The Investment Thread (help with savings, stocks, retirement funds, etc.)

[RiotAct]

that's it, this market is too wild. I'm pulling out all my money and placing it under my mattress.

[cry_minarets458]

Originally Posted by Dave&Tim41

Ally has 2% interest on their high yield savings account.

Originally Posted by Benny003

Ally and Discover Bank have worked well for me. Both have 2% interest right now.

Originally Posted by 42graystreet

You kind of just have to shop around for good savings accounts. See what your bank offers first and go from there. You can find savings accounts for 1-2% if you don't mind the hassle of managing multiple bank accounts. Always read the fine print before opening a new account to make sure you understand what it takes to get that higher interest rate. I'm lucky in that my credit union offers some outstanding interest rates on both their checking and savings accounts so all of my "cash" is in one institution. It saves a lot of logistical headaches.

thanks for the suggestions. I have a capital one credit card. I see they offer a 2.00% apy on accounts with balances of 10k or more in their 360 money market account.

i was thinking of doing this and then pursuing ally, but just didn't know what a money market account meant or if it's just a name capital one uses.

i'm a member of a credit union back home, and was thinking of checking their rates out, too, since i have accounts from childhood there.

before the end of the year, I wanna do one of these high yield things and then open up a mutual fund. next year it's roth ira, ira, etc.

[Benny003]

Originally Posted by cry_minarets458

thanks for the suggestions. I have a capital one credit card. I see they offer a 2.00% apy on accounts with balances of 10k or more in their 360 money market account.

i was thinking of doing this and then pursuing ally, but just didn't know what a money market account meant or if it's just a name capital one uses.

i'm a member of a credit union back home, and was thinking of checking their rates out, too, since i have accounts from childhood there.

before the end of the year, I wanna do one of these high yield things and then open up a mutual fund. next year it's roth ira, ira, etc.

Ally and Discover Bank have absolutely no limits on their interest rates. You get the same rate no matter how much or how little you have in them. It's literally as simple as can be. They are just pure savings accounts with no strings attached and no fees. They have been a no-brainer for me with respect to high yield savings.

[TheLastStop123]

Funny to see discussion on Ally in here. I was just looking into it strictly for a savings account. I got extra money to play with and it’d be much better served earning 2% per year compared to the .02% I get now with my credit union. I see there’s a limit on the number of withdrawals per month but I don’t think that would ever come into play for me since I’d be using it strictly for savings. Anyone have any experience with them good or bad?

[sbuzzz]

Originally Posted by TheLastStop123

Funny to see discussion on Ally in here. I was just looking into it strictly for a savings account. I got extra money to play with and it’d be much better served earning 2% per year compared to the .02% I get now with my credit union. I see there’s a limit on the number of withdrawals per month but I don’t think that would ever come into play for me since I’d be using it strictly for savings. Anyone have any experience with them good or bad?

They have been great for me. No issues at all, been with for years.

[TheLastStop123]

Originally Posted by sbuzzz

They have been great for me. No issues at all, been with for years.

Awesome! Do you use it as a primary checking/savings? Or do you have other accounts and deposit into it every so often?

I really don’t like the idea of managing multiple accounts across different banks but it’s a no brainer to get that interest rate if it’s pretty hassle free.

[sbuzzz]

Originally Posted by TheLastStop123

Awesome! Do you use it as a primary checking/savings? Or do you have other accounts and deposit into it every so often?

I really don’t like the idea of managing multiple accounts across different banks but it’s a no brainer to get that interest rate if it’s pretty hassle free.

I have a savings account and a CD with them. Just put a recurring monthly deposit in the savings. It’s my “large” savings account since it gets the much better return.

[TheLastStop123]

Originally Posted by sbuzzz

I have a savings account and a CD with them. Just put a recurring monthly deposit in the savings. It’s my “large” savings account since it gets the much better return.

Nice, thanks

[Benny003]

Originally Posted by TheLastStop123

Funny to see discussion on Ally in here. I was just looking into it strictly for a savings account. I got extra money to play with and it’d be much better served earning 2% per year compared to the .02% I get now with my credit union. I see there’s a limit on the number of withdrawals per month but I don’t think that would ever come into play for me since I’d be using it strictly for savings. Anyone have any experience with them good or bad?

Ally is awesome. It's super easy. I've been using them, and Discover Bank, for a few years. I haven't really found any difference between Ally and Discover Bank regarding ease of use and interest rate. Both work great.

The limitation on withdrawals each month is a federal government requirement for all savings accounts no matter what bank you use. It's something to do with preventing people from abusing savings accounts or dealing with fraud or something. Basically, you can do as many withdrawals from a savings account each month as you want if the withdrawals are done in person or at an ATM, but there is a limitation for online withdrawals (I think it's 6 per month). Since Ally is an an online-only bank, the withdrawal limitation is more "visible" compared to say Wells Fargo where you have the option of doing in-person withdrawals.

[TheLastStop123]

Originally Posted by Benny003

Ally is awesome. It's super easy. I've been using them, and Discover Bank, for a few years. I haven't really found any difference between Ally and Discover Bank regarding ease of use and interest rate. Both work great.

The limitation on withdrawals each month is a federal government requirement for all savings accounts no matter what bank you use. It's something to do with preventing people from abusing savings accounts or dealing with fraud or something. Basically, you can do as many withdrawals from a savings account each month as you want if the withdrawals are done in person or at an ATM, but there is a limitation for online withdrawals (I think it's 6 per month). Since Ally is an an online-only bank, the withdrawal limitation is more "visible" compared to say Wells Fargo where you have the option of doing in-person withdrawals.

gotcha, that definitely makes sense. thanks for the clarification. awesome to hear about your positive experience with them.

[cry_minarets458]

literally lost all my gains on my 403b aside from $7.74. wtf

[AJF_41]

S&P now down around 4% on year..another 10-15% and I'd be more interested.

[AJF_41]

assuming oil isn't going to $20, energy stocks seem like they are on sale. i'd choose the one's with limited debt levels tho..

[AJF_41]

P.S. - lol bitcoin

[rconverse]

I know borrowing against your 401(k) is frowned upon here but I don't think it could have worked out better for me the way things have gone. Pretty much cashed out at the top and am paying myself back at a discount. Obviously I wish I just had the excess cash laying around but, given what I felt I had to do, it's working out okay. I still have 25+ years until retirement, so I think I'm ok.

[Route_2]

Originally Posted by rconverse

I know borrowing against your 401(k) is frowned upon here but I don't think it could have worked out better for me the way things have gone. Pretty much cashed out at the top and am paying myself back at a discount. Obviously I wish I just had the excess cash laying around but, given what I felt I had to do, it's working out okay. I still have 25+ years until retirement, so I think I'm ok.

Paid off a mistress?

[Benny003]

Fed raised interest rates again. Savings account should see a boost pretty soon. At least there is some upside to it.

[smokew11]

is there any impact on mortgage rates when this happens?

[rconverse]

Originally Posted by Route_2

Paid off a mistress?

Nah, bought a place. Thought I included that in my initial post.

[rconverse]

Originally Posted by smokew11

is there any impact on mortgage rates when this happens?

I'm pretty sure it means mortgage rates will rise.

[scrock25]

Originally Posted by smokew11

is there any impact on mortgage rates when this happens?

Yeah dude, they go up.

[scrock25]

It’s indirect and not immediate, but rates in FRMs usually follow what the Fed does when it comes to key interest rate hikes/cuts.

https://www.google.com/amp/s/amp.usa...amp/2306536002

[smokew11]

Originally Posted by rconverse

I'm pretty sure it means mortgage rates will rise.

Originally Posted by scrock25

Yeah dude, they go up.

yeah I know this on a fundamental level, but I guess I my question was worded too easily lol. My mortgage broker explained that it follows the bond yield more so than the fed rate

we locked in at 4.875% the last week, closing in Jan. I figured yeah maybe it'll go down .125%, but its more likely it'll go up .25%+

[scrock25]

But you’re locked, so it doesn’t matter.

[42graystreet]

Should I hold off on plans to buy a house in 2019 and hope for a recession and reduction of interest rates? Feels like a bad time. Interest rates are too high (according to some), the economy is teetering, the stock market is "correcting," home prices are sure to follow if I give it enough time.

[scrock25]

Originally Posted by 42graystreet

Should I hold off on plans to buy a house in 2019 and hope for a recession and reduction of interest rates? Feels like a bad time. Interest rates are too high (according to some), the economy is teetering, the stock market is "correcting," home prices are sure to follow if I give it enough time.

Highly doubt this happens.

I mean, I bought my first house back in '09 at 5% flat and at that time rates were historically low, currently they're still under 5.

I get that's a punch in the dick compared to 2.5 years ago when they were down near 3.5% (which I subsequently sold/bought again at ), but at 4.75 I'm not sure they're going lower anytime sooner. Especially because of the Fed rate hikes (which I understand aren't directly related).

https://themortgagereports.com/32667...ventional#drop

When will rates start dropping again?
The Fed sees blue skies for the economy, hence its measured rate increases this year.

It could be a while before rates drop again.

However, for those who are willing to wait, many experts are predicting a recession in 2020. Half the economists surveyed in a recent poll by the National Association of Business Economics predict an oncoming recession.

Half the economists in a recent survey predict an oncoming recession.
An economic pull-back could prompt the Fed to lower the fed funds rate. The Fed could even make mortgage rates artificially low like it did in the wake of the 2008 crisis.

For homeowners who just want to refinance, a 2020 rate drop might be worth waiting for. But for a homebuyer, it could backfire. Home prices could be 10 percent higher by then, negating any rate savings.

Think you’ll be buying in the next couple of years? Today’s rates may be the best we see.

[Benny003]

Originally Posted by 42graystreet

Should I hold off on plans to buy a house in 2019 and hope for a recession and reduction of interest rates? Feels like a bad time. Interest rates are too high (according to some), the economy is teetering, the stock market is "correcting," home prices are sure to follow if I give it enough time.

We're basically at peak market right now. Houses are expensive and interest rates are creeping up at the same time. There will be another recession in the next 2 years or so. The housing market is already starting to cool, but might still take a while. The reason to wait would be because housing prices will probably come down. Interest rates will probably be going up for a while and might stay there depending on how bad the recession is. Basically, interest rates will keep going up (or at least stay the same) until we have a really bad recession. I'm no expert at all, but I don't think now is a great time to buy a house unless you live an area that hasn't been hit much by fluctuations. However, what usually makes the most sense is to just buy when you need a house. If you're doing it for an investment, maybe wait. If you're doing it because you want to build a household and family, then probably do it now. You could always refinance to a 15-year mortgage in the future to bring your interest rate down.

For reference, I bought my first house in 2008 in the heart of the downward slide of the recession. My interest rate was 5.875%. I thought I was good buying then since the recession was hitting hard. Housing prices went way down after that and, obviously, so did interest rates (we refinanced to a 15-year mortgage in 2010 and bought a new house in 2015 at 3.875%). So you could wait for a recession to get cheaper, but it will probably be a few years if you're really trying to get a deal.

[RiotAct]

Dow is down another 500 so far today.

"Sometimes I feel like I'm falling..."

[42graystreet]

Originally Posted by RiotAct

Dow is down another 500 so far today.

"Sometimes I feel like I'm falling..."

Up 250 since you posted!!!!

[RiotAct]

Originally Posted by 42graystreet

Up 250 since you posted!!!!

ooh I should post in here more often!