I’m personally sitting pretty well when it comes to my financial house. I’ve mentioned changes I’ve made here and there and for quite some time, I’ve been satisfied with what I’ve got. In summary, where I’m at right now is: Ally handles all my savings accounts needs. They pay 1.6% interest (right now. It’s been slowly dropping again.) T-Mobile (through Customers Bank) handles my checking. They pay 4% interest on up to $3k in my account and 1% on the rest. That’s a pretty nice deal, especially as rates keep dropping elsewhere. Looking at the interest rate history, we’re back where we were two years ago, after peaking in December, 2018.
So, it’s always good to be vigilant and keep an eye open for what may be better for you in your current situation. Although this hasn’t affected me, it’s still an irrational issue for me that I don’t have a presence at a physical bank. To repeat, I haven’t needed the services of a physical bank in many, many, years, but I still feel like I should have an account at one. So every once in a while, I give it consideration.
An offer came in the mail from TD Bank, which opened a branch nearby me recently. Recently – in bank years – is like in the last decade. I’ve always been intrigued by them, and I do have a IRA account with TD Ameritrade (although I’m not sure they’re actually related), so when I saw the offer, I figured I’d investigate. After all, they’re offering a signing bonus of $150 or $300, and who doesn’t want free money?
Let’s start with their top-tier account and see if I can get in. No minimum deposit to open an account (I don’t even know what that means – how do you open an account with no funds?). Monthly maintenance fee: $25. in the old days, that actually meant something, but now it just means you need to see if you can meet the criteria to get it waived. It’s almost a pointless charge. If you don’t meet the waiver criteria, you don’t get that account. Duh.
So, to waive the fee, I need either: $5k in direct deposits a month. Oh. Well, that’s quite a number. What else you got? Keep a $2,500 daily balance. Well, you know I had that at my last bank and it is doable, but are you going to pay me 4% interest on it like T-Mobile is? Not likely. Finally, I can have $25k in accounts with TD. They didn’t mention TD Ameritrade, only loans and deposit accounts, so that could be my ticket in, if that’s the case.
I visited their "Contact" section and their immediate response options were limited to social media or calling. I wasn’t going to call for a 5 second question, so I sucked it up and used Facebook Messenger to ping them for an answer.
While I wait, let’s see what benefits I get for my account. No ATM fees, free money orders, cashiers checks, blah, blah. It looks like I could have a free account… And now "Marie" has messaged me back, with essentially a copy/paste of the text I already read. So I have to be more specific in my question. Is a brokerage account with TD Ameritrade considered a "deposit account"? And the answer is: no. TD Bank and TD Ameritrade are separate and their accounts don’t count towards each other. So TD Bank is not for me. And it didn’t offer anything compelling anyway.
But, let me jump back just a little bit. When the TD Bank first opened in my area, I remember being impressed with their choice to have banking independent from investment. I thought it was the proper thing to do, unlike what, say, Wells Fargo does (as if WF does anything properly). I still do think that. But, after looking into their service offerings, I’m just not their target audience. There are better deals from online banks and the benefits of being physical just aren’t there. And maybe, maybe… I could be convinced that having my banking under the same umbrella as my retirement investment account is a good thing, then maybe things would be different. But right now, I think keeping things apart is best, especially in the growing swell of deregulation and financial insanity.
Ok, Boomer
https://www.bloomberg.com/opinion/articles/2019-11-04/millennials-should-be-happy-they-are-stuck-renting
“Millennials spend a lot of time bemoaning their inability to buy a home, forcing them to keep renting. They should want to stay renters, if they know what’s good for them financially.”
You son of a bitch.
This fucking article, written by an economist, is trying to sell the idea that people are better off renting than owning a house. And specifically, millennials are better off doing it. You wonder why young people hate the boomer generation? Well, this is a pretty good piece of evidence. Take away the condescending tone and you actually are left with malicious advice.
It’s amazing to me the slight of hand that is performed in order to make the pitch in this article. The author actually says that buying a house is a losing proposition. “…it has cost the homeowner 3% per year to own a house before taxes, maintenance, utilities and insurance. That’s a real negative return.” A goddamn economist, who manages investing funds, is selling this shit.
Then this paragraph:
“Some millennials were caught up in the subprime mortgage boom and collapse, and remain scarred by it. They believed they could buy houses with no money down and never shell out a dime because continuing rapid appreciation would allow for continual refinancings. So the bursting of the subprime mortgage bubble and subsequent one-third decline in house prices was a rude awakening, especially since it was the first nationwide drop in values since the 1930s.”
This needs some unpacking. First, not just millennials were caught up in this shit. Everyone was. But who was most vulnerable to it? And that snark about what millennials believed? You fuckers sold them that belief. You convinced them. They had no prior experience in real estate investing and falsely trusted you. So then we get the first housing crash since the 1930’s. Thanks for that.
Look, I’m no economist. I’m just a former renter who became a homeowner. When I went to purchase my new house, my simple criteria was, “is the same cost as what I’m paying in rent?” That was my budget and that’s where I went. I completely understand the issue of house prices being insane, but I also see what rent costs and it’s not much better. So, I encourage anyone to buy when they can. If you have to start small, do that. Don’t hold out and wait until you can afford big. And don’t listen to this bullshit that you shouldn’t buy at all.
Here’s the truth that the author is not telling you. It’s very simple. When you rent, you get nothing for your money. You get lodging and that’s it. When you own, you keep what you spend. People want to argue that housing doesn’t have a high rate of return on investment? Fuck them. It’s not supposed to. They say, what if you own a house for 10 years and sell it for what you paid for it, not gaining a cent? You fucking assholes, you gain all the equity in the property. All the money you paid into the loan (minus interest of course) is equity. You get that back. If you’re renting, what happens when you end your lease? What equity do you get from that? That’s “not gaining a cent”.
Then they can argue that property values can fall. Yes, this has happened once. Do I think it will happen again? Probably, but not as extreme as last time. But here’s the thing. You don’t lose money until you sell. I was underwater over $30k at one point. I kept making my mortgage payments and the property value eventually came back. And all the payments I made while it was underwater? Guess what? They still counted! Just like every other payment. It’s all equity. Stay the course!
So, you want to know why this fucking boomer wants you to keep renting? He’ll tell you right at the end of the article.
“The trend toward renting over owning should persist and may even increase. I continue to favor investments in rental apartments—assuming, of course, they meet the location, location, location test.”
So you better keep renting, if you know what’s good for you. And what’s good for you is very good for me.