NT: Official Personal Finances Thread

[lilchico4life]

Any suggestions on what type of interest-bearing account to park $200k for the next 6 months to a year? A simple savings account would suffice? I would like to have access to it immediately without a penalty. Would like to hear NT's finance minds thoughts. Much appreciated!

 

[superantigen]

Any suggestions on what type of interest-bearing account to park $200k for the next 6 months to a year? A simple savings account would suffice? I would like to have access to it immediately without a penalty. Would like to hear NT's finance minds thoughts. Much appreciated!

Without Penalty? Try a high yield online savings account. I just opened one with Ally Bank. Their online savings account has a 1.25% yield. Discover's online savings account is also very good. Right now, they're running a promotion where they will credit you with $150 or $200 if you park a minimum of 15K or 20K, respectively, in their online saving account, which yields 1.20% btw.

If you do some research, I'm sure you will find banks that offer yields much higher than the above mentioned banks. I remember reading about a credit union somewhere in Michigan offering yield of 5%+.

One last piece of advice--don't put all the 200K into one account. Most savings accounts are FDIC insured up to 100K, so anything more than that is a risk.


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[antidope]

Any suggestions on what type of interest-bearing account to park $200k for the next 6 months to a year? A simple savings account would suffice? I would like to have access to it immediately without a penalty. Would like to hear NT's finance minds thoughts. Much appreciated!

GS bank offers a 1.30% yield and FDIC insured up to 250k.

The majority of my savings is with Goldman now.

 

[lilchico4life]

Thanks for all the suggestions.

I went with Ally Bank's no penalty CD, which offers 1.50% yield.

 

[Xennial]

Is a no penalty CD as liquid as checking/saving account? Would be interested in stashing 50k in there if so

Thanks for all the suggestions.

I went with Ally Bank's no penalty CD, which offers 1.50% yield.

 

[lilchico4life]

Is a no penalty CD as liquid as checking/saving account? Would be interested in stashing 50k in there if so

From what I've read up on it, if you need immediate access to the funds, it is not a good option. You can access the funds plus any interest incurred any time after the first 6 days following the date you funded the account. Also if you decide to withdraw funds early, it can take 2-3 days to process the request.

There are also no partial withdrawals, the account closes when you withdraw the funds, and you can only fund the account once and it is locked in.

I don't mind the 2-3 days wait if I need funds.

 

[206to813]

Just signed up for Betterment today, gonna give it a whirl

Decided not to get a financial advisor (for now)

 

[flyerthandelta]

So much motivation in this thread thanks guys!!

 

[lilchico4life]

Ally bumped their no penalty CD to 1.60% yield. Closed my previous one and reopened with new rate.

 

[dam itz lou]

Anyone buying Ripple ?

 

[superantigen]

^^ staying on the sidelines when it comes to crypto currencies. Way too much greed and mania for my blood. I read through the bitcoin thread and I see the kind of euphoria that was pervasive in the markets prior to the '08 crash.


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[206to813]

Annoyed at myself

Wanted to take advantage of the $500 bonus for new accounts at Chase. $300 checking, $200 savings.
I wasn’t supposed to let my savings acct balance dip under 15k for 90 days but just did that by accident. Was just an oversight on my end

Not sure if I should feel like I just lost $200, since I never had it in the first place..... but definitely feels like I just lost $200 lol smh

 

[antidope]

Unless I find some way to magically blow three grand in the next week I'm going to finish 2017 under budget

 

[slighted]

Unless I find some way to magically blow three grand in the next week I'm going to finish 2017 under budget

You forgot my Christmas gift, b.

 

[antidope]

In the past I've advocated for maxing out your 401k and I thought I'd provide a bit of context as to why.

The exact math. So essentially I made 1k less post tax, yet put 7k more into my 401k. I sacrificed 1k to invest 7k and made 20% on that money this year. Then you consider the power of compounding returns and this is a vastly better option

That's 45$ a check post tax I lost. It didn't cost me anything. Not saying that this is an absolute guarantee to work thing for everyone but when I initially did this and ran my projections this is exactly what I expected to happen.

 

[monstar]

"A broke financial advisor is like a wood shop teacher with 9 fingers"
I love Dave Ramsey and have followed his concepts for the past 10 years and my only regrets have been from the areas we've strayed. We should have paid off our debt before we bought a house, we should have paid off our debt sooner, I should have rolled over my 401k instead of parking it, etc.
.

Went through Financial peace myself, iforget the 401k part what did he say to do?

I wish his statements on housing matched that of california if i live anywhere else its much easier to live by the 25% rule

 

[Brownstone]

^^ staying on the sidelines when it comes to crypto currencies. Way too much greed and mania for my blood. I read through the bitcoin thread and I see the kind of euphoria that was pervasive in the markets prior to the '08 crash.


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Most def, the key is to take winnings out now, and let the rest ride out into the sunset

 

[cs02132]

Did my end of the year calculations. I didn’t really have any set goals besides my regular monthly saving but throughout the year I came up with some and met them along the way. Overall I’m happy but I still want to kick it up in 2018. based on my current situation I have the opportunity to be saving more so I’m gonna try to cut my spending by around 30% a month. it’s doable I just have to actually try . I ended up saving 53.7% of what I made ..I really should be saving like 60-65%

Although this year I’m gonna have to take on some new/higher bills so I’ll see what happens

 

[slighted]

Marcus / GSBank APY is at 1.5% now

Goldman making big moves outchea -- rumors of them starting a retail bank / checkings / mobile app

 

[sickr8r]

I want to open a Roth IRA what company do yo guys recommend don't want to pay to many fees.

 

[Chopper]

Roth IRA is a great move. Max that **** out while you're young and can still contribute to it, cause if you planning on doing well in your career you'll hit the threshold for being able to contribute to it before you know it... I'm making sure to get my money in there before I hit that.

Maxing out the 401k helps keep earned income down though

 

[antidope]

Roth IRA is a great move. Max that **** out while you're young and can still contribute to it, cause if you planning on doing well in your career you'll hit the threshold for being able to contribute to it before you know it... I'm making sure to get my money in there before I hit that.

Maxing out the 401k helps keep earned income down though

Even if you do, you can just do a backdoor Roth. Very simple thing to do. The rules around Roth IRAs are pointless.

 

[Ube]

What are the types of IRA plans that I can start up/ look into seeing as how my job doesn't really have a retirement plan? Anything you guys can recommend for planning for the future?

 

[antidope]

What are the types of IRA plans that I can start up/ look into seeing as how my job doesn't really have a retirement plan? Anything you guys can recommend for planning for the future?

I mean unless you're self employed Traditional IRA and Roth IRA's are your only two options. Both carry a $5,500 maximum annual contribution limit. I'd say read into it to see which is preferable.

You also don't have to invest via IRA's. While it is a nice benefit you can always just open a taxable account in your personal name and invest.

 

[slighted]

What's everyone buying in their IRAs?

I just went typical with this -- https://www.bogleheads.org/wiki/Three-fund_portfolio#Choosing_your_asset_location