investment advice

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AMDamn

Member
Aug 28, 2002
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ok, I have a saving account that's earning ~160.00 a month. I've reach a point that I need to move it to my investment account. Please give suggestions of funds that are very stable and earning a least 9%. or other advice

It's hard to move it out of the saving because the monthly intrest is pretty much guarantee

BTW, It needs to be liquid.

Thank You



 
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darthsidious

Senior member
Jul 13, 2005
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71
Originally posted by: AMDamn
ok, I have a saving account that's earning ~160.00 a month. I've reach a point that I need to move it to my investment account. Please give suggestions of funds that are very stable and earning a least 9%. or other advice

It's hard to move it out of the saving because the monthly intrest is pretty much guarantee

BTW, It needs to be liquid.

Thank You
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Those are contradictory statements. If you want very stable, the best you can do is high quality corporate bond funds (for bulletproof, go to treasury), which are significantly below 9%. If you want anything higher, you need to take some risk - stocks for example

Given your conservative approach, and seeming lack of knowledge experience in this field, I'd recommend that you split your money in whatever ratio you're comfortable in (50/50 60/40, 70/30 etc.) between a high quality bond fund and a broad market based index fund. www.vanguard.com can probably fulfill both these requirements
 
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Argo

Lifer
Apr 8, 2000
10,045
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Most stable bonds (those rated A to A+) will not give you more than 5-6% return.

If you are looking at investing into stock/bonds or mutual funds, I'll start by throwing ideas like "i want to earn 9%" out.

Instead, decide:

a) how aggressive you want to be
b) what your goals are (long term growth, short term income)
c) what niche you want to invest in (bond funds, mid-cap funds, european markets)

and then pick a corresponding mutual fund. There are many tools out there that will help you pick correct fund based on those 2 criteria. Morningstar is a great place to start.
 
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DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
An S&P 500 index Exchange Traded Fund ("spider") or mutual fund will, over many years, return 10-12%. The problem is you can't know in advance how many years you'll need to hold on to the fund shares to earn that average annual return. Maybe 1 year, maybe 15.

They are liquid, but not >9% in the sense you probably want: something guaranteed each and every year. Stock funds will bounce up and down in value so if you need to sell at the wrong time (August 2007 vs. June 2007 for example) you could lose some of your gains.

Liquid and (guaranteed, short-term) >9% are incompatible goals. Choose one or the other.
 
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imported_Truenofan

Golden Member
May 6, 2005
1,125
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I'm kind of in the same boat as him, i was going to start a new thread(sorry about the thread jack) but id rather just keep one going instead of creating another pointless one. I'm currently serving overseas so it has to be a web site and not a phone number of some type. I'm looking for at least 5yrs and at least 5-7k in total USD money spent in investing. anyone know a site/place i can do this? what type of investing am i looking at? i don't care how much i earn back, as long as its more than the rate of inflation/depreciation of the dollar.
 
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imported_Tango

Golden Member
Mar 8, 2005
1,623
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Originally posted by: AMDamn
ok, I have a saving account that's earning ~160.00 a month. I've reach a point that I need to move it to my investment account. Please give suggestions of funds that are very stable and earning a least 9%. or other advice

It's hard to move it out of the saving because the monthly intrest is pretty much guarantee

BTW, It needs to be liquid.

Thank You
Click to expand...

Financial advice numebr 1: don't ask for financial advice on internet fora.

A 9% return is not achievable without significant volatility. You can build a portfolio returning 6.5-7% with extremely low volatility by building a low beta portfolio using negatively correlated assets, but you need a significant amount of money to do that, and somebody who manages your portfolio, so I guess it's not a solution for you.

Right now your best path is just devoting part of your liquidity to treasuries. You won't make 9%, but considering the kind of questions you are asking, most other paths would lead you to lose money, at least during the next 12 months. This is not the right moment to learn how to navigate the financial markets.

And if you need liquidity, just stay liquid.
 
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imported_Tango

Golden Member
Mar 8, 2005
1,623
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Originally posted by: Truenofan
I'm kind of in the same boat as him, i was going to start a new thread(sorry about the thread jack) but id rather just keep one going instead of creating another pointless one. I'm currently serving overseas so it has to be a web site and not a phone number of some type. I'm looking for at least 5yrs and at least 5-7k in total USD money spent in investing. anyone know a site/place i can do this? what type of investing am i looking at? i don't care how much i earn back, as long as its more than the rate of inflation/depreciation of the dollar.
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Almost any bank has online portfolio management. Given your very reasonable expectations you'll find plenty of instruments to achieve your goal. Diversification is your friend.

Considering you mention dollar depreciation you could start from Eurobonds ETFs. A 5 yrs time frame is long enough to consider equities as well, although personally I don't think this is the right moment to do so. A small amount of emerging markets debt and equities would lower your volatility and likely increase your returns.

Start slow.
 
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imported_Truenofan

Golden Member
May 6, 2005
1,125
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well my bank is a local bank, and quite small, and from what I've seen on they're website, there isn't anything of that nature.
 
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imported_Tango

Golden Member
Mar 8, 2005
1,623
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Originally posted by: Truenofan
well my bank is a local bank, and quite small, and from what I've seen on they're website, there isn't anything of that nature.
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Among American banks I am familiar with Citibank, Bank of America and JPMorgan Chase online portfolio systems and they all work quite well. It might be that smaller banks give access to this only to customers who require the service. What's your bank?
 
edro

edro

Lifer
Apr 5, 2002
24,328
68
91
If it's a local bank (they can't possibly be giving you more than 5%), then just transfer it to an online savings account (ING Direct, Emmigrant, etc).

That is a guaranteed 5% return.

Let one of us send you a referral link for a free $25 as well.

There is no such thing as a safe 9%.
 
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imported_Tango

Golden Member
Mar 8, 2005
1,623
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Originally posted by: Truenofan
its a local bank out of green bay, wi.
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Well, it might be that they don't have an online system, or maybe you have to ask to access it. Keep in mind many customers of big banks would prefer the telephone system you might have access to at your local bank. Sometimes having access to a human being instead of a web page can prove useful. I understand you are deployed overseas though, and in this case online would in fact be more convenient.
 
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PokerGuy

Lifer
Jul 2, 2005
13,650
201
101
Originally posted by: AMDamn
ok, I have a saving account that's earning ~160.00 a month. I've reach a point that I need to move it to my investment account. Please give suggestions of funds that are very stable and earning a least 9%. or other advice

It's hard to move it out of the saving because the monthly intrest is pretty much guarantee

BTW, It needs to be liquid.

Thank You
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Bwahahahahahaha... <breathe> bwahahahahahahaha

Based on your stated return of $160 per month, you'd have to have somewhere around $38,000 in savings. There's many ways you could invest that money, but nothing you do is going to guarantee a 9% return per year without significant risk.....
 
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sager66

Member
Oct 16, 2004
164
0
0
Originally posted by: Truenofan
I'm looking for at least 5yrs and at least 5-7k in total USD money spent in investing. anyone know a site/place i can do this?
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Investing . . principal is at risk of fluctuating market conditions (up and down)
Savings . . FDIC insured principal return

In this situation, select a FDIC insured bank certificate of deposit.
Bankrate
 
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alrocky

Golden Member
Jan 22, 2001
1,771
0
0
Originally posted by: alrocky
Originally posted by: Truenofan

I'm currently serving overseas
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Serving in the US military overseas?
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USER PROFILE: Baghdad, Iraq

Well are you US Military and are you interested in earning 10% on your money? SDP

Military members deployed in combat zones, qualified hazardous duty areas, or certain contingency operations may be eligible to deposit all or part of their unallotted pay into a DOD savings account up to $10,000 during a single deployment. Interest accrues on the account at an annual rate of 10% (per Executive Order 11298) and compounds quarterly.
Click to expand...

TSP
 
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