Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
A good friend of mine has come into some money. His finances are fine. His car's paid off, happy renting an apartment, good solid emergency fund, plenty of spending cash and a solid job.
He sold off some stuff and now has about 10K in cash and looking for some place to put it other than a basic savings account or CD. He would still like to have access to it should something go horribly wrong. Also considering buying a home in 3 to 5 yrs.
Put 5k (the max amount) into a Roth IRA...and go have fun with the rest.
Assuming the person is not really old and has time to invest:
I would normally write the Roth IRA and the rest in an S&P index fund but the original poster also wrote
Quote:
Originally Posted by johna01374
Also considering buying a home in 3 to 5 yrs.
so it might be best to keep it safe for the down payment.
The earlier you start to save for retirement, the better. I wouldn't hesitate to put up to $5000 (the limit for 2011) in a Roth IRA, and park the rest in a mutual fund to save up for a home. Even the most conservative funds with out-perform a CD or passbook account. It's not as liquid, but if you're looking at 3-5 years down the road that shouldn't be a problem.
Save it for the down payment on the house.
Put it in a Money Market account earning only about 1.5% but it's safe and accessible at all times.
If that's too low, i would "consider" buying into S&P500 funds at Schwab or similar place.....less safe than MMA but potential for earning is more, plus you can sell anytime.
A good friend of mine has come into some money. His finances are fine. His car's paid off, happy renting an apartment, good solid emergency fund, plenty of spending cash and a solid job.
He sold off some stuff and now has about 10K in cash and looking for some place to put it other than a basic savings account or CD. He would still like to have access to it should something go horribly wrong. Also considering buying a home in 3 to 5 yrs.
-Find the bank on there, and then go into it in person to set up your account.
I was buying my groceries every month this way until I moved to an area without one close. (Bout to move again, so I didn't worry about it)
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
