Where should i put this money?
#1
Pro
Thread Starter
Where should i put this money?
I have an extra $5000~$8000 on the side which I personally dont think I will get a chance to spend them, i dont wanna put them in checking/saving account cuz either no interest or low interest, i am not a stock person either....
I am looking at some decent return while giving you the lowest risk....what would you guys recommend?
I am looking at some decent return while giving you the lowest risk....what would you guys recommend?
#2
Карты убийцы
Well since you have a $3000 range you are not sure of, I'd suggest invest in Professor's Pyramid... if qualified, I'll turn your $8K cash into $6K, and since you think you invested $5K, you'll have $1K in profits.
Please Paypal.
Please Paypal.
#4
Meat stick
I have an extra $5000~$8000 on the side which I personally dont think I will get a chance to spend them, i dont wanna put them in checking/saving account cuz either no interest or low interest, i am not a stock person either....
I am looking at some decent return while giving you the lowest risk....what would you guys recommend?
I am looking at some decent return while giving you the lowest risk....what would you guys recommend?
If you already have a decent retirement account setup, and make decent money, go see a financial planner to figure out your best "overall" strategy to make your money last.
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spaceboy (03-26-2012)
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spaceboy (03-26-2012)
#6
Pro
Thread Starter
i dont have retirement account yet and i am 29, how much is a little every month? wat do u think about money marketing account or stuff like Meryl Lynch??
#7
Meat stick
![2 Cents](https://acurazine.com/forums/images/smilies/2cents.gif)
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spaceboy (03-27-2012)
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#8
Start a Roth IRA and get in the habit of putting in at least $300 per month to save for your retirement.
It's not too late to start one and make your 2011 contribution. You have until April 17, 2012. Max IRA contribution is $5,000.
It's not too late to start one and make your 2011 contribution. You have until April 17, 2012. Max IRA contribution is $5,000.
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spaceboy (03-27-2012)
#10
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......in my account hahah
well if you gonna use it:
Couple savings account are giving you 0.75% to 1% APR....so you will make 80 bucks a year.....
if you not gonna use it:
CD's...will give you 1.25-1.5% APR
now these are sure profits and no risk...
you can put some money in an IRA account or invest in some stocks....check out google and apple stocks !!! they have gone up 3-4 times in the past 4-5 years....
well if you gonna use it:
Couple savings account are giving you 0.75% to 1% APR....so you will make 80 bucks a year.....
if you not gonna use it:
CD's...will give you 1.25-1.5% APR
now these are sure profits and no risk...
you can put some money in an IRA account or invest in some stocks....check out google and apple stocks !!! they have gone up 3-4 times in the past 4-5 years....
#11
Suzuka Master
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IRA Roth FTW, the younger you start, the better. I think I maxed out my contributions the last 3 years. My accounting teacher convinced me to start. Then you can take the IRA contributions and put them into CDs or treasury bonds for no-risk investment. I also like no risk and I do CDs. Interest income earned from IRA contributions that go back into your IRA fund are not taxed at the end of the year and I don't think they are taxed when you take them out because the money you put in is already pre-taxed.
But interest rates are real low right now so I wouldn't lock yourself into anything super long like a 30 year bond.
I always hear from older people how they wished they would have started investing in their retirement when they were young because now they don't have enough to maintain their lifestyle after retirement.
But interest rates are real low right now so I wouldn't lock yourself into anything super long like a 30 year bond.
I always hear from older people how they wished they would have started investing in their retirement when they were young because now they don't have enough to maintain their lifestyle after retirement.
#17
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^^^ yup if you dont have any deductibles its a good idea to open a Roth IRA
Justn, whatever $$$ you put in it, you can claim that in your 2011 taxes as its not April 17th yet....
Justn, whatever $$$ you put in it, you can claim that in your 2011 taxes as its not April 17th yet....
#23
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^^^ you can claim Roth contributions as a deductible....
so if you made (say) 74,000 for the year and you contributed 5,000 to IRA and if (say) the bracket is 70,000....you will come in a lower bracket !!!
so if you made (say) 74,000 for the year and you contributed 5,000 to IRA and if (say) the bracket is 70,000....you will come in a lower bracket !!!
#25
Suzuka Master
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EDIT: Tax deductions for IRA contributions are only for a traditional IRA. For a Roth IRA, you cannot take deductions at this time but you can withdraw contributions tax free.
Basically if you don't need the tax deductions right now, place it into a Roth. If you make too much and owe uncle sam, you may look into a traditional IRA.
Basically if you don't need the tax deductions right now, place it into a Roth. If you make too much and owe uncle sam, you may look into a traditional IRA.
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#26
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^^^ hahaha either way you are paying taxes....
either you pay before TDS or you will pay after....the only use of an IRA account is if you do not have any deductions....
either you pay before TDS or you will pay after....the only use of an IRA account is if you do not have any deductions....
#28
Burning Brakes
There's a great quote from Warren Buffet: What the smart man does in the beginning, the fool does in the end.
#29
Suzuka Master
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So why go with a regular IRA instead of a Roth? Because you can use contributions in to the regular IRA as tax deductions. I'm receiving a tax refund so deductions are worthless for me so I went with a Roth.
Why else do you think there are 2 types of IRA accounts?
#30
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^^^ farrk em both....am going 401K
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#33
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^^^ ahhhaha but you dont see it bro....
my wife's employer matches 15% (i think) and max contri per year is like 6K....so that is free 1000 bucks a year....
she has been contributing since 3 years....so technically she should have 21K in the 401K....barely 18K in there![Tomato](https://acurazine.com/forums/images/smilies/tomato.gif)
i make more interest on that amount in my savings account which gives me 1% APR
my wife's employer matches 15% (i think) and max contri per year is like 6K....so that is free 1000 bucks a year....
she has been contributing since 3 years....so technically she should have 21K in the 401K....barely 18K in there
![Tomato](https://acurazine.com/forums/images/smilies/tomato.gif)
i make more interest on that amount in my savings account which gives me 1% APR
#34
Suzuka Master
Well in a regular IRA account, you pay taxes on the money you take out of the account when you retire. It's tax free withdraws on a Roth. Both are taxed from your pay check or uncle sam when you file taxes but I'm talking about when you actually need to withdraw from your IRA accounts.
So why go with a regular IRA instead of a Roth? Because you can use contributions in to the regular IRA as tax deductions. I'm receiving a tax refund so deductions are worthless for me so I went with a Roth.
Why else do you think there are 2 types of IRA accounts?
So why go with a regular IRA instead of a Roth? Because you can use contributions in to the regular IRA as tax deductions. I'm receiving a tax refund so deductions are worthless for me so I went with a Roth.
Why else do you think there are 2 types of IRA accounts?
I started my Roth when I was still in med school. Last year, the federal government eliminated the ceiling on Roth conversion so I converted my entire IRA to Roth. Obviously, I had a large tax burden on the conversion but I had a couple investments with federal high technology tax credits that I used to offset the tax on the Roth conversion.
To me, it's a no brainer. I will likely practice another 30 years and to allow the principal, dividends, and appreciation of the Roth to accumulate tax free until I cash it out made more fiscal sense than investing pre-tax income into a traditional IRA at the moment despite being in the highest tax bracket. Obviously, everyone's financial situation varies.
For 2012, my financial team implemented a Defined Benefits plan which allows me to invest a much larger amount than a 401K. Sure, no one can predict what the value of your portfolio will be 30 years from now but you would like to think if you were diversified in a variety of holdings that you would make out okay. I am partial to mutual funds over individual stocks and have my DB with Fidelity funds and my personal investment portfolio with Vanguard. I also plan on getting some dividend returning investments this year in my DB, like P&G or Caterpillar or maybe even Pfizer although I'm sketchy about pharmaceutical companies.
It really is an excellent idea for you youngsters to be starting Roths.
#35
^^^ ahhhaha but you dont see it bro....
my wife's employer matches 15% (i think) and max contri per year is like 6K....so that is free 1000 bucks a year....
she has been contributing since 3 years....so technically she should have 21K in the 401K....barely 18K in there![Tomato](https://acurazine.com/forums/images/smilies/tomato.gif)
i make more interest on that amount in my savings account which gives me 1% APR
my wife's employer matches 15% (i think) and max contri per year is like 6K....so that is free 1000 bucks a year....
she has been contributing since 3 years....so technically she should have 21K in the 401K....barely 18K in there
![Tomato](https://acurazine.com/forums/images/smilies/tomato.gif)
i make more interest on that amount in my savings account which gives me 1% APR
http://www.nytimes.com/2011/06/04/yo...s/04money.html
#36
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^^^ yeah i need to look into it....i dont know how she signed a deal....it was company offered so she did....well anyway, another thing on my to do list !!!
thanks for the link bro....
thanks for the link bro....
#38
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^^^ yes....and hence i was telling her....
if i took that 18K and put it in my savings account which pays me 0.75-1% APR i would have made more in the past 2-3 years than she did in 401K....
if i took that 18K and put it in my savings account which pays me 0.75-1% APR i would have made more in the past 2-3 years than she did in 401K....
#39
Pro
It all depends on what your 401k is invested in. I chose the mix of investments for mine and was at 13.5% return on the ytd. My employer contributes a base amount every check then matches dollar for dollar up to 5%. Also I'm lucky to have an employer who has a pension plan that they fully fund(which i was surprised to find out not many places still have pensions). For me tho 401k and Roth is what I have and recommend to others.