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u/Pretend_Vanilla51 13d ago
OP .........You're a dip shit🤣 your "passive income" isn't keeping up with inflation lol 😆 any moron can put money in the bank and collect interest
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u/kb24TBE8 13d ago
Do you have to pay tax on it if you with draw the 1K monthly?
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u/jnguyen1891 13d ago
You have to pay tax regardless if you pull it out or not. Interest income is taxable at your marginal income tax bracket.
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u/Artfuldodger96 13d ago
How old are you and how long did it take to accumulate 250k in savings
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u/jnguyen1891 13d ago
First $100k is always the longest, but wealth really snowballs from there with consistent investing and letting compounding work in your favor.
I don't remember when I hit my first $250k, somewhere in my mid 20's.
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u/flick-it 13d ago
Have you considered a move to FDLXX? It would be state income tax exempt at a 5% return.
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u/Dry-Revenue2470 13d ago
Inflation at 6% and you have to pay tax on the interest you earn, you are actually loosing about $700 a month bra.
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u/jnguyen1891 13d ago
First, inflation is under ~3% right now. Second, everything is taxed. Third, please read the post why I put it there.
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u/Crypto_Advocate101 13d ago
$250k invested and you're only making $1000 a month. You're doing something wrong there 😅🤣
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u/jnguyen1891 13d ago
Why do people in this subreddit fail reading comprehension so badly? It's like a night and day difference compared to r/personalfinance
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u/Crypto_Advocate101 13d ago
Don't worry I've read where your money is, it's not making what it could be... on the amount you've probably got invested you could be making a fortune.
Don't always assume people can't read, it's not a good look for you acting all high and mighty because you have a few $$$ to your name.
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u/jnguyen1891 13d ago
I'm okay with index funds and set it to forget it. Good luck with FOREX. I'm not claiming to be high and mighty. It's money for a rental property, not showing you my Bugatti, lol.
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u/Crypto_Advocate101 13d ago
Literally implying people can't read when they comment something you don't like...
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u/jnguyen1891 13d ago
I never said I don't like the comment. I'm implying people can't read when they're implying you should use money you're going to spend very shortly on investments that may lose the principal capital.
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u/ElAlqumista 13d ago
Any tips for a newbie? I’ve been wanting to start earning from savings for a while now but first I am also trying to pay all the debts that I’ve accumulated. It’s not much but makes you bleed
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u/jnguyen1891 13d ago
There's an order for financial independence that's generally accepted by most:
- Build a minimum 3 month emergency fund.
- Pay off all high interest debt.
- Contribute at least the matching portion of the 401k plan if offered.
- Max out your HSA if available.
- Max out your 401k if available.
- Buy and hold index funds at a self-directed brokerage account.
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u/ElAlqumista 13d ago
Great thanks! Makes sense but I don’t think we have 401k where I work rn what could I do instead? Is that something you could still get signed up for?
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u/EntireBeach 13d ago
Currently sitting at 50k getting 200/month! My plan is to be at 70k this year! Only started last year!
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u/Own_Accountant_5229 13d ago
Think you’ll return 40% in a year? 😂🤦♂️😂
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u/Metz392 13d ago
Obviously they didn’t make the other 50k in interest in a year. Come on bro use that thing in your head
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u/Own_Accountant_5229 13d ago
RIF. If he’s at 50k CURRENTLY and wants to be at 70 in this year, that would be 40% increase in one year (or less).
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u/Metz392 13d ago
I’m not explaining his comment to you. You’re taking it far too literally. If he saved 50k in a year including the money he’s making off interest, that means he hopes he can be at 70k and the interest will help him get there.
Everyone here that uses to their brain to think knows exactly what the commenter meant lol.
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u/B_R_U_H 13d ago
Side note here, now that your balance is $250k is it recommended to perhaps put any further savings into another account just in case?
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u/jnguyen1891 13d ago
I remove the interest each month over $250k into another HYSA. But good call out for those who don't know!
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u/Bishop-22 14d ago
How much are you able to withdrawl a month? Could you withdrawl all passive income each month and gamble it? Not that you would..
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u/flytrap2099 14d ago
This is a HYSA with Marcus by Goldman Sachs, no limit on withdrawals as of now
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u/jnguyen1891 14d ago
I can withdraw as much as I want in a given month. There's no withdrawal limit.
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u/slickerdude 13d ago
I have Marcus but my apy is only 4.4%. Why is yours so much higher I don’t get it??
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u/Prestigious_Snow1589 14d ago
What do I have to do?
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u/jnguyen1891 14d ago
Do good in school, work your way up at your job, improve existing skills, continue to learn new ones, spend wisely, and always pay yourself first by investing for the future.
Sounds cliche but it's true.
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u/Crypto_Advocate101 13d ago
Or just inherit it from a more successful relative who passes away?
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u/jnguyen1891 13d ago
That $1m (that's now $1.45m)? It's a portion of my wealth, not all of it. I appreciate the stalking though. Keep it up, kid 😂
Love how some Redditors are so easily triggered and offended. I wonder how they survive in real life.
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u/Crypto_Advocate101 13d ago
I will don't worry keep crying about where you should invest with your mental block. It's just money at the end of the day.
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u/Crypto_Advocate101 13d ago
Now you're judging my wealth 😅🤣 you have issues.
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u/Crypto_Advocate101 13d ago
Grow up you child.
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u/jnguyen1891 13d ago
Aww my triggered clown. Ok, I'll grow up to be a clown just like you 🤡
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u/BedroomCompetitive30 13d ago
And anyone here who downvotes me for answering this morons attempt at sensible investment advice, with an equally idiotic story of someone chopping up a dog walker, should wake the hell up. Which by the way is true, it was a story from palm beach Florida. Here it is. Now, if you want real investment advice, let me know. I have a group of 1200 people with whom I help better learn the ins and outs of the market, options, futures, crypto, etc….
https://www.palmbeachpost.com/story/news/crime/2012/04/07/man-sentenced-to-life-in/7732243007/
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u/Perfect-Brain-7367 14d ago
I'm around 10% of this. Im still on track to max the Roth and contributing to 401k but that guaranteed, no-risk HYSA is still so enticing to me for this exact reason. Made more than a months worth of HYSA interest in VOO today but I still wish the HYSA had more in it lol.
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u/jnguyen1891 14d ago
I usually only put 6-12 months of expenses in a HYSA and the rest are all in investments. This is a down payment for an apartment I'm buying so the balance is higher than usual 😁
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u/HikingAllTheWay 14d ago
So how'd you get the 250k? My savings is having a hard time keeping 4 digits 😅
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u/Dymonika 14d ago edited 13d ago
Restaurants don't exist and the only digital entertainment available is what you find on /r/FreeGameFindings. Boom, there.
EDIT: omg guys, it was a joke lol. 🤦🏻♂
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u/HikingAllTheWay 13d ago
Haha I don't go to restaurants, or spend much money at all really, it all goes on bills so that I have a shower to cry in in peace 🕊️
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u/WolfPackWSB 14d ago
You can make more. If you owned any Yieldmax managed fund with TSLY, or any of the Mag 7 companies. You would have made almost 100k YTD (monthly return has avg. 13-27%) even corporate bonds pay you around 12-18%..
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u/nubnub92 13d ago
TSLY is down 33% YTD and APLY is down 8% YTD. do they pay dividends? am I missing something?
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u/WolfPackWSB 13d ago
It's lowest monthly dividend this year was 5.6%. Keep the payout reinvested. When you play enough of it using covered calls you end up with a lower average cost per share. This market has been simple with its trends to gradually work down your risk to $0/per share by collecting premiums of selling calls!
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u/nubnub92 12d ago
wow ty this feels like an investment cheat code, I'll buy some tomorrow. where can you see the historical monthly payout percentages? I couldn't find them on their website
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u/WolfPackWSB 10d ago
Google them, they will show its % return based monthly & yearly. Since most are only about 12-24 months old you really see the value in return dividend wise. The bottom prices show return on price which is just showing its trading $$ price cause it varies from $12-24/share
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u/WolfPackWSB 13d ago
They aren't stock, they are Traded Options. Their price per share have don't reflect there value, reflects more on the value of the company being traded. Apple is down for the year so is Tesla. They play Option Spreads to produce monthly income and payouts.
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u/Impossible-Wear5482 14d ago
How does one go about setting up this magic afk money farming machine and why doesn't everyone do it?
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u/WolfPackWSB 14d ago
I wouldn't lie about it. The Avg. Return is Posted on all Passive Income managed Funds. This year has been a solid one but it's far from over. Don't put all your eggs in one basket, make sure you have cash on available. Even if you put half your liquidity into NVDY, you would have a Return YTD of almost 33%
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u/WolfPackWSB 14d ago
Open a brokerage account with Marcus or any investment brokerage site. Look into managed monthly income traded funds stick with company's like MSFT, TSLA, GOOG & a few others. I know TSLY is TSLA managed account cause I have it along with YMAG. NVDY, AMZY, APLY, MSFO, AMDY look at their Return. MSFO return is over 24% in 12 months. NVDY is 113% in 12 months crazy!!!
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u/KickooRider 14d ago
Congratulations on not taking any risks whatsoever in the biggest bull market in history
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u/jnguyen1891 14d ago
Congratulations on failing to read the contents in the post.
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u/KickooRider 14d ago
I hope you've got 5m, because otherwise this is foolish
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u/jnguyen1891 14d ago
You have no idea what you're talking about. Goodbye.
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u/KickooRider 14d ago
Well, that's just like, your opinion, man
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u/KickooRider 14d ago
You're really a fan of the 60's, huh? Lol. 125k in a HYSA is insane. Bragging about it on the Internet is delusional
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u/GoatInMotion 14d ago
Damn that's the big bucks. I'm also using Marcus but I only got 10k in it which is roughly 37 bucks a month or 460 a year at 4.40%apy 😭
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u/jnguyen1891 14d ago
Hey, $37 is nothing to sneeze at. We all started somewhere. It will snowball and grow more before you know it!
I use Marcus, UFB, and Raisin. Some in SPAXX when I sell equities in my Fidelity account and whatever the fund is over at Vanguard.
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u/FunkOff 14d ago
Congratulations, but have you considered an investment strategy with a higher return? Lots of stocks and etfs pay higher dividends than that. You can also sell options.
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u/jnguyen1891 14d ago
Yes, but all of these involve risks which the $250k can't afford to take due to the nature of what it's for (investment property in the short-term).
Stocks with high dividend yields still have share price fluctuations where you can lose more than the dividend itself. Selling calls and puts on my existing holdings also have share price risk regardless of how the options expire.
There is nothing that is paying better than 5-6% with zero risk right now compared to HYSA and CDs.
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u/Gohstfacekila 14d ago
T bills are better right now. Your maxing at 13k per year interest. 3 month T bills have a YTM of 5.39% every 90 days. So you can just reinvest in T bills 4 times and make 5% every 3 months or you can wait all year to make 5-6%.
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u/Own_Accountant_5229 13d ago
You don’t make 5.39% in 90 days. You make a quarter of that. 5.39 is annualized. That would be over 21% annually. 😂😂😂
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u/SacoETrampa 13d ago
This is really not how it works… your comment makes it seem like 3 month bills are a no brainer because you will make 5% 4x over a year? That’s not how bonds are quoted, always quoted in “annualized” terms, so that comparing rates is ez/natural. Over 3m, you will make about 5%\4 (ignoring compounding).
Still, bills are typically better because the bank is just crossing you against some rates at the end, and trying to make some spread - so you can cut off the middleman. CDs in online banks will become very attractive if rates suddenly fall, as banks typically take some time to reprice, so you can fix an artificially high rate on a CD right after a massive rally of the curve.
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u/Gohstfacekila 13d ago
It’s yield to maturity. Not annual percentage yield. Your not compounding any interest but your maturity is only 3 months. So yes you really are making the YTM every 3 months. You just have to reinvest and there is not guarantee it will be 5.39 in the next 3 month cycle.
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u/TerdFerguson2112 13d ago
That’s exactly how it works. T bills are short term so duration risk is almost zero so principal balance is not at risk. You have interest rate risk at maturity to redeploy the existing fund if rates decrease but short term rates are at an inverse to long term rates today so you’re better off investing in 90 day t bills to maximize your interest payments as well as reduce you state tax exposure
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u/Momof-3DDDs 14d ago
Agreed. CDs is fine with me. I have $375k with 5.35% as of now and it gives me $1675/ month. I had 5.5% before.
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u/nik4dam5 13d ago
Where do you get that return?
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u/Momof-3DDDs 13d ago
I have Merrill Lynch broker account and short term CDs from there offer those rates. Brokerage count alone offers 4.72% now
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u/TerdFerguson2112 13d ago edited 13d ago
SGOV is at 5.4% and is state income tax exempt. Duration risk is minimal since they’re maximum 90 day t bills. Only risk is interest rate risk in the event the market drives rates down, which I don’t see any time soon.
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u/FxHorizonTrading 14d ago
How to make 1k a month: 1) come up with 250k
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u/Friendly_River2465 14d ago
I need to open HYSA by tomorrow
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u/Herox0102 14d ago
come up with $200k
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u/Admirable_System5691 14d ago
Amex doesn’t have the best apy but they have no minimum deposit and no minimum to gain interest
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u/chrisdelaris 13d ago
Personally I keep my savings in USDC cuz i get 5.25 apy. only about 10k though but my stocks are around 60k. Down like 20k this year since april tech heavy investments lol