Where is the best place to put my money?

[UCGal]

[quote=flu][

54 months is an awfully long time for a 2.65% rate imho.[/quote]

I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.

As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.

[Coronita]

[quote=andymajumder][quote=flu][quote=andymajumder]Seriously, if San Diego homes loose 80% of their value from the peak over the next 5 yrs….that would mean the economy has been completely destroyed by then and we are in a severe depression. Frankly, home prices would be least of my concern by then when I am standing in soup line with my kid and wife (I assuming we both would have lost our jobs by than).
Its great that you got your calls right till now, but don’t get carried away by negativity. I would advise you read Rick’s analysis on inflation and how the Fed can create significant inflation eventually if they keep the printing presses on.

Will quality of life degrade for average american over the next couple of decades? probably yes. But, it will actually happen in the form of inflation as an additional form of taxation, where we will be spending a higher percantage of our disposable income on basic necessities of life like food, housing and clothing, like the rest of the world already does.[/quote]

I doubt we’ll see anything meaningful over the next 5 years. Bookmark this thread and lets revisit it in 5 years.[/quote]

I kind of agree, however even people who are quite strongly bearish about the future like David Rosenburg, think being is cash is not a good idea at all

http://finance.yahoo.com/tech-ticker/david-rosenberg’s-advice-for-surviving-a-%22meat-grinder%22-of-a-market-535273.html?tickers=%5EDJI,%5EGSPC,GLD,GDX,JNK,HYG,PHK%5B/quote%5D

The problem is I don’t think any “expert” really knows what is going to happen. Folks thought at this point the dollar would be getting weaker and weaker, and it’s nowhere near the collapse that several had been thinking it would happen (yet). I guess we have Europe to thank for that :)….

For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed…. For me though, present dollar/cash just “feels” to “expensive” to use to pay off a long term debt such as a a mortgage.

[Coronita]

[quote=andymajumder][quote=flu][quote=andymajumder]Seriously, if San Diego homes loose 80% of their value from the peak over the next 5 yrs….that would mean the economy has been completely destroyed by then and we are in a severe depression. Frankly, home prices would be least of my concern by then when I am standing in soup line with my kid and wife (I assuming we both would have lost our jobs by than).
Its great that you got your calls right till now, but don’t get carried away by negativity. I would advise you read Rick’s analysis on inflation and how the Fed can create significant inflation eventually if they keep the printing presses on.

Will quality of life degrade for average american over the next couple of decades? probably yes. But, it will actually happen in the form of inflation as an additional form of taxation, where we will be spending a higher percantage of our disposable income on basic necessities of life like food, housing and clothing, like the rest of the world already does.[/quote]

I doubt we’ll see anything meaningful over the next 5 years. Bookmark this thread and lets revisit it in 5 years.[/quote]

I kind of agree, however even people who are quite strongly bearish about the future like David Rosenburg, think being is cash is not a good idea at all

http://finance.yahoo.com/tech-ticker/david-rosenberg’s-advice-for-surviving-a-%22meat-grinder%22-of-a-market-535273.html?tickers=%5EDJI,%5EGSPC,GLD,GDX,JNK,HYG,PHK%5B/quote%5D

The problem is I don’t think any “expert” really knows what is going to happen. Folks thought at this point the dollar would be getting weaker and weaker, and it’s nowhere near the collapse that several had been thinking it would happen (yet). I guess we have Europe to thank for that :)….

For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed…. For me though, present dollar/cash just “feels” to “expensive” to use to pay off a long term debt such as a a mortgage.

[Coronita]

[quote=andymajumder][quote=flu][quote=andymajumder]Seriously, if San Diego homes loose 80% of their value from the peak over the next 5 yrs….that would mean the economy has been completely destroyed by then and we are in a severe depression. Frankly, home prices would be least of my concern by then when I am standing in soup line with my kid and wife (I assuming we both would have lost our jobs by than).
Its great that you got your calls right till now, but don’t get carried away by negativity. I would advise you read Rick’s analysis on inflation and how the Fed can create significant inflation eventually if they keep the printing presses on.

Will quality of life degrade for average american over the next couple of decades? probably yes. But, it will actually happen in the form of inflation as an additional form of taxation, where we will be spending a higher percantage of our disposable income on basic necessities of life like food, housing and clothing, like the rest of the world already does.[/quote]

I doubt we’ll see anything meaningful over the next 5 years. Bookmark this thread and lets revisit it in 5 years.[/quote]

I kind of agree, however even people who are quite strongly bearish about the future like David Rosenburg, think being is cash is not a good idea at all

http://finance.yahoo.com/tech-ticker/david-rosenberg’s-advice-for-surviving-a-%22meat-grinder%22-of-a-market-535273.html?tickers=%5EDJI,%5EGSPC,GLD,GDX,JNK,HYG,PHK%5B/quote%5D

The problem is I don’t think any “expert” really knows what is going to happen. Folks thought at this point the dollar would be getting weaker and weaker, and it’s nowhere near the collapse that several had been thinking it would happen (yet). I guess we have Europe to thank for that :)….

For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed…. For me though, present dollar/cash just “feels” to “expensive” to use to pay off a long term debt such as a a mortgage.

[Coronita]

[quote=andymajumder][quote=flu][quote=andymajumder]Seriously, if San Diego homes loose 80% of their value from the peak over the next 5 yrs….that would mean the economy has been completely destroyed by then and we are in a severe depression. Frankly, home prices would be least of my concern by then when I am standing in soup line with my kid and wife (I assuming we both would have lost our jobs by than).
Its great that you got your calls right till now, but don’t get carried away by negativity. I would advise you read Rick’s analysis on inflation and how the Fed can create significant inflation eventually if they keep the printing presses on.

Will quality of life degrade for average american over the next couple of decades? probably yes. But, it will actually happen in the form of inflation as an additional form of taxation, where we will be spending a higher percantage of our disposable income on basic necessities of life like food, housing and clothing, like the rest of the world already does.[/quote]

I doubt we’ll see anything meaningful over the next 5 years. Bookmark this thread and lets revisit it in 5 years.[/quote]

I kind of agree, however even people who are quite strongly bearish about the future like David Rosenburg, think being is cash is not a good idea at all

http://finance.yahoo.com/tech-ticker/david-rosenberg’s-advice-for-surviving-a-%22meat-grinder%22-of-a-market-535273.html?tickers=%5EDJI,%5EGSPC,GLD,GDX,JNK,HYG,PHK%5B/quote%5D

The problem is I don’t think any “expert” really knows what is going to happen. Folks thought at this point the dollar would be getting weaker and weaker, and it’s nowhere near the collapse that several had been thinking it would happen (yet). I guess we have Europe to thank for that :)….

For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed…. For me though, present dollar/cash just “feels” to “expensive” to use to pay off a long term debt such as a a mortgage.

[Coronita]

[quote=andymajumder][quote=flu][quote=andymajumder]Seriously, if San Diego homes loose 80% of their value from the peak over the next 5 yrs….that would mean the economy has been completely destroyed by then and we are in a severe depression. Frankly, home prices would be least of my concern by then when I am standing in soup line with my kid and wife (I assuming we both would have lost our jobs by than).
Its great that you got your calls right till now, but don’t get carried away by negativity. I would advise you read Rick’s analysis on inflation and how the Fed can create significant inflation eventually if they keep the printing presses on.

Will quality of life degrade for average american over the next couple of decades? probably yes. But, it will actually happen in the form of inflation as an additional form of taxation, where we will be spending a higher percantage of our disposable income on basic necessities of life like food, housing and clothing, like the rest of the world already does.[/quote]

I doubt we’ll see anything meaningful over the next 5 years. Bookmark this thread and lets revisit it in 5 years.[/quote]

I kind of agree, however even people who are quite strongly bearish about the future like David Rosenburg, think being is cash is not a good idea at all

http://finance.yahoo.com/tech-ticker/david-rosenberg’s-advice-for-surviving-a-%22meat-grinder%22-of-a-market-535273.html?tickers=%5EDJI,%5EGSPC,GLD,GDX,JNK,HYG,PHK%5B/quote%5D

The problem is I don’t think any “expert” really knows what is going to happen. Folks thought at this point the dollar would be getting weaker and weaker, and it’s nowhere near the collapse that several had been thinking it would happen (yet). I guess we have Europe to thank for that :)….

For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed…. For me though, present dollar/cash just “feels” to “expensive” to use to pay off a long term debt such as a a mortgage.

[UCGal]

[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]

That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.

You’re only screwed out of 6 months of interest.

This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.

[UCGal]

[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]

That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.

You’re only screwed out of 6 months of interest.

This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.

[UCGal]

[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]

That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.

You’re only screwed out of 6 months of interest.

This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.

[UCGal]

[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]

That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.

You’re only screwed out of 6 months of interest.

This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.

[UCGal]

[quote=flu]For me, personally, short term, I’d like to keep a percentage liquid…With CD rates like 1-1.5%, I gave up tieing any significant amount of money up for 1 year+ in a CD. 1-1.5% interest ends up being closer to 0.75-1% after taxes anyway…If rates happen to go up while you’re stilled tied down, you’re pretty screwed….[/quote]

That’s why I looked into the penalties for early withdrawal… it was precisely because I want to be able to move the money to higher rate cd if the rates go up. I explicitly asked the question at SDCCU… I can pull the money and reinvest it in a higher rate if the rates go up… No principal lost, the only thing at risk is the most recent 6 months worth of interest.

You’re only screwed out of 6 months of interest.

This is not the case on cd’s purchased through my brokerage account (Schwab)… My F.A wouldn’t let me cash those out early. Fortunately, the CD money I have there is at a higher rate so I’m not as worried about it. FWIW – my boss is the one who tipped me to the SDCCU policy… He’s done it several times – pulled out of lower rate cd’s and into higher rates if the rates popped up.

[Coronita]

[quote=UCGal][quote=flu][

54 months is an awfully long time for a 2.65% rate imho.[/quote]

I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.

As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.[/quote]

Ah…I see. I just think it’s a sad state of affairs when cash back from your Costco Amex earns more than how much your CD returns…

Maybe that’s the plan…The more we charge, the more we earn!!!!

LOL…Meanwhile, CC companies still charge like 18-25% APR????Go figure….

[Coronita]

[quote=UCGal][quote=flu][

54 months is an awfully long time for a 2.65% rate imho.[/quote]

I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.

As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.[/quote]

Ah…I see. I just think it’s a sad state of affairs when cash back from your Costco Amex earns more than how much your CD returns…

Maybe that’s the plan…The more we charge, the more we earn!!!!

LOL…Meanwhile, CC companies still charge like 18-25% APR????Go figure….

[Coronita]

[quote=UCGal][quote=flu][

54 months is an awfully long time for a 2.65% rate imho.[/quote]

I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.

As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.[/quote]

Ah…I see. I just think it’s a sad state of affairs when cash back from your Costco Amex earns more than how much your CD returns…

Maybe that’s the plan…The more we charge, the more we earn!!!!

LOL…Meanwhile, CC companies still charge like 18-25% APR????Go figure….

[Coronita]

[quote=UCGal][quote=flu][

54 months is an awfully long time for a 2.65% rate imho.[/quote]

I don’t disagree. But it’s only tied up if I’m unwilling to forfeit interest. In other words – its as liquid as I need it to be – in case something else comes along.

As I said – this is my “emergency fund” money… needs to be available if I need it. Needs to have principal protected. And the savings account rates and money market rates are WAAAY more suckful. I had it in a 4.5% cd that expired. I was sad when that expired.[/quote]

Ah…I see. I just think it’s a sad state of affairs when cash back from your Costco Amex earns more than how much your CD returns…

Maybe that’s the plan…The more we charge, the more we earn!!!!

LOL…Meanwhile, CC companies still charge like 18-25% APR????Go figure….

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