> If dividends pay 3-5%, why do stocks and not Cd's?

The potential for greater growth along with increased risk?

Are you the same tard who discovered capital loss carryforwards the other day?

You have a lot to learn about taxes, son.

 wrote:Are you the same tard who discovered capital loss carryforwards the other day?

You have a lot to learn about taxes, son.
So you don't know?

1) LT capital gains & dividends have better tax treatment, while CDs are taxed at ordinary income tax rates.

- Someone making $40,000/yr pays 0% tax rate on dividends, and 12% tax rate on CDs.

- Someone making $700,000/yr pays 20% tax rate on dividends, and 37% tax rate on CDs.

https://www.nerdwallet.com/taxes/learn/ … x-brackets 

https://www.nerdwallet.com/taxes/learn/ … d-tax-rate 

2) CDs have rollover hassle.  With stocks, you can just set them to auto-reinvest dividends, and forget about them.

3) CDs have early withdrawal penalty.

4) Stocks also have equity appreciation, on top of dividends.  And it's all tax deferred, meaning you only pay the favorable long term capital gains taxes when you sell, which could be decades later.

 wrote:1) LT capital gains & dividends have better tax treatment, while CDs are taxed at ordinary income tax rates.

- Someone making $40,000/yr pays 0% tax rate on dividends, and 12% tax rate on CDs.

- Someone making $700,000/yr pays 20% tax rate on dividends, and 37% tax rate on CDs.

https://www.nerdwallet.com/taxes/learn/ … x-brackets 

https://www.nerdwallet.com/taxes/learn/ … d-tax-rate 

2) CDs have rollover hassle.  With stocks, you can just set them to auto-reinvest dividends, and forget about them.

3) CDs have early withdrawal penalty.
I see, I didn't realize dividends were treated differently  as an income source.

CD's you can just let them rollover, and you can withdraw the interest along the way. But the tax difference is significant.

Many stocks don't pay dividends.  It's interesting, because that used to be part of the valuation model for stocks, but now they've settled into vibes and multiples of P/E ratios.

Here is a good book for the OP, to learn the basics about personal finance:

Personal Finance For Dummies 

https://www.amazon.com/Personal-Finance … 1394207549

 wrote:Here is a good book for the OP, to learn the basics about personal finance:

Personal Finance For Dummies 

https://www.amazon.com/Personal-Finance … 1394207549
Why would I not ask questions amongst the elite money managers on ci?

Free advice from accountants and money tards is free advice.

Why not treasuries over CDs if you live in a state with a high state tax rate?

 wrote:CD's you can just let them rollover
But you have to make a decision during every rollover period.  

If you let the CD auto-rollover, then you change your mind a few months later, now you have to pay a penalty.

I personally hate CDs.  

You're better off arranging your money this way:

- Checking Account: 2 months worth of expenses.

- High Yield Savings Account / Default Cash Account at Vanguard or Fidelity: 2-4 months of expenses.

- Everything Else: stock & bond index funds

 wrote:Why would I not ask questions amongst the elite money managers on ci?

Free advice from accountants and money tards is free advice.
Because that is my free advice.  Read a book like "Personal Finance for Dummies" to get started.

And when you want free personal finance advice, you're better off posting your question on bogleheads.org (I also post there).

https://www.bogleheads.org

WEEK etf pays weekly divs on treasuries.
BIL etf pays monthly divs on treasuries.

 wrote:Because that is my free advice.  Read a book like "Personal Finance for Dummies" to get started.

And when you want free personal finance advice, you're better off posting your question on bogleheads.org (I also post there).

https://www.bogleheads.org
I should mention that on bogleheads.org, you'll get real sincere answers.

On CampIdiot.com, most of the responses will be trolls, insults, dick pics, or goatse links.

 wrote:I should mention that on bogleheads.org, you'll get real sincere answers.

On CampIdiot.com, most of the responses will be trolls, insults, dick pics, or goatse links.
Thanks for the advice.  I should have gotten into investing more when I was younger.

 wrote:Thanks for the advice.  I should have gotten into investing more when I was younger.
Investing is easy, if you just follow the bogleheads method of investing (hold stock & bond index funds, and don't try to time the market).

Other aspects of personal finance are much harder (especially eldercare, estate planning, estate administration, etc).

> If dividends pay 3-5%, why do stocks and not Cd's?

If dividends pay 3-5%, why do stocks and not Cd's?

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