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

J

Jumpem

Lifer
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.
 
hmm, I guess I can't really do better than a savings account then. Even the CD's at my bank or rediculously low.
 
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.
 
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.
 
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.
 
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.
 
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
 
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.
 
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.
 
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... 🙁

 
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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