Fu@#(#K gaming time to get serious about money!!!!!!
- Thread starter nonggame
- Start date
[quote name='nonggame']Nope that all I have ; ; I know it's not much money. Do tell more about high yield saving. Does it Fed insure ? Is they any risk ? How do I get start ?[/quote]
If that's all the money you have, I wouldn't recommend investing it in stocks or mutual funds. I'd focus on keeping a minimum of 3-6 months of expenses in savings, then paying down any debt you have from there. If you have money left over after that, THEN consider investing.
There are several alternatives for savings accounts that pay more than the average bank. www.bankrate.com will list out banks who pay the most. I've been using ING for about 2 years now personally. I believe their current rate on the Orange Savings is around 3%. They are FDIC insured.
If the FDIC does not insure a bank you are interested in, then you do not want to bank with them. Due to a new change, FDIC accounts are now insured up to 250k.
If that's all the money you have, I wouldn't recommend investing it in stocks or mutual funds. I'd focus on keeping a minimum of 3-6 months of expenses in savings, then paying down any debt you have from there. If you have money left over after that, THEN consider investing.
There are several alternatives for savings accounts that pay more than the average bank. www.bankrate.com will list out banks who pay the most. I've been using ING for about 2 years now personally. I believe their current rate on the Orange Savings is around 3%. They are FDIC insured.
If the FDIC does not insure a bank you are interested in, then you do not want to bank with them. Due to a new change, FDIC accounts are now insured up to 250k.
nonggame
CAGiversary!
I have no debt and no expenses so that 6000 dollars can be put away and I won't need it at least 2 years. I will check out the link you post but is there better way ? If I want to invest what stock do you recommend ? I was looking at Apple stock. Any advice would be helpful.
Monsta Mack
CAGiversary!
Do a two year or so high percentage CD? Anything that will allow you to get more money back.
You're not going to find much higher that 4.00% for 12 months.
I have been putting my money into 12 month CDs, because of the volatility of the market, it's difficult to say what will happen with interest rates over a longer period of time.
I put everything in my ING savings account,, and it makes everything a lot easier to shift into ING CDs when I want to, and the savings account at least makes 2.75 for the emergency fund money I have that I could pull out at any time.
And don't keep in cash. Cash can get stolen, and cash doesn't earn interest.
I have been putting my money into 12 month CDs, because of the volatility of the market, it's difficult to say what will happen with interest rates over a longer period of time.
I put everything in my ING savings account,, and it makes everything a lot easier to shift into ING CDs when I want to, and the savings account at least makes 2.75 for the emergency fund money I have that I could pull out at any time.
And don't keep in cash. Cash can get stolen, and cash doesn't earn interest.
[quote name='nonggame']I have no debt and no expenses so that 6000 dollars can be put away and I won't need it at least 2 years. I will check out the link you post but is there better way ? If I want to invest what stock do you recommend ? I was looking at Apple stock. Any advice would be helpful.[/quote]
And you're not worried about having any emergency come up in which you'll need this money, despite having no savings?
I do not recommend investing in single stocks unless you know what you are doing and you are in for a longer period of time. I personally own an array of single stocks, but every single one of them I plan on keeping for at least 5 years or more.
And you're not worried about having any emergency come up in which you'll need this money, despite having no savings?
I do not recommend investing in single stocks unless you know what you are doing and you are in for a longer period of time. I personally own an array of single stocks, but every single one of them I plan on keeping for at least 5 years or more.
Reality's Fringe
CAGiversary!
- Feedback
- 8 (100%)
Buy a bunch of drugs and resell them at a higher price.
Or whatever.
Or whatever.
If you want to invest it and don't need the money for at leat 5 years, forget individual stocks and instead put it in a low cost index fund. However, I agree that the safest approach would be to save it in a high-yield CD or money market account like ING as others have suggested.
I'd buy 6000 $1 scratch off lotto tickets. Think about my proven results: I spent $1 last night and won $5, that's like a 726% return ratio on my investment. Now multiply that by $6000 and we are talking enough for you to take 4 years off work and supersize. It's all about compounding interest my dear boy.
Capitalizt
CAGiversary!
- Feedback
- 11 (100%)
Buy gold and silver. The dollar is going down the toilet.
I would throw $3000 into an ING Orange Savings Account, earning about 3%. This is your emergency fund.
With the remaining $3000, I would set up a CD Ladder, which works like this:
Buy 5 CDs, each with $600 in them ($600 x 5 CDs = $3000). The first CD should be a 1-year, the second should be a 2-year, third is a 3-year, 4th is a 4 year, 5th is a 5-year. When the 1-year CD matures, take the whole amount (principal and interest), and buy another 5-year. Same with the rest of the CDs: as they mature each year, roll it over into a 5-year. Doing it this way, you'll have a "CD Ladder" going, with one CD maturing every year. You get the benefit of better interest rates from longer CD terms, but since you get a maturation every year, you get to take advantage of potentially rising interest rates each year.
Wise investors should use this method as another means of diversification in their retirement portfolio.
With the remaining $3000, I would set up a CD Ladder, which works like this:
Buy 5 CDs, each with $600 in them ($600 x 5 CDs = $3000). The first CD should be a 1-year, the second should be a 2-year, third is a 3-year, 4th is a 4 year, 5th is a 5-year. When the 1-year CD matures, take the whole amount (principal and interest), and buy another 5-year. Same with the rest of the CDs: as they mature each year, roll it over into a 5-year. Doing it this way, you'll have a "CD Ladder" going, with one CD maturing every year. You get the benefit of better interest rates from longer CD terms, but since you get a maturation every year, you get to take advantage of potentially rising interest rates each year.
Wise investors should use this method as another means of diversification in their retirement portfolio.
(
CoffeeEdge
CAGiversary!
- Feedback
- 15 (100%)
Hookers and blow.
I'm curious about this term "Fu@#(#K." I am unaware of a spelling of "
" that has four characters in between the "u" and the "k."
I'm curious about this term "Fu@#(#K." I am unaware of a spelling of "
" that has four characters in between the "u" and the "k."
FFMooglestar
CAGiversary!
- Feedback
- 10 (100%)
Does anyone have an ING Orange $25.00 Referral promo code? There are some free one's on eBay, but I figure I'd use a cag referral before some random eBay dude.
APreciousDragon
CAGiversary!
- Feedback
- 49 (100%)
[quote name='CoffeeEdge']
I'm curious about this term "Fu@#(#K." I am unaware of a spelling of "" that has four characters in between the "u" and the "k."[/quote]
you forgot the ( = C
[quote name='Ender']I would throw $3000 into an ING Orange Savings Account, earning about 3%. This is your emergency fund.
With the remaining $3000, I would set up a CD Ladder, which works like this:
Buy 5 CDs, each with $600 in them ($600 x 5 CDs = $3000). The first CD should be a 1-year, the second should be a 2-year, third is a 3-year, 4th is a 4 year, 5th is a 5-year. When the 1-year CD matures, take the whole amount (principal and interest), and buy another 5-year. Same with the rest of the CDs: as they mature each year, roll it over into a 5-year. Doing it this way, you'll have a "CD Ladder" going, with one CD maturing every year. You get the benefit of better interest rates from longer CD terms, but since you get a maturation every year, you get to take advantage of potentially rising interest rates each year.
Wise investors should use this method as another means of diversification in their retirement portfolio.[/quote]
That is actually a really interesting idea! Do you do this yourself? Is it a common investing strategy that I just missed at some point?
I have no experience (at all) with investing/etc, and am daunted by the prospect, but am coming into an inheritance in a couple years ...
With a large sum of money, what is the best way to break it down/invest it (I'm in my 20's but would like to set aside some for retirement as well though). Trying to absorb as much info now so I don't get slammed later
!
I'm curious about this term "Fu@#(#K." I am unaware of a spelling of "
" that has four characters in between the "u" and the "k."[/quote]you forgot the ( = C
[quote name='Ender']I would throw $3000 into an ING Orange Savings Account, earning about 3%. This is your emergency fund.
With the remaining $3000, I would set up a CD Ladder, which works like this:
Buy 5 CDs, each with $600 in them ($600 x 5 CDs = $3000). The first CD should be a 1-year, the second should be a 2-year, third is a 3-year, 4th is a 4 year, 5th is a 5-year. When the 1-year CD matures, take the whole amount (principal and interest), and buy another 5-year. Same with the rest of the CDs: as they mature each year, roll it over into a 5-year. Doing it this way, you'll have a "CD Ladder" going, with one CD maturing every year. You get the benefit of better interest rates from longer CD terms, but since you get a maturation every year, you get to take advantage of potentially rising interest rates each year.
Wise investors should use this method as another means of diversification in their retirement portfolio.[/quote]
That is actually a really interesting idea! Do you do this yourself? Is it a common investing strategy that I just missed at some point?
I have no experience (at all) with investing/etc, and am daunted by the prospect, but am coming into an inheritance in a couple years ...
With a large sum of money, what is the best way to break it down/invest it (I'm in my 20's but would like to set aside some for retirement as well though). Trying to absorb as much info now so I don't get slammed later
![quote name='Shan82']
That is actually a really interesting idea! Do you do this yourself? Is it a common investing strategy that I just missed at some point?
I have no experience (at all) with investing/etc, and am daunted by the prospect, but am coming into an inheritance in a couple years ...
With a large sum of money, what is the best way to break it down/invest it (I'm in my 20's but would like to set aside some for retirement as well though). Trying to absorb as much info now so I don't get slammed later![/quote]
Yep, I do it myself. It's actually detailed again on the ING Direct website, but that's not where I got it from. I got the idea from an issue of Money magazine.
I wouldn't say it is a common strategy, but it really should be if you're interested in the safety and low-risk that CDs offer. If you are looking to get a good diversification in your retirement portfolio and need to fill out the low-risk portion of your allocation, this is a great way to go.
As for what you should do with that inheritance.....
At 20, you're in an excellent place to begin retirement savings. I would open a Roth IRA, and put some cash into a good mutual fund, namely one from Vanguard. I'd set up an emergency fund (preferably 3 months' salary's worth, but if not, go for $1000; this can cover any deductibles you might have to pay if something bad happened to your car, home, or health) with ING or HSBC. At your age, I wouldn't worry too much about CDs; the place to be when you are young is in stocks. And don't be fooled by all the talk about economic crisis; for the young investor, recessions such as these are nothing more than a great time to pick up good stocks at bargain prices. You are essentially positioning yourself to take advantage of the inevitable stock market recovery.
For you, I really really recommend reading these books:
Saving For Retirement Without Living Like a Pauper or Winning the Lottery
and
Dave Ramsey's Total Money Makeover
These books cover most of what you'll need to know for retirement saving, and they read well so it's not boring to stick with them. Seriously, get these books. They'll run you about $30 shipped for both, and you'll thank me 50 years from now when your retirement is a joy and not a burden.
Also, you would probably benefit from checking out www.getrichslowly.org/blog
Good Luck!
That is actually a really interesting idea! Do you do this yourself? Is it a common investing strategy that I just missed at some point?
I have no experience (at all) with investing/etc, and am daunted by the prospect, but am coming into an inheritance in a couple years ...
With a large sum of money, what is the best way to break it down/invest it (I'm in my 20's but would like to set aside some for retirement as well though). Trying to absorb as much info now so I don't get slammed later
![/quote]Yep, I do it myself. It's actually detailed again on the ING Direct website, but that's not where I got it from. I got the idea from an issue of Money magazine.
I wouldn't say it is a common strategy, but it really should be if you're interested in the safety and low-risk that CDs offer. If you are looking to get a good diversification in your retirement portfolio and need to fill out the low-risk portion of your allocation, this is a great way to go.
As for what you should do with that inheritance.....
At 20, you're in an excellent place to begin retirement savings. I would open a Roth IRA, and put some cash into a good mutual fund, namely one from Vanguard. I'd set up an emergency fund (preferably 3 months' salary's worth, but if not, go for $1000; this can cover any deductibles you might have to pay if something bad happened to your car, home, or health) with ING or HSBC. At your age, I wouldn't worry too much about CDs; the place to be when you are young is in stocks. And don't be fooled by all the talk about economic crisis; for the young investor, recessions such as these are nothing more than a great time to pick up good stocks at bargain prices. You are essentially positioning yourself to take advantage of the inevitable stock market recovery.
For you, I really really recommend reading these books:
Saving For Retirement Without Living Like a Pauper or Winning the Lottery
and
Dave Ramsey's Total Money Makeover
These books cover most of what you'll need to know for retirement saving, and they read well so it's not boring to stick with them. Seriously, get these books. They'll run you about $30 shipped for both, and you'll thank me 50 years from now when your retirement is a joy and not a burden.
Also, you would probably benefit from checking out www.getrichslowly.org/blog
Good Luck!
Last edited by a moderator:
chewster777
CAGiversary!
- Feedback
- 22 (100%)
Thanks for starting this thread. I've been meaning to invest my money for some time now but haven't gotten around to it. I'm going to look into what ING and Vanguard have to offer.
MisterModest
CAGiversary!
Blow it all on something to you like to blow on. You could get hit by a bus tomorrow. What's those investments going to get you then? Nothing, that's what.
bread's done