How should I invest $5-10k and still keep it liquid?

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J

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
I have money just sitting in my checking account earning close to no interest. My savings account isn't much better rate wise. I want to invest into to something safe, but I need to have instant access to it if needed. I think that rules out a CD.



And if anyone's remembering my money dilemma's from previous threads I am not going to spend it all on a Miata. I'm going to keep driving my Spirit with 145k miles until something expensive goes wrong on it. However, I do plan on spending $2k or so (maybe this is too much) on an engagement ring sometime in the near future.
 
B

Beattie

Golden Member
Sep 6, 2001
1,774
0
0
Open a good savings account at like ING direct or something. 2% interest there.

 
J

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
hmm, I guess I can't really do better than a savings account then. Even the CD's at my bank or rediculously low.
 
J

Jumpem

Lifer
Sep 21, 2000
10,757
3
81
Originally posted by: marquee
find some stocks that pay high dividends.
Click to expand...

What if the stock heads south? I'm looking to just keep it in a safe place for now. I'm not ready to start investing a portion of what little money I have. That can wait until I graduate and find a full time job.
 
V

VTEC01EX

Senior member
Mar 8, 2002
315
0
0
Get a VirtualBank.com money market account. I have my "in-between" funds (money that doesn't need to be in checking but still needs to be liquid) sitting in an account there, and I've been quite pleased. A little over 2% rate, which blows away the .0003 something % passbook savings account it replaces.
 
V

VTEC01EX

Senior member
Mar 8, 2002
315
0
0
Oh, and if you decide to do that, let me know.. I think they've got a referral bonus program, and I'm broke! ;-)
 
B

Balt

Lifer
Mar 12, 2000
12,673
482
126
Read the fine print, even with an ordinary savings account. Some banks will charge you a fee if you remove your funds before a certain period of time after your deposit.
 
L

Len12345

Member
Aug 31, 2001
41
0
61
Look around for money market accounts. Some banks also offer high interest checking accounts, very similar to money markets, that require some minimum balance around 5-10k. If you need to dip below the minimum just put your money back into a savings account. You should be able to find a higher rate then regular checking or saving and your money is still liquid.
 
M

MikePanic

Senior member
Apr 5, 2004
913
0
0
w/ 10 grand and some smooth talking you can prob get a bank to give you up to 3.5-4% intrest on it w/out a problem
 
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Originally posted by: edro13
Originally posted by: Dissipate
Gold Money
ING sucks, here is why:
Inflation
Click to expand...
Meh... Gold is just as unstable as anything else. I remember back in like '99 when it dropped from $325oz+ to like $275oz.
Click to expand...

Its had its up and downs, but it is destined to rise over the long haul because inflation is inevitable.
 
GasX

GasX

Lifer
Feb 8, 2001
29,033
6
81
Originally posted by: Jumpem
Originally posted by: marquee
find some stocks that pay high dividends.
Click to expand...

What if the stock heads south? I'm looking to just keep it in a safe place for now. I'm not ready to start investing a portion of what little money I have. That can wait until I graduate and find a full time job.
Click to expand...
Buy a preferred stock. It has very little up or downside and is essentially a bond. Some preferreds dividends are taxed as dividends (big tax advantage) and some as interest - you have to do some research here.

Example: Citibank preferred (ticker: C PRS)
It was issued at $25 a year ago. It fluctuates in value from $24 to $26 - mostly as a reaction to interest rates. At $25 is pays a straight 6% taxed as interest.

good article
 
N

Nanotech

Senior member
Mar 10, 2004
958
0
0
In case you would like something with a little less risk than what I last suggested I would seriously consider some shares of the following:

Class B stock
 
FeathersMcGraw

FeathersMcGraw

Diamond Member
Oct 17, 2001
4,041
1
0
Originally posted by: Dissipate

Its had its up and downs, but it is destined to rise over the long haul because inflation is inevitable.
Click to expand...

If you're investing for the long haul, the general stock market indices are going to give you a far better return than gold.
 
S

slycat

Diamond Member
Jul 18, 2001
5,656
0
0
Originally posted by: Mwilding
Originally posted by: Jumpem
Originally posted by: marquee
find some stocks that pay high dividends.
Click to expand...

What if the stock heads south? I'm looking to just keep it in a safe place for now. I'm not ready to start investing a portion of what little money I have. That can wait until I graduate and find a full time job.
Click to expand...
Buy a preferred stock. It has very little up or downside and is essentially a bond. Some preferreds dividends are taxed as dividends (big tax advantage) and some as interest - you have to do some research here.

Example: Citibank preferred (ticker: C PRS)
It was issued at $25 a year ago. It fluctuates in value from $24 to $26 - mostly as a reaction to interest rates. At $25 is pays a straight 6% taxed as interest.

good article
Click to expand...

where do u buy preferred stock?..i can't find it on ameritrade.
 
GasX

GasX

Lifer
Feb 8, 2001
29,033
6
81
Originally posted by: slycat
Originally posted by: Mwilding
Originally posted by: Jumpem
Originally posted by: marquee
find some stocks that pay high dividends.
Click to expand...

What if the stock heads south? I'm looking to just keep it in a safe place for now. I'm not ready to start investing a portion of what little money I have. That can wait until I graduate and find a full time job.
Click to expand...
Buy a preferred stock. It has very little up or downside and is essentially a bond. Some preferreds dividends are taxed as dividends (big tax advantage) and some as interest - you have to do some research here.

Example: Citibank preferred (ticker: C PRS)
It was issued at $25 a year ago. It fluctuates in value from $24 to $26 - mostly as a reaction to interest rates. At $25 is pays a straight 6% taxed as interest.

good article
Click to expand...

where do u buy preferred stock?..i can't find it on ameritrade.
Click to expand...
They can be hard to find. If you are searching for a specific company, click on "look up ticker symbol" or whatever the Ameritrade equivalent and type in the company name. Hopefully it will list all of the related equities (class A, class B, preferred, etc...)

Screening for preferreds is damn hard to do... :(

 
Dissipate

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Originally posted by: FeathersMcGraw
Originally posted by: Dissipate

Its had its up and downs, but it is destined to rise over the long haul because inflation is inevitable.
Click to expand...

If you're investing for the long haul, the general stock market indices are going to give you a far better return than gold.
Click to expand...

I agree, but e-currencies have other advantages such as being able to send it anywhere in the world instantly.
 
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