I'm a little slow today. I just switched to Sanka. So...have a heart?

Saturday, June 03, 2006

Investing?

Do any of you guys invest your money anywhere? I have an IRA that I put money into every month... but otherwise, I put all of my "leftover money" into my savings account where I'm earning a measly seven cents (or thereabouts) per year on my dinero.

So, I pose this question to you, peers -- what do you do with your money to make your money work for you? Obviously, I want to sink this into real estate as soon as I save up just a liiiittle more, but in the interim, I'm insulted at what Bank of America is paying me for the money I've stored with them...

3 Comments:

Blogger Mike said...

I assume this is more a question for Laura, but I will try to give what little knowledge I have:

1. Put as much as you can into a Roth IRA every year.
2. Contribute as much to your 401K as possible every month (especially if your employer matches your contributions)
3. Assuming you know nothing about the stock market and aren't interested in speculating there, you could put your savings into ING. I think their savings rate is something like 4.5% a year. That's not too shabby, considering what banks give you.
4. Give the rest to me.

5:48 PM

 
Blogger Laura said...

Okay, since specifically referenced in Mike's posting, I guess I should respond.

I whole-heartedly agree with Mike's numbers 1 and 2. That's definitely the best thing you can do and you can take loans against a 401(k) for qualifying events (such as buying a house). One thing to consider, I'm not sure how much you make, but you might actually exceed the earnings threshold for a Roth IRA. If you do, a traditional IRA is almost as good.

If your looking for a somewhat short-term investment, I-Bonds are good. There's a small penalty for cashing in the bonds in less than five years (three months interest), but after that you can cash them in whenever you want and interest on I-Bonds compounds.

I don't know anything about ING. I just looked them up, though, and they have a better rate than the I-Bonds right now (4.25% vs. 2.41%). You could also buy a short-term CD through ING, which is currently earning 5.25%.

That's what I know. I'm actually a fairly bad saver, but I'm trying to improve. :)

10:28 PM

 
Blogger Rootietoot said...

Gold. And realestate. But mainly gold.

2:45 PM

 

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