money question

[martinss01]

im male, single, and live within my means. because of this things like doing the laundry and cleaning have interesting side effects. i generally find a decent amount of money. in clothes, on random tables throughout my house, in my cars etc.. its nothing for me to accumulate 50 to 80 bucks a week in this fashion. in the past i have simply put it into my checking account and used it to pay bills. but i don't really "need" it to play bills with. it generally ends with me saying to myself "hey, i found that extra 80 bucks... i can afford to buy *insert unneeded item here*". i already have a savings account with a set amount in it for emergencies. im wondering if any of you have any ideas on how i should be investing this money. oh and yes, i have already thought of beer and strippers . i was thinking more along the lines of an account that i could deposite money into as time goes on and retain the ability to take money out but still get some form of a decent return on investment. though i would be willing to accept an account that i couldn't take money out of right away, but i would like to have access to the money within say 5 to 7 years atleast.

 

[CausticMick]

CDs might be an option. It won't give you all of the liquidity you might be looking for (penalty for early w/d). For that, there are some savings accounts that pay 2% or so, as well as money market funds.

Edit: After further thinking, you'd be investing in increments. I'm thinking the MMF or savings account is the only way to go.

 

[scooter1369]

I say you invest in one night at a strip club.

 

[scooter1369]

Or buy season tickets for Football.

 

[martinss01]

i don't think i would mind a cd. i would atleast know when i could take the money out. but are there cd's that you can continually depostie money to? say take out the cd today, and then make a deposite to it next week and so on..? in the cd option, the restriction on not making a withdrawl for a year isn't an issue. but not being able to make any further deposites would be as i don't intend to take money out of my savings account for the cd. and well... i only have about 100 bucks to start with. i just cleaned my place :p.

edit: thanks mr. i, thats kinda what i figured.

 

[CausticMick]

Yes, I actually just edited my post at the same time you posted yours.

 

[Taosman]

Open an on line account with E-Trade. They are paying nearly 5% and you can get your money with relative ease.

 

[Thump]

Maybe a money market but you won't make much.

 

[martinss01]

Open an on line account with E-Trade. They are paying nearly 5% and you can get your money with relative ease.

not a bad idea, but i don't really follow the stock market. seeing as how the money is largely disposable, ie im just going to spend it on something stupid anyway if i don't invest it, this is an option. but i don't see myself spending hours every night researching stocks. i think it is far more likely ill be the fool making everyone else rich.

 

[fourteenandoh]

Try a mutual fund that is indexed to the S&P 500. it will go up and it will go down in the next five to seven years but history suggests you will average about 8%. It's relatively safe and its highly liquid. Any of the big names have these funds; fidelity, vanguard etc etc. (I'm not a financial advisor, but I work in the securities trading industry so I have an idea what I'm talking about)

 

[Taosman]

I'm not saying, buy stock.
I'm saying , give them a call and find out there money market rates.
And see If it will work for you.

 

[CausticMick]

Good idea. An asset allocation fund might be better, though.

 

[BB73]

If you're paying taxes for 2005, and didn't put money into an IRA, you can still do it before April 15th.

It'll save you on taxes, but tie up the money until you're 59 1/2.

 

[FCollinsBuckeye]

If you're young, open an IRA. The little bit you put in now will pay huge dividends when you're ready to retire.

 

[martinss01]

Try a mutual fund that is indexed to the S&P 500. it will go up and it will go down in the next five to seven years but history suggests you will average about 8%. It's relatively safe and its highly liquid. Any of the big names have these funds; fidelity, vanguard etc etc. (I'm not a financial advisor, but I work in the securities trading industry so I have an idea what I'm talking about)

interesting, ill take a look into that. thanks! :)