Pages: 1

 

2007-08-09 18:46:17
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

I know a few of the guy here are knowledgeable in investing . I have to move some of my investment/savings pretty soon. I recently changed my insurance carrier and since I made a switch I will have to wait a full year before my back is covered. This is because I have a pre-existing condition (a ruptured disc in my back). It's not a big deal so long as I can avoid going under the knife for a year. After 12 months all carriers in Fl have to cover pre-existing conditions. However, I'm not one that leaves thing to chance, so I am moving some of my money around to make it more liquid in case my back goes to complete hell. Of course the first two things that come to my mind are Money Market accounts and Cd's. Cd's will lock it to some degree and will penalize me if I have to dip in it early. A Money Market account wont penalize me for drawing on it but of course the returns aren't as high. I will be moving a large sum for "what if" protection so I might mix it up depending on the rates. Any advice/opinions would be appreciated. I thought it would be interesting to get this forums take on it. Nothing says investing like Bf2s.com.. .
Xbone Stormsurgezz
2007-08-09 18:52:01
Turquoise
O Canada
+1,596|6843|North Carolina
CDs really are the way to go under normal circumstances.  For your case though, I'd have to suggest a mutual fund of some sort or a high-yielding savings account.  Smaller banks are better about interest rates for both CDs and savings accounts.  The higher the principal, the better the rate will likely be.

Anyway, good luck, and I hope your back holds out for the time you need it to.
2007-08-09 18:55:33
Reciprocity
Member
+721|7019|the dank(super) side of Oregon
plastics, there's a future in plastics. 

If you really need liquidity I would consider a high yield savings account.  Its right there when you need it,  and the interest might even offset the  inflation.
2007-08-09 19:00:49
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

Reciprocity wrote:

plastics, there's a future in plastics. 

If you really need liquidity I would consider a high yield savings account.  Its right there when you need it,  and the interest might even offset the  inflation.
The return on my banks savings account is 1%. Whereas I have seen some Money Market accounts up to 5.26%. The term high yielding savings account is synonymous with money market account.
Xbone Stormsurgezz
2007-08-09 19:03:32
Mason4Assassin444
retired
+552|7100|USA
Money Market. Same benefit and access as a savings account with higher interest payout. You just need a minimum limit to keep in there. As with savings accounts.

Tip for early 20's. 50$ draft from your paycheck once a month to an Roth IRA, you'll have over 3 million when you turn 591/2  tax free.

Last edited by Mason4Assassin444 (2007-08-09 19:07:36)

2007-08-09 19:17:41
Reciprocity
Member
+721|7019|the dank(super) side of Oregon
Your options for liquidity are fairly limited.  I'm not sure what you'd expect to hear on these forums.  CDs, mutual funds, securities, none of these provide liquidity.

have you considered a casino?
2007-08-09 19:34:51
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

Reciprocity wrote:

Your options for liquidity are fairly limited.  I'm not sure what you'd expect to hear on these forums.  CDs, mutual funds, securities, none of these provide liquidity.

have you considered a casino?
Cd's can be considered somewhat liquid. The return on a six month CD is nearly the same as the longer terms. I took a CD out early once. I was hit with like 50 bucks on 5k.. that is manageable.

When it comes to money I wont hesitate to ask questions. What do I expect? If I knew the results of my inquiries before I presented them there wouldn't be much need to ask would there? I work too hard to gamble my money away building the next mega casino.
Xbone Stormsurgezz
2007-08-09 20:27:05
13rin
Member
+977|6917
http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?

Last edited by DBBrinson1 (2007-08-09 20:28:17)

I stood in line for four hours. They better give me a Wal-Mart gift card, or something.  - Rodney Booker, Job Fair attendee.
2007-08-09 20:28:29
Captain_Iron_shooter
Member
+2|7127|Montreal, QC. Canada
What are your investment???

as far as I know, most investment are easily turn into liquid form it's just a question of how much you can afford to lose.

I can get my money from my broker (mutual fund) within a week directly to my bank account. So I don't see the need to get it out of there, since there is already enough in the bank account to hold on until I receive it. And it doesn't matter if its from my Registered Retirement Saving Plan or my open (unregistered) savings.

If you really need to get it out, go for CD's higher return for your ''what if'' money. You don't take car insurance in the hope of using it do you? think of this in the same way.
2007-08-09 20:38:49
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

DBBrinson1 wrote:

http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?
I have mutual funds and other stocks (UPS primarily) both of which hit me three times when I touch it. Fees for taking it out, taxed when I take it out, and reportable income at the end of the year.

These look interesting: http://www.gmacfs.com/us/en/business/in … tures.html
^^Also, the money market rates are currently higher than the CD rates @50k+.
Xbone Stormsurgezz
2007-08-09 20:44:06
Pug
UR father's brother's nephew's former roommate
+652|6980|Texas - Bigger than France
Go with a CD, 3 month maturity.  Even if you got to a doc, it'll be one month before they do anything, and probably another until you get the bill.  So unless you are very unlucky...

Go see a broker though.  They've got some amazing things that aren't CDs.  Short term paper, for instance...
2007-08-09 20:49:22
Pug
UR father's brother's nephew's former roommate
+652|6980|Texas - Bigger than France

Kmarion wrote:

DBBrinson1 wrote:

http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?
I have mutual funds and other stocks (UPS primarily) both of which hit me three times when I touch it. Fees for taking it out, taxed when I take it out, and reportable income at the end of the year.

These look interesting: http://www.gmacfs.com/us/en/business/in … tures.html
^^Also, the money market rates are currently higher than the CD rates @50k+.
Yeah, that's short term paper.

I got clients who have five running at once with one week maturity.  So liquidity in case something goes wrong, and they skim the interest.  Watch out for the broker's fees though, they are usually brutal compared to other investments.
2007-08-09 20:51:31
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

Pug wrote:

Kmarion wrote:

DBBrinson1 wrote:

http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?
I have mutual funds and other stocks (UPS primarily) both of which hit me three times when I touch it. Fees for taking it out, taxed when I take it out, and reportable income at the end of the year.

These look interesting: http://www.gmacfs.com/us/en/business/in … tures.html
^^Also, the money market rates are currently higher than the CD rates @50k+.
Yeah, that's short term paper.

I got clients who have five running at once with one week maturity.  So liquidity in case something goes wrong, and they skim the interest.  Watch out for the broker's fees though, they are usually brutal compared to other investments.
You pay no administrative fees.

GMAC will not charge you a Demand Notes maintenance or management fee nor will you be charged for checks, check redemptions or wire/ACH redemptions. You may, however, be charged a fee by your local bank or financial institution for wire/ACH redemptions. A fee will be charged for checks returned for non sufficient funds, stop payment requests, Mellon Bank checks, Mellon cashier checks and checks written for less than $250. A rush order request for redemption checks is available for a fee. These fees will be directly debited from your Demand Notes.



Edit: Scratch that idea.. only avaiable to GM employees..
Xbone Stormsurgezz
2007-08-09 20:53:25
Captain_Iron_shooter
Member
+2|7127|Montreal, QC. Canada

Kmarion wrote:

DBBrinson1 wrote:

http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?
I have mutual funds and other stocks (UPS primarily) both of which hit me three times when I touch it. Fees for taking it out, taxed when I take it out, and reportable income at the end of the year.

These look interesting: http://www.gmacfs.com/us/en/business/in … tures.html
So why take it out if it cost you so much??? Ask your broker how long would it take to get your money if you need it. Here you pay to take it out in case something happen, and if nothing happen you lost some profit.

Anyway as i tell my friend.... as long as you sleep well at night.
2007-08-09 20:59:30
Pug
UR father's brother's nephew's former roommate
+652|6980|Texas - Bigger than France

Kmarion wrote:

Edit: Scratch that idea.. only avaiable to GM employees..
No, my broker offers them in $25k lots via UBS, Merrill Lynch & Morgan Stanley does too.

Seriously, go see a broker.  Even if you don't sign up, you can learn a bunch.
2007-08-09 21:00:27
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

Captain_Iron_shooter wrote:

Kmarion wrote:

DBBrinson1 wrote:

http://en.wikipedia.org/wiki/Mutual_funds

Or

Own a home?  Equity?
I have mutual funds and other stocks (UPS primarily) both of which hit me three times when I touch it. Fees for taking it out, taxed when I take it out, and reportable income at the end of the year.

These look interesting: http://www.gmacfs.com/us/en/business/in … tures.html
So why take it out if it cost you so much??? Ask your broker how long would it take to get your money if you need it. Here you pay to take it out in case something happen, and if nothing happen you lost some profit.

Anyway as i tell my friend.... as long as you sleep well at night.
The money I am talking about now is currently not tied up. I will need to access it to pay for therapy and medication as needed (if needed for that matter). It is a considerable amount of money that would be poorly managed if I just dumped it in a savings account... or if I created a situation that would hurt me financially by locking it up. Nothing would suck more than having to pay for a large doctor bill while at the same time getting raped in penalties.
Xbone Stormsurgezz
2007-08-09 21:15:45
Captain_Iron_shooter
Member
+2|7127|Montreal, QC. Canada

Kmarion wrote:

I know a few of the guy here are knowledgeable in investing. I have to move some of my investment/savings pretty soon.
with the op i thougth the money was already tied up.

Pug's idea to go see a broker is a good one. They are so many investment product out there..... and it's always a good source of info.
2007-08-09 21:24:53
Kmar
Truth is my Bitch
+5,695|7039|132 and Bush

Captain_Iron_shooter wrote:

Kmarion wrote:

I know a few of the guy here are knowledgeable in investing. I have to move some of my investment/savings pretty soon.
with the op i thougth the money was already tied up.

Pug's idea to go see a broker is a good one. They are so many investment product out there..... and it's always a good source of info.
The money in question will be available soon without penalties. The wording was poor on my part. Sorry .

I'm going get advice from a broker my Dad uses. He isn't too happy with him tbo, but I'm sure he can point me the right direction in regards to short term. I thought I would toss my situation out here to see what kind of response I got also. It might even help some poor soul along the way.
Xbone Stormsurgezz
2007-08-09 21:37:17
ph4s3
engineer
+34|7267|Texas
Don't waste your time or your money with a broker.  Go to a local bank and open a Money Market Account.  APR should be ~4% since CDs are around 4.5ish... Check Bankrate.com and take the printout to your bank and see what they'll do.  Get one that allows check writing directly from the MMA and you're set.  It doesn't get more liquid than that unless you hide it under your mattress.

 

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