bank advice

[sreal]

i got about 10-15k that i am trying to put into a savings account. I want to discourage myself from taking money out of it and i also want it to gain interest at a reasonable rate. I was thinking of opening up a wells fargo savings account tomorrow but wanted to hear what everybody had to say.

 

[yeezusdisciple]

Thats enough for a used beamer

 

[waitwut]

Cocaine and prostitues op thank me later

Pusha would be proud

 

[yeezusdisciple]

Cocaine and prostitues op thank me later

Pusha would be proud

Pusha dont mess with prostitutes

He aint dirty like dat b

 

[siete tres]

Invest with me. Google my company "Gold Street Capital"

 

[based mod]

i got about 10-15k that i am trying to put into a savings account. I want to discourage myself from taking money out of it and i also want it to gain interest at a reasonable rate. I was thinking of opening up a wells fargo savings account tomorrow but wanted to hear what everybody had to say.

Don't know your situation, but I can almost guarantee that any savings account won't get you a "reasonable rate." Do more research.

 

[fourtyeight48]

Lemme hold like 2k and i'll double it for you.

 

[nazdrowie]

interest rates (LIBOR and Prime) are low, very low...its a good place to hold money but you won't see any money made while holding cash in one

 

[kidkidd]

I work for wells son, an I'd be the first to tell you not to open a savings there. Tbh don't look forward to making money off interest with any big bank, they flip your money 3 times over an leave you with ****. Not sure in which state you live but visit a credit union their rates are usually way better then big banks

 

[debso]

I cosign what kidkid said. I work for wells as well and yeah.

Have you thought about investing?

 

[sreal]

i wouldn't be opposed to investing but since this money isn't technically 100% mine, I would like it to be somewhere where there is almost no chance of losing money, only gaining, even if the interest rates aren't very high. Pretty much, I just want this money to be safe, sort of like an emergency fund but I don't want it to just sit.

 

[pdino]

ROTH IRA:

Retirement account- you can withdraw contributions (not $ your contributions made)

no penalties or taxes on withdrawing for house down payment up to 10k

no penalties or taxes on withdrawing for school for you, your spouse, children

Interest rates are usually around 6-8%

Bonds/stocks, you can choose, or leave it in the hands of your investor.

look into it

 

[sneaks89]

 
ROTH IRA:

Retirement account- you can withdraw contributions (not $ your contributions made)

no penalties or taxes on withdrawing for house down payment up to 10k

no penalties or taxes on withdrawing for school for you, your spouse, children

Interest rates are usually around 6-8%

Bonds/stocks, you can choose, or leave it in the hands of your investor.

look into it

What's the difference between a traditional IRA and Roth IRA?

 

[flyny]

Annuities
Investments in the stock market

Nas said it best...
"Let my cash invest in stock/came a long way from blasting tecs on the block"

 

[pdino]

 
What's the difference between a traditional IRA and Roth IRA?

Traditional lowers your adjusted gross income, and is tax deductible. -- The gov't says okay, we see you put money in your retirement account, we're going to say you didn't make that money --> thus lowering your taxes. However, this $$ isn't taxed on until later. So, you start saving when you're 20 years old your in the bottom tax bracket making 20k annually. 30 years later you've saved 100k and lowered your taxes by investing in traditional IRA, but now you're making six figures. You take out your $, but now tax rates are up, and your tax bracket is higher.

ROTH IRA your money is already taxed on, but it's not a tax deduction for that year. Using the same example you take out your 100k, and you get your 100k, because it was already taxed.

Both IRA types have income limits:

I think its <80k for traditional to still get the benefit. 70-80k is "phaseout" range where you get less of deduction from taxes

Roth is <114k

Contribution limit is 5,500$ per year

 

[based mod]

Considering how he wants this to be 100% liquid and 100% safe, and the contribution limit is more than what he wants to put in, Roth would be a no go.

 

[sreal]

is there a minimum contribution to IRAs? and also, i am in my early twenties, so planning for my retirement isn't something ive put much thought into, so is an IRA strictly for those preparing to retire or is it also used by those who just want to put their money in a higher return savings account

 

[sneaks89]

 
is there a minimum contribution to IRAs? and also, i am in my early twenties, so planning for my retirement isn't something ive put much thought into, so is an IRA strictly for those preparing to retire or is it also used by those who just want to put their money in a higher return savings account

No minimum.  Also in my 20's and just began funding my IRA (Traditional) last year,.  My first deposit was only $20, try to deposit once a month.

I use Fidelity which is also what my vested stock is through my employer.

 

[astroblack]

Noooooo! Former wells fargo employee here. WF has terrible rates and fees on damn near everything. Check out Ally or Capital One. I heard they have good rates.

 

[flyny]

No minimum.  Also in my 20's and just began funding my IRA (Traditional) last year,.  My first deposit was only $20, try to deposit once a month.

I use Fidelity which is also what my vested stock is through my employer.

You in your early 20s and have 15k saved up?
Good ****

 

[sneaks89]

 

No minimum.  Also in my 20's and just began funding my IRA (Traditional) last year,.  My first deposit was only $20, try to deposit once a month.

I use Fidelity which is also what my vested stock is through my employer.

You in your early 20s and have 15k saved up?
Good ****

Nah I don't have 15k in my IRA. I just hit my saving wave in 2013, cut a lot of my spending.

I try to keep my emergency fund, savings account, and IRA all around the same amount.  Putting my cash in 3 pots is helping me stash loot though.

 

[shake]

 
i got about 10-15k that i am trying to put into a savings account. I want to discourage myself from taking money out of it and i also want it to gain interest at a reasonable rate. I was thinking of opening up a wells fargo savings account tomorrow but wanted to hear what everybody had to say.

put $5k in a Roth IRA. 40 years down the road you'll appreciate it.

 

[tktran]

 
put $5k in a Roth IRA. 40 years down the road you'll appreciate it.

Yes, it's best to maximize your contributions to both your IRA and 401k (if you have one through work) accounts if you're making enough. Don't underestimate the power of compound interest.

However, since the OP is looking for a decent rate of return, I would NOT suggest a savings account through a large bank. The interest rates on these are terrible. You'll be lucky to get above a .01% interest rate. They also tend to charge maintenance fees to keep the account open.

If you're looking for something that provides a better return, while retaining some form of liquidity, go with a savings account through a Credit Union. They tend to have higher interest rates. I actually have my emergency fund savings in an online savings account through Ally that has a .87% APR. 

Don't rush into it without doing your research. This is YOUR money, so don't feel pressured by any banks to make a quick decision. 

 

[luckyluchiano]

So outside of IRAs (plan in doing one soon) and 401k (already do this via work), what else you guys recommend?

 

[pdino]

So outside of IRAs (plan in doing one soon) and 401k (already do this via work), what else you guys recommend?

Max out IRA, Max out 401k, you'll be good in retirement.

Other good deals, if you're in school. Check out your state's college saving 529 plan. Some plans MATCH certain amounts you put in to the fund. If you're saving for yourself or your child, why put 500$ into savings when you can put it into this account and have them match you.

Here's a link to Arkansas:http://www.savingforcollege.com/529_plan_details/index.php?page=plan_details&plan_id=4

Also, The gov't wants you to save. If you make under certain incomes they will MATCH your retirement contributions up to a certain amount just for saving.

From the IRS website: "Credit amount If you make eligible contributions to a qualified IRA, 401(k) and certain other retirement plans, you may be able to take a credit of up to $1,000 or up to $2,000 if filing jointly. The credit is a percentage of the qualifying contribution amount, with the highest rate for taxpayers with the least income."

here's the link for details from the IRS website:http://www.irs.gov/uac/Get-Credit-for-Your-Retirement-Savings-Contributions