Investment options

[SD_Prairie_Goat]

So, I've been squirelling away some money and I'm trying to figure out a good place to stick my extra cash I've built up.

I already keep a chunk of money in various mutual funds and stocks as a rainy day fund, but I'd like another option to throw money towards.

A savings account would be ideal, if the rates weren't so pathetically low right now, and I can't seem to find any CD's that do much better.

What else is out there for options? Open an online only high interest savings account? Those make me as little nervous just because they are online only, but maybe I'm just paranoid...

Buy bonds? Buy gold and hide it under the mattress?

 

[Trial153]

AMEX has high yield online savings account, 1.7 apr. Takes 15 minutes to open it online.

 

[Empire State]

Far be it for me to give investing advice, but (!), since this is Hunt-talk after all, why not buy a collectible gun. You'd have to work at it, do your research, and buy something that will hold it value or appreciate slowly over time.

 

[Pucky Freak]

There’s no way to answer that question without your whole financial picture, and your specific goals. I recommend seeing a financial advisor. That being said there is no place in my finances for gambling on things like single stocks, commodities or currency. Bonds and CD’s are pretty worthless because other vehicles either have a higher avg return or are more liquid. Also, money under the mattress is kind of silly since the advent of federally insured banking.

 

[stealthy_bowman]

When I hear the term "rainy day fund" to me that means money that is easily accessible in a pinch, not money that is invested for the long haul in stocks. A rainy day fund should ideally have 6 months and maybe even a year's worth of living expenses. That's the money that should go in a high yield FDIC insured account, such as a Marcus by Goldman Sachs account. A CD with a bank like Marcus is also ok and gives marginally better rates, but you will get dinged on earned interest if you withdraw prior to maturity. Another safe option are ibonds sold by the US treasury. You can buy $10K a year. The rates aren't really better than a high yield online savings account, but the advantage is that they grow tax deferred as long as you own the bond.
For the long haul investment (10 years +), that's where stocks, index funds, etc. come in.

 

[redwoood]

Not to highjack but are there any options out there that are easy to transfer money into an account from online banking in random increments and intervals? Thinking more long term.

 

[SAJ-99]

Not to highjack but are there any options out there that are easy to transfer money into an account from online banking in random increments and intervals? Thinking more long term.

Yes. You can just open a Charles Schwab account (or almost any other major firm) and transfer money to and from your bank. The lines between banking and brokerage are almost nonexistent now.

 

[SD_Prairie_Goat]

Seems like high interest savings accounts are one of the few good options, but I need to look into bonds a little more. For me personally, stocks, bonds, etfs, etc. Are all liquid enough for a rainy day fund. I don't have aNY expenses that are due quicker than a month or so, and I can trade and cash out well before that if I lost my job.

At the end of the day, this rainy day fund is meant to make money( not lose value to inflation) but very well may never be used which is why investing in bonds, stocks, etc isn't too much of a worry. Mainly wanted to see what else is around in the world that I hadn't heard of.

Thanks for the replies

 

[JohnCushman]

Invest in hemp and marijuana growing. Investments are going through the roof.

 

[----]

Have you killed a dall sheep yet?

 

[SD_Prairie_Goat]

Have you killed a dall sheep yet?

Haha no, should I start investing in points?!?

 

[fishing4sanity]

Citi bank has some online savings that were 1.85%, watch that it's not too restrictive on withdrawl amounts or timing. Ally bank has a no-penalty CD, 11 month maturity, but no early withdrawl penalty and I think it's also 1.85%. These are if you're wanting something guaranteed, but they're still pretty anemic returns.

 

[Nick87]

Take up waterfowl hunting, that should just about take care of whatever you've put away!

 

[SD_Prairie_Goat]

Take up waterfowl hunting, that should just about take care of whatever you've put away!

I gave up Duck hunting for that reason! Spending $500 in a weekend for gas scouting isn't worth it to me!

 

[SAJ-99]

Seems like high interest savings accounts are one of the few good options, but I need to look into bonds a little more. For me personally, stocks, bonds, etfs, etc. Are all liquid enough for a rainy day fund. I don't have aNY expenses that are due quicker than a month or so, and I can trade and cash out well before that if I lost my job.

At the end of the day, this rainy day fund is meant to make money( not lose value to inflation) but very well may never be used which is why investing in bonds, stocks, etc isn't too much of a worry. Mainly wanted to see what else is around in the world that I hadn't heard of.

Thanks for the replies

It is a good point. The "rainy day fund" is less relevant in today's age if you have money in taxable accounts. Things can be sold and money moved quickly. But it is still a solid concept for peace of mind. Often times a person's job is correlated to the stock market. If your investments drop by 30% and then you lose your job, the fund may not go as far as you hope.

 

[ShootsManyBullets]

You won't get rich saving, especially at today's rates. You're actually losing money by saving it from inflation alone. Find something like real estate with tax benefits, upside appreciation and cash flow or talk to a financial adviser and find something to invest in that has a chance to increase in value.

In generations past, savings was rewarded. In today's credit economy saving is punished.

No guts no glory.

 

[ignorethefringes]

What about something simple like an information technology ETF? I have one through a fidelity IRA that's up about 3.5% since December.

 

[cowboy]

What is your status on a 401K, conventional IRA, or Roth IRA? If you have a mortgage you could put monthly amounts towards the PITI.
If you use an accountant to do your financials, have you discussed this with him/her?
There is no magic answer where one size fits all but my compliments to you to have the foresight to plan ahead.

 

[Flatrock]

I would highly consider short to medium term municipal bond funds. Tax free income although you'll still pay taxes on capital gains. VWITX from Vanguard is pretty solid. 3.9% return over the last 10 years and the worst year was only down 1%.

Some advice from an advisor wouldn't be a bad idea as others have mentioned but take their advice with a grain of salt and make sure they have your best interest in mind. Sometimes they're more in the sales business than the financial advice business. Recently had a guy try and sell me load mutual fund. I honestly thought those didn't even exist anymore. What an incredibly dumb product in this day and age. Absolutely do not buy ANY fund that has a fee to purchase it.

 

[tim629]

What about something simple like an information technology ETF? I have one through a fidelity IRA that's up about 3.5% since December.

i would look back at that one, i was curious what the market & my investments have done based off of your refrence. vanguard's IT is up 10% since 1/1.

i wouldn't hold such a specialized fund for short term security though. long term will it probably grow, yes but if you unexpectedly want the money in 6 months the fact that it's outpacing the market up can also mean outpacing the market down