#savings bonds

[phoenixyfriend]

Ko-Fi prompt from Isabelo:

Hi! I'm new to the workforce and now that I have some money I'm worried it's losing its value to inflation just sitting in my bank. I wanted to ask if you have ideas on how to counteract inflation, maybe through investing?

I've been putting this off for a long time because...

I am not a finance person. I am not an investments person. I actually kinda turned and ran from that whole sector of the business world, at first because I didn't understand it, and then once I did understand it, because I disagreed with much of it on a fundamental level.

But... I can describe some factors and options, and hope to get you started.

I AM NOT LEGALLY QUALIFIED TO GIVE FINANCIAL ADVICE. THIS IS NOT FINANCIAL ADVICE.

What is inflation, and what impacts it?

Inflation is the rate at which money loses value over time. It's the reason something that cost 50 cents in the 1840s costs $50 now.

A lot of things do impact inflation, like housing costs and wage increases and supply chains, but the big one that is relevant here is federal interest rates. The short version: if you borrow money from the government, you have to pay it back. The higher the interest rates on those loans, the lower inflation is. This is for... a lot of reasons that are complicated. The reason I bring it up is less so:

The government offers investments:

So yeah, the feds can impact inflation, but they also offer investment opportunities. There are three common types available to the average person: Bonds, Bills, and Notes. I'll link to an article on Investopedia again, but the summary is as follows: You buy a bill, bond, or note from the government. You have loaned them money, as if you are the bank. Then, they give it back, with interest.

Treasury Bills: shortest timeframe (four weeks to a year), and lowest return on investment. You buy it at a discount (let's say $475), and then the government returns the "full value" that the bond is, nominally (let's say $500). You don't earn twice-yearly interest, but you did earn $25 on the basis of Loaning The Government Some Cash.

Treasury Notes: 2-10 year timeframe. Very popular, very stable. Banks watch it to see how they should plan the interest rates for mortgages and other large loans. Also pretty high liquidity, which means you can sell it to someone else if you suddenly need the cash before your ten-year waiting period is up. You get interest payments twice a year.

Treasury Bonds: 20-30 years. This is like... the inverse of a house mortgage. It takes forever, but it does have the highest yield. You get interest payments twice a year.

Why invest money into the US Treasury department, whether through the above or a different government paper? (Savings bonds aren't on sold the set schedule that treasury bonds are, but they only come in 30-year terms.)

It is very, very low risk. It is pretty much the lowest risk investment a person can make, at least in the US. (I'm afraid I don't know if you're American, but if you're not, your country probably has something similar.)

Interest rates do change, often in reaction or in relation to inflation. If your primary concern is inflation, not getting a high return on investment, I would look into government papers as a way to ensure your money is not losing value on you.

This is the website that tells you the government's own data for current yield and sales, etc. You can find a schedule for upcoming auctions, as well.

High-yield bank accounts:

Savings accounts can come with a pretty unremarkable but steady return on investment; you just need to make sure you find one that suits you. Some of the higher-yield accounts require a minimum balance or a yearly fee... but if you've got a good enough chunk of cash to start with, that might be worth it for you.

They are almost as reliable as government bonds, and are insured by the government up to $250,000. Right now, they come with a lower ROI than most bonds/bills/notes (federal interest rates are pretty high at the moment, to combat inflation). Unlike government papers, though, you can deposit and withdraw money from a savings account pretty much any time.

Certificates of Deposit:

Okay, imagine you are loaning money to your bank, with the fixed term of "I will get this money back with interest, but only in ten years when the contract is up" like the Treasury Notes.

That's what this is.

Also, Investopedia updates near-daily with the highest rates of the moment, which is pretty cool.

Property:

Honestly, if you're coming to me for advice, you almost definitely cannot afford to treat real estate as an investment thing. You would be going to an actual financial professional. As such... IDK, people definitely do it, and it's a standby for a reason, but it's not... you don't want to be a victim of the housing bubble, you know? And me giving advice would probably make you one. So. Talk to a professional if this is the route you want to take.

Retirement accounts:

Pension accounts are a kind of savings account. You've heard of a 401(k)? It's that. Basically, you put your money in a savings account with a company that specializes in pensions, and they invest it in a variety of different fields and markets (you can generally choose some of this) in order to ensure that the money grows enough that you can hopefully retire on it in fifty years. The ROI is usually higher than inflation.

These kinds of accounts have a higher potential for returns than bonds or treasury notes, buuuuut they're less reliable and more sensitive to market fluctuations.

However, your employer may pay into it, matching your contribution. If they agree to match up to 4%, and you pay 4% of your paycheck into an pension fund, then they will pay that same amount and you are functionally getting 8% of your paycheck put into retirement while only paying for half of it yourself.

Mutual Funds:

I've definitely linked this article before, but the short version is:

An investment company buys 100 shares of stock: 10 shares each in 10 different "general" companies. You, who cannot afford a share of each of these companies, buy 1 singular share of that investment company. That share is then treated as one-tenth of a share of each of those 10 "general" companies. You are one of 100 people who has each bought "one stock" that is actually one tenth of ten different stocks.

Most retirement funds are actually a form of mutual fund that includes employer contributions.

Pros: It's more stable than investing directly in the stock market, because you can diversify without having to pay the full price of a share in each company you invest in.

Cons: The investment company does get a cut, and they are... often not great influences on the economy at large. Mutual funds are technically supposed to be more regulated than hedge funds (which are, you know, often venture capital/private equity), but a lot of mutual funds like insurance companies and pension funds will invest a portion of their own money into hedge funds, which is... technically their job. But, you know, capitalism.

Directly investing in the stock market:

Follow people who actually know what they're doing and are not Evil Finance Bros who only care about the bottom line. I haven't watched more than a few videos yet, but The Financial Diet has had good energy on this topic from what I've seen so far, and I enjoy the very general trends I hear about on Morning Brew.

That said, we are not talking about speculative capital gains. We are talking about making sure inflation doesn't screw with you.

DIVIDENDS are profit that the company shares to investors every quarter. Did the company make $2 billion after paying its mortgages, employees, energy bill, etc? Great, that $2 billion will be shared out among the hundreds of thousands of stocks. You'll probably only get a few cents back per stock (e.g. Walmart has been trading at $50-$60 for the past six months, and their dividends have been 57 cents and then 20.75 cents), but it adds up... sort of. The Walmart example is listed as having dividends that are lower than inflation, so you're actually losing money. It's part of why people rely on capital gains so much, rather than dividends, when it comes to building wealth.

Blue Chip Stocks: These are old, stable companies that you can expect to return on your investment at a steady rate. You probably aren't going to see your share jump from $5 to $50 in a year, but you also probably won't see it do the reverse. You will most likely get reliable, if not amazing, dividends.

Preferred Stocks: These are stock shares that have more reliable dividends, but no voting rights. Since you are, presumably, not a billionaire that can theoretically gain a controlling share, I can't imagine the voting rights in a given company are all that important anyway.

Anyway, hope this much-delayed Intro To Investing was, if not worth the wait, at least, a bit longer than you expected.

Hey! You got interest on the word count! It's topical! Ish.

[gracie-bird]

On the eye of her departure for Monaco to wed her Prince Rainier, Grace Kelly was presented with a silver medal and citation by the US Treasury Department for her work on behalf of the US Savings Bonds program in New York on March 30, 1956. She is shown with the medal, which was formally presented by John R. Buckley, director of the Treasury's Savings Bonds division.

*Photo by Frank Jurkoski via eBay and restored by @gracie-bird

[stone-cold-groove]

Executive decisions.

[thesesixseeds]

Advertisement for US Savings Bonds, 1948.

[thedacian]

Looking for a low-risk investment? Our latest guide breaks down everything you need to know about buying savings bonds.

Full Guilde: Link Here

[thatrandomblogsays]

Percy: *sacrifices himself to save his friends*

Grover & Annabeth: having PTSD flashbacks

[vebokki]

i present to you for your consideration: luo binghe and sha hualing as roommates. also they're both going to be late to their respective dates

[beelittle]

It’s christmas and i needed to get something out

So here’s the forger family, in all their slightly disastrous holiday spirit.

[exorbitant-interest]

That’s great news! What??

[poorly-drawn-mdzs]

Have you seen my little lad?

[First] Prev <–-> Next

[starry-bi-sky]

danyal al ghul memes because i don't think i've done those yet for this au.

(the jason one is in reference to the fanon headcanon/au that Jason and Damian potentially knew each other and interacted while jason was in the league. I've thought about it before in context of this au, but haven't thought about it enough to feel inspired or motivated to make a post exploring the idea)

(diablito means, as you can guess, 'little devil'. while i'm neutral to latino jason, i think the nickname is cute as fuck and was danny's main nickname from Jason. i don't wanna touch that timeline so im not gonna decide how old they were when Jason was there.)

Skulker: i am the ghost zone's greatest hunter! i capture and hunt creatures both rare and dangerous. Danyal: a poacher?? you're a poacher?? you poach animals??Skulker:...i sense i've made a mistake of some kind.

anyways that was the day that Skulker cemented himself as Danny's no.1 opp, and still remains there to this day even if he and Vlad are both viciously fighting for second. Out of everyone in the the AP rogues gallery, Skulker will be the first to be thrown under the bus in terms of 'o shit here comes phantom fucking RUN'.

[kennahjune]

Thinking of Steddie Soulmates where you feel every pain your soulmate feels.

Thinking of little Steve feeling every backhand and punch from Eddie’s dad.

Thinking of little Eddie feeling Steve break his arm and the pain being so much worse because his parents refuse to take him to the hospital until the school gets involved.

Thinking of Eddie finally moving in with Wayne and sure, the paternal beating are done, but now he’s just a small town Freak that’s constantly targeted.

Thinking of Eddie and Steve in their Sophomore/Freshman years respectively, not knowing who the other is outside of rumors and (unknowingly) their shared pain.

Thinking of Eddie finally escaping pain, the bullying turning to mainly verbal shit.

Only to be thrust right back into pain because his soulmates a walking hazard.

Thinking of Eddie having no idea what’s going on when he suddenly feels like one giant bruise after Steve’s beat up by Jonathan. Eddie watching Steve fall from grace in his Junior year and not connecting the dots.

Billy coming along and smashing a fucking plate over Steve’s head while Eddie’s peacefully sleeping. Eddie jolting awake with a shout because /holy fucking shit ow—/

Neither of them connecting the dots.

Then Steve graduates, and Eddie’s held back. And the pain subsides for a bit.

And then fuck all happens in Starcourt and Eddie literally feels like he’s dying and Jesus H. Christ is his soulmate /ok/??? Like they are getting seriously fucked up.

And then that recedes and it ok for a while— Eddie will still get killer pains that seem to circulate in his chest and head, but that’s to be expected with whatever tf his poor soulmate is going through year after year.

And then the fuckery of March 1986 happens and Chrissy Cunningham is dead in his trailer— his home— and he’s wanted for fucking murder and hiding in Rick’s dingy ass boat house—

And then he’s shoving none other than Steve Harrington up against a wall with a broken bottle helps to his throat. Eddie’s so piped on adrenaline he barely feels the sting in his back, but he does feel the zing of pressure on his throat and ok /ow—/

And he’s staring at Steve Harrington, who looks kinda terrified and so pretty and Eddie’s holding a bottle to his throat and is that Dustin?—

And—

And holy shit.

Eddie’s eyes widen at the same time as Steve’s and the realization hits them both at once.

[egophiliac]

the lovers, reversed

(aka I'm still freaking out about Jou)

[almondpiglet]

HAPPY BIRTHDAY DEAREST REIGEN!!

everyone thanks you for entering their lives :')

[a-most-beloved-fool]

spirk using telepathy to keep each other alive. kirk, desperate, psy-null and untrained, reaching clumsily into spock's dying mind and pulling, dragging spock's essence into himself, wrenching him forceably from the very jaws of death and holding him there through sheer strength of will, saying you can't die, i won't let you, you can't leave me, i need you, and binding him to life and to himself until it's impossible to fully separate them. spock, more skilled, carefully managing each one of kirk's vital signs - keeping his heart beating steady, his lungs drawing breath, his temperature within a safe range, all while suppressing kirk's pain, and at the same trying, vainly, to keep their minds from tying themselves inexorably together, but they're pressed too close and he can't, and he hopes that kirk will forgive him, for bonding them like this (he will, of course he will), but the alternative, letting kirk die, was - unthinkable.

[thedacian]

Looking for a secure investment option? Learn how savings bonds can help you grow your money with our detailed guide!

Read the Article Now.