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Posted by JACK-UK on June 13, 2008, 7:24 pm
Hi there.. I was wondering if I could get some help/suggestions.. I
have saving money sitting in a Wells Fargo account earning next to
nothing.. at 105grand, I would hope to get a good interest on it. I
dont 'necessarily' need the money.. probably 40grand for my
'emergency' account? (6 months of bills right?)... but what do I do
with the rest? CD? other savings account with better interest? Im
leary about mutual funds in case I want to jump into the real estate
market.. but I cant go year after year not having this money work more
for me..
thoughts are appreciated. this is a great group!
JACK
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Posted by John A. Weeks III on June 13, 2008, 7:46 pm
In article
> Hi there.. I was wondering if I could get some help/suggestions.. I
> have saving money sitting in a Wells Fargo account earning next to
> nothing.. at 105grand, I would hope to get a good interest on it. I
> dont 'necessarily' need the money.. probably 40grand for my
> 'emergency' account? (6 months of bills right?)... but what do I do
> with the rest? CD? other savings account with better interest? Im
> leary about mutual funds in case I want to jump into the real estate
> market.. but I cant go year after year not having this money work more
> for me..
Talk to your stock broker about brokered CD's, corporate bonds,
or garanteed income plans. As an example, I just picked up $30K
in 6% CD's, FDIC insured. My broker doesn't have that good of a
deal all the time, but every once in a while, you can latch onto
something good.
I always question leaving money laying around as an "emergency
fund". That is too much money to have and not have it working
hard for you. In addition, having money laying around is sometimes
too tempting, and emergencies seem to pop up just as an excuse to
spend it. I like to make the money work, then find something else
as a short term emergency fund like a credit card or H/E loan.
For example, if you ladder your CD's, you always have one rolling
over in a few months, so you always have money to pay off the
card or H/E loan once the emergency is over.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
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which we respond. For all of the other tips and suggestions, see "FROM THE
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Posted by Elle on June 13, 2008, 7:49 pm
How old? What debts, if any, have you, and on what terms?
When do you want to retire? Does your employer offer any
sort of retirement plan? How much house might you be
considering buying, in dollars? Have a budget laid out on a
spreadsheet? Have health insurance?
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
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Posted by JACK-UK on June 14, 2008, 4:18 pm
Thank you for the quick response(s).
-- John -- What 'term' would you suggest the longest I go on any
CD? Im
sure if CD's are the way to go, I can look online..
-- Elle -- Thanks for the questions... Im 38, married with 2 kids
(12,13) and one more on the way. There is no (longer any) credit
card
debt. Really the only debt is the house mortgage which I have a fixed
5.5% 30yr. My employer does offer a 401k plan to which they also put
in a smidgeon amount.. the problem with it is that we dont meet some
'federal?' guideline, so they wont let me put in more than 5% and
sometimes refund me back some money! I usually only get to put in
$5-
$6K a year. I currently have about? 100grand in that account. We
do
have health insurance through work for the family. I dont have a
house in mind.. its kinda of if someone says here's a good deal check
it out.. then I would see if it made calculated sense... other than
that, I dont have a real interest in real estate.. unless it can
yield
more? I am on about 120grand a year at work but I am still claiming
"1" on taxes, essentially letting the govt borrow my money until I
get
them back on taxes... My plan/desire is to shift the 'savings' Wells
Fargo money to get a better return.. and then to open up something? a
mutual fund or something recurring that I can get put money in every
month.. I really appreciate anyone that has experience or advice in
this area...
thanks again...
JACK
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Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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Posted by John A. Weeks III on June 14, 2008, 4:42 pm
In article
> Thank you for the quick response(s).
>
> -- John -- What 'term' would you suggest the longest I go on any
> CD? Im
> sure if CD's are the way to go, I can look online..
The pundits suggest building a CD ladder. You can do it by quarters
or by years, depending on how much time you want to tie up your
funds. For example, you can put in:
$20K for 1 year
$20K for 2 years
$20K for 3 years
$20K for 4 years
$20K for 5 years
Then each time a CD comes due, roll it over for 5 years. The
trick is that you (a) are always getting the better 5 year interest
rate, but (b) you always have money rolling over every year. So
it behaves much like a 1 year CD but gets the 5 year rate.
The brokered CDs that I got a real deal on are long term, 10 years
to start with, but are already 3 years old. They are callable after
1 year. Even if they do get called after I have them for a year,
I still get a year of good returns. If they don't get called, then
it serves as a good base for my financial pyramid.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@johnweeks.com
Newave Communications http://www.johnweeks.com
======================================================================
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the
Newsgroup.
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