I was living in Denver, my son was a baby (41 now) And I got a check from the company for moving expenses a couple months before. I called the broker I had an account with and said I had a few grand to sock away. He said call your bank...I stoped at bank that afternoon and got a 12 mo CD for 16.5%

That year, operating loans from Farm credit hit a max of 22% for a few days, most operating loans were 15-17%

Jimmy Carter was President.
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Times of change are times of opportunity. In all seriousness, it seems like a 99.9 percent winner to buy some long-term CDs now if we can get 5 percent or more. It seems like the Fed is really intent on getting inflation back down to 2 percent or so. Right?
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Not currently.

From what I've read they're planning on raising it again. I saw a headline (admittedly didn't read the article) that inflation is over and the fed is dumb for continuing to raise it.

I read somewhere that the Fed Chairman like worships at the alter of Volker, so who knows.
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Where can I get 5%?
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One of my local banks has a MMSA at I think 4.

Typically if you lock it up longer they'll give you a higher rate. Asking about multi-year CDs and it can probably get you there.
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Anyone been tucking any money into I bonds the last year?
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Yes
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I always worry I do not save enough to retirement, but whenever I play around with these calculators, it makes it appear I am in good shape. I don't think I've done anything special. I have contributed to the 401k for over 20 years beginning straight out of college. It goes to a handful of funds and I pretty much keep eyes off it. I started at 6% because of a company match to that point and would raise it a percentage or two whenever I received a raise. I now direct 18% of my salary to the 401k and opened a RothIRA two years ago.

So, I hope these calculators are correct, but I guess time will tell. Anyone willing to share percentages they direct towards retirement savings accounts?
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Ain't no friggin way I'd tie up money for 5% a YEAR.

Or even 50% a year

Not if you have time to trade.
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Ya but then I have to read the wall street journal or something or pay some guy 30k a year to manage my shit...with no guarantee it will even increase. There is peace of mind in knowing you will just get it for sure.
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I wasn't saying that you can get it now, but I think it's possible that it'll climb that high.
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Yeah, I'm all over that. I wish the contribution limit wasn't so low.
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Early in my career I prioritized retirement and always made a point to do 15%. It became even harder once married and kids started coming but were able to do it. Now, 30+ years later, we don’t have any debt and live frugally. We now are saving well over 60% of our income (test run for retirement). It seems unfair that we have so much surplus now and scraped by so much much when younger but youth is also wasted on the young so I guess it all works out.
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I feel the same. It's just so hard to imagine getting to a certain number and it doesn't make sense until you start running the scenarios. Starting early is key.

It sounds like you're doing great. Starting right out of college is huge and it's part of what I missed. I didn't start my career until I was 26 and then didn't start investing heavily until my early 30's, so I am a bit behind in terms of compounding interest years.

If you plan to live a similar lifestyle in retirement to your current, then 15-20% of your income should accomplish that if you give yourself decades to invest. A ROTH is huge and something I'm always doing too.

I put 15-20% of my income into retirement accounts. I just started a ROTH 401k in addition a standard ROTH IRA. I am trying to build a large tax-free investment vehicle for retirement so my taxable income in retirement can be fairly low.

I still wonder what Social Security will bring for me (or not at all!) in my retirement plan. I plan it at $0 because I don't believe in the system lasting, but if I actually do collect my calculated SS amount, I'd be golden in retirement.
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I don't trust online calculators very much. There's a lot to take into account with inflation effects and returns and spending and they're too simplistic about spending in my opinion. I eventually took the time to build my own model that accounted for everything that was specific about my household. It's become my guiding document and I update it regularly.


Yeah, starting early and being consistent is a big advantage. I put money into my retirement account every single year, even after I lost my job and went back to graduate school. I always figured out a way to scrape together at least the maximum independent IRA contribution at the time. Combining that with the value of time cannot be overestimated.

For a long time I thought retirement was a fruitless endeavor. I'd make some investment returns and then the market would tank, and it seemed like my progress was painfully slow. I remember around 2001 thinking that I could never retire. But then at some point it suddenly hit critical mass and the returns got bigger, which then made the next year better, and it started rolling. It really hit home for me the first year that my investment income was higher than my earned income. By saving consistently, I had essentially created a third wage earner in my household. That was a watershed moment, and I flipped from being despondent to being optimistic over the course of just a few years.

That said, I've got my detailed financial model and I have my magic number, but the thought of switching from saving mode to spending-down-savings mode terrifies me. There are a lot of powerful variables, and if we have a bad decade in the market or if inflation goes up a lot or if I live a really long time, even my magic number won't last. That's a really scary thing to me. So my dilemma is whether I work longer, knowing that the odds are that I have enough to not need to work, or whether I retire, knowing that if something goes wrong in the economy I could be screwed. I think it would be impossible for me to save enough money to never be concerned about running out of it.
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