safe deposit box vs savings
I
Joined: Jan 2001
Posts: 56,525
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From: Westside til I die
Fuckin spend that shit yo.
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2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
I
Joined: Jan 2001
Posts: 56,525
Likes: 0
From: Westside til I die
WAMU online savings is 1.15 right now
HSBC is 2.6
HSBC is 2.6
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2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
I
Joined: Jan 2001
Posts: 56,525
Likes: 0
From: Westside til I die
I know...my WAMU was like 5.xx last year.
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2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
2015 Ford Mustang GT Fastback - Ingot Silver - 6M - Performance Package - Gibson Catback, JLT CAI, FR 47lb injectors, BAMA E85 tune, Eibach Sportline, BMR wheel hop kit, UPR oil separator, Steeda shifter bushing/bracket
Team B.O.B.® - Ballaz on a Budget
I'm made of meat!
Joined: Mar 2003
Posts: 3,580
Likes: 0
From: Richmond, VA
Pay the taxes on it and put it in a Roth IRA. The average growth is 10% nohomo, but the maximum yearly contribution is $5,000 if you earn enough over that to cover the taxes. You can't put more in it than you can show in taxable income, that's the rule. But it's taxed up-front, so you pay a lower tax rate upon withdrawal than you would on the matured sum.
A $4000 contribution to a Roth-IRA growing at a constant rate of 10% will, in 25 years, grow to 4000 * 1.125 = $43,338.82. Because this $4000 contribution is not tax-deductible, the contribution plus the tax will cost 4000 / (1-.25) = $5333.33 in the year of contribution (i.e. the taxes on $5333.33 earned will be $1333.33, leaving $4000 to invest).
That example is just one year's contribution maturing at it's natural rate off of non-taxable interest. There's enough in that safety deposit box to do a maximum contribution every year for 10 years. After 5 years, you could make tax-free withdrawals, but if you let it go 25 years after untouched, it could turn into millions.
A $4000 contribution to a Roth-IRA growing at a constant rate of 10% will, in 25 years, grow to 4000 * 1.125 = $43,338.82. Because this $4000 contribution is not tax-deductible, the contribution plus the tax will cost 4000 / (1-.25) = $5333.33 in the year of contribution (i.e. the taxes on $5333.33 earned will be $1333.33, leaving $4000 to invest).
That example is just one year's contribution maturing at it's natural rate off of non-taxable interest. There's enough in that safety deposit box to do a maximum contribution every year for 10 years. After 5 years, you could make tax-free withdrawals, but if you let it go 25 years after untouched, it could turn into millions.
Last edited by Jafro; Jan 16, 2009 at 09:20 PM.
snitches get stitches
Joined: May 2002
Posts: 49,696
Likes: 1
From: Portland, OR
Pay the taxes on it and put it in a Roth IRA. The average growth is 10% nohomo, but the maximum yearly contribution is $5,000 if you earn enough over that to cover the taxes. You can't put more in it than you can show in taxable income, that's the rule. But it's taxed up-front, so you pay a lower tax rate upon withdrawal than you would on the matured sum.
A $4000 contribution to a Roth-IRA growing at a constant rate of 10% will, in 25 years, grow to 4000 * 1.125 = $43,338.82. Because this $4000 contribution is not tax-deductible, the contribution plus the tax will cost 4000 / (1-.25) = $5333.33 in the year of contribution (i.e. the taxes on $5333.33 earned will be $1333.33, leaving $4000 to invest).
That example is just one year's contribution maturing at it's natural rate off of non-taxable interest. There's enough in that safety deposit box to do a maximum contribution every year for 10 years. After 5 years, you could make tax-free withdrawals, but if you let it go 25 years after untouched, it could turn into millions.
A $4000 contribution to a Roth-IRA growing at a constant rate of 10% will, in 25 years, grow to 4000 * 1.125 = $43,338.82. Because this $4000 contribution is not tax-deductible, the contribution plus the tax will cost 4000 / (1-.25) = $5333.33 in the year of contribution (i.e. the taxes on $5333.33 earned will be $1333.33, leaving $4000 to invest).
That example is just one year's contribution maturing at it's natural rate off of non-taxable interest. There's enough in that safety deposit box to do a maximum contribution every year for 10 years. After 5 years, you could make tax-free withdrawals, but if you let it go 25 years after untouched, it could turn into millions.
v-card member alpha
Joined: Oct 2006
Posts: 4,010
Likes: 0
From: Assplosion, NE
If I had 50k, I'd get it in 20s, spread it out on my bed, and just lay in it(not really).
I wouldn't trust a safety deposit box with such a large amount of money, but I'm not very trusting anyway. I have neither a SDB or an interest-earning account of any kind, just a checking account. If I had a lot of money though (which I consider 50k to be), I'd rather earn interest on it. Besides, paying taxes is a good thing.
I wouldn't trust a safety deposit box with such a large amount of money, but I'm not very trusting anyway. I have neither a SDB or an interest-earning account of any kind, just a checking account. If I had a lot of money though (which I consider 50k to be), I'd rather earn interest on it. Besides, paying taxes is a good thing.
