it applies to those segments of the population)

(Sorry, jbyrd. Don't mean to stray off-topic. Just made me curious.)

Kind of depends on your situation as to if any of this inflation is good or bad. As far as assets go, real-estate is historically good. So is gold.

i.e. - I got lucky but sold my old house of 20 years for a profit, used it for down payment on a newer bigger nicer place five years ago (expensive but a bargain), and its value has only gone up in the last five years using a 2.5% mortgage.

Yes, newer people looking to get into the housing market right now are having a tough time b/c those prices have went up which helped us that were already invested in it. Not to mention they have a tough time even coming up with a down payment.

i.e. - I know an engineer and a nurse just getting married and having their second kid renting right now.

On the other hand I bought a gold and silver etf (plus bitcoin stuff) at the same time as eachother (not house) and they have yet to be positive. I think those I just have to sit on to wait out.

Another big factor is how long you have until retirement. Everyone can't talk on here like they all have the same situation. I have 15-20 year to retire. White17 for example is less risky b/c he doesn't have 20 years to make up losses.

To Patrices point... my stocks and etfs are in a 401k. If I didn't have that money I wouldn't have the cash to do what I am doing investment wise.

WAIT...........what ??

I was saying older people invest differently than younger people and that it kind of depends on who you are.

That's a relief !

lol. sorry buddy didn't mean to set you off.

I thought for a minute you had some inside information that my doc wasn't privy to.......

I wasn't trying to kill you off either. Promise. lol.

LOL. White17's been older than dirt for as long as I can remember. He'll probably outlive both of us OhioBoy.