Any Financial Gurus in the house?

[Mtnman1830]

I am looking at putting some money away (like the 'George W' money) for a trip to Peru next year.

I am looking at putting it in a Dedicated Savings account or a CD.

Is one better than the other? Is there a better option?

Just looking at a 12 month deal, putting $ away monthly, then kicking back on the Inca Trail, Machu Pichu, eating Cuy, enjoying the scenery...

[rockgremlin]

mmmmmmmmm Cuy.....tastes like chicken

[jumar]

I'm no guru, but I like the ING savings account. I get about the same rate as some CD's but it's liquid. I think it's at 3% right now (used to be 4.6% ).
There are probably some other online savings accounts still that are 3% or better. There were some up to 5 and 6% a year or so ago.
I like ING's because I also get interest on my checking account.
www.ingdirect.com

[rockgremlin]

CDs are a pretty good way to go. Pretty decent rates if you're willing to go 5 years or longer. Curious if there's anything out there that offers a higher rate of return, as well as offering the same level of security as a CD.

[FROGGER]

For the short amount of time we are talking it really does not matter.. If you can trust yourself not to touch it then put it into a savings account.. If you think you will be tempted to touch it, slap it in a CD and know that if you do your going to pay for it...

[Iceaxe]

CDs are a pretty good way to go. Pretty decent rates if you're willing to go 5 years or longer.

Actually.... short term CD's are paying the highest rate at the moment. a 6 month cd is paying about 1% better then a long term CD.

Curious if there's anything out there that offers a higher rate of return, as well as offering the same level of security as a CD.

A money market account is what you would be looking at.... They offer a descent return and the money is liquid.... only down side is they usually have a minimum balance required. The bright side is a lot of Credit Unions offer Money markets with a $2000 minimum balance....

If I were going to stash $2000 bucks away for 6 month's I'd dump it into my Money Market.... but It's no big deal to me since I already have one, it works just like a savings account only with a much better return.

Hope that helps....

[rockgremlin]

Actually.... short term CD's are paying the highest rate at the moment. a 6 month cd is paying about 1% better then a long term CD.

That's interesting...it's just the opposite where I bank. Currently they're offering 3.45% for 12 months, or 3.93% for 5 years.

[Iceaxe]

Last time I checked CD's was mid January so things could have changed some. At the time short term was better then long term.

Here you can shop the top 25 CD rates currently available.
http://cdrates.bankaholic.com/

FWIW: My money market is currently paying 3% and I'm not locked into any time frame. Nice if you want to stay liquid.

And I'm not a financial guru.... but I did stay at a Holiday Inn express last night.

[jumar]

FWIW: My money market is currently paying 3% and I'm not locked into any time frame. Nice if you want to stay liquid.

I would have expected it to be higher than my savings.

[Iceaxe]

I would have expected it to be higher than my savings.

Hey.... I'm good at making money.... but I never said I was any good at investing or holding on to it.

Hell.... I spent 80% of my last pay check on strippers, booze and parties, the other 20% I just wasted.....

[savanna3313]

Your time frame for when you need your money is key for a decision. Check to make sure you don't have any withdrawal penalties wherever you decide to place your money. It could wipe out a huge portion of the interest earned.

[James_B_Wads2000]

Speaking of gurus, can someone explain/manage my 401(k) for me?


James

[DiscGo]

As far as a good stock tip goes, I just heard that a company called SUNOVIA is supposed to do very well and is only 50 cents a share right now. I invested a couple of hundred dollars just in case, and I thought I would pass that on.

[rockgremlin]

Speaking of gurus, can someone explain/manage my 401(k) for me?


James

That's what the HR person at your place of employment is for.

[DiscGo]

Speaking of gurus, can someone explain/manage my 401(k) for me?

James, I struggle with my own financial security for retirement, so I just could not possibly be equal to the task of trying to manage yours. Sorry friend.

[erial]

something to consider:

Buy Series I bonds before April ends
A lot of savers with idle cash are griping about the low rates on savings accounts and CDs from banks. Well, Clark wants to offer a possible solution. It's been a while since he's talked about Series I savings bonds, which were a fantastic deal in the 1990s up to about 2001. They're a great deal once again if you buy them before the end of April. Over the next 6 months, you'll get a return of 4.28% APY. Beginning in October, the rate will bump up to 6.06% for the following 6 months. That's a very competitive rate.

Series I bonds are an unnecessarily complicated product. The "I" stands for inflation, and they're like the cousins of the original savings bonds. I bonds offers a fixed rate of interest for as long as you own them, plus a floating rate based on the rate of inflation. You can own I bonds for a minimum of 1 year and a maximum of 30 years.

I bonds give you the opportunity to benefit from what's harming you. As high inflation erodes the value of your savings, I bonds give you the rate of inflation and a guaranteed return. That guaranteed return is puny, but earning anything about the rate of inflation on something that's 100% safe is great.

You can buy I bonds online from the U.S. Treasury at SavingsBonds.gov for as little as $25 or in-person from some banks and credit unions for a minimum of $50. The maximum amount you can buy is $5K per Social Security number. Be sure to pick them up now before the rates reset on May 1. You should plan on holding I bonds a minimum of 18 months until October 2009. If you surrender them before 5 years, you'll forfeit the last 90 days interest. So you don't want to cash them in a year from now and forfeit the 6.06%. The trick is to bail out when rates are bottoming out.

[GOCK]

"Speaking of gurus, can someone explain/manage my 401(k) for me?"

Your 401k is supposed to be for retirement. when you reach 59 1/2 you can take out monwy without penalty but with income takes. After age 70 1/2 you will be required to take money out (So "THE IRS" can get what is "THEIRS")

You should contribute no more than your company will match. For example, your company will match 50% up to 1,000 a year. Make sure you dont put more in it than that. If you want to save more money start a Roth IRA with some investment guy or through TD Ameritrade or one of the thousands of comapny's like them.
The problem with 401k's and IRA's are that you are typically saving money for retirement hoping that your tax rate will be less so you can use teh money in a more favorable tax invironment. However this is usually not the case. You lose the deduction of your mortgage interest, you lose the deduction of kids, you retire your business and lose all those tax right off's leaving you with nothing to deduct and a bunch of money that you have to start taking as income.

So that is why you should consider ROTH IRA's.
As far as where to invest I dont know, start with "As far as a good stock tip goes, I just heard that a company called SUNOVIA is supposed to do very well and is only 50 cents a share right now. I invested a couple of hundred dollars just in case, and I thought I would pass that on."