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All -- Newbie here when it comes to Investments. Not even sure if this post belongs here at first place.
I have been thinking a lot lately with the Savings i have in my BOA Account. i have about $25000 in savings there. Saved it primarily for Rainy day. Some savings in other bank. However, i'm having slepless nights thinking that this money sitting in BOA Savings account is NOT doing anything but sitting out there. The Rate of interest is very very very less. I just checked my Monthly Statement and the interest that i got was less than the breakfast money. What do you all suggest ?
Need your guidance as what to do to make this money work for me. I know the amount is very small but i want to make use of it in the most optimal way possible. I want to grow my money while my rebuilding phase is going on .
Thank you again.
Depends on if you just want a savings or a CD. Goldman, Disco, and Sync are up there over 2% for CD's. Regular savings with the same banks are around 1.70%. There are guys on here with accounts I'll never have and will help out. But these popped into my head when I was looking for a CD.
@Chestnut1 wrote:All -- Newbie here when it comes to Investments. Not even sure if this post belongs here at first place.
I have been thinking a lot lately with the Savings i have in my BOA Account. i have about $25000 in savings there. Saved it primarily for Rainy day. Some savings in other bank. However, i'm having slepless nights thinking that this money sitting in BOA Savings account is NOT doing anything but sitting out there. The Rate of interest is very very very less. I just checked my Monthly Statement and the interest that i got was less than the breakfast money. What do you all suggest ?
- Move this money to a different Bank which will pay me higher Interest rate on Savings ?. If yes, would you know which ones are the ebst ?
- Invest this $25000 + Additional $5k in some Mutual Funds which can give me a good average reate of return. I'm a novice when it comes to investment and really scared to lose money that i'm working really hard to save.
Need your guidance as what to do to make this money work for me. I know the amount is very small but i want to make use of it in the most optimal way possible. I want to grow my money while my rebuilding phase is going on .
Thank you again.
@Chestnut1 .. Might find some better rates here >> https://www.bankrate.com/banking/savings/rates/
If you can do 5k monthly in direct deposits, now is a good time to do the HSBC Premier bank bonus for $750 and that opens up around 2.05 APY Savings with no minimum or fees.
Citibank has a similar $700 bank bonus with their Accelerated HYS account earning close to the same rate however it is regional if you can get this savings account. You will need to check on their website.
1. If you need to be liquid, absolutely, move your money to at least a HYS account.
2. A lot of things to consider depends on your income, age, short/long term goals, how much money you have (anything else besides what you listed), and what type of investment vehicles you have open to you.
3. Investment options - First, for long term investments, it is often recommended and prudent to put some money in pre-tax investments such as 401k, HSA, IRA, etc.. This is a much deeper conversation. You should consult with a fiduciary investment advisor regarding this. Fiduciary advisors are important for clients because they are legally required to put clients' interests ahead of their own.
4. Depending on your income, age, and debt, you can determine how much you can safely invest. Age is important because it plays a factor on when you want to retire and how much you have invested so far. At the minimum if you have a company that offers 401k match or HSA contributions, you most likely want to max that out because it is basically free money. There are certain maximums you can contribute a year overall to each one of these investment vehicles that you need to consider.
5. Suggest having a 6 month emergency fund. This money needs to be someone liquid where you can withdraw without a penalty. This should cover all expenses in the event you cannot work due to unemployment or disability or some sort of emergency.
Lastly, I am by no means and expert but these are some items you should consider and do more research on. The most important thing is to make an educated decision and not fully trust some random person on how you should invest your money as it is a very personal thing that is entirely dependent on unique to the individual's personal factors and goals.
5 year CDs at 3% are way too conservative for me. Yes low risk but very limited returns that could be made elsewhere.
After Reading all the Amazing sugesstions, couple of points come to my mind.
Anyone know about RothIRA ?. What is it about ?. Is there any return on that investment ?. What are the Pros and Cons ?
@randomguy1 wrote:If you can do 5k monthly in direct deposits, now is a good time to do the HSBC Premier bank bonus for $750 and that opens up around 2.05 APY Savings with no minimum or fees.
Citibank has a similar $700 bank bonus with their Accelerated HYS account earning close to the same rate however it is regional if you can get this savings account. You will need to check on their website.
1. If you need to be liquid, absolutely, move your money to at least a HYS account.
2. A lot of things to consider depends on your income, age, short/long term goals, how much money you have (anything else besides what you listed), and what type of investment vehicles you have open to you.
3. Investment options - First, for long term investments, it is often recommended and prudent to put some money in pre-tax investments such as 401k, HSA, IRA, etc.. This is a much deeper conversation. You should consult with a fiduciary investment advisor regarding this. Fiduciary advisors are important for clients because they are legally required to put clients' interests ahead of their own.
4. Depending on your income, age, and debt, you can determine how much you can safely invest. Age is important because it plays a factor on when you want to retire and how much you have invested so far. At the minimum if you have a company that offers 401k match or HSA contributions, you most likely want to max that out because it is basically free money. There are certain maximums you can contribute a year overall to each one of these investment vehicles that you need to consider.
5. Suggest having a 6 month emergency fund. This money needs to be someone liquid where you can withdraw without a penalty. This should cover all expenses in the event you cannot work due to unemployment or disability or some sort of emergency.
Lastly, I am by no means and expert but these are some items you should consider and do more research on. The most important thing is to make an educated decision and not fully trust some random person on how you should invest your money as it is a very personal thing that is entirely dependent on unique to the individual's personal factors and goals.
Yes, ofcourse. The decision i will take eventually will be totally mine. However, i want to pick brians to see how others do thier investments. Based on that and based on my Situation, i will take a decision only When i feel it is safe. But, i appreciate your suggestions. Thank you.
@Chestnut1 wrote:After Reading all the Amazing sugesstions, couple of points come to my mind.
- CDs are low risk, however they don't yield much, especially in my case since i will be putting in only 25K. Which means i might make Approx ~500 a yar ( 2% Interest ). That boils down to < $50 a month. I might consider some of hte suggenstions given about suh as opening an HSBS Premier for a Bonus Incentive etc.
- I don't intend to put money in 401K because when i take the money out, i will have to pay taxes and i might feel crashed paying out huge taxes out of my savings. Hence, i'm thinking about RothIRA.
Anyone know about RothIRA ?. What is it about ?. Is there any return on that investment ?. What are the Pros and Cons ?
There's a lot you can research about this. Income is something that is a factor here.
this blog is a good start
https://obliviousinvestor.com/are-most-investors-better-off-with-all-in-one-funds/