If you guys had some money...

[Caleb]

Say you had a large chunk of money, how/where would you keep it? Meaning would you put it in a Money Market, a regular savings, etc? The few stipulations are it needs to be accessible if I need to withdrawl money without a penalty (even a limit of one withdrawl per month is fine), I need to be able to add to it a couple times a month, I want the highest rate a return possible, I also don't want any risk involved with it. With these circumstances I have been thinking a Money Market is probably the best thing with interest rates floating around 3% or so. A CD is out because you are locked into them for their term, while I will likely be sitting on this money for a good year or so, if something comes up in a couple months I need to be able to get to it without being penalized. I'm just wondering if there is a better thing I don't know about then a money market??? ( I know I should really go talk to a financial advisor but I thought I would get your guy's opinions first )

 

[Herzog]

Transfer it all over to my checking account. I'll hold on to it for you with a 6% interest rate*

*interest rate return will be presented in monopoly money

 

[mbryson]

My wife just got an inheritance from her grandmother. She's going through the same kind of issues. For now, we've got in a credit union savings account at 1.5% interest . It's her money so I'm kinda trying to stay out of her business. Money market looks to be about the best place at the moment. She wants it fairly liquid in case she runs across the 'perfect' piano.

 

[Caleb]

My wife just got an inheritance from her grandmother. She's going through the same kind of issues. For now, we've got in a credit union savings account at 1.5% interest . It's her money so I'm kinda trying to stay out of her business. Money market looks to be about the best place at the moment. She wants it fairly liquid in case she runs across the 'perfect' piano.

ours is for a down payment on our next house, I don't plan to buy for atelast a year or so after selling my house now but if we come accross the "right" place I want to be able to access it.

Transfer it all over to my checking account. I'll hold on to it for you with a 6% interest rate*

*interest rate return will be presented in monopoly money

Always a comedian

 

[mbryson]

ours is for a down payment on our next house, I don't plan to buy for atelast a year or so after selling my house now but if we come accross the "right" place I want to be able to access it.

There's a few products that could be exactly what you're looking for. I think a mutual fund would be your best bet. They're fairly liquid and safe. You're going to have to dance around capital gains and a few other things if it's from your house. I don't know all the regs or restrictions at all.

Your best bet is to chat with a financial advisor. There's a shelter/product for everything and they use them all the time.

 

[Caleb]

There's a few products that could be exactly what you're looking for. I think a mutual fund would be your best bet. They're fairly liquid and safe. You're going to have to dance around capital gains and a few other things if it's from your house. I don't know all the regs or restrictions at all.

Your best bet is to chat with a financial advisor. There's a shelter/product for everything and they use them all the time.

the money I have right now isn't from my house, it's just money I have been able to save over the years. I don't plan on making a whole bunch from my house, so I'm not too worried about capital gains taxes and such.

 

[mbryson]

the money I have right now isn't from my house, it's just money I have been able to save over the years. I don't plan on making a whole bunch from my house, so I'm not too worried about capital gains taxes and such.

Check out a few funds. I think there's a minimum that you have to retain in the fund ($2000) or so, but you can add as much as you'd like and remove it as you need to. It'll take about a week or so to get cash, but for a house, that shouldn't be a big issue.

 

[TimB]

Invest it in 4x4 parts, tools, motorhomes, and trailers. That's where I usually invest any extra I get.

 

[Hickey]

so I'm not too worried about capital gains taxes and such.

You can sell a house every two years and not get hit with capital gains on the sale.

 

[StrobeNGH]

There are some products you can get from mutual fund companies which pay an average of 6%.
They are essentialy money market accounts which focus in capital investment opportunities.

Depending on the amount of money you have, it might be good to buy one month CD's, or invest in Money Market Accounts which let you access on a monthly basis.

I say this b/c whenever you deal with mutual funds and/or financial advisors, you must overcome their fees. So ask yourself, if the money you are investing will generage enough interest to cover fees, and if so, would simple interest have given you more money in the end.

 

[dunatic67]

An ING Orange account would be a good CD comparable- totally liquid, accessible online, 3.8% interest at the moment.
American Funds would be a great mutual fund company. With most mutual funds (A share) you will pay 5.75% to the Broker up front. The right funds will pay 10-12% a year. There are no guarantees though- only the track record of the fund. American funds does offer a long track record though- their oldest fund has been through the great depression.

 

[getout]

Go open a fidelity account. www.fidelity.com My buddy works for them and I stuck some cash in some mutual funds over there. They do a good job and they're they second largest mutual fund company in the world (second to Schwab). I've been getting a good return out of their freedom fund and I have money automatically deposited from my regular bank account free of charge. Pretty good deal.

Also, if you've got more than $50,000 I think they manage your money for you and can help you move it around to match what you're looking to get out of it for certain amounts of risk.

If you just stick the cash into the account I think you get 2.7something return just in the account. They've got a branch down by gateway if you need to go see them for anything too.

 

[gijohn40]

how about savings bonds.... you would have to wait 3 month but after that you can cash them in anytime you want... hahaha

 

[mr_blasto]

Everyone probably realizes the whole risk/return trade off thing. Sure mutual funds can generate higher returns than a money market account, but they also face higher risks. He said he didn't want any risk, so mutual funds are out. You face risks with any bonds as well, except treasury bonds (cause the gov't can just print more $). CD's you are locked into for a certain amount of time, and if you want your $ there is a penalty, so those are out too because he didn't want a penalty for early withdrawals.

It looks like your options are to let it sit in an account at a bank somewhere at a pretty low interest rate, or put it in a money market account - which faces negligible risks. With your restraints, if you are meeting or beating inflation, then you are doing great. Good Luck.

 

[Medsker]

Find a friend you really, really trust that has some high credit card debt and consolidate for them. If they for instance have ten thousand and are paying 18% interest they would love to pay you 10% interest. Like I say you have to really trust them though. That is what my boss tries to do with her "spare" money because she can help people out, make money and she doesn't have to worry about the stock market.

 

[DevinB]

A fire-proof safe under your bed. It meets all of your conditions except a return. Get a safe with two combinations, then you know one and your wife knows the other. That'll keep either of you from filching out of it. "$50 for the rent? Maybe I'll spend it on the whore..." See, none of that will happen.

 

[Bone Down]

You can sell a house every two years and not get hit with capital gains on the sale.

as long as it is your primary residence, at least that is what I keep hearing from my realestate buddies, and my CPA/Attorney