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With CD and MM rates nonexistent, where are you keeping savi



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amother
OP


 

Post Tue, Aug 25 2020, 8:06 pm
With CD and MM rates nonexistent, where are you keeping your savings, and where are you investing your money safely (minimal risk)?

Average CD and MM rates are a laughable quarter of a percent.
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icedcoffee




 
 
    
 

Post Tue, Aug 25 2020, 8:19 pm
I'm using Marcus for savings. It's around .8% now (so annoying because it used to be 3% or so, those were the days!) but it's still one of the best options. It's not worth chasing around for the best rates IMO because, as you said, the difference is just fractions of a percent at this point. I have a ton in index funds though - QQQ, VGT, and MSCI for the most part. Those have been good to us!
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amother
Apricot


 

Post Tue, Aug 25 2020, 8:28 pm
Investing in Real Estate.
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amother
OP


 

Post Tue, Aug 25 2020, 8:52 pm
icedcoffee wrote:
I have a ton in index funds though - QQQ, VGT, and MSCI for the most part. Those have been good to us!


How do they compare to Oppenheimer Funds? I have them and Im clueless about how they compare to others.
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icedcoffee




 
 
    
 

Post Tue, Aug 25 2020, 9:02 pm
amother [ OP ] wrote:
How do they compare to Oppenheimer Funds? I have them and Im clueless about how they compare to others.


Sorry I don't know anything about those! I do everything myself through the Robinhood app. I'm more risk averse than my husband so he has a lot more in than I do but he's been investing in those for a few years and made about 25-30% profit. (I'd have to double check with him though)
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amother
Maroon


 

Post Tue, Aug 25 2020, 9:28 pm
S&P 500 index funds. I think I’ve been averaging 14% a year in those, and they are safe.
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Amarante




 
 
    
 

Post Tue, Aug 25 2020, 9:58 pm
amother [ OP ] wrote:
With CD and MM rates nonexistent, where are you keeping your savings, and where are you investing your money safely (minimal risk)?

Average CD and MM rates are a laughable quarter of a percent.


What is your objective and purpose for the money.

You need to keep six months emergency funds in a liquid safe investment. Yes returns are low but that money is not an investment. It is designed to be an absolutely safe way so that you don't have to worry about the value of the principal when you need to access the money.

An index fund is not "safe" for your emergency funds because the stock market is volatile and so you would be in a terrible position if you needed your money when the market was down.

An index fund from Fidelity or Vanguard is great for a long term investment because over the course of years, the market will bounce back from a bear market. However, it is only to be funded after you have your safe six months in a completely liquid investment - bank or CD.
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samantha87




 
 
    
 

Post Tue, Aug 25 2020, 9:59 pm
amother [ Maroon ] wrote:
S&P 500 index funds. I think I’ve been averaging 14% a year in those, and they are safe.


They are relatively safe for stocks, but they can also drop 10%-20% in a year. Not comparable to a bank account.

QQQ and VGT are index ETFs maybe a bit more risky than the S&P 500.

I have the same (happy) issue, but no good answer.
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amother
OP


 

Post Wed, Aug 26 2020, 12:07 am
Is there a book like "Investment for Dummies" thats useful for someone clueless? There is prob a book with that title- is it good? Is there a better book, for the financially clueless?

How do clueless people learn about reliable, safe, saving/investing, if they dont want to rely on financial advisors?
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