Personal finances:

[morethanpretty]

I have been wanting to do something with the money in my savings for a while, but am very unsure as to what. So I'm going to ask you random group of strangers for some advice!

Here is the information:
Savings account is 0.10% interest rate
(Interest is compounded and credited monthly, based on the daily collected balance. Interest rates are variable and determined daily at Chase's discretion.)
I have $5,200 and add $100 every 2weeks.
I add to it randomly whenever I feel like also.
I figure at least $2,000 (to start) of it can be safely unavailable for awhile.

Here is what I want:
flexibility (I can at least add to the amount)
fixed interest rate (none of this "subject to change" bullshit)
earns more than a regular savings account

Here are my goals:
money for retirement
more money for investing

Simple? Maybe, but I've always been overwhelmed by all the different financial choices, and get scared about trusting companies on their promises. I'd really appreciate some sound, experienced advice.

Or I really need a dog:

[glatt]

1 year CD rates are around 1 to 1.5 percent. On $2000, that means you would make around $20 or maybe $30 in interest over the course of a year. If you lock into a 3 year CD or a 5 year CD, you will get higher rates, but my gut tells me that interest rates are going to go up in the next year, so you would be foolish to lock in to a long term CD right now when interest rates are at historical lows. You would be kicking yourself in a year or so when the rates are higher and you are locked into a low rate of return.

Is it worth it to you to take an hour or two to drive down to a bank to fill out the paperwork so that you make $20 in interest?

To make real money, you need to invest in the stock market, but there is substantial risk there, and you could lose money too.

I wish I had a good answer. It's a bad time to be shopping for CDs.

[Cloud]

I think the best you can do right now is move it into an online savings account, like HSBC or ING. You really need a retirement account too. Read The Simple Dollar.com

[glatt]

mtp, I know you don't want risk, but at your age, the stock market is the way to go if you are looking at retirement. Over the very long run, it's historically been pretty safe. My own retirement savings are in the stock market, and they have fluctuated wildly over the last two years, but they are still there and doing ok. It's when you are the youngest that you can tolerate the most risk with retirement funds. It isn't until you get close to retirement age that you should start moving out of the risky market and into lower fixed rate safe funds.

If you are serious about retirement, I'd encourage you to look closely at a Roth IRA and put your money into a couple of mutual funds in a Roth IRA.

If this is money you want to keep access to now and want to be able to get at it when you want, I'd leave it in a savings account.

[classicman]

Originally Posted by Cloud

I think the best you can do right now is move it into an online savings account, like HSBC or ING. You really need a retirement account too. Read The Simple Dollar.com

HSBC rates have steadily dropped for 2 years - they are not much more than 1% at this point. There was a nice personal finance link I was looking at not too long ago that was addressing just this issue.. Can't seem to find it now... Will look more later.

[monster]

I think you should buy shares in The Cellar -it's the next big internet success story. It's going to be bigger than Google. Think about it, not only do we answer any question asked, we answer some not asked either. And we don't always ask if you spelled your search term incorrectly -sometimes we just correct it for you. We give advice, we ensure rule 34 is enforced and we have recipes for everything. Google and Wikipedia have got nothing on us!

[Clodfobble]

Here's the thing, mtp. The answers to these questions are so complicated, there are people who make legitimate full time careers just helping other people do the right things with their money.

When I was younger, I got my feet wet in the market by opening an account with Charles Schwab, whom I chose because they were big and online and I figured they weren't going under anytime soon. I did as much research as I could stomach, chose a handful of no-fee mutual funds (the no-fee part is important,) a couple stocks that I was pretty sure were going to be solid, and bought in. I ended up making a small amount of money on everything except one stock, which lost big enough to cancel out all my other gains. The moral of the story is, if you want to really learn about the market and get involved, then start researching--but be prepared to lose some money, and maybe even a lot of it, as you learn. If you just want steady, higher-than-a-savings-account-growth, that you don't have to do much with... hire a financial advisor. They will save you money in the long run unless you're really prepared to do all their work yourself.

[morethanpretty]

What if I move some of it into an MMA? I can still withdraw, but not often, and supposedly it has a higher interest rate than a savings account...

Sorry glatt, I'm kinda lost on the Roth IRA and mutual funds thing. Do I have to choose the companies to buy the stock in, and if so how the hell do I do that?

[morethanpretty]

Originally Posted by Clodfobble

If you just want steady, higher-than-a-savings-account-growth, that you don't have to do much with... hire a financial advisor. They will save you money in the long run unless you're really prepared to do all their work yourself.

I've thought about doing that too clod, but that's another: how the hell do I choose? problem. I don't think I know anyone (here) that can recommend a financial adviser. How do I know they would be trustworthy, ect? In, addition to that, I don't know if I have enough money for them to take me seriously.

[Clodfobble]

Well if you're looking for local Dwellar talent, lookout123 is a professional financial advisor. He seems like a straight up dude to me, but YMMV. If you're looking for truly local talent, you should ask your boss's boss at work. Or maybe his boss. Someone high enough up the chain that they make a lot of money. They might have an answer, and even if they don't, they'll be impressed that you're asking for that kind of responsible adult advice.

If the amount of money you have is too little for a personal agent to bother with you (admittedly, I don't know the answer to that,) then just go with one of the really big companies, because they usually have 24-hour financial help lines for any member to use. It won't be as personal, but the few times I've used them they've been extremely helpful and knowledgable.

[xoxoxoBruce]

I have this friend in Nigeria who was the personal secretary to....

[Griff]

A quick search of the net yielded only one decent high return investment option:

1. High Pressure Sodium Lamp (600 watt is the most efficient but a 400 watt may suit a smaller space).
2. Fan running 24 hours a day if possible and oscillating.
3. NFT tank with pump and spreader mat (these come with the tank), Rockwool cubes.
4. 24 hour timer to control light periods. This should be used with a high power switch known as a contactor or relay switch as grow lamps can easily burn out regular timers used on their own.
5. A pH tester to test water and nutrient feed solutions.
6. pH adjuster such as phosphoric acid to adjust water and feed solution to around pH 5.2 - 6.0.
7. Nutrients, ones aimed at growing the plant you want to cultivate are best.
8. Matt white paint or white plastic to cover the walls of the grow space.

[lumberjim]

huh...

i was just going to suggest that she invest in w33d.

[Griff]

We want her investment to grow.

[monster]

Have you considered a Peppermint Pig?