B767
Well-Known Member
As you said, most people time it wrong. if the markets going down, that's not the time to pull your money out. That means it's time to double down.
Short-term investments
- Thread starter learhawkerbe400
- Start date
As you said, most people time it wrong. if the markets going down, that's not the time to pull your money out. That means it's time to double down.
SlumTodd_Millionaire
Most Hated Member
"I can't recall ever once having seen the name of a market timer on Forbes' annual list of the richest people in the world. If it were truly possible to predict corrections, you'd think somebody would have made billions by doing it." - Peter Lynch
B767
Well-Known Member
Shoot, all (I'm only familiar with TD's fees and what not - don't know about the other brokerages out there) of the commission free ETFs have a 30 day holding period. If you sell after 30 days, no fee. If you max out your 401k and IRA, you can have 1 or 2 months salary in a savings account. Put the rest in the commission free ETFs. You lose your job for whatever reason, you can live off your savings (to cover the 30 days), then sell and pull your money from the ETFs, free of charge, if need be. If you don't need it, then let it grow!
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Autothrust Blue
Welcome aboard the Washington State Ferries
"Yippie kai yay, (I'm not allowed to say that here)."
SlumTodd_Millionaire
Most Hated Member
Hell, Schwab doesn't even charge me at all. I can buy today and sell tomorrow any of the funds on the select list and pay no commission at all.
B767
Well-Known Member
Hmm. I'll have to check their list. Might be time to open a Schwab account!
Autothrust Blue
Welcome aboard the Washington State Ferries
Another vote for Charles Schwab here; their products are great and their active trading platform is pretty nifty too, although I just recently started using it. Like Todd said, they have many no fee, no load mutual funds available to trade.
(Customer service story: When I opened my IRA, their Palm Desert branch treated me rather well, despite the fact I was handing them a check that most people considered a 'rounding error'.)
Roger Roger
Bottom of the list
They have great mobile support and customer service is, AFAICT, in the US. Another vote for Chuck. I don't do much more than throw x% a month into index funds but I've been happy with them.
PGT
Well-Known Member
@ATN_Pilot why only keep ~2 months in savings? Why not the whole 6 months of emergency savings?
I do agree that 6 months of savings, with the typical dual-income family, would be 12-15k in savings sitting there earning no interest.
I do agree that 6 months of savings, with the typical dual-income family, would be 12-15k in savings sitting there earning no interest.
SlumTodd_Millionaire
Most Hated Member
You answered your own question. Putting 6 months worth of expenses in a savings account that isn't earning a decent return is useless. Put your 6 months worth of expenses in a mix of short-, medium, and long-term treasury ETFs. You'll earn a decent rate of return for practically zero risk, and you can pull your money out within 48 hours. There's no need to have that much money in a savings account.
SlumTodd_Millionaire
Most Hated Member
You're probably talking about the same idiot who tells people to put their money into individually labeled enveloped for different things. If so, 'nuff said.
Trip7
Well-Known Member
You're probably talking about the same idiot who tells people to put their money into individually labeled enveloped for different things. If so, 'nuff said.
LOL @ individually labeled envelopes for different things. That is hilarious!
B767
Well-Known Member
You're probably talking about the same idiot who tells people to put their money into individually labeled enveloped for different things. If so, 'nuff said.
I have a friend that swears by him. My friend and his wife have at least 10 checking/savings accounts at 1 bank because of the "envelope" system. I can't remember the exact number my buddy told me one day. But I know it was double digits.
CaptBill
Well-Known Member
I adopted a unique idea about managing "extra" money many years ago. I set aside a small amount ( I think it was $1000 ) and labeled it my "target of opportunity" fund. I always kept my eyes open for opportunities to jump on a momentary bargain because I now had some liquid assets at the ready. I never considered that money for anything else other than buying and then reselling. I once bought a $6000 jeep for $2500 from a co-worker who just didn't want to bother driving it back to Ohio. I literally bought it in the parking lot after a trip and he then flew home the next day with $2500 rather than drive for two days. I sold it the next week for $5000 and had people fighting over it. I bought a pallet of 8000 kw generators from a guy who had ordered them to sell for an incoming hurricane but the generators didn't arrive until the storm had passed. These generators retailed for $1500 and I bought 50 of them for $350 each. I sold them to a guy out of town and offered to deliver them. I bought a slightly used 24 foot enclosed trailer for a song and delivered the generators and made enough to pay for the trailer three of four times over. I then sold the trailer in the town I delivered the generators to and made a profit there as well.
Here's the point... there are tons and tons of bargains out there these days to anyone who has a little cash and a little time to put into looking around and paying attention. Having someone manage your money and make decisions for you has never appealed to me. I have never calculated the exact percentage of profits realized, but I can assure you I have made a great return on my money and had a blast doing it. I don't work hard looking for buying opportunities but I do talk to a lot of people and I listen well. It's amazing how many opportunities are out there to someone who has a little cash in their pocket. I started my daughter using this concept several years ago and all her friends and associates wonder how she does so well financially? There is no shortage of financially irresponsible people that will buy something for $10 one month and then give it away for $1 or $2 the next month when they get their next urge to buy something else that they can't afford.
This idea would obviously not work for everybody, but for me it beats having my money sit in some savings account or in some incompetent money manager's hands. Start small and maybe focus on something that you have expertise in like computers, autos, bicycles or refurbishing something old... etc.
I have always liked the idea of being able to "physically touch" my investments.
It's just food for thought...
Here's the point... there are tons and tons of bargains out there these days to anyone who has a little cash and a little time to put into looking around and paying attention. Having someone manage your money and make decisions for you has never appealed to me. I have never calculated the exact percentage of profits realized, but I can assure you I have made a great return on my money and had a blast doing it. I don't work hard looking for buying opportunities but I do talk to a lot of people and I listen well. It's amazing how many opportunities are out there to someone who has a little cash in their pocket. I started my daughter using this concept several years ago and all her friends and associates wonder how she does so well financially? There is no shortage of financially irresponsible people that will buy something for $10 one month and then give it away for $1 or $2 the next month when they get their next urge to buy something else that they can't afford.
This idea would obviously not work for everybody, but for me it beats having my money sit in some savings account or in some incompetent money manager's hands. Start small and maybe focus on something that you have expertise in like computers, autos, bicycles or refurbishing something old... etc.
I have always liked the idea of being able to "physically touch" my investments.
It's just food for thought...
BajtheJino
I'm looking at you.
Stocks that pay dividends. Doesn't matter what the cost of the stock is. I used to just buy what I thought would continue to rise over time but realized it wasn't really doing that much for me as I do not have the time or desire to watch it everyday, trade and buy as I need to. So I get dividends. With a modest investment I add about that value each year and reinvest it all in the stock.