Best ways to save money

[Zer0xray]

Hey guys i need some advice. im 24 and i've been working for a bout a year now and have some cash saved up in my money market which is like 1% dividends. i wanna know which is the best way to save this money...CDs, mutual funds, bonds, etc...im open to any suggestions. i just want my money to grow.

any help?

[Brian Gee]

Re: Best ways to save money

Always bet on black.

[McLite]

Re: Best ways to save money

In these days and times it's hard to find any sort of safe investment that will give you strong growth. Just look for something that gives you a good return but your money is safe in. I have two savings...Bank of American Investment and Hartford. Hartford does the best...about 12% year to date.

Best bet is call up a bank of your choice...or several for that matter...and ask for an appointment with a financial adviser. I got a guy at Bank of America who sat down with me for 30 minutes and showed me a bunch of options and explained them in normal speak. Didn't charge a thing and was very helpful.

[Lintyfresh85]

Re: Best ways to save money

Roth IRA...

[JohnnytheSkin]

Re: Best ways to save money

IRA's are best though a 401k is fine as well. Seriously, just get the money taken out of your check and evaluate every six months. At 24, go high risk, high profit and ignore the bonds...that's more for preserving your wealth in your old age. The market will usually net you a profit and as long as you don't shift from mutual fund to mutual fund constantly you'll be fine. As you age you slowly shift from the high risk/high gain and go towards the bonds.

They even have "lifetime funds" now that automate the entire process of shifiting your dough to safer options later. Just ask around!

[mjb2124]

Re: Best ways to save money

Roth IRA...

Bingo. Roth IRA's are excellent for young people. 401K's are also great. I have most of my savings/retirement in both of those.

Basically you'll pay the taxes on the Roth IRA the next April. That's going to stink (I've done it with 2 of my Roth IRA's), but whatever the Roth IRA gains in the next 30-50 years (ie: however long you keep your money there) is tax free. With a traditional IRA, you'll pay the taxes on when you take the money out.

Example: You put 20K into a Roth IRA at age 25. You'll have to pay taxes on that the next April. I'm guessing that would be a few thousand. Let's say that amount doubled and grew to 40K by the time you're 60. You won't have to pay any taxes on the 40K.

Same scenario with a traditional IRA. You won't pay taxes on the 20K when you're 25. However, you will pay taxes on the 40K when you're 60. Obviously taxes on the 40K will be higher than taxes paid on the 20K.

Hopefully that makes sense.

[Coach Bryant]

Re: Best ways to save money

401K and Roth IRAs are great!

[Graphik]

Re: Best ways to save money

Get a shoebox. Put a small amount of money in it every time you get paid. Never touch it.

[ODogg]

Re: Best ways to save money

Get a shoebox. Put a small amount of money in it every time you get paid. Never touch it.

I prefer a glass jar myself. One time I saved up $46 in penny and nickels.

[Coug00]

Re: Best ways to save money

Don't get married!

[GenoG]

Re: Best ways to save money

Don't get married!

or have a kid

[mgoblue]

Re: Best ways to save money

Call Geico.


Seriously though, the Roth IRA and 401k options are the best for retirement planning. I would max out your 401k if work offers it, then do the Roth IRA if you still have more to save.

[Graphik]

Re: Best ways to save money

I prefer a glass jar myself. One time I saved up $46 in penny and nickels.

I do coins also. I keep them in a old colonge box. Cointstar is my friend. I once had 30-something dollars when I cashed in some years ago. Its good when you need emergency loot....like for games and alcohol.

[fishepa]

Re: Best ways to save money

If you're going to put money in a shoebox might as well open up an ING Direct Orange account and get 4.5% interest.

[fishepa]

Re: Best ways to save money

I do coins also. I keep them in a old colonge box. Cointstar is my friend. I once had 30-something dollars when I cashed in some years ago. Its good when you need emergency loot....like for games and alcohol.

Coinstar is a sham, don't they charge like 8%? I would roll it up myself and take it to the bank.