"Money Isn't Everything, but it's reasonably close to oxygen!" - Zig Ziglar
logo

Go Back   Saving Advice > Financial Chit Chat > Investing & Banking

Investing & Banking stocks, bonds, banking interest rates, CDs and all other investment vehicles you want to talk about

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 09-08-2009, 12:43 PM
elektrobank elektrobank is offline
$ Saving Pre Schooler
 
Join Date: Sep 2009
Posts: 1
Points: 30.00
Donate
Default Recently came into a lot of money...

I've been a longtime business owner, but recently things picked up considerably and I have a very large chunk of money sitting in my savings account, which is growing every day. I'm 30 and have been maxing out my SEP IRA. Right now that money is making about 1.5% in my savings account. What's the best thing to do with this money? I want to keep a good piece of it readily available to possibly put towards some real estate, but the rest can be wrapped up in some more long term investments.

Are there any kinds of shorter term investments that I can put all my money in that would be very low risk (obv low return too), but would give me a better return than my bank and give me access to my money at any time?

How should I go about determining how to invest the rest of it? Who's the best person I can discuss investment strategies with?

Any advice would be appreciated.
Reply With Quote
  #2 (permalink)  
Old 09-08-2009, 01:02 PM
disneysteve's Avatar
disneysteve disneysteve is offline
$ Saving Guru
 
Join Date: Jun 2006
Location: New Jersey
Posts: 15,582
Last Blog Entry: December 2011 Survey Income
Points: 95641.30
Donate
Default

Quote:
Originally Posted by elektrobank View Post
Are there any kinds of shorter term investments that I can put all my money in that would be very low risk (obv low return too), but would give me a better return than my bank and give me access to my money at any time?
If you want access to your money at any time without penalty, you are pretty much limited to bank accounts, money market accounts and money market mutual funds. Anything else would have some time restriction or early withdrawal penalty. You could do a short term CD, like 90 days, but that probably isn't paying any more than a MMA right now.
__________________
Steve

* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
Reply With Quote
  #3 (permalink)  
Old 09-08-2009, 02:17 PM
arthurb999 arthurb999 is offline
$ Saving HS Senior
 
Join Date: Nov 2008
Posts: 300
Points: 1655.00
Donate
Default

Just hold on to it... make sure you're not over the fdic insurance amount... if so, spread it around.
Reply With Quote
  #4 (permalink)  
Old 09-08-2009, 08:38 PM
shultice24 shultice24 is offline
$ Saving HS Freshman
 
Join Date: Jan 2008
Location: Iowa
Posts: 122
Points: 745.00
Donate
Default

How bout this- you use the money to self-publish a book explaining how you actually made money in such a downer economy. If it's legit it should sell like hotcakes.

Reply With Quote
  #5 (permalink)  
Old 09-25-2009, 04:57 AM
jasonnoguchi's Avatar
jasonnoguchi jasonnoguchi is offline
$ Saving HS Sophomore
 
Join Date: Sep 2009
Posts: 168
Points: 895.00
Donate
Default

I would be looking to invest a significant portion of that money into short term government bonds if I were you. I would also be looking to park some money into the recovering real estate market.
Reply With Quote
  #6 (permalink)  
Old 09-25-2009, 08:23 AM
shultice24 shultice24 is offline
$ Saving HS Freshman
 
Join Date: Jan 2008
Location: Iowa
Posts: 122
Points: 745.00
Donate
Default

Quote:
Originally Posted by jasonnoguchi View Post
I would be looking to invest a significant portion of that money into short term government bonds...
CD's and savings accounts are paying crap right now, but still much better than treasuries are. You are literally almost as well off just to hide it under the mattress.
Reply With Quote
  #7 (permalink)  
Old 10-11-2009, 01:13 PM
LuxLiving's Avatar
LuxLiving LuxLiving is offline
$ Saving College Senior
 
Join Date: Jul 2006
Location: MidSouth
Posts: 2,427
Last Blog Entry: Grow Your Own! ...no, not that, THiS...
Points: 20975.90
Donate
Default

How soon do you see yourself using the Real Estate portion?
Reply With Quote
  #8 (permalink)  
Old 10-11-2009, 02:38 PM
Snodog's Avatar
Snodog Snodog is offline
$ Saving Jr. College Student
 
Join Date: Jul 2007
Location: Pennsylvania
Posts: 438
Points: 2604.00
Donate
Default

Even if you are making only 1% or so in a savings account it is not as bad as it seems. With inflation running near zero or negative you are comming out ahead.
__________________
The real difficulty in changing any enterprise lies not in developing new ideas, but in escaping from the old ones. - John Maynard Keynes
In capitalism man exploits man, in communism its vice versa.
Experience demands that man is the only animal which devours his own kind, for I can apply no milder term to the general prey of the rich on the poor. -Thomas Jefferson
In America today, we are nearer a final triumph over poverty than is any other land. - Herbert Hoover
Reply With Quote
  #9 (permalink)  
Old 10-16-2009, 11:01 PM
snafu snafu is offline
$ Saving College Junior
 
Join Date: Nov 2006
Location: W. Canada
Posts: 1,452
Points: 7785.00
Donate
Default

Inflation is lurking given the sums sloshing around. Desperation has driven investors into the stock mkt. which accounts for the DOW increase since March. I suggest you take note of the value of the US dollar relative to other currencies.

It appears there will be another tranche of mortgage defaults as those who have lost jobs will be unable to keep up payments. It's full of RISK but read up on S. America if you want to keep value for that 'chunk of money.'
Reply With Quote
  #10 (permalink)  
Old 10-17-2009, 11:17 AM
Scanner Scanner is offline
$ Saving Post Graduate
 
Join Date: Feb 2007
Posts: 2,659
Points: 15878.60
Donate
Default

Fixed annuities, South America. . .what's next? Silver?
__________________
www.fasting-for-health.com
Reply With Quote
  #11 (permalink)  
Old 10-17-2009, 12:28 PM
buildmybudget's Avatar
buildmybudget buildmybudget is offline
$ Saving HS Senior
 
Join Date: Jul 2009
Posts: 344
Points: 1915.00
Donate
Default

As a relatively young business owner, you should determine how much cash you need to continue to run your business. Pay off any personal debt and then establish an emergency fund for yourself using either a cd ladder, mma, or savings account. Next interview two or three financial advisers to try and find one that you are most comfortable investing with. These advisers can help you invest whatever you have leftover according to your level of risk. However, I think at 30 you are better off taking some risk(especially during this market rebound) in order to try and gain some higher returns while you are still young. Good luck!
Reply With Quote
  #12 (permalink)  
Old 10-18-2009, 10:25 AM
tripods68 tripods68 is offline
$ Saving College Junior
 
Join Date: Dec 2007
Posts: 1,242
Last Blog Entry: Wife just got promoted
Points: 6745.00
Donate
Default

I like GNMA (Vanguard) paying around 4.5%.
__________________
Carpe Diem
Reply With Quote
  #13 (permalink)  
Old 10-22-2009, 12:34 AM
AtlantaLife&Health AtlantaLife&Health is offline
$ Saving Second Grader
 
Join Date: Oct 2009
Location: Atlanta, GA
Posts: 12
Points: 80.00
Donate
Default

Cash Value Dividend Paying Whole Life Insurance! Did you know that Tiger Woods has a policy with New York Life that he dumps money into each year? Why does he do this? Because NYL pays dividends each year if they make out better than they expected. They are a mutual company, meaning they are owned by its policy holders. If they make a profit, who gets paid? YOU. With AIG, they are a stock company, owned by shareholders. If they make a profit, the investors get paid. Call a NYL agent in your area and tell them some crazy broker gave you this crazy idea. There are other Mutual companies but NYL is the best.
Reply With Quote
  #14 (permalink)  
Old 10-22-2009, 11:55 AM
shultice24 shultice24 is offline
$ Saving HS Freshman
 
Join Date: Jan 2008
Location: Iowa
Posts: 122
Points: 745.00
Donate
Default

Elektrobank definitely had a valid question, but unfortunately it was a hanging curveball for the insurance salespeople on these forums. LOL.
Reply With Quote
  #15 (permalink)  
Old 10-23-2009, 09:33 AM
Scanner Scanner is offline
$ Saving Post Graduate
 
Join Date: Feb 2007
Posts: 2,659
Points: 15878.60
Donate
Default

LOL. . .forgot. . .cash life insurance policies. . .didn't think of that one.

Tell you what elektrobank. .. just give me your money and I will send you a check every month after a certain time.

I promise.

I'll even put it into writing being the honest guy I am.
__________________
www.fasting-for-health.com
Reply With Quote
  #16 (permalink)  
Old 10-23-2009, 09:38 AM
Scanner Scanner is offline
$ Saving Post Graduate
 
Join Date: Feb 2007
Posts: 2,659
Points: 15878.60
Donate
Default

Seriously though, you will have to separate the good advice from the questionable.

If you don't have time/willingness to learn on your own (buy a few basic books), then I would recommend asking a CPA/CFP (a lot of them carry the dual certification/license). for advice. Their advice tends to be as unbiased as possible and you can link it with your 4rth quarter tax advice, etc. You'll pay a fee for time/expertise.

Don't ask a broker. A broker is a salesman selling products, of which many are inappropriate. The term "financial advisor" has also been a code word for "broker" or "sales agent" at many companies.

The financial community has got to learn to divorce their investment advice from the products they are peddling. Until then, proceed cautiously.
__________________
www.fasting-for-health.com
Reply With Quote
  #17 (permalink)  
Old 11-09-2009, 12:55 AM
saving peter saving peter is offline
$ Saving First Grader
 
Join Date: Nov 2009
Posts: 5
Points: 45.00
Donate
Default

One certainly mustn't write off the stock martkets just because we've hit a particularly rough patch. It would be a good idea to prioritize your expenses heads, set money aside for those you'll readily need cash for (put them into a short term instrument) and figure out how much you can put into long term investments. Invest these in long term instruments (3 to 5 years) like stocks / bonds. Since your business is doing well, you could even think of an SIP.
Reply With Quote
  #18 (permalink)  
Old 11-09-2009, 10:54 AM
disneysteve's Avatar
disneysteve disneysteve is offline
$ Saving Guru
 
Join Date: Jun 2006
Location: New Jersey
Posts: 15,582
Last Blog Entry: December 2011 Survey Income
Points: 95641.30
Donate
Default

Quote:
Originally Posted by saving peter View Post
Invest these in long term instruments (3 to 5 years) like stocks
3-5 years is NOT long term. Money needed in that time frame doesn't belong in stocks.
__________________
Steve

* Despite the high cost of living, it remains very popular.
* Why should I pay for my daughter's education when she already knows everything?
* There are no shortcuts to anywhere worth going.
Reply With Quote
  #19 (permalink)  
Old 11-25-2009, 11:03 PM
SoCoolGifts's Avatar
SoCoolGifts SoCoolGifts is offline
$ Saving Fourth Grader
 
Join Date: Nov 2009
Location: California
Posts: 22
Points: 145.00
Donate
Default

Looking at all the different and diverse ideas, it is clear to me that every young person should make it a point to learn about investing. So many seemingly great ideas and excellent points but how do you decide because you can't do everything.
Reply With Quote
Reply



Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off



Powered by vBulletin®
Copyright ©2000 - 2012, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.0.0 RC6 © 2006, Crawlability, Inc.

Copyright © 2012 SavingAdvice.com. All Rights Reserved.