Investments
- Thread starter williamsb27
- Start date
My parents are "Dave Ramsey" followers. They have paid off all their credit cards, cars, trucks, house through his methods in less than 2 years. They actually teach a class following the basic principals from his books. I do not attend...
I also used one method from his book, "snowball effect," for paying down debt. I paid off $28,000 in the last 3 years using that method. I am free and clear and ready to actually do some investing. So I am intrigued as to what you find out...
Researching on my own is frustrating, and I can't trust others with my money... 401K taught me that
I also used one method from his book, "snowball effect," for paying down debt. I paid off $28,000 in the last 3 years using that method. I am free and clear and ready to actually do some investing. So I am intrigued as to what you find out...
Researching on my own is frustrating, and I can't trust others with my money... 401K taught me that
My parents are "Dave Ramsey" followers. They have paid off all their credit cards, cars, trucks, house through his methods in less than 2 years. They actually teach a class following the basic principals from his books. I do not attend...
I also used one method from his book, "snowball effect," for paying down debt. I paid off $28,000 in the last 3 years using that method. I am free and clear and ready to actually do some investing. So I am intrigued as to what you find out...
Researching on my own is frustrating, and I can't trust others with my money... 401K taught me that
It is frustrating researching on your own, I have been off and on for the past few years and I get discouraged because I don't understand much about investing. I looked at trying to learn about stocks and I get burned out because I can't catch on unless somebody actually teached me.
I get your point about not trusting anyone with your money, which is why I'm glad I have a military only bank, they will work with me as long as possible till I reach my goal since they are not paid on commission.
I'm gonna give them a call today and see what I find out, ill let you know.
James
Staff member
I wouldn't trust a financial adviser (think Edward Jones type of guy) further than you can throw him/her. Most work on commission and because of that will be biased. However that doesn't mean that you can't gain from them though, nor that they're all "bad" (bad isn't really the right word I'm looking for).
Are you looking for a no risk CD/savings account or a mutual fund/stock that gets you a much higher return, but carries risk?
If you're looking for a no risk account that pays a mediocre rate, I'd check into ING Direct (Click Here). They're an online only bank that pay .80% on a savings account. ING Direct was started by ING Group and then sold to Capital One in 2011, so it isn't some shady bank/website. I've had an account with them since I was 18 and back then the interest rate was a whopping ~5%, however the meltdown killed that.
The online bank thing works great if you're setting money aside for the future as it takes 3-4 days for it to transfer back to your local bank account. This keeps you from touching that money as you instantly have a 3-4 day period to reconsider that purchase.
On the flip side if you're looking to get a bigger return, I'd suggest mutual funds over stocks as they typically have less risk. And most importantly, less work for you.
Are you looking for a no risk CD/savings account or a mutual fund/stock that gets you a much higher return, but carries risk?
If you're looking for a no risk account that pays a mediocre rate, I'd check into ING Direct (Click Here). They're an online only bank that pay .80% on a savings account. ING Direct was started by ING Group and then sold to Capital One in 2011, so it isn't some shady bank/website. I've had an account with them since I was 18 and back then the interest rate was a whopping ~5%, however the meltdown killed that.
The online bank thing works great if you're setting money aside for the future as it takes 3-4 days for it to transfer back to your local bank account. This keeps you from touching that money as you instantly have a 3-4 day period to reconsider that purchase.
On the flip side if you're looking to get a bigger return, I'd suggest mutual funds over stocks as they typically have less risk. And most importantly, less work for you.
I wouldn't trust a financial adviser (think Edward Jones type of guy) further than you can throw him/her. Most work on commission and because of that will be biased. However that doesn't mean that you can't gain from them though, nor that they're all "bad" (bad isn't really the right word I'm looking for).
Are you looking for a no risk CD/savings account or a mutual fund/stock that gets you a much higher return, but carries risk?
If you're looking for a no risk account that pays a mediocre rate, I'd check into ING Direct (Click Here). They're an online only bank that pay .80% on a savings account. ING Direct was started by ING Group and then sold to Capital One in 2011, so it isn't some shady bank/website. I've had an account with them since I was 18 and back then the interest rate was a whopping ~5%, however the meltdown killed that.
The online bank thing works great if you're setting money aside for the future as it takes 3-4 days for it to transfer back to your local bank account. This keeps you from touching that money as you instantly have a 3-4 day period to reconsider that purchase.
On the flip side if you're looking to get a bigger return, I'd suggest mutual funds over stocks as they typically have less risk. And most importantly, less work for you.
Well in my previous posts you can see I use USAA, which all advisors are paid on a salary basis and not commission
Which in your "opinion" would be the best in my case, to have a high return with a high risk or the opposite?
Is the .80% a fixed rate or does it vary? USAA is online only too.
I looked it mutual funds too, but due to my lack of knowledge with finance I couldn't really decide which would be better.
I do plan to call an advisor today though
James
Staff member
Well in my previous posts you can see I use USAA, which all advisors are paid on a salary basis and not commission
I'd forgotten about that. At least go talk to one however don't make any decisions today.Younger people can typically take higher risks, however that doesn't mean you have to. I had a mutual fund tank ~45% back in the 08 meltdown, however in 09 when things were looking better I double it and rode it back up. As soon as I was back in the black I got out of all stocks/funds, tried of worrying.
Variable.
Younger people can typically take higher risks, however that doesn't mean you have to. I had a mutual fund tank ~45% back in the 08 meltdown, however in 09 when things were looking better I double it and rode it back up. As soon as I was back in the black I got out of all stocks/funds, tried of worrying.
Variable.
Well I already started the 1 year variable CD account
Excuse my ignorance, but when you say risk, does that mean loss of money or a lower interest rate?
Well my CD account is just about the same so ill stick with it for now.
There is always the tradeoff of risk and return.The higher the risk, the higher the potential return. The higher the risk, the higher the probability of a loss.Well I already started the 1 year variable CD account
Excuse my ignorance, but when you say risk, does that mean loss of money or a lower interest rate?
Well my CD account is just about the same so ill stick with it for now.
I get that, but i dont get what I'm risking besides the fact the interest rate could go down. Do I actually lose money?
James
Staff member
Risk means possible loss of money. In theory you can't lose money in a savings/CD account, however in stocks/mutual funds you can end up with less money than you put in. For example, you invest $10,000 into a mutual fund/stock, the fund/stock price drops 10%, you're now $1,000 in the red (your investment is only worth $9,000). This loss isn't realized until you actually sell though.
Now on the flip side, this stock/fund could also increase 10% in value/price. Which means if you sold it at that time you'd have a gain of $1,000 (total investment worth $11,000).
I meant buying a stock or fund.Well I already started the 1 year variable CD account
A CD is pretty much like a savings account with the exception that you can only withdraw it every X months or years. If they allow you to add money every week/month I'd stick with this.Risk means possible loss of money. In theory you can't lose money in a savings/CD account, however in stocks/mutual funds you can end up with less money than you put in. For example, you invest $10,000 into a mutual fund/stock, the fund/stock price drops 10%, you're now $1,000 in the red (your investment is only worth $9,000). This loss isn't realized until you actually sell though.
Now on the flip side, this stock/fund could also increase 10% in value/price. Which means if you sold it at that time you'd have a gain of $1,000 (total investment worth $11,000).
I meant buying a stock or fund.
Yeah see I dont get all that selling stuff lol
They sure do, I plan to try and add $100 a month possibly more when I become and active duty officer. Do you think interest rates are still going downhill?
The Fed Is keeping interest rates low right now to attempt to boost the economy, They are at a steady low rate right now, and really can't drop much.
Lame, but at least they won't drop too much.