Savings/Investments Survey

iVillage Member
Registered: 03-26-2003
Savings/Investments Survey
11
Wed, 11-21-2007 - 10:43am

I know money is very personal to us, but I'd appreciate hearing from others. I want to be more in control of my future financially I'm curious what others are doing with their money. I feel kinda clueless on what to do with the money I'm making/

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iVillage Member
Registered: 10-14-2001
Wed, 11-21-2007 - 1:14pm

I am not going to answer the questions because my situation is very different from most.

Soliel
iVillage Member
Registered: 08-16-2005
Wed, 11-21-2007 - 1:39pm

Well I just recently moved home because I want to save for a house and unfortunately there is just no way with the area of the country I live in and being single paying rent, paying off debt and trying to save for a down payment is it feasible so I sucked it up and asked to move home for a bit to save.


However I do save, I put 6% a paycheck in my 401k which is yielding me quite a bit, I do manage it myself and I keep a close eye on it, moving funds around as I see fit, most of it is in pharmaceuticals, oil, electronics and software...and a minimal amount is in very high risk.


I also put away 130 dollars a paycheck into a standard savings account in an ING account which yields a higher interest rate than a regular savings account.


All my credit cards are 0% right now, while I'm trying to pay off the last bit of some debt.


That's about it. I do not have rent right now, while I'm saving for a downpayment. I pay my parents for bills around the house. Groceries, electric and any additional expenses I add.

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Smile,

Deirdre

iVillage Member
Registered: 11-01-2005
Wed, 11-21-2007 - 3:50pm

In addition to reading good financial books, as a PP suggested, I know most financial planners will schedule a free, first-time consultation with you. That may open up some new ideas.

Me, in a nutshell:
Bought a house last year, so have a mortgage but believe real estate is a sound investment. I plan to rent it out when I move and/or get married.


I put $$ in a 401k - work matches up to 4%, have an IRA (rolled over my 401k from a previous job), keep some padding in a regular savings account (so I have access to it in an emergency), set some aside in short-term CDs. All financial experts will tell you to diversify - so yes, mutual funds, stocks, bonds, etc. - as well as real estate and other assets.

AJ, enjoying life with C.

iVillage Member
Registered: 11-17-2007
Wed, 11-21-2007 - 6:03pm
In addition to what TGC said, also consider Municipal Bonds. You won't get a quick return but it's generally not subject to federal income tax. Always look for ways to keep the ugly money grabbing hand of the federal govt out of your back pocket. That could account for a lot. If that (rhymes with witch) gets elected next year, expect capital gains(among hosts of others) tax to go up significantly, affecting your investments.
Avatar for floridagirl52
iVillage Member
Registered: 10-16-2006
Wed, 11-21-2007 - 6:25pm

First of all, congratulations for thinking about money and investing. So many young women do not, and are waiting for a man to come along and save them. Here's the deal: even if you do get married, you are going to need BOTH of your retirement funds to make it.

I'm not going to share specific numbers, but here goes:

I'm 53 and self-employed for the last 4 years. I was married for 4 years about 100 years ago and we were saving in his retirement fund at work. I took a portion of that when we divorced (it wasn't all that much). When I had an employer, I contributed the maximum amount into my 401(k). The employer match is a wonderful thing, so take advantage of that when you can. And because of the wonder of compound interest, the younger you start, the more you will make.

I began my own retirement savings when I was 35. Wish I had started sooner, but I'm doing OK.

I bought my own house in 1990 and it is paid off. It was a fixer-upper and I got it at a really great price, so it wasn't that big of a deal to pay it off. You can never go wrong with real estate as long as you don't pay too much for it.

My income allows me to save and to invest in my retirement fund. As a self-employed person, I have a SEP IRA with T. Rowe Price and I put the maximum amount in that I can deduct from my earnings. Rule of thumb that I have heard: have a savings account with 6 months salary saved. After that, you can invest.

I have about half of my savings in CDs. The other half is in a money market account. I also bought a couple of mutual funds about 12 years ago (through the advice of a financial planner). When the market took a dive in 2000, I stopped contributing to it, have thought of cashing it out and putting it into a long term CD (although it has recovered nicely).

I am not in debt at all and never have been other than when I had a mortgage and previous car loans. I pay off my credit cards every month, and I have no other loans. I paid cash for the car I bought last December. I believe in living below your means. But I also think life is not worth living if you can't enjoy your money, so I have treated myself to travel and other things...but never placing myself in a precarious financial situation.

A really good book is Andrew Tobias' "The Only Investment Guide You'll Ever Need" (or something like that). It's actually very entertaining and well written. Suze Orman is also a great source, although I've never read any of her books.

I'm not that up on "investing" meaning investing in stocks outside of my retirement account. One of the ways that T. Rowe Price works is that you tell them what year you want to retire and they invest your money accordingly. When you are younger, you can afford to invest in "riskier" funds; as you approach retirement age, they move your money into "safer" funds. The mistake that some people make is not taking enough risk when they are younger. I took a 3-night class at a local university in investing that really opened my eyes to money...perhaps there is something in your town like that? In terms of a return on your money, their advice was to make at least 8% on your money...but this is averaged out over time and hard to predict. But investing in stocks is about the only way to make this kind of return.

More advice: don't ever invest in anything that you don't understand. Basically, stay out of debt, contribute the maximum to your 401(k), have a rainy-day savings account and buy a house or condo. And don't be surprised if men want you for YOUR money!

iVillage Member
Registered: 10-14-2001
Wed, 11-21-2007 - 6:27pm

Gee....I am guessing you don't like HIllary too much?

Soliel
iVillage Member
Registered: 10-14-2001
Wed, 11-21-2007 - 8:29pm

I have to say this has happened to me and it's not a fun feeling.

Soliel
iVillage Member
Registered: 11-17-2007
Fri, 11-23-2007 - 11:18pm
>>I am guessing you don't like HIllary too much?



How did you guess ?



>>Taxes are a drag.... they sneak in more and more ... It is a money grab most of the time.



Taxes aren't so much about the govt needing money for essentials. The govt doesn't need that much money. The treasury is awash in cash ! If every citizen in this country made twice as much, the govt would still confiscate a certain percentage of your income,whether it needed it or not, and gloat about the "surplus" as if it were a huge achievement. And then it would think what to do with it. But by God, if you even think about returning stolen loot to its original owner, then all Hell breaks loose !



The main purpose of taxes is twofold :



1. Controlling behavior : You the people, do as WE (the govt) tell you to do, OR ELSE..



2. Prevent the accumulation of wealth -- because, why, accumulation of wealth is the greatest sin and the greatest immorality in society, except when it belongs to elite trust funders in the North East. Wealth, by definition, automatically belongs not to its creator, but to our 'benevolent caretakers'.


Edited 11/23/2007 11:37 pm ET by hillaryh8er
iVillage Member
Registered: 07-13-2007
Sat, 11-24-2007 - 1:11pm

I

We in America do not have government by the majority. We have government by the majority who participate.
iVillage Member
Registered: 03-26-2003
Sun, 11-25-2007 - 10:41pm

Thank you for your feedback. It is interesting to hear what others are doing and gives me food for thought. I'd welcome any other replies.


Michelle

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