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Is it a savings account with your bank where you don’t touch it and let the interest compound? Other options are welcome. I’m also trying to invest in a new retirement account. Best options/ companies are also welcome. I was told T. Rowe Price is the best. True?
False. Saving money is about the SAVING itself. Cash in old coffee cans is almost good enough.
As far as investing for retirement or other...
what OTHER assets have you accumulated and how much debt are you carrying
and do you have a house yet (do you want one?) etc etc
How much money are you trying to save and how much time do you have? I've switched most of my savings into online accounts from Ally. They pay way more than my brick and mortar bank. I helped my Mom open one because her bank was giving her .02%, when we complained about it, they upped it to .30%. I laughed and helped move her money to Ally and she'll be making a ton more interest. One month of interest was more than multiple years from the brick and mortar bank.
Honestly I think most of the big name brokers are going to be fine. I've heard good things about Vanguard, but I already had a Fidelity account from a past job. So I just opened a brokerage account there for simplicity. I'm happy enough to just keep my money there.
Fastest easiest way to save money? Dont spend it. And dint accumulate CC debt that you cant pay off when the bill comes each month.
Simple as that.
WHERE you choose to save it is up to you.
Do start with a bank savings account. Better yet, look into a credit union. Better still look to link to an online bank savings account. They pay (as currently as I know) up to 2.25%!
As for investment accounts, id suggest you wait till you have a fully funded emergency fund in savings, equal to at minimum 6 months living expenses.
Then you can look at places like Vanguard and the like. Study carefully before opening and open your own Roth IRA, or regular IRA.
That may not all fit your requirements, but thats how id start.
Best of luck...
Save save save....
Youll get there sooner or later...
False. Saving money is about the SAVING itself. Cash in old coffee cans is almost good enough.
As far as investing for retirement or other...
what OTHER assets have you accumulated and how much debt are you carrying
and do you have a house yet (do you want one?) etc etc
For retirement I thought you just opened an account like a 401k with your job and they match it and keep adding more money from there. No? Is T. Rowe Price the best place to start or just the most common?
For retirement I thought you just opened an account like a 401k with your job and they match it and keep adding more money from there. No? Is T. Rowe Price the best place to start or just the most common?
If your employeer offers a match on your 401k by all means contribute at least enough to take advantage of the match. But you can also open a seperate IRA with T. Rowe Price, Vanguard, Fidelity or another broker.
For retirement I thought you just opened an account like a 401k
with your job and they match it and keep adding more money from there. No?
That's the mechanics.
I'm discussing the underlying and overarching factors. The context
F'rinstance if you don't have a house how can you get one if all your 'savings' is in the 401K?
If you do have a house (and kids?) do you have an adequate emergency fund?
There are about a hundred more things to explore.
As to the SAVING.... decide that you will and commit to some % of your gross income.
Then calculate the budget for what you can afford when that first X% of cash is tied up.
This is where the rubber meets the road.
Large savings is influenced primarily by 2 things: income and expenses. You will likely be able to save more if you have a larger income. Also, spend less. Education is a large determinant of income, be it a degree or trade. A 2 income family or 1 large income really helps. Being in sync with your spouse or significant other on what you spend also helps.
Fastest saving would be to cram cash into the bed mattress...
Investing takes time, until you get a large enough portfolio that the return is larger than what you can save yourself, putting money in the bed would be quicker...
It doesn't matter if you get x% when it is a fraction of a dollar. You do better saving that whole dollar initially than waiting for it to grow fractionally. 10% on a dollar is a dime, you might as well put in a second dollar and save yourself ten years of waiting
401k work the same, for first decade or two most of the growrh comes from the contributions from you and company match. It's rare that the market will add more than the contribution for the first decade. As long as the fees aren't eating away at 401k, even low returns of a few percent make it worth putting money into from the tax deduction.
Based on your criteria, saving lots of money in short amount of time, I would put as much money as I can in an online savings/money market account. That'll yield 2-3%, and it's also the safest. To save a lot of money you earn more money or cut spending. If you have a longer time frame then you can look into other avenues that will earn better return on your investment.
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