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best way to invest 150k?

d0min0 106 September 22, 2012 at 02:06 PM
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im tired of my money sitting around scraping pennies from a patelco savings account so i was wondering if you guys knew of a good and safe way to invest 150k? i just started by opening a ING account since that pays way more than a patelco savings.

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#2
how much risk are you willing to take on? If slim to none, then CDs/savings. If more than there are options
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#3
im willing to take a little more risk but i have no clue about stocks/bonds or any of that wall street mumbo jumbo...
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#4
Here is just a thought allows you to learn to play the market a bit and keep the other money rolling on interest try CD Laddering

Take 48K a month for 3 months and invest them into 4 CD accounts

Invest 12 K into a 3 month CD in Sept
Invest 12 K into a 6 month CD in Sept
Invest 12 K into a 9 month CD in Sept
Invest 12 K into a 12 month CD in Sept

Next Month

Invest 12 K into a 3 month CD in Oct
Invest 12 K into a 6 month CD in Oct
Invest 12 K into a 9 month CD in Oct
Invest 12 K into a 12 month CD in Oct

Next Month

Invest 12 K into a 3 month CD in Nov
Invest 12 K into a 6 month CD in Nov
Invest 12 K into a 9 month CD in Nov
Invest 12 K into a 12 month CD in Nov

Then In December your 3 month CD comes to maturity and now Invest that money into a 12 month CD
keep doing this every month until you have a CD maturing once a month and you can roll it over or invest it somewhere else

Now you have 6 K left over to experiment with the stock market and if you find a good investment you can wait until one of your CD's matures which happens every month and invest the money into that stock or roll it over with the interest into another 12 month CD
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#5
do you know what bank has the highest interest rate for the CD's? your plan sounds like a good idea but seems a little complicated. the point is so that i don't have the whole 150k stuck in a CD for a year right? but having it in for a year will yield more interest yeah?
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#6
Quote from d0min0 View Post :
do you know what bank has the highest interest rate for the CD's? your plan sounds like a good idea but seems a little complicated. the point is so that i don't have the whole 150k stuck in a CD for a year right? but having it in for a year will yield more interest yeah?
ING pays a higher interest rate then most banks pay on CDs unless you want your money tied up in the CD for years.
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#7
Quote from moey View Post :
ING pays a higher interest rate then most banks pay on CDs unless you want your money tied up in the CD for years.
no i dont want my money tied up for years. a CD ladder seems really interesting tho. i've never looked at it like that before, i only saw it by years. $100k into ING 1 year CD comes out to roughly $800 a year or $66 dollars a month before tax. for some reason i can't quite get the numbers into my head about a revolving CD ladder that matures every month.
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#8
Quote from d0min0 View Post :
no i dont want my money tied up for years. a CD ladder seems really interesting tho. i've never looked at it like that before, i only saw it by years. $100k into ING 1 year CD comes out to roughly $800 a year or $66 dollars a month before tax. for some reason i can't quite get the numbers into my head about a revolving CD ladder that matures every month.
Why though? A one year CD at ING pays .5 % APY their savings account pays .8 APY %.

Some credit unions offer higher rate CDs you may want to check out something local but your not looking at much more.
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#9
Quote from d0min0 View Post :
do you know what bank has the highest interest rate for the CD's? your plan sounds like a good idea but seems a little complicated. the point is so that i don't have the whole 150k stuck in a CD for a year right? but having it in for a year will yield more interest yeah?

yes instead of putting 150 K into a 1 year CD earning 1.14%

you end up with 12 1-year CD with 12K that way if the interest rate goes up in 6 months to say 1.5% you keep taking advantage of that

I might not have explained the system that great but if you are interested just a search for CD laddering will point you in the right direction

I know Ally's rate

3 month .39%
6 month .74%
9 month .75%
12 month 1.14%

so you might be better to put the lump sum in a high yield savings account thats at .8% and once a month put 12 K in a CD
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#10
Quote from moey View Post :
Why though? A one year CD at ING pays .5 % APY their savings account pays .8 APY %.

Some credit unions offer higher rate CDs you may want to check out something local but your not looking at much more.
whoops i meant ING savings account at .8%. this is what i am looking into right now a little bit. does anyone know if i have to transfer all my money over to ING? dont really get how ING works if its not a physical bank that i can deposit money into. what if i have cash to deposit?
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#11
Quote from Sakrifce View Post :
yes instead of putting 150 K into a 1 year CD earning 1.14%

you end up with 12 1-year CD with 12K that way if the interest rate goes up in 6 months to say 1.5% you keep taking advantage of that

I might not have explained the system that great but if you are interested just a search for CD laddering will point you in the right direction

I know Ally's rate

3 month .39%
6 month .74%
9 month .75%
12 month 1.14%

so you might be better to put the lump sum in a high yield savings account thats at .8% and once a month put 12 K in a CD
so if i open a 1 year cd every month and deposit 10k i will have 12 cd's by the end of the year. then the following year it will be revolving and i will make $114 a month in interest which essentially comes out to $1368 a year with about 120k invested right?
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#12
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#13
Quote from d0min0 View Post :
so if i open a 1 year cd every month and deposit 10k i will have 12 cd's by the end of the year. then the following year it will be revolving and i will make $114 a month in interest which essentially comes out to $1368 a year with about 120k invested right?
yep this way it just gives you the flexibility next year to have $10,114 become available to you then once a month for each month next year.

Which allows you to say hmm I've discovered a better investment plan I'm going to take this out and put it in here

Then maybe another month goes by and you go well thats not going as great as I thought I'll stay safe and let my $10,114 of this month renew for another year in a CD and maybe the rates have gone up
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#14
Quote from cavan View Post :
Buy house rent it out.



http://www.tampabay.com/news/busi...pp/1252624
that article makes me sick. here we are thinking of ways to earn a little here and there and they go buying up everything and raping everyone else.
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#15
you could always go to Vegas and put it all on Black
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