Where to put money today?

[Jim L.]

In the past I could always pay down the notes on my wash and my house whenever I had extra cash. Today that is not an option.

Last week I spent some time with a Charles Schwab employee. I came away thinking I knew as much about investing in safe assets as he did. I looked at CD?s and their dismal yield of 4.35%. I?ve also thought about doing some bottom fishing for closed end mutual funds (reits, muni?s and others).

I have no desire to build another wash, so I ask you. Where are you putting your extra cash?

 

[Andy]

After maxing out my retirement contributions, I’m putting everything else in my E-Trade Savings Account which makes 5.05%. It’s FDIC insured, no minimum balance and no fees. I have yet to find a savings account that will make more then that.

http://www.etrade.com

 

[soapy]

My local bank is paying 6.01 % on checking accounts. THe only thing you have to do is get your statment on line and use a debit card 10 times per month even if it is just for a coffee or whatever. It is FDIC insured.

 

[Andy]

My local bank is paying 6.01 % on checking accounts. THe only thing you have to do is get your statment on line and use a debit card 10 times per month even if it is just for a coffee or whatever. It is FDIC insured.

How 'bout a linky to your banky?

 

[pitzerwm]

There are some good articles in the Forum Library, Experts. I've been doing well since following his advice.

 

[hopingforthebest]

Extra Money in this biz?

Right now I am buying silver and Euros. But don't take my advise, I also bought two carwashes in the last three years.....Anybody got any ideas how to make money in this biz in North Carolina? 5ss, 1IBA 3ss, 1IBA

Good Luck!

 

[Greg Pack]

Jim, I went to bankrate.com and searched for rates a few weeks ago. Zions bank has over 5% and seemed pretty safe with not much subprime exposure. I'm still not exceeding FDIC limits though, but you can get 200K insurance if you put your spouse's SS# on the account. You can establish an account online and wire money in from your bank. So far I've been happy. Even though in real dollars we're loosing ground- I think inflation is higher than %5.

http://www.zionsbank.com/deseret_jump/control.html

I also have an online account with fnbodirect.com Also right at %5.

https://www.fnbodirect.com/01d/html/en/

Closer to home for you, Everbank in Jax offer good rates. For those of you that don't like the USD right now, everbank offers CDs in foreign currencies,metals, etc.

http://www.everbank.com/001WorldCurrency.aspx?LinkID=Navigation

 

[Greg Pack]

BTW, Although this thread quickly morphed into bank accounts. I guess you're looking for better returns than that.

Don't cringe, but there's a book by Billionaire Jim Rogers, "hot commodities", That I am reading that might be worth a look. He makes a case that commodities run in 17 year cycles and we're about half way through one now. There are ETFs tied to commodities that make it easy to get some action there. They can be volatile over the short term but if you are willing to to buy and hold it is worth a look. Oil is about 90 right now and trending downward because of recession fears but many think it will be $150, within five years. Ag is going up nicely right now.

If some stocks trend much lower I would step in. But bear markets can last a looong time. I really want to stay liquid in case some real estate becomes available. Housing egghead Robert Schiller said RE prices in the Ft Walton market are projected to bottom in the 3rd qtr of 09, you may very well have some real deals to be had there in your own backyard if you've got cash to speculate.

 

[soapy]

The link to my bank is boi.com that stands for Bank of Idaho. I use the Channing way branch in Idaho Falls, Id

 

[Greg Pack]

The link to my bank is boi.com that stands for Bank of
Idaho. I use the Channing way branch in Idaho Falls, Id

http://www.boi-online.com/

Doh! Idaho Residents only.

Soapy gets all the sweet deals. I'm gonna have to move to 'tater country.......

 

[Greg Pack]

And while I'm at it, buy and hold market index stocks has been touted as the answer. Also, we're told not to time the market, just let it ride. I have followed that advice for a while. But I'm re-thinking that. Look at the DOW history from 1965 to 1985. The Dow hit 995 in 1965 and eighteen years later in about 1983 was 776. I'm too young to remember that, but that just sucks. Couldn't that happen again?

 

[Jim L.]

In the early 80’s my boss’ friend made a killing trading zero coupon bonds. He bought with interest rates high and then sold after interest rates came down. He did so well that he treated himself to a “Magnum-PI” mobile… red and all.

I have been looking at Schwab’s bond accounts and all I could find was US Treasury Zeros with yield rates ranging from 2.5% (1 yr.) to 4.5% (20 yrs.). With yields this low it’s hard to imagine them coming down much more no matter how much the fed. cuts rates.

Anyone know of any other type of zero coupon bonds that’s actively traded?

 

[Doug P.]

If you are not going to need the money in the next five years stocks have historically been the way to go. I divide my retirement acct between four different Vanguard Mutual Funds, one International fund, one agressive growth, one growth and income, and one growth. This is pretty boring but I have enough excitement with my businesses. I have decided to put some money into Berkshire Hathaway, Buffett has been shrewd over the last forty years, he is up in years but hopefully he has the people in place to carry on with his business philosophy.

 

[Jim L.]

Doug

You’ve got bigger stones than me! I’ve got too much rabbit in my blood to take these daily poundings in the market and not run for safer ground.

 

[Greg Pack]

Jim, what about preferred securities? http://www.quantumonline.com/


There is a poster on this board whose regular job is investing. I'm not gonna rat him out. Maybe he has some input.

Well, the stock market has been like watching a slow motion train wreck the past few weeks. Still more sellers than buyers. Might be a good opportunity to put some money in when this market finally finds a bottom,but sub-prime and credit problems may drag it out a while.

Funny thing is, back in the Fall a broker snickered at me when I told him I wanted to stay liquid in my money accounts earning "only 5%". I'm not knowledgeable or sophisticated enough to feel comfortable shorting the market but glad I waited to invest. What little I bought is taking a light beating right now.

I've heard there's good money in car washes and all you have to do is go by and pick up the money a couple times a week. Better return than real estate and no headaches. Maybe I should look there.

 

[Jimmy Buffett]

Greg,
The American Funds have a piece based on the time period that the dow went nowhere for a decade 1972-1982. While the dow went nowhere that particular fund went up 8.9% per anum. That piece is called the ICA guide and almost any stockbroker will have it. I would recommend any investor or potential investor take a look at the piece.
Unfortunately a registered representative would not be allowed by his company to weigh in

 

[Jimmy Buffett]

oops meant to hit cancel!

 

[Greg Pack]

I picked a hell of a time to start trading stocks. I think I opened an account at Ameritrade in 1999....

http://online.wsj.com/article/SB120649226977964203.html?mod=todays_us_nonsub_page_one

 

[pitzerwm]

Thankfully, I've made money in the last decade, but when you are older things are different. Paul's advice which you can read in the Library pages, has consistently made me money, even now, I'm down a lot less than the Dow & S & P.