Thread: Money How broke are you?
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Old 03-18-2011, 10:30 PM   #360
DaneMcCloud DaneMcCloud is offline
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Join Date: Sep 2000
Location: Hollywood, CA
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Quote:
Originally Posted by BWillie007 View Post
I have 3% checking account, dont normally have that kind of balance though except I just got year bonus at work. My loan interest % is like 2.75% I have no idea how they make any money off me. I leave about 10k ususally in the bank if I need to do maintenance on my house or other property and to self insure myself on my material dmg for my vehicle since I dont waste my money on collision.
You should put your money in a tax free Money Market account if you'd like to keep cash on hand.

Also, I'd avoid "paying off your house".

Most likely, it won't earn you 8-10% per year in the market (if not far more - I earned 28% last year alone). Refi the house to where it's "cheap money" and take the excess and invest it wisely with a good financial adviser.

You'll come out WAY ahead.
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