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Unread 2012-11-12, 11:54 AM   #26
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What's your rate and for how many years?

probably ~1%
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Unread 2012-11-12, 12:04 PM   #27
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probably ~1%
1.6% woooo

BUT

it has yet to lose me any money
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Unread 2012-11-12, 12:26 PM   #28
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If you are willing to go long term for it, there are places to invest with a significantly higher rate of return than a CD.
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Unread 2012-11-12, 12:28 PM   #29
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1.6% woooo

BUT

it has yet to lose me any money
How many years do you have to keep it in the CD for 1.6%?
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Unread 2012-11-12, 12:40 PM   #30
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how can you guys even consider CDs in the US? You can have those funds in south america/central american banks with 5-7% annual rates. And yes, they are insured by the local governments.

For 1-2%, you are better off having a high-performance account with local banks...it is your money and you don't have to let it sit for months at a time without touching it. You simply have to do a number of transactions with your debit card and have 1-2 direct deposits/withdrawals.

Demand for gold/silver is always going to be there. While it may decrease/increase, provided that you are moving it the SAME day and making a small margin in every single transaction, there is no possible way you can go wrong. The key factor here is that you HAVE to buy at the begging of the day and sell at the end of the day.
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Unread 2012-11-12, 12:50 PM   #31
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And yes, they are insured by the local governments.
Not good enough.
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Unread 2012-11-12, 01:08 PM   #32
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People putting money into CD's are idiots.

With that said, I have an annuity that's very similar to a CD... 5 year rate is 2.6% APY... downfall is if you are under 59.5 when you pull it out in 5 years, you'll owe a 10% tax penalty on the interest... so that comes out to a rate of like 2.34%. Still way better than a bank though.

I'm all about safety, and I love making sales but 5 years at 2.34% is pretty sad... though CD's safe options won't be getting better for awhile.

My 10 year rate is 3.45%, same penalty as above, but that still means it's a rate above 3% at least...
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Unread 2012-11-12, 01:09 PM   #33
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Demand for gold/silver is always going to be there. While it may decrease/increase, provided that you are moving it the SAME day and making a small margin in every single transaction, there is no possible way you can go wrong. The key factor here is that you HAVE to buy at the begging of the day and sell at the end of the day.
Demand will be there, so you aren't risking losing all of your money... however as an investment, now is an awful time to buy... the price is at record highs, and as stated the cost of getting it is far too high. As for day trading gold... I have no idea how that even begins to make sense... lol.
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Unread 2012-11-12, 01:14 PM   #34
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I wouldn't consider myself an idiot

But thanks for that
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Unread 2012-11-12, 02:53 PM   #35
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Not good enough.
It is called: RISK.
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Unread 2012-11-12, 02:53 PM   #36
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Demand will be there, so you aren't risking losing all of your money... however as an investment, now is an awful time to buy... the price is at record highs, and as stated the cost of getting it is far too high. As for day trading gold... I have no idea how that even begins to make sense... lol.
It is not an easy concept, but if it were easy, everyone and their cousins would be doing it.
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Unread 2012-11-12, 03:36 PM   #37
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I wouldn't consider myself an idiot

But thanks for that
This is my business... and at current CD rates the loss of liquidity means investing into a CD is a very poor choice... the flexibility of having money on hand is worth FAR more than the interest yield.

You would be far better off constantly shopping for the best money market rate, utilizing credit card benefits, or finding the highest savings/checking deals which are popular in MO. If you bought a CD in the past 8 months or plan to in the future you are a financial idiot.
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Unread 2012-11-12, 04:20 PM   #38
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Originally Posted by Ricerking13 View Post
This is my business... and at current CD rates the loss of liquidity means investing into a CD is a very poor choice... the flexibility of having money on hand is worth FAR more than the interest yield.

You would be far better off constantly shopping for the best money market rate, utilizing credit card benefits, or finding the highest savings/checking deals which are popular in MO. If you bought a CD in the past 8 months or plan to in the future you are a financial idiot.
At what rate of CD would you think it to be a good buy? 8%, 10%, 12%?
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Unread 2012-11-12, 04:30 PM   #39
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At what rate of CD would you think it to be a good buy? 8%, 10%, 12%?
Lol CD's won't get back to 80's levels like that again. A solid CD depending on term is north of 3%.

1yr at 3% is a solid spot for money
5yr at 4.5% or higher is a solid spot for some money

Obviously it needs to be higher than inflation, and you have MANY other factors that should be looked at. However I'll say it one more time... buying a CD at the current rates (.6-1.2%) is just stupid.

ANY investment which will get you ~7% is awesome... the problem is historically it's tough to find something that high without substantial risk.

Everything in investing is about getting the best return based on your risk tolerance. My clients have a very low risk tolerance, so my goal is to get them to look at longer term money so they can get better than the current rates on CD's.
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Unread 2012-11-12, 04:32 PM   #40
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This is my business... and at current CD rates the loss of liquidity means investing into a CD is a very poor choice... the flexibility of having money on hand is worth FAR more than the interest yield.

You would be far better off constantly shopping for the best money market rate, utilizing credit card benefits, or finding the highest savings/checking deals which are popular in MO. If you bought a CD in the past 8 months or plan to in the future you are a financial idiot.
... k
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Unread 2012-11-12, 04:37 PM   #41
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... k
Same response I get from the 70+ crowd who refuse to modify what they've always done, which at least now in the short term is idiotic.
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Unread 2012-11-12, 04:41 PM   #42
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Same response I get from the 70+ crowd who refuse to modify what they've always done, which at least now in the short term is idiotic.
ill pm you
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Unread 2012-11-12, 04:42 PM   #43
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Same response I get from the 70+ crowd who refuse to modify what they've always done, which at least now in the short term is idiotic.
Not everyone wants risk. I'm cool with 1.85 from a high-yield checking and complete liquidity.

I'l wait to invest my money in opening a liquor store. I dont want it tied up in stocks.
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Unread 2012-11-12, 04:45 PM   #44
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Not everyone wants risk. I'm cool with 1.85 from a high-yield checking and complete liquidity.

I'l wait to invest my money in opening a liquor store. I dont want it tied up in stocks.
And when $50k is a substantial part of your net worth, then that high-yield checking is solid (assuming you can get the rate to stay there for long). Remember I deal with seniors who've accumulated their whole lives $50k is what they are looking to place right now... because the other 200-500k is already invested.

I understand risk tolerance REALLY well... the main thing I'm saying is look for those high-yield checking accounts, play that game.. but don't go tie up $50k into a 12-24 month CD... it's a stupid tradeoff.
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Unread 2012-11-12, 04:54 PM   #45
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Not everyone wants risk. I'm cool with 1.85 from a high-yield checking and complete liquidity.

I'l wait to invest my money in opening a liquor store. I dont want it tied up in stocks.
If you dont mind..
How old are you?

what do you look for when you say "investing"?

-Are you looking to generate reliable cash flow for income?
Or do you not need the money and just want it to grow and plan on cashing it out later?
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Unread 2012-11-12, 06:06 PM   #46
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If you dont mind..
How old are you?

what do you look for when you say "investing"?

-Are you looking to generate reliable cash flow for income?
Or do you not need the money and just want it to grow and plan on cashing it out later?
Dont mind at all

I am 26. When I say investing, the goal I set for my self is $1000 a month with minimal risk, so I do want reliable cash flow income.

I have thought about buying a house for 50K and renting it for say $600 a month, but I am worried about repairs/evicting/people tearing it up kind of stuff.
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Unread 2012-11-12, 06:39 PM   #47
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Dont mind at all

I am 26. When I say investing, the goal I set for my self is $1000 a month with minimal risk, so I do want reliable cash flow income.

I have thought about buying a house for 50K and renting it for say $600 a month, but I am worried about repairs/evicting/people tearing it up kind of stuff.
Creating income, maintaining a low risk profile, you would need about $400k to meet that income goal with an investment.

Up your risk profile to a solid dividend and you would still need $180k+

Did you mean $100 a month?
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Unread 2012-11-12, 07:04 PM   #48
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A shame that someone wouldn't consider OLD proven Blue Chips stocks.
Split 50k between say Coca cola, Proctor and Gamble, Heinz, General Mills, and Colgate Polmolive and someone would reliably get $100-200 a month without ever touching their principle.
pretty good considering you are making money without having to go to work and continues making money while you sleep.

The real fun begins if you reinvest those dividends while you work and let it compound.

Of Course if someone put that $ into lending club that number turns to $400 a month.

Last edited by jasman18; 2012-11-12 at 07:18 PM..
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Unread 2012-11-13, 09:00 AM   #49
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A shame that someone wouldn't consider OLD proven Blue Chips stocks.
Split 50k between say Coca cola, Proctor and Gamble, Heinz, General Mills, and Colgate Polmolive and someone would reliably get $100-200 a month without ever touching their principle.
pretty good considering you are making money without having to go to work and continues making money while you sleep.

The real fun begins if you reinvest those dividends while you work and let it compound.

Of Course if someone put that $ into lending club that number turns to $400 a month.
My best friend just quit work (accountant in the caymans) to manage lending club money full time. He manages some of our IRA funds we have in there as well as his funds, family's funds, etc. and takes a small % of the interest earned as payment. I still end up making 7-8% safely/consistently and don't even have to work at it.
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Unread 2012-11-13, 04:20 PM   #50
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I don't think Lending club is available to KS residents.

I also agree with everything Rickerking said in this thread. Spot on.
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