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CharyouTree
 
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How to make my money do something besides take up space

Ok, so...I'm looking to start having my money doing it's share of the work. I've got 48K broken down as such:

~13K @ 1.1% APY (Savings Account)
~25K @ 0.1% APY (My checking account)
~10K @ 10% APY ("Savings Deposit Program". It's maxed out at 10K, collects interest monthly, but only earns on that 10K. It also all gets withdrawn in like...July '11 (That's as long as it can stay in there))

That's the extent of my assets.

I generally have no debts; My car will be paid off in Sep '11, but it's 0% APR. My bills including housing are right around 1K/month, and will come down more when the car is paid off. I technically don't have a job come July '11, but I'm working on that now, and doesn't play too far in to the equation.

Basically: what the fuck do I do with my money? My bank offers CDs "as high as" 2.7% APY, mutual funds, brokerage, IRAs...I think pretty much everything I could want.

I was thinking of one, or more mutual funds (with different risks for each), I just don't know how many/how much to put into each/how much to leave OUT, in my actual checking/Savings account.

Also, I'm 27 years old, unmarried, and rent my home with a roommate I've had for 8 years. Buying isn't the best option right now, as I don't know where I'll be/what I'll be doing in the next few years, and despite the market being good for it, don't want to end up financially locked into an area. (Unless I use the house as a rental property...)

Realistically, what I probably need to do is go see a financial planner, or whatever, but that's not really an option for me until next summer, and I want to start doing something with my money now.

Thanks!
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Old 12-05-2010, 04:01 AM CharyouTree is offline  
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CommiePunk
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well congrats on having that much savings, i'm not much younger than you and have about 30k in debt (not counting my house).
Old 12-05-2010, 04:35 AM CommiePunk is offline  
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CharyouTree
 
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Quote:
Originally Posted by CommiePunk View Post
well congrats on having that much savings, i'm not much younger than you and have about 30k in debt (not counting my house).

Thanks. I've paid for it, so to speak. Four of the last 7 years away from home, still need to do college (but it's not a factor for finances. At best, I'll make money going to school, at worst I'll not pay anything for it.), and there were a few rough spots at the beginning.

I really wish I had an actual income/location stability I could depend on to buy a house, but I'm patient enough to wait. I think it's more because I want a project/customized living area than anything else.
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Old 12-05-2010, 05:23 AM CharyouTree is offline  
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Briandl79
 
I can't offer any great advice but everyone has their two cents right? I think you're so young, and have such a decent amount of money that you really can't go wrong.

If you were older and had less, you could see how that might be a different scenario.

Because of that I'd probably just go with some higher yield cd's. Whatever you do you just mostly want to get that money out of your checking. It's almost as if you're using it as a savings, when it's clearly not based on the yield.

If you wanted you could be a little crazy and put an ad on Craigslist to buy scrap gold, then invest a few bucks in the stuff to test gold
Old 12-05-2010, 08:12 AM Briandl79 is offline  
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CharyouTree
 
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Originally Posted by Briandl79 View Post
I can't offer any great advice but everyone has their two cents right? I think you're so young, and have such a decent amount of money that you really can't go wrong.

If you were older and had less, you could see how that might be a different scenario.

Because of that I'd probably just go with some higher yield cd's. Whatever you do you just mostly want to get that money out of your checking. It's almost as if you're using it as a savings, when it's clearly not based on the yield.

If you wanted you could be a little crazy and put an ad on Craigslist to buy scrap gold, then invest a few bucks in the stuff to test gold

Well, it's better than my old checking account that offered no yield. It really hasn't been all that long that the money's been sitting in that account, but longer than it should be, and why I'm looking for options.
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Old 12-05-2010, 09:22 AM CharyouTree is offline  
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asdsad
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Formula question:

I have X savings, Y debt, and I'm in my 20s. How should I start saving money?

Formula answer:

Pay off any debt. Invest in CDs and a Roth IRA. Put the Roth IRA funds in a S&P 500 index fund, or a total stock market fund. Google for high CD rates and what a Roth IRA is. There are many, many places where this is explained in more detail than here. No need in repeating what's been written.

Thus ends all "beginning to invest" questions on this forum.

Addendum:

You're in the military right? Maybe you use USAA? (Though their banking is open to anyone today, not just military.) Call them up for their free financial planning advice. I set up my Roth IRA when I was 20 and they walked me through it. This is exactly the type of question they're meant to handle.
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Last edited by asdsad; 12-05-2010 at 09:54 AM..
Old 12-05-2010, 09:48 AM asdsad is offline  
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zro
 
CharyouTree, how much are you putting into your Thrift Savings Plan?
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Old 12-05-2010, 10:56 AM zro is offline  
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CharyouTree
 
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Yes, I'm military, yes I use USAA. I have ..."zro"... in my TSP. When I started, honestly it was a) far from my mind, and b) I couldn't really have afforded to put anything in. No excuse for not putting anything in for the past 3-4 years, though.
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Old 12-05-2010, 01:35 PM CharyouTree is offline  
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oleo
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buy stocks and invest in companies you like and understand
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Old 12-05-2010, 02:54 PM oleo is offline  
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Forever Domon
 
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sounds like the answer is to start contributing very seriously to a retirement fund. I was in roughly the same scenario as you maybe a year or so ago, and the right investment for me was a house. But i also have been putting 10% into my TSP every year, and have almost matched retirement to my savings after the house.

Seems like thats your strongest gap, no retirement investment.
Old 12-05-2010, 03:08 PM Forever Domon is offline  
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tegandje
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My mom went the TSP route.

You're young. Be aggressive and pick and choose funds or just go the dividend route. Index + ETFs r graet!
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Old 12-05-2010, 04:32 PM tegandje is offline  
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zro
 
Quote:
Originally Posted by CharyouTree View Post
Yes, I'm military, yes I use USAA. I have ..."zro"... in my TSP. When I started, honestly it was a) far from my mind, and b) I couldn't really have afforded to put anything in. No excuse for not putting anything in for the past 3-4 years, though.
It's worth considering, and you might even be eligible for matching contributions:

http://www.military.com/Finance/cont...,96164,00.html
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