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25k in savings..need to invest 15k

aaba78 5,121 1,364 December 7, 2015 at 11:08 AM
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Last Edited by aaba78 December 7, 2015 at 11:48 AM
15k to invest..but where? Total savings 25k so far
.

I have 15k to invest its currently in a savings account which pays nothing in interest..so looking for some place to put the 15k (need it liquid)

I will leave 10k in the regular savings account i guess for now

so my question is where can i put the 15k....to grow over time with little/no risk and very liquid in case i need.

is ally no penalty cd of .87 percent the best out there? what interest rate should i expect

open to suggestions

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#2
Please keep the 15k fund in your savings account for emergency use.
The emergency fund is not an investment. It is the insurance to protect your investment and minimize the emotional drama when something costly and unexpected happens.
You will find a better description starting at 16:35@ https://www.youtube.com/watch?v=bU7HEIs3IWw
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#3
Quote from teetee1 View Post :
Please keep the 15k fund in your savings account for emergency use.
The emergency fund is not an investment. It is the insurance to protect your investment and minimize the emotional drama when something costly and unexpected happens.
You will find a better description starting at 16:35@ https://www.youtube.com/watch?v=bU7HEIs3IWw

why do you not think 10k is enough to have in savings account...i can save 15k about every year so i expect it to be 25k again by dec 2016..still wanting to invest the original 15k?

thoughts anyone
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#4
Quote from aaba78 View Post :
why do you not think 10k is enough to have in savings account...i can save 15k about every year so i expect it to be 25k again by dec 2016..still wanting to invest the original 15k?

thoughts anyone
Because you said so. In the opening post your plan for the 15k is for emergency.
I do not know anything about your expense or the current financial state. You need to be clear how much money you will set aside for investment and how much is for emergency use. They are totally separate and handled very differently.
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#5
Quote from teetee1 View Post :
Because you said so. In the opening post your plan for the 15k is for emergency.
I do not know anything about your expense or the current financial state. You need to be clear how much money you will set aside for investment and how much is for emergency use. They are totally separate and handled very differently.
ok its not emergency sorry i updated post
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#6
Quote from aaba78 View Post :
15k to invest..but where? Total savings 25k so far
.

I have 15k to invest its currently in a savings account which pays nothing in interest..so looking for some place to put the 15k (need it liquid)

I will leave 10k in the regular savings account i guess for now

so my question is where can i put the 15k....to grow over time with little/no risk and very liquid in case i need.

is ally no penalty cd of .87 percent the best out there? what interest rate should i expect

open to suggestions
Little to no risk and very liquid means a savings account or CD. That's pretty much it. CD rates aren't much higher than regular savings accounts, but they can get to 1% or a bit more if you look around. Ally has 1.05% for a 1 year, or up to 2% going up to a 5 year. I wouldn't consider the no penalty CDs. You could probably get a ladder setup going to minimize penalties if you did need to withdraw the money, as well as be able to take advantage of higher interest rates, if they do actually go up.

Your post strikes me as a bit contradictory though - you indicate you want to "invest" the $15k, but still have it very liquid. Why the need for such liquidity? If that $15k is such an integral part of your emergency fund, leave it alone in your savings account. If not, you could look to investments with a bit more risk, though I'll let others chime in with specifics on that.
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Marshall: Have the rest of you guys figured out by now that mmathis is the smartest guy on SlickDeals?
#7
i put mine in ge capital bank. It's 1.05% on savings account. found that to be the highest without having to lock in anywhere

https://www.gecapitalbank.com/en.html
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#8
Quote from bmg34 View Post :
i put mine in ge capital bank. It's 1.05% on savings account. found that to be the highest without having to lock in anywhere

https://www.gecapitalbank.com/en.html

Savings accounts still yield shit compared to the rates we were getting back in 03, 04, 05 ...

Id check into CDs or possibly try looking into an IRA.
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#9
Quote from aaba78 View Post :
15k to invest..but where? Total savings 25k so far
.

I have 15k to invest its currently in a savings account which pays nothing in interest..so looking for some place to put the 15k (need it liquid)

I will leave 10k in the regular savings account i guess for now

so my question is where can i put the 15k....to grow over time with little/no risk and very liquid in case i need.

is ally no penalty cd of .87 percent the best out there? what interest rate should i expect

open to suggestions
depends how much is your risk tolerance. i put some funds that were in my bank earning little to no interest into VTI today. There is i think ~2% dividend, and the market is down today... I think it's a reasonably safe investment, but look and see what feels comfortable to you. check out the forums on mrmoneymustache.com for more info.
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#10
I would take some of that and put in a retirement account like a 401k or IRA if you have one. While not as liquid its going to beat your interest rates hugely.

Also look into an interest baring checking account. I get 2% on mine, I have to have some basic requirements like use my Visa debit card so many times, have a direct deposit, etc.
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Vague questions receive vague answers . . . . . .
#11
You don't mention anything about your retirement savings or why you need the money liquid so it's hard to say. You may have to just simply live with 1% CB or take some risk. Depending on your retirement savings you could contribute more, but I have no idea. You may be maxing out your retirement for all I know. You could go the prepaid account route that can get you 5%APY up to $5000. Netspend, mango, etc are examples (at least in the past, don't know what's going on currently). If you can open 3 accounts it's a decent return. I have no idea how long it takes to get your money out and there's no compounding if you are hitting the max so keep that in mind. Some don't want to deal with the hassle, so best thing you can do is research to see if it works for you.
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#12
Quote from boingyman View Post :
You don't mention anything about your retirement savings or why you need the money liquid so it's hard to say. You may have to just simply live with 1% CB or take some risk. Depending on your retirement savings you could contribute more, but I have no idea. You may be maxing out your retirement for all I know. You could go the prepaid account route that can get you 5%APY up to $5000. Netspend, mango, etc are examples (at least in the past, don't know what's going on currently). If you can open 3 accounts it's a decent return. I have no idea how long it takes to get your money out and there's no compounding if you are hitting the max so keep that in mind. Some don't want to deal with the hassle, so best thing you can do is research to see if it works for you.
i have an additional 42k already in fidelity funds..so this is separate...want lower risk for this money but not 1%
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#13
what and how much are you contributing to your retirement each year. How much is employer match. Age?
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#14
Quote from boingyman View Post :
what and how much are you contributing to your retirement each year. How much is employer match. Age?

im not contributing anyome my employer stopped offering..so its just the 42k in IRA
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#15
Quote from aaba78 View Post :
im not contributing anyome my employer stopped offering..so its just the 42k in IRA
If you are no longer contributing to any form of retirement then I recommend you get back at it. I would at least max out your IRA. Maxing out your Roth IRA would still give you $9500 to invest elsewhere. Since you already have a emergency fund why do you need the money to be liquid? Downpayment for a home? Again it really depends on your situation and priorities. A very general question like this without all the details can only result in assumptions and general advice.
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