Topic 'Re: What to do with $20,000' in forum 'Open Forum' - dslreports.com

Re: What to do with $20,000

Sat, 29 Sep 2007 12:38:27 EDT

GeekNJ posted :

said by deez20:

My wife and I have $20,000 saved up ... are there any better options that we should be looking at?

Put it all on red :p

Re: What to do with $20,000

Sat, 29 Sep 2007 01:44:11 EDT

Nagrom Nniuq posted :

said by panda0:

So far, I have not lost a thing in over 3 years...

I have. Lots... They have no insurance of any kind. Do NOT use them for investments or anything more than temporary transactions. Make sure to have your bank block them if you suspect them of any thing funny going on.

Not to change the subject of the OP but I just had to get that warning out there.

Re: What to do with $20,000

Fri, 28 Sep 2007 23:51:38 EDT

StillLearn posted : »www.emigrantdirect.com/E ··· ndex.jsp is good.

Re: What to do with $20,000

Fri, 28 Sep 2007 22:32:43 EDT

AbBaZaBbA posted : As of today (the same day it was announced) everyone's insured funds are at ing direct. All ach/check/direct deposits should go through without any problem and the debit cards still work.

»www.ingdirect.com/netbank/

Oh, and also
"CDs will stay locked in at their opening rate."

So open those countrywide cd's!

Re: What to do with $20,000

Fri, 28 Sep 2007 20:05:24 EDT

sailor posted :

said by sailor:

I strongly recommend Bethpage.
Stay local, especially with the economy sending so many mixed signals at the moment.
Bethpage is a top notch credit union!

Here is one reason I strongly suggest you stay local with Bethpage.

FDIC Shuts Down NetBank Due to Defaults

NetBank Inc., an online bank with $2.5 billion in assets, was shut down by the government on Friday because of an excessive level of mortgage defaults.

It was the largest savings and loan failure since the tail end of the industry's crisis more than 14 years ago. Federal regulators appointed the Federal Deposit Insurance Corp. as a receiver for Alpharetta, Ga.-based NetBank.
__________

On September 28, 2007, NetBank, Alpharetta, GA was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit, a business checking account, a Social Security direct deposit, and other relationships with the institution.

The NetBank web site will be closed from 3:00 pm to 8:00 pm EST, on September 28th and will reopen in a read only mode. Normal online services will be restored in the early evening Sunday, September 30th.

»biz.yahoo.com/ap/070928/ ··· ml?.v=14

You want quick access to your cash in the case of your having an emergency, banks starting to fail or another more severe terrorist attack etc..

Online banks will be the last place you will be able to pull large amounts of money out of in a hurry. Sure most deposits are insured by FDIC insurance up to $100k but who the hell wants to wait on getting their OWN money.

Re: What to do with $20,000

Fri, 28 Sep 2007 19:50:26 EDT

05241201 posted : Put it all on Red.

Re: What to do with $20,000

Fri, 28 Sep 2007 18:58:23 EDT

AbBaZaBbA posted : That's how all MMF's work.

They are not insured. You buy at 1$ per share. They keep the $1 per share. They are very safe investments... they buy commercial paper usually or short term bonds. The danger is if they "break the buck" and are worth less than $1. Lately there has been some worry as it was found that some of the investments they were buying were backed by subprime mortgages. However the consensus is if you buy a MMF from a large enough company they will eat the loss to avoid breaking the buck and keep a good reputation.

If any of you are looking for longer term good cd rates, i'd recommend penfed. They are running a special @ 6% for 3, 4, 5 year. All federally insured. »www.penfed.org/index.asp. Anyone can join for $20. I opened up a few of their 6.25% cd's in january.

Re: What to do with $20,000

Fri, 28 Sep 2007 16:46:04 EDT

mityfowl posted : Either lock that money up (short term) or:

Start shopping for a loan and then a house.

Re: What to do with $20,000

Fri, 28 Sep 2007 16:37:36 EDT

Nanoprobe3 posted : Someone may have already suggested but you might want to check out FNBO on line. It's the on line back backed by First National Bank of Omaha. Last I read was that they were paying 6% on savings with no minimum.
--
If you're a Republican,Raise your hand.
If you're a Democrat, raise both hands.

Re: What to do with $20,000

Fri, 28 Sep 2007 14:58:10 EDT

panda0 posted :

said by alg:

said by panda0:

Paypal is currently paying 5.21%, minimum $1.00;
»www.paypal.com/us/cgi-bi ··· utside=1

After the experiences that I have had with PayPal as well as the horror stories I have heard from others there is NO WAY I would trust them with such a large amount of cash. I pay PayPal transactions with a credit card and I pull money I receive on PayPal the second the transaction completes.

Of course, YMMV...

I have had no problems with PayPal, in over 3 years...

Re: What to do with $20,000

Fri, 28 Sep 2007 14:55:44 EDT

panda0 posted :

said by natedj:

said by panda0:

said by deez20:

My wife and I have $20,000 saved up to put towards a house when the time comes, hopefully in 6 months to a year. Right now it is just sitting in a regular savings account which has an interest rate of about 3%. We are in the process of switching the money over to our local credit union and were looking at possibly doing a CD which has a higher interest rate but are there any better options that we should be looking at?

Paypal is currently paying 5.21%, minimum $1.00;
»www.paypal.com/us/cgi-bi ··· outside=

Note: Investments in the PayPal Money Market Fund are not insured by the FDIC. Past performance does not guarantee future results. Although the fund strives to maintain the value of your investment at $1.00 USD per share, it is possible to lose money by investing in the fund.

So far, I have not lost a thing in over 3 years...

Re: What to do with $20,000

Fri, 28 Sep 2007 14:49:34 EDT

alg posted :

said by panda0:

Paypal is currently paying 5.21%, minimum $1.00;
»www.paypal.com/us/cgi-bi ··· utside=1

Re: What to do with $20,000

Fri, 28 Sep 2007 14:40:09 EDT

Jon posted : Vegas ;)

Re: What to do with $20,000

Fri, 28 Sep 2007 14:21:11 EDT

Rick5 posted : A CD is the way to go.
Use bankrate.com to find the best deal but I'd suspect that Countrywide is the way to go now seeing they're starved for money to support their mortgage business.
And, their bank is federally insured so no worries there.

I would not suggest going with either a financial planner nor any other kind of investments..ie: Stocks or bonds.

With your stated purpose and need for the money in 12 mos. time...they would be far too risky right now and investments like that should be reserved for the longer term.

As far as buying a home/condo...I ABSOLUTELY would wait a while. I believe that the mortgage and real estate crisis that has been hitting the market will continue..and grow worse...and much worse in some areas.
There will be numerous opportunities to buy property cheaper than it is today..and to even pick up a foreclosure.

Many mortgage loans the last few years were booked using teaser adjustable rates..and many have barely even began to adjust yet. And when they do..people will find out the real deal behind them..and many will lose those homes.
This excess supply will weigh down the entire housing market..devaluing property values across the board.
In addition..lenders are drastically tightening their lending standards..making it much harder to qualify for anything but a conventional loan. This will also impact the housing market for years to come.

Again..as bad as some think it already is..I think we've seen nothing yet.

Obviously, this won't impact to any great extent the many people who have no intention of selling their homes now..or for years to come.
But, if I were planning on selling..I'd be falling all over myself to do just that..right now.

And, if I were buying..I'd wait it out for a year or two..
and let the sh** really start to hit the fan.
--
The Coyote captured the RR! Roadrunner Rick is now Comcastic!

Re: What to do with $20,000

Fri, 28 Sep 2007 14:10:23 EDT

sailor posted :

said by deez20:

Most people we talk to think the housing market is going to come down even more so thats why we figured we would wait another 6 months or so.

You're hearing correctly for Suffolk County. In 6 months to a year current houses on the market will be lower.
Be patient as you are planning. You're on the right track.

Re: What to do with $20,000

Fri, 28 Sep 2007 14:06:22 EDT

sailor posted : I would suggest you go with the plan to also move your savings over to Bethpage. They are great...keep your money locally with them as they can give you very good rates on short-term CD's...And most of all, your money will be local and easy to get in the event you ever have an emergency and need it pronto..

Also, expect interest rates to come down further so lock in a CD at Bethpage now for a short term and then when you are about ready in 6-12 months to hopefully be able to get in a home, mortgage rates will even be lower than they are now imo.

I strongly recommend Bethpage.
Stay local, especially with the economy sending so many mixed signals at the moment.
Bethpage is a top notch credit union!

Re: What to do with $20,000

Fri, 28 Sep 2007 13:58:52 EDT

deez20 posted : Wow thanks for all of the replies. It seems like the majority like the online banks due to the higher interest rates and the ability to get the money whenever it is needed instead of being tied up in a CD. I will definitly check out ING and HSBC. I know a friend of mine uses online banks and is always switching to whichever one has the highest interest rate so I will see who he uses.

As far as the house goes we are first time home buyers and are definitly not going to get a variable mortgage. At the beginning of the year we thought we found a house that we wanted so we sat down with our mortgage guy and we got a fixed rate right around 6%. After having the house inspected though they found a lot wrong with it so we passed and have been waiting since then. Most people we talk to think the housing market is going to come down even more so thats why we figured we would wait another 6 months or so.

said by sailor:

I see you're in Holbrook..Which local credit union are you considering putting it in for the next 6-12 months?

We just switched our checking account over to bethpage credit union but we still have our savings with chase. We were going to move the savings over to bethpage as well but maybe now we will look at an online bank.

Thanks again for all of the responses.

Re: What to do with $20,000

Fri, 28 Sep 2007 13:21:21 EDT

ReVeLaTeD posted : FYI, Citibank has their Ultimate Money Account which is at 5%. It's nothing more than a high yield money market savings account.

Re: What to do with $20,000

Fri, 28 Sep 2007 13:19:22 EDT

tmaertin posted : HSBC direct offers a 5.05% rate for their online savings accounts, and they are FDIC insured.

www.hsbcdirect.com
--
Hike up your skirt a little more, and show your world to me.

Re: What to do with $20,000

Fri, 28 Sep 2007 13:15:39 EDT

natedj posted :

said by panda0:

Paypal is currently paying 5.21%, minimum $1.00;
»www.paypal.com/us/cgi-bi ··· outside=

Re: What to do with $20,000

Fri, 28 Sep 2007 13:01:26 EDT

panda0 posted :

Paypal is currently paying 5.21%, minimum $1.00;
»www.paypal.com/us/cgi-bi ··· utside=1

ingdirect.com is another good choice;
»home.ingdirect.com/produ ··· ucts.asp
--
"[He] couldn't get a clue if he stripped naked, rubbed himself with clue musk, went to the middle of the clue breeding grounds at the height of clue breeding season when it was full of horny clues and did the clue mating dance for days."

Re: What to do with $20,000

Fri, 28 Sep 2007 13:01:00 EDT

sailor posted : I see you're in Holbrook..Which local credit union are you considering putting it in for the next 6-12 months?

Re: What to do with $20,000

Fri, 28 Sep 2007 12:29:54 EDT

exocet_cm posted :

quote:
I agree with Doctor Olds . Right now is a horrible time to be selling because prices are depressed. Conversely, it is a great time to be buying.

I also agree with cocothebean8 . Don't even think about a variable rate mortgage (ARM).

I agree with them as well. Stay far far away from variable rate mortgage. Go ONLY for a fixed rate, even if the rate is slightly higher than the current VRM. I've never bought a house but I know enough to keep my a$$ out of trouble when that time comes.
--
"I have measured out my life with coffee spoons..." - T.S Eliot
Check Out the Tech Bench »johnball.wordpress.com/t ··· h-bench/
Ma blog: »www.johndball.com

Re: What to do with $20,000

Fri, 28 Sep 2007 12:29:29 EDT
therube posted : FDIC insured or not, you are still making an investment.

Does it make sense to invest with Countrywide (or some of the others) given their current (or market) problems? Is that extra 10th worth it?

Even though BoA put up billions, is it any less risky?

I ask this not to say its wrong, but mainly because I have had, & continue to have $$ with them ;).

If they go under, how long will it take before the FDIC pays out? Here in MD, I remember when the Savings & Loans all went to pot, & the length of time it took before anyone was able to get their money back (not FDIC, but State insured).

If your $20K happened to be in one of the S&L's & you needed it to purchase a house, guess what ...

"When the Maryland, US state savings and loan system collapsed in 1985, the underfunded insurance system took more than a year to refund deposits to account-holders at the institutions that failed."
»en.wikipedia.org/wiki/Bank_run

Re: What to do with $20,000

Fri, 28 Sep 2007 12:14:44 EDT
waldoooo posted : the Lifelong Presidential seat in the Waldoooo fan club is still up for sale, its only $10,000 so you can become the President and still take the First Lady on a nice vacation!!

Re: What to do with $20,000

Fri, 28 Sep 2007 12:11:41 EDT
dmargaros posted : Countrywide Savings Link rate for LIQUID money...you can take it in or out at any time...is 5.5% right now ($10k minimum). As far as claims that Countrywide may or may not go under...you always have the backing of FDIC (up to $100k) plus the knowledge that BofA has invested $Billions in them to keep them afloat. 5.5% can't really be beat right now for liquid money. FNBO just DROPPED their savings rate from 6% down to 5.05%.

Re: What to do with $20,000

Fri, 28 Sep 2007 12:07:09 EDT
AbBaZaBbA posted :
said by panda0:

said by Rob:

According to BankRate.com, CountryWide Bank is offering a 6 month CD at a 5.41% APY (min. balance $10k).

I would stay away from anything that Countrywide offers...

I disagree. The lenders that are in trouble are offering great rates. As long as your funds are fully FDIC insured you'll be fine.

"The truth is that federal law requires the FDIC to pay the insured deposits "as soon as possible" after an insured bank fails. Historically, the FDIC pays insured deposits within a few days after a bank closes, usually the next business day. In most cases, the FDIC will provide each depositor with a new account at another insured bank. Or, if arrangements cannot be made with another institution, the FDIC will issue a check to each depositor."

»www.fdic.gov/consumers/c ··· ory.html

Re: What to do with $20,000

Fri, 28 Sep 2007 11:56:27 EDT
panda0 posted :
said by Rob:

According to BankRate.com, CountryWide Bank is offering a 6 month CD at a 5.41% APY (min. balance $10k).

I would stay away from anything that Countrywide offers...

Re: What to do with $20,000

Fri, 28 Sep 2007 10:35:38 EDT
AbBaZaBbA posted : It has QUITE a ways to go down.

I would recommend either ING direct or GMAC they should pay you around 4.5-5% and you can withdraw at any time. ING has a 50$ signup bonus I believe.

Some links
»seekingalpha.com/article ··· hing-yet

Cramer
»video.msn.com/video.aspx ··· 1b2190b3
"don't you dare buy a house now... you will lose money"

I don't usually care for him that much but he is right on.

About the only people saying "BUY" are in real estate sales because they are hurting BAD.

And notice how cramer says the fed will raise rates and save everything (then in the second video he says the ceo's of big home builders don't agree). What if inflation kicks up... which is very possible. Then the Fed CAN'T lower rates (I really don't think they can do much more than another %.5 to %.75). Then they'll have to RAISE rates (possibly (*hopefully*) into the double digits). That will just decimate the housing market...imaging trying to buy a house with a 11% mortgage.

To top it off, congress is probably going to remove the 2 out of 5 year exemption for taxes on selling houses which is only going to worsen the problem.

»www.youtube.com/watch?v= ··· rick.net

Re: What to do with $20,000

Fri, 28 Sep 2007 10:27:37 EDT
JerseyDevil4 posted : My advice is the housing market is in a major flux, its a buyers market right now and will probably only get better as time goes on as there is no relief in site for sellers. As proof that its a buyers market and sales are slow several real estate companies have closed doors.

I wouldn't lock the money up in a CD so its available when you find something.

Look into an INGDirect.com account or an HSBC Direct Account. They are both offering great interest rates.

Also, with ING if you know someone with an account and they send you a refferal you get $25 if you open with at least $250.

Also, don't put all your money in one account spread it around a bit and take advantage of the free money to be had by opening different accounts with different banks and instituions.
--
"Beer is Proof That G-D Loves Us and Wants Us to Be Happy" - Ben Franklin

Re: What to do with $20,000

Fri, 28 Sep 2007 10:24:58 EDT
Doctor Olds posted : With the Federal Reserve hinting at a possible lower rate and with the bottom only being recognized as the bottom after the upswing to higher prices/rates, it is not the best practice to wait and to continue to build a landlords equity when you could be building your own.
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?

Re: What to do with $20,000

Fri, 28 Sep 2007 10:11:48 EDT
telcolackey5 posted :
said by Doctor Olds:

Instead of waiting, you should be looking now. It is a buyers market right now and in 12 months it could change to a sellers market.

Although the market is low right now, I believe most (except for real-estate brokers) think the housing market has not yet reached the bottom. I've heard another year is left, but some that are optimistic say next spring.

That said, if you are in it for the long run, it's not that bad to buy near the bottom. Just don't be disappointed if it falls a little more.

Re: What to do with $20,000

Fri, 28 Sep 2007 10:06:02 EDT
CylonRed posted : I agree - financial planners are great for long term investments but not worth it for short term unless it is a LOT more money involved.

Re: What to do with $20,000

Fri, 28 Sep 2007 10:02:47 EDT
Shamayim posted : If you're going park the $20K in an investment suggest you skip the financial planner. What you pay him will exceed the meager interest you'll be earning on the principal, in the end putting you in the red. Forget the planner and keep the earned interest in your pocket.

Just my 2 pfennig.
--
"tick...tick...tick..." »www.jtf.org/

Re: What to do with $20,000

Fri, 28 Sep 2007 09:58:49 EDT
larsfum posted : You could also try FNBO Direct »www.fnbodirect.com/01d/html/en/

paying 5+ % right now, and full access to your money 24/7, including debit card.
--
Fish laugh at the mere mention of my name!

Re: What to do with $20,000

Fri, 28 Sep 2007 09:26:35 EDT
SeminoleRob posted : I agree with a few others... start looking now! You want to stash your money somewhere that you can get to it quickly and without penalty if you want to put it down.

Also since there are so many houses on the market, you can haggle a bit and get the seller to pick up closing costs, etc..

Fixed is the only way to go.

Re: What to do with $20,000

Fri, 28 Sep 2007 09:05:00 EDT
CylonRed posted : That is why I generally do not like CD's - the money is locked away and can be hard to get when needed.

The time for CD's is when we go into recession but this is just too short term for them to use CD's effectively.

Re: What to do with $20,000

Fri, 28 Sep 2007 08:59:12 EDT
raythompsontn posted :
said by CylonRed:

See if you bank offers a money market fund - money is easily accessible and the interest rates are generally a couple of points higher than the traditional savings account.
Check with BankRate.com to see what rates are available. Generally credit unions pay a little better. Some web banks pay well. Currently Countrywide Bank is paying the best on 6 month CD's at 5.40 (which is the APY, not the daily rate). Problem with CD's is that early withdrawals are met with significant penalties.

Re: What to do with $20,000

Fri, 28 Sep 2007 08:54:12 EDT
raythompsontn posted : Stash the money with ING. (www.ingdirect.com) It will pay 4.3% (about $2.63 per day) and you can easily get your money in a couple of days. Or use Ameriprise to open a money market account and they will pay 5% (about $2.74 a day), you can write checks on the account (minimum $100.00).

CD's will not pay as well for the short term (less than 1 year) and even the longer certificates to match 5% generally require 100K+ to get the rate.

Use a credit union for your house loan. I say again, use a credit union. You will get better rates and they generally do not sell their mortgage loans. My last loan was sold 4 times in 8 years to different companies. Credit unions do not participate in such actions.

Re: What to do with $20,000

Fri, 28 Sep 2007 08:49:26 EDT
rmudry posted : Dude!!

Send me a cashier's check right now and I promise 90% of your money will go to substance abuse, women with dubious moral values and to add a bunch of radio control planes, helicopters, rock crawlers, boats etc to the already extensive household RC toy collection.

Exactly what your money should be spent on.

Oh yeah, and the remaining 10% of your money will be spent frivolously.. :D

buck

Re: What to do with $20,000

Fri, 28 Sep 2007 08:49:22 EDT
fireflier posted : Fixed rate is good advice. Many foreclosures are happening right now because people financed with ARM loans that had low intro "teaser rates". Quite a few people buying into that are finding themselves in deep trouble as those variable rates are adjusting now.
--
Wishes: When you wish upon a falling star, your dreams can come true. Unless it's really a meteorite hurtling to the Earth which will destroy all life. Then you're pretty much hosed no matter what you wish for. Unless it's death by meteor. --despair.com

Re: What to do with $20,000

Fri, 28 Sep 2007 08:31:58 EDT
CylonRed posted : See if you bank offers a money market fund - money is easily accessible and the interest rates are generally a couple of points higher than the traditional savings account.

Re: What to do with $20,000

Fri, 28 Sep 2007 08:31:48 EDT
Rob posted : According to BankRate.com, CountryWide Bank is offering a 6 month CD at a 5.41% APY (min. balance $10k).

Re: What to do with $20,000

Fri, 28 Sep 2007 08:13:41 EDT
timcuth posted : I agree with Doctor Olds . Right now is a horrible time to be selling because prices are depressed. Conversely, it is a great time to be buying.

I also agree with cocothebean8 . Don't even think about a variable rate mortgage (ARM).

Tim
--
"Love consists in overestimating the difference between one woman and another" - George Bernard Shaw
~ Project Hope ~

Re: What to do with $20,000

Fri, 28 Sep 2007 03:32:45 EDT
cocothebean8 posted : Doctor Olds pointed out very important thing when applying for a loan!!!
fixed rate

Re: What to do with $20,000

Fri, 28 Sep 2007 03:06:49 EDT
Doctor Olds posted : Instead of waiting, you should be looking now. It is a buyers market right now and in 12 months it could change to a sellers market.

Hire a Real Estate Pro to assist you. Apply for lower rate, fixed rate, first time buyers programs. Get a pre-approved mortgage amount so you can go and buy. That will be 12 months into a house with payments building your personal equity instead of 12 months of throwing money to a Landlord and building the Landlord's equity.

I speak from experience and have only 6 years left till I'm Mortgage Free. :D

Regards,

Doctor Olds
--
What’s the point of owning a supercar if you can’t scare yourself stupid from time to time?

Re: What to do with $20,000

Fri, 28 Sep 2007 02:05:47 EDT
cocothebean8 posted : First house? ask about first time home buyer loans.

Re: What to do with $20,000

Fri, 28 Sep 2007 01:43:57 EDT
Hayward0 posted :
said by cocothebean8:

Short term CD is about the best way to go.

Until you figure out a a better route.

Financial planner a good idea if you really don't know what you are doing.... but just don't play dart board... talk to several and RUN AWAY from ANY that right off the bat push crap on you, especially if ONLY from the compay they represent.... vs actually looking out for your interests.

Like a good realator (you being buyer)... they willl look outside the box, even point ot flaws (not just their or comapny listings) even if it means less percentage for them.... smart ones will realize and see the benifit of that... could mean much more money down the road if you don't see them company biased... even if just referals. (but something to always keep in mind, when you talk to anyone)
--
»haywardm.com (Hayward's Key West)

Re: What to do with $20,000

Fri, 28 Sep 2007 01:36:05 EDT
cocothebean8 posted : Short term CD is about the best way to go.

What to do with $20,000

Fri, 28 Sep 2007 01:25:28 EDT
deez20 posted : My wife and I have $20,000 saved up to put towards a house when the time comes, hopefully in 6 months to a year. Right now it is just sitting in a regular savings account which has an interest rate of about 3%. We are in the process of switching the money over to our local credit union and were looking at possibly doing a CD which has a higher interest rate but are there any better options that we should be looking at?