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CK82
09-18-2008, 12:55 AM
I am trying to find out what contractors do with there money? At this point I just have my funds in a business checking account, I was looking to invest short term, or get into a money market account of some sort to make some interest. At this point I have a decent amount of funds just sitting around. I currently have a skidsteer payment and a truck payment, both should be paid off in a yearI know that it is always good to have reserve funds in the company account. Any insight would help.

Thanks,
Chris

mngrassguy
09-18-2008, 09:20 PM
I keep my reserve funds in a money market account with the same bank as my checking. If I need it, I just call the bank and transfer it to my checking account.

CK82
09-20-2008, 12:40 PM
That makes sense. I just thought that once in an account such as the money market there are penalties to take it out. At least its that way for a cd account.

mngrassguy
09-20-2008, 06:17 PM
No penalties with my bank but I am limited by the number of withdrawls per month or I get charged a minimal amount.

Lawnworks
09-20-2008, 09:09 PM
You should be able to get 3-4% interest on money market... about the same as a CD, but you are able to access it if crap hits the fan.

causalitist
09-22-2008, 01:01 PM
1. pay off debt

2.for short term cash reserves you MAY need in less than 1 year:
emigrant direct (online) savings account... super high interest, no minimums, no fees of any kind. rate was 5% up until a few months ago when all rates dropped, now its 3% i believe. links up to checking, couple clicks to transfer.

3.for money you may need in 1-5 years:
open a "cash" account with a discount online brokerage, like zecco.com if you have the 2500 minimum, all trades are free, no fees at all.. no joke. or firstrade.com , $7 trades, no minimums or fees. by cash account, i mean, not an ira retirement account. buy SHY or AGG (5 year bonds, lehman bond index respectively)
buy 1 big lump sum. let sit. money can be got at within a week or so if its needed, but it shouldnt be since you have your short term reserves.

4.money needed when you dont feel like working any more:
open roth ira online at one of the above places, buy
ACWI
Which is -MSCI All Country World Index- hundreds of countries, thousands of stocks, 0.35% fee per year.

mngrassguy
09-22-2008, 07:13 PM
1. pay off debt

2.for short term cash reserves you MAY need in less than 1 year:
emigrant direct (online) savings account... super high interest, no minimums, no fees of any kind. rate was 5% up until a few months ago when all rates dropped, now its 3% i believe. links up to checking, couple clicks to transfer.

3.for money you may need in 1-5 years:
open a "cash" account with a discount online brokerage, like zecco.com if you have the 2500 minimum, all trades are free, no fees at all.. no joke. or firstrade.com , $7 trades, no minimums or fees. by cash account, i mean, not an ira retirement account. buy SHY or AGG (5 year bonds, lehman bond index respectively)
buy 1 big lump sum. let sit. money can be got at within a week or so if its needed, but it shouldnt be since you have your short term reserves.

4.money needed when you dont feel like working any more:
open roth ira online at one of the above places, buy
ACWI
Which is -MSCI All Country World Index- hundreds of countries, thousands of stocks, 0.35% fee per year.

Good post...Thanks

lpkatsavage
09-26-2008, 09:06 PM
I keep all income needed to resume ops in a biz checking and all extra I invest in my name. We are not that big though. We only have about 250 reg customers. This way if anything ever happens to the biz, nothing will happen to my money.