Flagpole Willy I need your help...

Open an ING Direct account and call it good. It is easy to move money in and out of their accounts through their internet site and they offer a pretty high interest rate.

Others are similar but they don't support LDR like ING does.

What is LDR?

xbot wrote:

I have about 12k in immediate savings, but its looking more and more like I could lose my job. most of my student loans are paid off and the only thing I really need to worry about is monthly expenses.

http://money.cnn.com/2007/12/11/news/economy/hiring_outlook.ap/index.htm

things don't get much better either for the next year.

anyways what should I do with this money so that I get some sort of monthly return that I can withdraw on a monthly basis that would be giving me the highest annual interest and is secure from the debt/credit problems in the economy?

thanks for your help.

With an unsure job, I would keep that money liquid. You could open a Money Market Account (MMA) and get the small bit of return there (3-5%), or your could open a non-retirement mutual fund and put it there. I would not do a CD; just more of a hassle with CDs.

You should have 3 months of expenses saved anyway, and $12,000, depending on where you live and what your lifestyle is could be just 3 months, or it could be a bit more. So, keep the money liquid and then either ride out the job uncertainty or start looking now for a new one. You won't make a ton of money on that $12,000 in a liquid account, but do the best you can with the rate. Ultimately if you have a more stable job, the big gains come from 401k, IRA and non-retirement mutual fund investing. Need to keep an eye on those funds though and pick wisely.

invest in some stuff signed by professional runners of the past, like a pre classic poster with his signature. you'll be milking that one til the end of the century, for sure.

as much as i like to read his posts and not listen to him....id listen here. there is nothing you can do with 12000 if that is all you have. it wont make that big of difference and flagpole basically spells out what you can do

Make sure that money market fund is backed by government issued instruments like t-bills. The yield wont be as high, but you will be safe. Not all money market funds are created the same.

Flagpole, it's kind of funny that with all the advice you have given out over the years on Letsrun, solicited and otherwise, you've found a niche as the resident financial advisor. Your suggestions are mostly sound and sensible. I could split hairs with you on investment vehicles (I'm partial to debt instruments over equities for reasons I detailed in another thread), but it's hard to argue with your overall philosophy of avoiding debt and putting big chunks of money into savings. I hope readers are wise enough to heed your advice.

OldXCguy wrote:

Flagpole, it's kind of funny that with all the advice you have given out over the years on Letsrun, solicited and otherwise, you've found a niche as the resident financial advisor. Your suggestions are mostly sound and sensible. I could split hairs with you on investment vehicles (I'm partial to debt instruments over equities for reasons I detailed in another thread), but it's hard to argue with your overall philosophy of avoiding debt and putting big chunks of money into savings. I hope readers are wise enough to heed your advice.

Thanks for the post brother. I am often misunderstood. What I tell people is stuff that I would do. Doesn't necessarily mean that I think doing something slightly different is a bad idea. GENERALLY speaking I don't like debt and I think it drags a person down both financially and emotionally. But, if a person gets a super low car loan or student loan, I don't need to have them attack that debt rather than invest. Even in your case of a different investing strategy, it's not what I would do, but if you want to do that and have success at it, then full speed ahead brother!

People need to invest money in order to secure a financial future. Whether that investment is in real estate or mutual funds or a business idea that will boom -- fine with me as long as there's a plan for success and a plan to get out if the success isn't happening.

I prefer ease, and ease is what I always preach -- 401k, Roth IRA, separate mutual funds, never individual stocks, never too much debt (and debt free as soon as possible), etc. But, I don't pretend it's the only way.

OldXCguy wrote:

Flagpole, it's kind of funny that with all the advice you have given out over the years on Letsrun, solicited and otherwise, you've found a niche as the resident financial advisor.

Ha - So true. The guy keeps re-inventing himself! What's next?

But on the personal finance, I agree. The basic philosophy of living within your means is sound.

JEH wrote:

Ha - So true. The guy keeps re-inventing himself! What's next?

But on the personal finance, I agree. The basic philosophy of living within your means is sound.

JEH,

Somehow I get the sense that you're making fun of me here. But, Im not smart enough to figure out how, so I won't let it bother me.