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Where to put $20,000?
Old 03-18-2006, 02:12 PM   #1
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Where to put $20,000?

It embarrasses me a little to admit that I have $20,000 and some change in a traditional credit union savings account, but I just do for a lot of dumb reasons. There, now I feel better. I want this to be my six months emergency fund, but I want it working a little harder than it is right now. Suggestions? Thanks.

setab
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Re: Where to put $20,000?
Old 03-18-2006, 02:37 PM   #2
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Re: Where to put $20,000?

I'm perfectly willing to have you store it my checking account. Of course, you must realize, my wife has the checkbook.
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Re: Where to put $20,000?
Old 03-18-2006, 02:39 PM   #3
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Re: Where to put $20,000?

More seriously, place it in a Vanguard mid term bond index fund, a bit more interest and you could write a large check on the fund if needed.
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Re: Where to put $20,000?
Old 03-18-2006, 03:16 PM   #4
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Re: Where to put $20,000?

I have used the Vanguard Prime MMF for many years as my short term accumulation place. No complaints at all. It is currently paying 4.36%. As with most MMF, it comes with a free check book and all of the normal services.
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Re: Where to put $20,000?
Old 03-18-2006, 04:20 PM   #5
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Re: Where to put $20,000?

For short term funds you might check this site:

http://www.money-rates.com/mmarket.htm
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Re: Where to put $20,000?
Old 03-18-2006, 04:32 PM   #6
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Re: Where to put $20,000?

Quote:
Originally Posted by setab
It embarrasses me a little to admit that I have $20,000 and some change in a traditional credit union savings account, but I just do for a lot of dumb reasons.
Buy a five-year (or even a seven-year) CD. You'll earn more than 5% and it's unlikely that you'll have to redeem the money before maturity.

If you break the money into smaller sums, like four $5000 CDs, then you could redeem them one at a time as necessary.
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Re: Where to put $20,000?
Old 03-18-2006, 07:38 PM   #7
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Re: Where to put $20,000?

We use emigrantdirect.com

It is a savings account with no minimum and pays about 4.10% with an APY of 4.25%

Tranfers both directions online from a checking account. With no minimums, we have several accounts open under the same log in and use use one for an emergency fund account and on as an "escrow" account.

(We also use the mastercard for 1.25% cash back when we cannot use our American Express.)

-TB.
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Re: Where to put $20,000?
Old 03-18-2006, 07:41 PM   #8
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Re: Where to put $20,000?

Quote:
Originally Posted by setab
It embarrasses me a little to admit that I have $20,000 and some change in a traditional credit union savings account, but I just do for a lot of dumb reasons. There, now I feel better.
Heh, I've had a nagging embarrassment over twenty bucks I left lying around in a savings account.. My reasons are probably dumber than yours............
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Re: Where to put $20,000?
Old 03-18-2006, 08:45 PM   #9
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Re: Where to put $20,000?

Quote:
Originally Posted by thebacchus
We use emigrantdirect.com
It is a savings account with no minimum and pays about 4.10% with an APY of 4.25%
And now is 4.5%
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Re: Where to put $20,000?
Old 03-19-2006, 08:25 AM   #10
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Re: Where to put $20,000?

How depressing, the rate went UP over the last couple of days and I missed it!

Bummer!

Seriously, if this rate works for you, I can tell you we have been very happy with emigrant. It is very easy to use.

They meet my requirement of never having to leave my laptop. All deposits and withdrawls can be handled electronically and it downloads into quicken easily.

-tb.
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Re: Where to put $20,000?
Old 03-19-2006, 09:10 AM   #11
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Re: Where to put $20,000?

I just checked Emigrant Direct's site, and they have 5% CDs....Looks like 18 months to 10 year maturity.
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Re: Where to put $20,000?
Old 03-19-2006, 12:18 PM   #12
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Re: Where to put $20,000?

Quote:
Originally Posted by Nords
Buy a five-year (or even a seven-year) CD. You'll earn more than 5% and it's unlikely that you'll have to redeem the money before maturity.

If you break the money into smaller sums, like four $5000 CDs, then you could redeem them one at a time as necessary.
.
Nords is right - buy a CD, even a 6 month CD should pay you at least 4.75%.
With interest rates still going up, I'd avoid any bond mutual funds.
.
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Re: Where to put $20,000?
Old 03-21-2006, 04:36 PM   #13
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Re: Where to put $20,000?

Lend your money to a budding real estate investor @ 10%, amortized to 30 yrs, with a balloon payment of the entire balance due in 12 months.

Email me for more info....


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