• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 30 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered 24 hours a day!
  • TUG started 31 years ago in October 1993 as a group of regular Timeshare owners just like you!

    Read about our 31st anniversary: Happy 31st Birthday TUG!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Free memberships for every 50 subscribers!

    Visit TUG on Youtube!
  • TUG has now saved timeshare owners more than $24,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $24 Million dollars
  • Sign up to get the TUG Newsletter for free!

    Tens of thousands of subscribing owners! A weekly recap of the best Timeshare resort reviews and the most popular topics discussed by owners!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    All T-shirt options here!
  • A few of the most common links here on the forums for newbies and guests!

What to do w/ extra cash?

C

Carta

TUG Member
Joined
Jul 5, 2005
Messages
979
Reaction score
192
Location
Pennsylvania
I have an extra $500 per month to save. Where do I put it without losing money?... CD, savings accnt, IRA, etc??? .........
Thanks..........Carta

ps....Like everyone else, my retirement fund is losing money.....
 
Just my 2 cents

If you need access to your money quickly, I would choose a short term CD or a high yield savings account (e.g., ING). If not, consider a long term CD.
 
Chemee said:
If you need access to your money quickly, I would choose a short term CD or a high yield savings account (e.g., ING). If not, consider a long term CD.
Click to expand...
==========================


I looked into a 6 mos. $2500 CD at 3.14%. At the end of the 6 mos. period, I would get a grand total of $39 in interest.. To me, it doesn't make sense to have $2500 tied up for 6 mos. and reap just $39.. So now it's plan B...

A savings account gives 1%, but I have access at anytime.
 
You can do better than 1% with a decent money market fund. ING (as Chemee mentioned) is currently paying 2.5% for example. A MMF is safe and you have access to your funds at anytime.

But I would ask again -- what is the goal for the $500/month? If it is saving for retirement, you really should consider longer-term investments.

Kurt
 
Last edited:
Carta said:
==========================
I looked into a 6 mos. $2500 CD at 3.14%. At the end of the 6 mos. period, I would get a grand total of $39 in interest.. To me, it doesn't make sense to have $2500 tied up for 6 mos. and reap just $39.. So now it's plan B...

A savings account gives 1%, but I have access at anytime.
Click to expand...

And then -- if you don't use the money in six months --- you'll reap just under $13.... even worse!!!

So it's important to consider if you're going to need the money in six months...
 
Do you have an emergency fund for 12 - 24 months expenses? If not, put your money into an insured savings or insured short term CD account. Most money market funds are not insured. They're thought of as safe because they generally don't lose money, but in this financial environment who know? The government came out with an optional guarantee program for money market funds recently. If considering a money market fund, you might want to find out if it joined.

If your emergency fund is fully funded and you want to save for travel, housing, or education, put your money into insured longer term CDs.

If you already have your emergency fund and future known expenses fully funded, then it's time to buy stocks :eek: As the old saying goes, "Buy while the blood is running in the streets." Stocks are on sale right now. The problem is in identifying companies that are not going to go out of business. If you know which ones, please tell me :hysterical:
 
[Political comments are not allowed on TUG. - DeniseM Moderator]
 
Last edited by a moderator:
Good question

Carta said:
I have an extra $500 per month to save. Where do I put it without losing money?... CD, savings accnt, IRA, etc??? .........
Thanks..........Carta

ps....Like everyone else, my retirement fund is losing money.....
Click to expand...

Good question. We're getting ready to pay off the mortgage and intend to continue to put that amount aside...but WHERE. Hubby's might be retiring in three or four years.
 
Mother...

1950bing said:
Starting next Tuesday, keep it under your bed.
Click to expand...

My mother grew up during the depression and when all this started she got scared and put cash in her safe deposit box. She thinks we ought to too.
 
It is quite a dilemma. We have put off selling some investment property simply because there's nowhere to put the profits that would pay us anything remotely close to a decent return, and our properties do make money. Boo hoo, we had hoped to retire this year or next.

If you have a Fifth Third Bank in your area, and you have sufficient funds, they have a "Safe Saver" account--minimum balance is $50k, but they are currently paying 2.7% interest and you have instant constant access to your money. We had a CD mature the other day, and the best local rate we could find was 3%, so we put it in Fifth Third--didn't seem worth .3% to tie the money up for a year.

As far as retiring this year or next, with such good buys out there we might end up taking that Safe Saver money and buying more investment property....
 
I would keep stuffing it into retirement plan stocks (I assume you are still eligible to do so). After, as was wisely mentioned previously, fully funding the emergency cash account.
 
donnaval said:
It is quite a dilemma. We have put off selling some investment property simply because there's nowhere to put the profits that would pay us anything remotely close to a decent return, and our properties do make money. Boo hoo, we had hoped to retire this year or next.
Click to expand...
curious, is property actually selling in your area? You wouldn't have to take a loss?
 
[Out of compliance post, and response, deleted.-DeniseM Moderator]
 
Last edited by a moderator:
If you have a good broker or financial adviser, I suggest you talk to them. If not..get one. Ours has been a big help.
OR......send Joan down here with it and she and I can 'invest' it for you :cheer:
 
curious, is property actually selling in your area? You wouldn't have to take a loss?
Click to expand...

Prices in our area never fluctuated all the wildly. And the demand for good investment property seems to be pretty strong, judging by sales.

As for taking a loss, well it would be more like taking less profit--we've owned these properties for a long time and have very low bottom-line requirements from them.
 
What about a municipal bond fund? They're liquid and pay around 4.5-5% that's exempt from federal taxes. Of course, they can always drop in value as well, but that's unlikely until interest rates begin ticking up.
 
I think I'd buy a CD a month, or if you have $2500-3k, 6-month certificates. Construct a 'ladder' of progressively maturing securities. IMO the investment landscape will look different (hopefully better, maybe not-so-much)in a half-to-1 year, and out beyond. I know that tying up real money for paltry returns isn't wonderful, but these are safe, out of your spendin' fingers, and not tied up so long that if you REALLY need the money, or a great opportunity comes along, you can swoop on it.

Jim Ricks
 
Elan said:
What about a municipal bond fund? They're liquid and pay around 4.5-5% that's exempt from federal taxes. Of course, they can always drop in value as well, but that's unlikely until interest rates begin ticking up.
Click to expand...

very funny...my muni bonds are DOWN 20%.

the only safe investment it Treasury Bonds (I know know that)

CDs are at risk also

Cash is King.....just bank it and think of it as short term wealth preservation and safety rather than worry about making an extra 1-2% interest and assume a lot of risk.,
 
Vacation Dude said:
very funny...my muni bonds are DOWN 20%.

the only safe investment it Treasury Bonds (I know know that)

CDs are at risk also

Cash is King.....just bank it and think of it as short term wealth preservation and safety rather than worry about making an extra 1-2% interest and assume a lot of risk.,
Click to expand...

I just bought a muni bond fund in early December. The fund itself is up 9% so far, exclusive of distributions. It pays a monthly distribution, of which I've received one thus far. The annual yield is 4.92%, and it's federal tax exempt, which if one were in the 28% bracket is equivalent to 6.83% pretax. I don't know if that's funny, but it makes me smile :) .

I would agree that cash is king, but bond funds can be redeemed in one trading day. That's liquid enough for a portion of my portfolio.
 
"I only have one word for you young man. Are you listening? Plastics."

-David
 
What a great problem to have. As mentioned above, you need to decide what your goals and timeline are for the money, then use some of the great suggestions given.
 
Carta said:
======================
Tell me more........

"young man"..... I like that
Click to expand...

I guess you're too young to remember the movie The Graduate...:)
 
You must log in or register to reply here.
Top