Chase-self directed/money market accounts
Hi again Terry,I have Fidelity for the most part,which is doing well.
I also have 40+$ in local bank accounts,which produces zero.
My local Chase Rep had me open a “Self Directed” account,which allows me to put money in a variety of money market accounts,which is paying around 4% right now.
One question is-if I withdraw money or “sell”,do I get taxed on that ??This is already after tax money.
I’m retired for 2 years and doing well but looking for MORE !!
What do you suggest ??
Terry Says
Wait — is this money INSIDE a SELF-DIRECTED IRA? If so, then when you withdraw, it is all taxable as ordinary income.
If it is not in an IRA (you said it is after-tax money) then the term “self-directed” is just baloney. You have a money market fund — or maybe something else that is not insured.
First, ask exactly what you own — and ask whether it is FDIC insured.
Then ask for the “maturity” of the investments — how long you are locked up.
As these mature, you could always buy Treasury Bills direct from the govt — currently yielding 4% for 6 months, but likely moving lower in coming months.
Read this: https://www.terrysavage.com/t-bills-beat-cds-2/
If this really IS after-tax money, they will send you a 1099 nxt January telling you how much interest you earned. This must be added to your ordinary income and it will be taxed at your marginal tax rate.
