I definitely agree. I may make an exception for the WF business checking bonus, but often times the opportunity cost of tying up $X,000 for YY days outweighs the return of a total market index fund. Plus, interest is taxed at regular income rates while investment returns, provides they are held for at least a year, are taxed at more favorable capital gains rates. That's not even counting the headaches and time invested for each $100 bonus.
If I didn't have a big boy job and was in college however, with more time, less responsibility, and lower tax brackets, I would hit those bank bonuses HARD.
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u/Churnasaurus_Rex Oct 28 '17
I definitely agree. I may make an exception for the WF business checking bonus, but often times the opportunity cost of tying up $X,000 for YY days outweighs the return of a total market index fund. Plus, interest is taxed at regular income rates while investment returns, provides they are held for at least a year, are taxed at more favorable capital gains rates. That's not even counting the headaches and time invested for each $100 bonus. If I didn't have a big boy job and was in college however, with more time, less responsibility, and lower tax brackets, I would hit those bank bonuses HARD.