Results 1 to 10 of 10

Thread: Looking to Invest $10,000, But Don't Know Into What

  1. #1


    Did you find this post helpful? Yes | No

    Looking to Invest $10,000, But Don't Know Into What

    I just sold all of my EE Bonds. The 30 year extended maturity will be up in 2021 and they will then stop earning interest. I decided to go to the bank now instead of in the middle of winter. They were a good investment earning 6% interest until they reached faced value and then still earning 4% interest until their extended maturity. However, I cashed them all so I wouldn't have to make several trips to the bank as they matured over 2021.

    Okay, I can see 21forme getting on my case for getting rid of an investment still paying 4% and dumping the money in my checking paying 0.02% interest, but at my age I don't care about the few extra bucks I would make by cashing them as each reaches full maturity. Heck, I might get the covid and won't be able to go anywhere.

    Now I'm stuck with an additional $10,000 and don't know what to do with it. My original plan at the beginning of the year was to invest it in CD's but interest rates have declined so much I no longer want to do that. I'm now thinking of buying a dividend paying value stock. I don't want to put it in a mutual fund as I already have enough of them. I been looking at buying 3M stock. It pays over a 3% dividend and is out of favor right now. Any other suggestions out there?

  2. #2
    Banned or Suspended
    Join Date
    Jul 2018
    Posts
    326


    Did you find this post helpful? Yes | No
    Go to YouTube and review any videos they have there regarding Zacks.com and Momentum Trading. Then open an account at Zacks.com and a Merrill Lynch Edge account. On March 23rd I took 90% of my bankroll out of the bank and opened a Merrill Lynch Edge account with it. Since that time the S&P 500 is up about 46%...using a Momemtum trading strategy based on Zacks ranks and the videos re: Momemtum Strategy, I'm up just shy of 90% in less than 5 months.

    Ohhh...I almost forgot, use the Momentum Strategy to make paper trades before you make actual trades so you can be sure you understsnd Momentum Strategy before you put your money at risk.

    If you simply use Dave Bartosiak's technique from this video you will crush the S&P 500.

    https://youtu.be/t7ujrXxOtyk

    For you naysayers, here's a screenshot from my Merrill Lynch Edge account.

    Screenshot_20200814-010422_Merrill Edge.jpg
    Last edited by Wave; 08-14-2020 at 12:11 AM.

  3. #3


    Did you find this post helpful? Yes | No
    You might want to check out Exchange Traded Funds. There are many flavors and I know of several that focus on dividend payments. Since they are more similar to a mutual fund in that you are buying a segment of the market or a style, they are safer than putting your money in one stock, but unlike mutual funds they trade like a stock so you don't have to wait until the NAV is set for a day if you don't like what's happening to them. Like their dominance in mutual funds, Vanguard has many good ones that have very low management fees. There are even several "dogs of the Dow" versions (so you'd be getting 3M as well as 9 other 'out of favor' large caps).

  4. #4
    Member
    Join Date
    Mar 2018
    Location
    Land of Shoe Games
    Posts
    39


    Did you find this post helpful? Yes | No
    Hi Midwest, I recommend the motley fool at fool.com

    I had a similar situation in march with $ from selling my house and I feel i am in good hands with all the
    different stocks recommended there. I feel I learned lots from all the content there.

    let me know if you have any more questions

  5. #5


    Did you find this post helpful? Yes | No
    Quote Originally Posted by Midwest Player View Post
    I just sold all of my EE Bonds. The 30 year extended maturity will be up in 2021 and they will then stop earning interest. I decided to go to the bank now instead of in the middle of winter. They were a good investment earning 6% interest until they reached faced value and then still earning 4% interest until their extended maturity. However, I cashed them all so I wouldn't have to make several trips to the bank as they matured over 2021.
    MWP, in your quest to prevent yourself from not earning any future interest because of reaching maturity dates, I hope that you did not overlook the twice a year interest crediting dates. Otherwise you may already have lost up to six months interest.

  6. #6


    Did you find this post helpful? Yes | No
    Quote Originally Posted by BoSox View Post
    MWP, in your quest to prevent yourself from not earning any future interest because of reaching maturity dates, I hope that you did not overlook the twice a year interest crediting dates. Otherwise you may already have lost up to six months interest.
    Yup, I lost some interest by selling some of the bonds in between interest dates, but it couldn't be avoided if I wanted to sell them all at once. Here were the issue dates of the EE Bonds I sold.
    FEB 1991
    APR 1991
    JUN 1991
    AUG 1991
    OCT 1991
    NOV 1991
    SEP 1992
    FEB 1994
    SEP 1999
    I sold them in early Aug so three of the bonds were right on for interest dates. I was thinking about not selling all of them especially those not issued in 1991, but I said piss on it, I will probably forget about them and sold them all. These are the bonds I didn't sell for my kids education that I still had left. The lone Sep 1999 bond was only a $50 bond I got from some promotion like test drive a new car and they give you a free bond and was the only bond not earning 4% interest.

    By the way, I calculated the value of the bonds before I went to the bank with this online calculator. It agreed right to the penny with the number the bank came up with.
    https://www.treasurydirect.gov/BC/SBCPrice
    Last edited by Midwest Player; 08-14-2020 at 12:34 PM.

  7. #7


    Did you find this post helpful? Yes | No
    Quote Originally Posted by Midwest Player View Post
    By the way, I calculated the value of the bonds before I went to the bank with this online calculator. It agreed right to the penny with the number the bank came up with.
    https://www.treasurydirect.gov/BC/SBCPrice
    A slightly different slant.

    Many years ago, I bought car and financed through the dealership (can’t remember which dealership, either Hyundai or Honda). I was quite the whiz at spreadsheets in those days and built a rather sophisticated finance purchase lease model). The dealership ran the numbers through and printed up a contract specifying monthly payments etc. I ran the info with interest rates through my laptop prior to signing.

    The assholes had actually added about $10 or $15 a month to the payments, ergo lots of extra profit. The contract numbers were immediately adjusted to my calculations. You have to watch everybody.

    As a further side note when buying new cars, it used to be that cash was king. No longer. The game has changed. Now the profit models prefer you to finance - so, a word to the wise. Don’t tell them you want to pay cash. Play the game, negotiate your best deal, and at the business office where they try to drill another grand or 2 for warranties, packages etc., Plus discuss financing options, refuse the financing and pay cash at that point.

  8. #8


    Did you find this post helpful? Yes | No
    Quote Originally Posted by Midwest Player View Post
    Yup, I lost some interest by selling some of the bonds in between interest dates, but it couldn't be avoided if I wanted to sell them all at once. Here were the issue dates of the EE Bonds I sold.
    FEB 1991
    APR 1991
    JUN 1991
    AUG 1991
    OCT 1991
    NOV 1991
    SEP 1992
    FEB 1994
    SEP 1999
    I sold them in early Aug so three of the bonds were right on for interest dates. I was thinking about not selling all of them especially those not issued in 1991, but I said piss on it, I will probably forget about them and sold them all. These are the bonds I didn't sell for my kids education that I still had left. The lone Sep 1999 bond was only a $50 bond I got from some promotion like test drive a new car and they give you a free bond and was the only bond not earning 4% interest.

    By the way, I calculated the value of the bonds before I went to the bank with this online calculator. It agreed right to the penny with the number the bank came up with.
    https://www.treasurydirect.gov/BC/SBCPrice

    One final comment, which I'm sure you know. All the interest is taxable income to you this year on the federal level.

    Don

  9. #9


    Did you find this post helpful? Yes | No
    Quote Originally Posted by DSchles View Post
    One final comment, which I'm sure you know. All the interest is taxable income to you this year on the federal level.

    Don
    Yes, that is correct. I was originally planning to sell these bonds last year, but I had some land sales that were close to putting me in the next income tax bracket. This year turned out to be a good year to sell as I won't have any blackjack income. It is looking more and more likely that I won't be going to the casino anymore this year. There is just still too much covid.

    There is one tax note that a lot of folks might not know. At final maturity the bond's interest become taxable even if you don't cash them. It can make a tax mess if you forget about the bonds. You might have to file amended tax returns for a prior year when the bonds matured even though you didn't cash them. As folks become older they never know what kind of health item might come up like stroke etc. It can be easy to forget about these bonds stashed away in a safe deposit box.
    https://budgeting.thenest.com/penalt...ity-31113.html

  10. #10
    Banned or Suspended
    Join Date
    Jul 2018
    Posts
    326


    Did you find this post helpful? Yes | No
    Quote Originally Posted by Midwest Player View Post
    Yes, that is correct. I was originally planning to sell these bonds last year, but I had some land sales that were close to putting me in the next income tax bracket. This year turned out to be a good year to sell as I won't have any blackjack income. It is looking more and more likely that I won't be going to the casino anymore this year. There is just still too much covid.

    There is one tax note that a lot of folks might not know. At final maturity the bond's interest become taxable even if you don't cash them. It can make a tax mess if you forget about the bonds. You might have to file amended tax returns for a prior year when the bonds matured even though you didn't cash them. As folks become older they never know what kind of health item might come up like stroke etc. It can be easy to forget about these bonds stashed away in a safe deposit box.
    https://budgeting.thenest.com/penalt...ity-31113.html

    +1

Similar Threads

  1. How to Invest In BJ Team?
    By BlackAce in forum General Blackjack Forum
    Replies: 15
    Last Post: 01-22-2016, 07:18 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

About Blackjack: The Forum

BJTF is an advantage player site based on the principles of comity. That is, civil and considerate behavior for the mutual benefit of all involved. The goal of advantage play is the legal extraction of funds from gaming establishments by gaining a mathematic advantage and developing the skills required to use that advantage. To maximize our success, it is important to understand that we are all on the same side. Personal conflicts simply get in the way of our goals.