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tthomass
10-29-2006, 10:04 PM
Do any of you invest company $ in any way? Cd's? Mutual funds?

Once I have the extra available this spring vs saving for trucks etc I plan to invest portions of company $ for additional financial gain.

turf dog
10-29-2006, 10:20 PM
Before you invest in company money, you need to figure out your liquidity needs. Alot of investments have either a front end charge or back end sales charge. Usually your best bet is a Money Market account to gain a little better interest on your money with no sales charges.

causalitist
10-31-2006, 05:46 PM
your choice as far as what type of thing to invest in is dependent mostly on how long you will keep the money tied up for. here are some genral time frames:
1. savings account... for money needed/maybe needed in 3 years or less
check out EMIGRANT DIRECT.com they have 5.05% interest savings account with no minimums or fees of any kind, and u can get at your money anytime. it links up to your checking account for trsnsfers. i have one, nothing but good. capital one has almost as high a percent.

2. bonds/cd's.. for money needed in 3-4 years or less(or when the cd ends).. at this point the savings account above, as well as one offered by capital one offer interest rates high enough so bonds/cd's arent that attractive. you may however want to hold some along with your stocks if your a wimp. in which case: agg(a mix of many bonds of different duration)
tip(inflation protected tips bonds)
tlt (long duration bonds)
AGG is the norm.. as it is a good mix of all durations.

3. stocks.. for money needed AFTER at least 5-10 years.. this is where you will get high growth, but short term flucuation. never buy a mutual fund with a sales load. I suggest ETF's(exchange traded funds). they are index funds that trade like stocks, with very very low expenses. they are a great choice if you are not tempted to trade them.. and instead just hold em and forget em. the market can lose 50% in a given year, but averages about 10%.. stick with broadly diversified funds covering the entire world market. you can own the majority of stocks in the world with these:
VTI ... the entire american stock market as measured by the wilshire 5000
...4 year performance of america (this fund) about 70%
expense is .07% per year.

EFA.... the other developed country besides america
.... 4 year of this about 125%
expense is .35% per year.

EEM.... most undeveloped countries
.... 4 year is about 210%
expense is .75% per year emerging markets(eem) are usually held in small amounts.. these funds flucuate alot, but it reduces portfolio flucuation and increases performance to hold a small amount of this.. such as 5-10%

stick with low priced online brokers such as firstrade. invest in $1000+ lumps when u got it. set a definite plan and STICK TO IT. most investers get waayyyy less returns than the general market provides besause they trade in and out when things get bad.. dont do this. just hold.. this is long term money, so short term flucuations dont mean anything.

you most likely will want 3 tiers of money.. a savings account for money needed really soon, a cash brokerage for stocks/bonds that you get taxed on, but get to withdraw on that rainy day 15 years from now, or whenever u want.. and lastly a tax sheltered roth ira for the long haul.
hope this helps.
and keep in mind that the funds i reccomended are simply market indexes, they are not "hot picks".. they are generic, boring, fully diversified, cheap index funds. ALL acedemic research over the last century supports index funds as the highest returning over time. the most boring way turns out to be the best lol... you could always opt for the index mutual fund versions of these indexes, witch is really the same thing... exchange traded funds are better if you can invest in large infrequent lumps.. index funds are good if u want to put 50 bucks a week in.

olderthandirt
10-31-2006, 05:50 PM
YES it called a retirement account and you better invest in it or plan on working till you die

tthomass
10-31-2006, 06:13 PM
i have an excellent head start on retirement, not the issue though i am looking into Roth's since the current $ is in stocks

what i was thinking more of is investing company $ for company growth, not personal growth

simple example: put in $5,000 and say 3-5years down the road say it is worth $6,000 pull it and use as a downpayment on a truck etc.......you just maid $1,000 from having your $ work for you

we (well most of us anyway) probably have a nice little nest egg in a company account, why not have it growing while it is in the account is what i had in mind

causalitist
10-31-2006, 09:40 PM
ok then sorry for the long post... i'd say capital one or emigrant direct savings.. both are around 5% with no minimums or fees at all.

tthomass
10-31-2006, 10:15 PM
i think its presidential..........open a checking account with $1,000 min balance and earn interest each month........i want to say its 3%??? i just remembered them, didn't do it before because i worked for pennies and couldn't set $1,000 aside

no, that was a good post, thanks!

topsites
11-01-2006, 02:42 AM
ok then sorry for the long post... i'd say capital one or emigrant direct savings.. both are around 5% with no minimums or fees at all.

Yeah, I really enjoy CapOne's High Yield Money Market Account, it's purely electronic (online transfers only), no checks, but:

- First, I set up an automatic monthly transfer FROM my business account TO my CapOne acc't.
- Then I set up another transfer TO my personal checking FROM Cap1, monthly recurring as well.
Voila, I got Direct Deposit LOL!

No more paychecks to write to myself, no more stopping by my bank to deposit, life is grand.

In addition, I dump next winter's money into the Cap1 acc't, every 3 thousand dollars in there earns about $11 / month in interest...
May not sound like much, but by end of year I'll have earned close to $200 in interest alone.

////////////////////

You might also check out this next bit, but I'm still very leery about it, it's pretty high risk...
Translation: EVERY single investment is anywhere from twice to ten times as risky as what a bank would do for the same person in the same situation.
Cash investment loans are among the riskiest in the nation, comparable to student loans which default 10%-20% of the time.
You have been warned.
Anyway, it's Prosper (http://www.prosper.com/)

olderthandirt
11-01-2006, 08:13 AM
i have an excellent head start on retirement, not the issue though i am looking into Roth's since the current $ is in stocks

what i was thinking more of is investing company $ for company growth, not personal growth

simple example: put in $5,000 and say 3-5years down the road say it is worth $6,000 pull it and use as a downpayment on a truck etc.......you just maid $1,000 from having your $ work for you

we (well most of us anyway) probably have a nice little nest egg in a company account, why not have it growing while it is in the account is what i had in mind


I use a money market checking account with a min. balance of 25K. It fluctuates with the market OR I can lock in and intresr rate. Right now its 5-1/4 %.

But I think if you can afford to stash 5-10 k in savings for 3-5 yrs that you don't need it for business. 3-5 yrs is a long time to save up another few thousand for any business expenses incurred

causalitist
11-01-2006, 08:47 PM
You might also check out this next bit, but I'm still very leery about it, it's pretty high risk...
Translation: EVERY single investment is anywhere from twice to ten times as risky as what a bank would do for the same person in the same situation.
Cash investment loans are among the riskiest in the nation, comparable to student loans which default 10%-20% of the time.
You have been warned.
Anyway, it's Prosper (http://www.prosper.com/)

hmmm. wow.. thats a pretty neat site! interesting concept. very interesting. i might try that out with a very small bit of money. its neat how your able to just lend $50 to someone and $50 to someone else..

MMLawn
11-01-2006, 08:55 PM
ok then sorry for the long post... i'd say capital one or emigrant direct savings.. both are around 5% with no minimums or fees at all.



EmigrantDirect Savings accounts can only be funded through a Personal checking acct. They cannot accept a business acct funding.