$ 29,000 investment question?

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My wife and I have $ 29,000 savings at the moment is that at 2.48% Zinsen.Wir have no mortgage, we rent, but you want to buy a house soon. We have two student loans which totaled $ 185/month and a car that had to pay $ 247/month savings ist.Wir just 3 years ago and have managed to 25,000 dollars in three years the issuance of a full-time and part-time job. Our combined income for the year was $ 48,000 and has over the past 3 years durchschn.Mit CD as so low down and our savings rate up account with 1% last year, we are a sort of looking for a place to a considerable amount of liquid investieren.Wir a deposit on a house and a halten.Keiner urgency we feel at ease in the stock market at the moment we feel it is taking ideas riskant.Alle, with this money? We also have a new higher paying job for my wife, a teacher is to move. I am looking for employment and we prefer a 4-month Sohn.DankIch before it, the Philippines and my money debt geschraubt.Wir ZERO credit card.

  1. Reply
    Mama Bear
    April 29, 2011 at 9:08 pm

    I know a custom computer shop owned by an American here in the Philippines who takes up to $ 1,000.00 as an investment and pays out 10% quarterly on the money invested by contract.
    He is located in Cebu, Philippines and does a steady business, but is trying to expand.
    Contact me if you want his e-mail address offline.

  2. Reply
    April 29, 2011 at 10:00 pm

    It is not a good time to invest in the stock market. The USA and many other countries are in financial difficulty and economic upheaval. You may lose principal if you go into the market now.

    Even a 2.4% return is better than a 10% loss – I’m sure you’ll agree.

    I suggest that you keep 1/2 your money in a Money market Account, and put the other 1/2 into a CD, it may pay a bit more about 3.5% or so for a 1 yr CD.

    If your employers have 401K plans, contribute as much as you can to them.

  3. Reply
    Brien Private Finance
    April 29, 2011 at 10:58 pm

    If you are looking for FDIC insured, liquid, that is probably a pretty good rate. There are some better rates. Bank of America has a 7 or 9 month risk free cd that my client manager just told me about a couple days ago, where essentially it is as liquid as a savings account, but earns like 2.75% interest. A little bit higher than what you are getting right now, but still below inflation. I’m not sure about the fees that you would incur, your going to have to talk to someone at bank of america about that, because different deposit amounts charge different fees. I believe that the risk free cd is available to the general public, but once again, that is something you need to check on.
    You may also want to take a look at Everbank’s money market account. It is currently earning about 4.76% interest. You need to look that up on everbank.com because I do not have all the details for you on that.
    There are a couple other banks like CountryWide, Zions Bank, HSBC Direct that all offer decent interest rates in the upper three range.
    Some of it has to do with how comfortable you are with using the internet, because for these, unless there is a branch near you, you would have to make transfers from your account using the internet.

  4. Reply
    April 29, 2011 at 11:56 pm

    It’s actually not a bad thing to rent for a while. Home prices are still depreciating and with another round of ARMs resetting this month you will be seeing even more foreclosures in the coming months. I live in So. Florida and own a small townhome. My mortgage is under $ 900/mo. BUT my taxes, insurance and association dues are an additional $ 500/month. So I’m paying nearly $ 1400/month while my property continues to depreciate. I only bought my place because the builder offered $ 60k off of a cancelled contract. I put 20% down to avoid the PMI and even made double payments for the first few months. After a year and a half I’m upside down on my mortgage by about $ 25k…meaning if I was to sell today (at what people are willing to buy for) I would still owe the bank $ 25k…which I no longer have, so I’m forced to wait it out. These same units are renting for $ 700-$ 800/month. It’s a no-brainer to rent for a while.
    As for your $ 29k….since CDs aren’t paying anything…it literally doesn’t pay to keep it in there. You are LOSING money. Right now it’s best to pay off as much debt as you can. Start with the highest interest rates and get them paid off. Credit cards, then the car. Lower all expenses and continue saving and paying down debt. Don’t worry about buying a home for at least a couple of years. You’ll have plenty of time and then you’ll get a sweetheart of a deal.
    As for the stock market, I agree it’s terrible. I saw this coming and actually pulled all my 401k money out of the market in January. I’m very bullish gold/silver and own several mining company stocks but I wouldn’t recommend them if your risk tolerance is low. But if you want to dabble and play it relatively safe I would recommend the gold miner Exchange Traded Fund (or ETF) …it trades just like a stock but it’s more like a mutual fund…the ticker symbol is GDX. I think there’s a LOT of money to be made in the next 6-12 months…JMHO.

  5. Reply
    April 30, 2011 at 12:33 am

    Considering that you and your wife are still paying off student, am I correct in assuming that you two are in your late 20’s to early 30’s? If so, the stock market is not a bad place to put your money. I know that you said that you aren’t comfortable with the market right now. But if I were you, I would your money in a mutual fund. The mutual fund will keep your portfolio diversified, which will help minimize risk. Trust me, when our economy comes out of this slump, you’ll be happy that you did.

  6. Reply
    The Hoss
    April 30, 2011 at 1:27 am

    Depends on the interest rates of your loans. If those loans have a high interest rate you may want to consider using some of your savings to pay them down rather than a minimum monthly payment as you are currently doing.
    There are plenty of certified professional financial adviser’s available who could sit down with you and your wife and develop a complete financial plan for you and your family.

  7. Reply
    April 30, 2011 at 2:04 am

    I understand there are Annuities out there paying 8% annually (doubling your money every 9 years). Something to think about. Good Luck!

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