I rolled into municipal bonds and so far, the results are good. The bonds are all Missouri cities but not the big metros.
PIMCO’s CEO said 1-2 percent return is going to be the rule for the next few years for stocks and mutual funds.
I think you can find some security in investments like bonds...
If you truly believe you’ll only get 1-2% from risky investments, you might as well put money into the US I-series savings bonds. They are paying 2.6%, it is tax-deferred, and if inflation takes off their rates go up with it.
I’ve got a bunch of money parked in a 2% college savings account, it’s tax-free if I use the money for my kid’s college, and I got a state tax deduction for every dollar I put into the account.
The major tax change seems to be eliminating the lower rates for capital gains. That won’t matter for IRAs, where you’ve already given up dividend and capital gains treatment in exchange for the tax-deferred growth. All IRA and 401K money is taxed as ordinary income.
The theory behind Roth IRAs is that taxes aren’t likely to be lower in the future, so you might as well invest after-tax dollars but get your earnings fully tax-free, rather than get the tax deduction now, and then pay full income tax on both the principle and earnings later.
Downside to a ROTH is that it will be the first thing targeted, and there’s nothing to keep them from taking your ROTH IRA you had for 20 years, and deciding that from now on the appreciation will be taxable. I expect that to happen sooner rather than later, and certainly before they nationalize 401Ks.
Security in bonds? Don’t tell me and other ex-holders of GM bonds that unless of course you belong to one of Obama’s pet unions like UAW. This Monarch elected by parasites and fellow racist can do anything he chooses because the Congress refuses to do their job. We my friends are in deep Kim-Chee!