Best way to invest money for S2000
12-26-2002, 12:08 PM
#11
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Originally posted by ant_knee
I would go with a money market account. You usually get better interest than a normal savings account, and you can deposit into it any time, and also write checks from it. You probably wont need the check option, but its nice to know you can get your cash if you are in a bind. It takes about 2500.00 to open one, though. Just my .02.
I would go with a money market account. You usually get better interest than a normal savings account, and you can deposit into it any time, and also write checks from it. You probably wont need the check option, but its nice to know you can get your cash if you are in a bind. It takes about 2500.00 to open one, though. Just my .02.
12-26-2002, 02:10 PM
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Originally posted by PeaceLove&S2K
Unless you're 54.5 years old now, I was under the impression you can only take money out penalty-free in five years to buy your first house?
Unless you're 54.5 years old now, I was under the impression you can only take money out penalty-free in five years to buy your first house?
ROTHs should be able to take it out penalty free... check out www.fool.com and click on IRAs for more info.
Traditional IRAs are a little more stubborn, and can be taken out early for your principal residence.
Sorry this is a little off subject...
12-26-2002, 02:41 PM
#13
Thoe99,
The traditional low risk areas (CDs, money market, etc.) aren't paying crap these days. But as bad as the interest rates are, they beat the stock market which is in its third year of poor performance. We long term investor's all know it will come back but know one knows when those better days will be. The outlook for the next year is certainly still questionable.
Since you've indicated you plan to use the money within one year, your choices are limited to the low risk areas I first mentioned. A good source for up-to-date rates is bankrate.com. As mentioned, another good well established source for information and options is Vanguard at vanguard.com.
Good luck (it's better to be lucky than wise when it comes to investing)
The traditional low risk areas (CDs, money market, etc.) aren't paying crap these days. But as bad as the interest rates are, they beat the stock market which is in its third year of poor performance. We long term investor's all know it will come back but know one knows when those better days will be. The outlook for the next year is certainly still questionable.
Since you've indicated you plan to use the money within one year, your choices are limited to the low risk areas I first mentioned. A good source for up-to-date rates is bankrate.com. As mentioned, another good well established source for information and options is Vanguard at vanguard.com.
Good luck (it's better to be lucky than wise when it comes to investing)
12-26-2002, 03:09 PM
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[QUOTE]Originally posted by foolio
[B]My bank (Washington Mutual) allows me to keep deposting money into my CD as often as i want.
Also, I have an interest checking account that earns more than their 1 year CD!
[B]My bank (Washington Mutual) allows me to keep deposting money into my CD as often as i want.
Also, I have an interest checking account that earns more than their 1 year CD!
12-26-2002, 04:20 PM
#15
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Originally posted by PeaceLove&S2K
Unless you're 54.5 years old now, I was under the impression you can only take money out penalty-free in five years to buy your first house?
Unless you're 54.5 years old now, I was under the impression you can only take money out penalty-free in five years to buy your first house?
http://www.fool.com/ira/rothvreg.htm?ref=ib
Most 401k will allow you take a distribution as well, but it gets complicated fast.
12-26-2002, 05:27 PM
#16
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Only qualified distributions though, which includes, as I mentioned, being over 59.5 years of age (thus being 54.5 years old now), buying your first house.
And two others I didn't mention (which you probably wouldn't be interested in anyway):
1. Made to your beneficiary, or to your estate, after you die
2. Made to you after you become disabled within the definition of the IRS code
Here's more info:
http://www.fool.com/money/allaboutiras/all...aboutiras06.htm
401k allows you to "borrow" from yourself I believe. I don't know the details of this one, though.
And two others I didn't mention (which you probably wouldn't be interested in anyway):
1. Made to your beneficiary, or to your estate, after you die
2. Made to you after you become disabled within the definition of the IRS code
Here's more info:
http://www.fool.com/money/allaboutiras/all...aboutiras06.htm
401k allows you to "borrow" from yourself I believe. I don't know the details of this one, though.
12-26-2002, 06:03 PM
#17
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putting money in a bank is safe, but not the best way to go.
if you want absolute( almost) security, go for money market funds.
if you are willing to take a small risk for a bit higher return, go for bond funds.
stay away from ANY stock mutual funds since you need the money very soon.
there are many no-load funds, look up in the Money magzine or other similar financial magzines, you should find a good ranking of funds.
good luck
if you want absolute( almost) security, go for money market funds.
if you are willing to take a small risk for a bit higher return, go for bond funds.
stay away from ANY stock mutual funds since you need the money very soon.
there are many no-load funds, look up in the Money magzine or other similar financial magzines, you should find a good ranking of funds.
good luck
12-27-2002, 07:34 AM
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What I have so far is 10k saved up. I want to get 20k before I put the deposit down next December (thereby leaving my monthly payments low while I'm in school--saving as much as I can now is the best way, IMO, cuz I'm a college student). Reason I asked about tax reporting, is that it may affect my financial aid and scholarships, if I report it, since most of my income is unreported tips and freelance work (just between us).
However, you should be paying income taxes like the rest of us. Note that payers of money market fund or CD interest will report that interest to the IRS.
Hope things work out and that you get your S2000 on schedule.
12-28-2002, 07:41 PM
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Thoe99:
Please accept this in the light of information only. I am not in the brokerage business in any way. But, as I see the problem with money market funds or a bank account is that your savings in the future will be eaten up by inflation. As pointed out, the stockmarket is nowhere to be.
I suggest you investigate the alternative of gold mutual funds or quality gold shares which pay a dividend, but avoid those companies which have hedged their future production. One may laugh, but the top performance this year has been those very shares of gold companies.
The following, in my opinion, are worth reading and investigating:
http://www.gold-eagle.com/gold_digest_02/h...lton112502.html
http://www.gold-eagle.com/editorials_02/mi...ouse121802.html
http://www.gold-eagle.com/editorials_02/kl...bies122102.html
http://www.gold-eagle.com/gold_digest_02/h...lton122302.html
http://www.gold-eagle.com/editorials_02/si...lair122102.html
http://www.financialsense.com/metals/sincl...view/121202.htm
JMHO
Oh yes, in the interest in full disclosure, I do have such investments and am very pleased. But one must act as one determines fits one's own situation.
dgl1
Please accept this in the light of information only. I am not in the brokerage business in any way. But, as I see the problem with money market funds or a bank account is that your savings in the future will be eaten up by inflation. As pointed out, the stockmarket is nowhere to be.
I suggest you investigate the alternative of gold mutual funds or quality gold shares which pay a dividend, but avoid those companies which have hedged their future production. One may laugh, but the top performance this year has been those very shares of gold companies.
The following, in my opinion, are worth reading and investigating:
http://www.gold-eagle.com/gold_digest_02/h...lton112502.html
http://www.gold-eagle.com/editorials_02/mi...ouse121802.html
http://www.gold-eagle.com/editorials_02/kl...bies122102.html
http://www.gold-eagle.com/gold_digest_02/h...lton122302.html
http://www.gold-eagle.com/editorials_02/si...lair122102.html
http://www.financialsense.com/metals/sincl...view/121202.htm
JMHO
Oh yes, in the interest in full disclosure, I do have such investments and am very pleased. But one must act as one determines fits one's own situation.
dgl1
12-29-2002, 04:35 AM
#20
This has been a good year to invest in gold but beware:
Like other sector funds, gold-oriented funds have a higher level of risk than broadly diversified general equity funds and are subject to significant short-term volatility. For example, in 1995 and 1996, the average gold-oriented fund rose a cumulative 9.5%, only to reverse course in 1997 and 1998, when the average gold fund declined
Like other sector funds, gold-oriented funds have a higher level of risk than broadly diversified general equity funds and are subject to significant short-term volatility. For example, in 1995 and 1996, the average gold-oriented fund rose a cumulative 9.5%, only to reverse course in 1997 and 1998, when the average gold fund declined