[hanzahar]

buy gold hehe

[ChaseManset]

Originally Posted by youngmarketplace

Depends if it is making any money. Mine makes 9% in the bank.

9% APR in your bank account...

I highly doubt this.

Investors strive for a 10%-15% return.

Maybe I need to change banks.

[rekid]

Originally Posted by WanganRunner

I keep lots of money in the bank, but that's because I need the flexibility of cash to buy my inventory (cars, mostly in private party transactions).

I have a continual use for about $100,000 in cash. Right now, I've got about half that, so I figure I'm only doing about half the business I could be doing (although at the moment, I'm actually more limited by time, but that's temporary).

If I ever got over $100k in cash, I'd find some alternative uses for it.

if I get into reselling exotics, I'll be able to utilize more like half a million bucks in cash, but I'm still evaluating that market to see if the margins make it worthwhile, given that it's so much more money on the line for each car.

The trick is to buy the cars from stressed-out rich guys who need to pay their gambling debts/coke tabs/ex-wives. They can't take a Lamborghini to CarMax and get a quick sale, and the open market for exotics takes forever to sell anything. I plan to fill this need by being the guy who can show up with a $350,000 cashier's check and a flatbed truck to take away your XJ220, '53 Corvette, or for that matter....your Scarab offshore powerboat.

Nice approach...I Like...

[The Stealthy One]

Originally Posted by crud3w4re

Is money in the bank a waste of money? I read that in an article. If so, what are safe investments that aren't a waste?

In my opinion, it depends on the bank. In a traditional bank, I do believe it is a waste of time and money, as the interest earned is typically less than the inflation rate.

However, online banks such as EmigrantDirect (among others) offer interest rates in the high-4 and up range - this is quite reasonable, in my opinion, and if you're looking for a "safe" investment, that's about as safe as it gets.

Part of my plan for the future is to put away $200 a month into a high-yield savings account like this, and not touch it until 30 or 40 years down the road. Due to the effects of compound interest, it will become quite a large sum of money!

[4strings]

Originally Posted by youngmarketplace

Depends if it is making any money. Mine makes 9% in the bank.

no way. how? where? what bank?

[4strings]

can someone elaborate about these online bank accounts such as etrade? how come the rates are so much higher?

[BOG]

Originally Posted by WanganRunner

The trick is to buy the cars from stressed-out rich guys who need to pay their gambling debts/coke tabs/ex-wives. They can't take a Lamborghini to CarMax and get a quick sale, and the open market for exotics takes forever to sell anything. I plan to fill this need by being the guy who can show up with a $350,000 cashier's check and a flatbed truck to take away your XJ220, '53 Corvette, or for that matter....your Scarab offshore powerboat.

That's your plan? Buy from stressed out rich guys? Do you even know any stressed out rich guys? You do know that any exotic car dealer will glady write someone a check for their car if they want, don't you?
I can tell you now, you're going to fall flat on your face and lose a fortune unless you have built up a reputation and relationships with customers. You're not flipping Dodge Durangos here.

[BOG]

Originally Posted by youngmarketplace

Mine makes 9% in the bank.

Total jive.

[LiL1Penny]

Originally Posted by WanganRunner

I keep lots of money in the bank, but that's because I need the flexibility of cash to buy my inventory (cars, mostly in private party transactions).

I have a continual use for about $100,000 in cash. Right now, I've got about half that, so I figure I'm only doing about half the business I could be doing (although at the moment, I'm actually more limited by time, but that's temporary).

If I ever got over $100k in cash, I'd find some alternative uses for it.

if I get into reselling exotics, I'll be able to utilize more like half a million bucks in cash, but I'm still evaluating that market to see if the margins make it worthwhile, given that it's so much more money on the line for each car.

The trick is to buy the cars from stressed-out rich guys who need to pay their gambling debts/coke tabs/ex-wives. They can't take a Lamborghini to CarMax and get a quick sale, and the open market for exotics takes forever to sell anything. I plan to fill this need by being the guy who can show up with a $350,000 cashier's check and a flatbed truck to take away your XJ220, '53 Corvette, or for that matter....your Scarab offshore powerboat.

XJ220 nice... that's definately my dream car in case you can't tell. Keep me informed when you run across one in the future. Half of me says I have the money now so I should get one. The other half says it's just too ridiculous of an invesment. Need to make a few more million before I go throwing my money away like that. Damn it's annoying being responsible.


Anyways...I think it really depends on how much money you have or how quickly you are going to need to use and access the money. If you have a LOT of money just sitting in a bank account then definately invest that shit. If you are constantly circulating money in and out of your account then definately a bank savings account. If you don't need the money for anything might as well invest it in a CD or Moneymarket account (4-5% return) to be on the safe side. If you want to be a little more risky with it then invest in mutual funds or something. Now is definately a good time to be invested if you have the money to invest. I personally am earning around 16-17% on my mutual funds and thats with half in less risk and half in moderate risk funds. But I don't need that money right now so I can afford to let it sit and earn.

I would just suggest to get out your calculator and do the math and determine if the ROI for the time you would have it invested would be worth it.


p.s. No way in hell there's a savings account that's earning 9%...

[pbradish]

Originally Posted by crud3w4re

Is money in the bank a waste of money? I read that in an article. If so, what are safe investments that aren't a waste?

Every investment is safe as long as you know what you are doing. Go ahead and invest in your financial education (books, tapes, mentors, elders) first before asking a message board full of teenagers and 20somethings on how to invest. I'm not saying that people here don't know what they're talking about - because some do - but don't walk into an investment strategy without a good grasp of what is happening.

[rpendery2006]

There is a pretty standard inflation rate that has been published more recently by the government of 4%. This goes up and down month-to-month and pretty much up year to year. Many savings accounts at regular banks have an interest rate of 2% or something like that. You loose money in the end. (In this case, you might as well keep it in a checking account).

The problem is for example if your account is making 4% interest, then the inflation cancels that out and then you have to pay taxes on the interest that was earned, thus putting you down on money in the end.

Definitely want to find accounts that would give you higher rate than that.

I would watch the claims that the accounts make as to what their % is though, many scams out there.