San Diego Housing Market News and Analysis
tax free zero risk 2% investment?
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Submitted by scaredyclassic on May 16, 2020 - 10:50am
ok, that doesnt actually exist.
but it does in the sense that instead of being paid to save money, responsible people like myself have gotten used to being paid 2% on their spending in the form of credit card rebates. It's like the savings account of the past.
That's actually quite a lot of money tax free nowadays, really more than a savings account, since you can charge all your "basic expenses" and get 2% tax free.
I probably charge 50-60k a year, hell maybe more, including the 6% amex grocery rebate card. that's probably 1400-1600 tax free money, for eating and paying bills.
assuming the charges were for things you were absolutely going to buy anyway and you don't spend any extra to get this amazing 2% plus yield, consumption is the safest investment there is, better yields and safer than even municipal bonds.
which is creepy.
If I told my dad 30 years ago that someday I'd make my safest return, way more than money market acvount, from charging shit and paying it off timely, he'd have thought i was nuts.
what it says about a society where we actually see our safest "yield" from spending money on a credit card (albeit responsibly) and see virtually nothing for saving it in a bank, and then get most of that taxed away?
CONSUME. AMERICA NEEDS YOU TO BUY SHIT.
I think what it means is that at some point the USA is going to be looking for a giant "credit card rebate" on its own ballooning debt, and the form that will take is negative interest rates, which in a way is what a rebate on credit cards is;
i mean by that, the interest rate on my credit card is -2%, because i pay it off in full every month.
uncle same is the "debtor", like me, and so why wouldnt he also want a nice fat rebate, at least short term, to pump up his finances?.
and i think this may happen soon.
and i do not know what it means.
but i think it's bad.
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