Author Topic: Money Market Fund, Annuities, Etc  (Read 3205 times)

Offline Mountain Man

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Re: Money Market Fund, Annuities, Etc
« Reply #15 on: April 09, 2015, 03:48:38 PM »
I have 10-15k that I want to do more with than earn 0.005% in the bank.
You can put into an amex or tiaa direct savings. Both offer 70 bp or better.
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Offline bukin86

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Re: Money Market Fund, Annuities, Etc
« Reply #16 on: April 12, 2015, 09:08:26 PM »
I wouldn't mind 5 years...

Barclays has 2.25% for 60 months - looks very attractive

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #17 on: April 13, 2015, 01:01:30 AM »
Annuities aren't short term investments

you could try CDs or 13 week US treasury notes
-1, there plenty of annuities with terms similar to CDs (FDAs). Not that I'd suggest one in this situation, but your statement was incorrect.

Offline bukin86

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Re: Money Market Fund, Annuities, Etc
« Reply #18 on: April 16, 2015, 08:13:14 AM »
Does anyone here have an account with Barclays online?

Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #19 on: April 21, 2015, 03:29:28 PM »
Is that the best you can do with 15k ? whats the next step higher on the risk factor but below putting it all on red? (anything in the 8-10% yield range)

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Re: Money Market Fund, Annuities, Etc
« Reply #20 on: April 21, 2015, 03:32:18 PM »
Is that the best you can do with 15k ? whats the next step higher on the risk factor but below putting it all on red? (anything in the 8-10% yield range)
what time frame
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Offline jack276156

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Re: Money Market Fund, Annuities, Etc
« Reply #21 on: April 21, 2015, 07:45:44 PM »
3 - 4  years

Offline AsherO

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Re: Money Market Fund, Annuities, Etc
« Reply #22 on: April 21, 2015, 07:50:14 PM »
I have 10-15k that I want to do more with than earn 0.005% in the bank.

Keep in mind that 1% is $100-150, so if you're only putting your money away for six months then you'll get less than half that (since the interest rate is a compounded annualized yield).

Also, most funds/investment vehicles that have higher returns also have higher risk, and are thus more suitable for long term investment.

You might want to check out bankrate (or one of the other comparison sites) as there are banks that offer an intro rate or bonus that might get you more than $2-300 for the year.
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Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #23 on: April 24, 2015, 04:50:35 PM »
Would anyone recommend roth IRA account for someone who pays little taxes now. What yield range should i expect?

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #24 on: April 24, 2015, 06:39:10 PM »
Would anyone recommend roth IRA account for someone who pays little taxes now. What yield range should i expect?
Yes. Depending where you open the account, you can invest in just about anything that platform allows trading in. So the yield is the yield on whatever you expect to invest in.

Offline Mountain Man

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Re: Money Market Fund, Annuities, Etc
« Reply #25 on: April 26, 2015, 05:23:01 PM »
Is that the best you can do with 15k ? whats the next step higher on the risk factor but below putting it all on red? (anything in the 8-10% yield range)

You're not going to find anything with a firm commitment to pay that kind of return. It's not realistic in a world were negative yields for sovereign debt are considered normal.

Would anyone recommend roth IRA account for someone who pays little taxes now. What yield range should i expect?

Roth accounts can be fantastic for many people. If you're paying little to none in the way of taxes now you theoretically could put money in at a 10% tax rate and then qualify for a non-refundable savers credit of 50% of your deposit up to $2,000 and that would refund any tax you paid.

You're making a mistake focusing on yield, a very perilous mistake. I can name you plenty of funds with high yields. But when there is a grab for yield you will by necessity be buying into lower quality assets. This would greatly increase the odds of a loss of principal. There are REITs that can yield over 10% and there are numerous commodity stocks that yield over 5% (thank to recent pullbacks). All carry significant investment risks though.

If you have a very long term (10-20 years) horizon the typical number thrown out these days is to expect 6-8% return over time.

From your situation it sounds like you may need the money in a few years. Others can opine what you should invest in. I would strongly suggest that you consider putting the money into a Roth due to the aforementioned Saver's credit which can provide a "return" of as much as 50% of your contributed capital. This capital can be withdrawn tax free and any returns can be withdrawn for qualified expenses (typically education, healthcare or first time housing).

You could probably also throw some money into an HSA if you're planning to use the money anyway for healthcare expenses and that would provide a tax deduction if you move into a higher tax bracket in the coming year.
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Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #26 on: April 28, 2015, 02:03:06 PM »
You're not going to find anything with a firm commitment to pay that kind of return. It's not realistic in a world were negative yields for sovereign debt are considered normal.

Roth accounts can be fantastic for many people. If you're paying little to none in the way of taxes now you theoretically could put money in at a 10% tax rate and then qualify for a non-refundable savers credit of 50% of your deposit up to $2,000 and that would refund any tax you paid.

You're making a mistake focusing on yield, a very perilous mistake. I can name you plenty of funds with high yields. But when there is a grab for yield you will by necessity be buying into lower quality assets. This would greatly increase the odds of a loss of principal. There are REITs that can yield over 10% and there are numerous commodity stocks that yield over 5% (thank to recent pullbacks). All carry significant investment risks though.

If you have a very long term (10-20 years) horizon the typical number thrown out these days is to expect 6-8% return over time.

From your situation it sounds like you may need the money in a few years. Others can opine what you should invest in. I would strongly suggest that you consider putting the money into a Roth due to the aforementioned Saver's credit which can provide a "return" of as much as 50% of your contributed capital. This capital can be withdrawn tax free and any returns can be withdrawn for qualified expenses (typically education, healthcare or first time housing).

You could probably also throw some money into an HSA if you're planning to use the money anyway for healthcare expenses and that would provide a tax deduction if you move into a higher tax bracket in the coming year.

Why is that true? Isnt it just the same on any risk vs. reward scale

any recommendation as to what to invest in through a roth acount?
 

Offline Mountain Man

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Re: Money Market Fund, Annuities, Etc
« Reply #27 on: April 28, 2015, 02:08:06 PM »
Why is that true? Isnt it just the same on any risk vs. reward scale

any recommendation as to what to invest in through a roth acount?
Exactly risk/reward. You said you didn't want to put it all on red.

I can't opine on particular investments. If your time horizon is long enough find a good low cost index fund.
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Offline ADG

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Re: Money Market Fund, Annuities, Etc
« Reply #28 on: April 28, 2015, 02:24:51 PM »
yes not everything on red. But i also find it pointless to lock up "little " amount even on "great" interest rates.

I am looking to make money but not put it on red. Looking for a risky but worth the risk kind of investment.

Thanks for your advice.
Sorry for my unprofessional terminology...:) 

Online skyguy918

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Re: Money Market Fund, Annuities, Etc
« Reply #29 on: April 28, 2015, 02:38:45 PM »
yes not everything on red. But i also find it pointless to lock up "little " amount even on "great" interest rates.

I am looking to make money but not put it on red. Looking for a risky but worth the risk kind of investment.

Thanks for your advice.
Sorry for my unprofessional terminology...:)
You should take a look at Future Advisor, see what they recommend. You put in your current age and 'retirement age' (think of that one as the age you plan to be using this money), as well as your risk tolerance. Then you should be able to just manually input that you have a Roth IRA and report the full amount you plan to invest as cash. Once it's all set up they'll suggest a portfolio, using exclusively commission free ETF's at Fidelity or TD Ameritrade.