Investing megathread extravaganza

[DaFace]

A place to talk about investing stuff.

[lewdog]

Originally Posted by wutamess

Well... I've come to the realization that other than a layoff, having to take an emergency trip or pay for a funeral (Which I just paid for my fathers), I just don't need much more than $2000 in savings.

I keep $2-3K in savings/emergency account, then max out ROTH IRA contributions as it's a secondary savings and then the rest goes to an out of pocket/regular investment account. The 6+ months emergency fund is in the Roth IRA since withdrawals aren't taxed or penalized (which I've never had to draw on).

Is any of this a bad idea?

No, nothing wrong with this idea and it's exactly what I was talking about.

Although I definitely like to keep more on hand for emergencies than $2k. Car repair, pool repair, AC repair, home maintenance projects, buying furniture, those can easily run close to or over $2k at a given time. I'd treat the Roth emergency more like a $5-10k+ type of emergency myself but plenty of people do just what you're saying and really have a low amount of money in savings accounts.

[Discuss Thrower]

Originally Posted by Buehler445

I'd keep more out than that. Engine/transmission, HVAC, roof leaks, etc will cost you more than that and getting loans out on that shit is sketchy.

Money Market or continually roll over some short term CDs..?

[eDave]

Originally Posted by LoneWolf

No money, Mo problems.

FYP

[wutamess]

Originally Posted by Buehler445

I'd keep more out than that. Engine/transmission, HVAC, roof leaks, etc will cost you more than that and getting loans out on that shit is sketchy.

I have Roth contributions I can tap into that gets put into my account overnight if I need it. Roof has a lifetime warranty HVAC will cost me $1800 to get replaced. Furnace is 5 years new. Engine/Transmission, I'd tap reserves.

[lewdog]

Originally Posted by wutamess

I have Roth contributions I can tap into that gets put into my account overnight if I need it. Roof has a lifetime warranty HVAC will cost me $1800 to get replaced. Furnace is 5 years new. Engine/Transmission, I'd tap reserves.

Have you ever actually tapped your Roth? I worry it's not as seamless as it seems. Then again, even if it takes 2 weeks, you could always charge it and pay it off in full once the money arrives I suppose.

[Discuss Thrower]

Obviously the opposite of investing and being money savvy, which credit cards are y'all using? Any good perks / rewards out there beyond the ones the churner cokeheads are angling for?

[Amnorix]

Originally Posted by Discuss Thrower

Obviously the opposite of investing and being money savvy, which credit cards are y'all using? Any good perks / rewards out there beyond the ones the churner cokeheads are angling for?

I like simple. I'm sure there are cards that you can "work" to get better rewards out of them, but I don't have time/patience for that.

Therefore, Fidelity Visa. No annual fee and 2% cash back on everything I buy, which gets automatically deposited into whatever Fidelity account(s) I choose, which can include a kid's UFund (529 Plan) account.

EDIT: And, btw, I don't think using a credit card isn't money savvy. I think it is, SO LONG AS YOU PAY THE BALANCE IN FULL EVERY MONTH WITHOUT FAIL. Which you absolutely must do. If so, then they basically pay YOU interest for them giving you a loan. Yes please...

[lewdog]

Originally Posted by Discuss Thrower

Obviously the opposite of investing and being money savvy, which credit cards are y'all using? Any good perks / rewards out there beyond the ones the churner cokeheads are angling for?

I have a US bank cash back card. Select categories are 2% for clothes, groceries, gas and furniture. 5% for something like a cellphone bill. 1% everything else. I take cash back at end of year, with last year was over $600. People don't realize this is also tax free money, and since I am paying it off every month (no interest), this is a better way to earn money then something like a CD which ties up money and would cost me investing $60k on a 1% rate to make $600 back in a year.

Charging everything is a no brainer if you have the discipline to stick to a budget and know your finances. If you can't pay it in full every month, don't do this.


/soap box

[Nirvana58]

Originally Posted by Discuss Thrower

Obviously the opposite of investing and being money savvy, which credit cards are y'all using? Any good perks / rewards out there beyond the ones the churner cokeheads are angling for?

Citi Double Cash gives you 2% back on everything. 0 annual fee's and has an 18 month 0% apr. That is currently my favorite credit card. Only problem is if they increase your credit limit they make you wait 6 months to increase it again. Which can be a pain if you are using for Business transactions.

Chase Slate has 0 transfer fees and I believe 18 month apr. It is really good card to transfer a high interest credit card too.

Amazon rewards card gives you 3% cash back on all purchases from Amazon. So if you are a prime member or order a lot of stuff off of Amazon it definitely comes in handy. No Annual Fees

Chase Freedom does 5% cash back on revolving 3 months categories. It can be pretty nice if when they do an Amazon, Grocery Store, or Gas. Plus they give you I believe 100 or 200 dollars back if you spend a thousand the first month. No Annual Fees

[Discuss Thrower]

Originally Posted by Nirvana58

Amazon rewards card gives you 3% cash back on all purchases from Amazon. So if you are a prime member or order a lot of stuff off of Amazon it definitely comes in handy. No Annual Fees

Fffff****, I should have applied to this one before I ordered my books for the semester.

[Jewish Rabbi]

Fidelity Visa and Citi Double Cash are about as good as they come for those looking to keep it simple. Solid recommendations.

[ChiliConCarnage]

Originally Posted by Discuss Thrower

Fffff****, I should have applied to this one before I ordered my books for the semester.

The prime store card gives 5%. Have to be a prime member. Ive never used it though myself

[Buehler445]

I have a card through my local bank that I use solely for reimbursable expenses. Wife has a Cabela's card she got when we got engaged (she had no credit history at all).

Last year we got a SAMs card because I was tired of dicking with debit cards and shit. They don't take Visa and that's all I had otherwise.

Pretty much chose mine because of convenience and don't want to change for the billion years of credit history I would give up.

FWIW they are all 3 auto debited each month. Highly recommend it.

[Rain Man]

Originally Posted by Buehler445

I have a card through my local bank that I use solely for reimbursable expenses. Wide has a Cabela's card she got when we got engaged (she had no credit history at all).

You better hope your wife never finds out you call her that.

[DaFace]

I'm primarily using a Discover Miles card that they don't offer anymore. $60 annual fee, but straight 2% on everything (assuming you use it for either travel credit or Amazon). I also have an Amazon card for the 3% at Amazon and a Costco card that does 4% on gas, 3% on restaurants, 2% at Costco, and 1% for everything else, but the rewards are only redeemable at Costco.

If people aren't aware of it, Nerdwallet is a fantastic resource for evaluating rewards cards. They have a calculator that lets you tell it roughly how much you spend on various categories each month, and it'll give you suggestions on which cards will net you the most in rewards.

https://www.nerdwallet.com/credit-cards