Investment Tips?

Discussion in 'After Hours Lounge (Off Topic)' started by Michael_K_Sr, Sep 25, 2005.

  1. Michael_K_Sr

    Michael_K_Sr Screenwriter

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    Took out a home equity loan a few months ago to pay for a bathroom remodeling job. To make a long story short, the job has been delayed several times and it now appears that it could be delayed until after the first of the year (the contractor is a family friend, so I'm not looking elsewhere.) Anyhow, this money has been sitting in my savings account earning a pathetic 0.5% APY. What's the best low risk way to maximize my short term investment? Sinking the money into the market is out of the question because of the risk involved. What about CD's? Are there penalties for cashing out early? Any other type of investment I should look at?
     
  2. SethH

    SethH Cinematographer

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    I definitely wouldn't stick it in a CD. You can earn almost the same interest on a better savings account. ING presently offers 3.4% on their savings accounts without the restrictions on taking money out (like a CD)
     
  3. Todd Hochard

    Todd Hochard Cinematographer

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    2nd the ING Direct idea. I have an account with them.

    www.ingdirect.com. You're looking for the Orange Savings account.
     
  4. Michael_K_Sr

    Michael_K_Sr Screenwriter

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    Thanks, guys. One question...how quickly can I cash out if needed? If I have a CD from a local back, I go and cash it out and the bank pays me in cash or a cashier's check right away. Would I have to wait for a cashier's check to be mailed from ING?
     
  5. Bryan X

    Bryan X Producer

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    Just be careful cashing out the CD early. Many banks will charge you a significant 'early withdrawal' penalty.
     
  6. Michael_K_Sr

    Michael_K_Sr Screenwriter

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    Bryan, the only penalty on the CD's I've looked at is sacrificing the previous 90 days' interest, which is a risk I'm willing to take. I must say the ING accounts are intriguing, since the rates are similar to the CD's I've looked at. However, the FAQ doesn't explain very well how to get access to your funds. It says that the account is "linked" to the checking account that you open the savings account with, but it doesn't say if the money is transferred instantaneously or if the funds are delayed for a day or two. Guess I'll call their customer service tomorrow.
     
  7. Dennis Nicholls

    Dennis Nicholls Lead Actor

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    Where the heck do you live? Many credit unions give even better passbook rates than ING. For example, around here the Star One CU (merged Lockheed and Martin Marietta CUs) is currently paying well over 3%.

    If you have higher risk tolerance, you could do worse than put it into shares of an index fund "exchange traded fund" (EFT), such as SPY, for the time being. Online brokers can let you buy it for something like $7 per transaction.
     

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