dna4ever 2 Posted May 9, 2011 Share Posted May 9, 2011 Lets say I wanted to invest $400 - $500/month for the next 18 - 24 months to save for a European Vacation to be taken in summer of 2013. What would be the best vehicle that might provide the best return. I realize it will be fairly minimal any way I go, but if I can get an extra percent somewhere that could make a slight difference.My current savings account pretty much blows chunks:Account Type Savings Interest Rate 0.05% Link to post Share on other sites
brvheart 1,752 Posted May 9, 2011 Share Posted May 9, 2011 Lets say I wanted to invest $400 - $500/month for the next 18 - 24 months to save for a European Vacation to be taken in summer of 2013. What would be the best vehicle that might provide the best return. I realize it will be fairly minimal any way I go, but if I can get an extra percent somewhere that could make a slight difference.My current savings account pretty much blows chunks:Account Type Savings Interest Rate 0.05%Ok, here are a few choices:1. Open a new account with American Express Online. They offer a savings account with 1.15% return, and you can set it up with an electronic transfer, so it's easy to get started.2. Buy a 24 month CD from your bank. (the interest will probably be less than 2%)3. Buy some bonds. (many bonds are virtually risk free and can get you a decent return on investment. ( For instance, these bonds are currently at 4.6% and have a minimum one year term)4. Buy into a good mutual fund. (This is the "riskiest" of the choices, but it's definitely one you should consider. If you buy into a mutual fund (like Ticker Symbol: JNSGX), you won't avoid systemic risk, but you'll be diversified. And this particular mutual fund grew 14.24% over the last 12 months.)5. Take your $500 and bet it on black. 50% chance at 100% ROI. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 Ok, here are a few choices:TY sir! Link to post Share on other sites
dms26 3 Posted May 9, 2011 Share Posted May 9, 2011 Ok, here are a few choices:1. Open a new account with American Express Online. They offer a savings account with 1.15% return, and you can set it up with an electronic transfer, so it's easy to get started.2. Buy a 24 month CD from your bank. (the interest will probably be less than 2%)3. Buy some bonds. (many bonds are virtually risk free and can get you a decent return on investment. ( For instance, these bonds are currently at 4.6% and have a minimum one year term)4. Buy into a good mutual fund. (This is the "riskiest" of the choices, but it's definitely one you should consider. If you buy into a mutual fund (like Ticker Symbol: JNSGX), you won't avoid systemic risk, but you'll be diversified. And this particular mutual fund grew 14.24% over the last 12 months.)5. Once a month, take your $500 and bet it on black. 50% chance at 100% ROI.You could also bet on the Titans to win it all. I'd probably go with #1 though and maybe look into a short term CD when you together 5,000 or so if the interest rate is better. Link to post Share on other sites
mrdannyg 274 Posted May 9, 2011 Share Posted May 9, 2011 Ok, here are a few choices:1. Open a new account with American Express Online. They offer a savings account with 1.15% return, and you can set it up with an electronic transfer, so it's easy to get started.2. Buy a 24 month CD from your bank. (the interest will probably be less than 2%)3. Buy some bonds. (many bonds are virtually risk free and can get you a decent return on investment. ( For instance, these bonds are currently at 4.6% and have a minimum one year term)4. Buy into a good mutual fund. (This is the "riskiest" of the choices, but it's definitely one you should consider. If you buy into a mutual fund (like Ticker Symbol: JNSGX), you won't avoid systemic risk, but you'll be diversified. And this particular mutual fund grew 14.24% over the last 12 months.)5. Once a month, take your $500 and bet it on black. 50% chance at 100% ROI.Unless you are investing other funds as well, #1, 2 or 5 are the best coices. With 3 and 4 you will likely end up paying as much in fees as interest. If you are confident you will not need the money, go for #2. Or better yet, 5. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 Unless you are investing other funds as well, #1, 2 or 5 are the best coices. With 3 and 4 you will likely end up paying as much in fees as interest. If you are confident you will not need the money, go for #2. Or better yet, 5.The thing is this will be a compounding savings deal. Not like I have $10K to buy a 24 month CD up front. I will be adding $400 - $500 every month to this account for a 2 year'ish period. Link to post Share on other sites
hank213 1,823 Posted May 9, 2011 Share Posted May 9, 2011 Ok, here are a few choices:1. Open a new account with American Express Online. They offer a savings account with 1.15% return, and you can set it up with an electronic transfer, so it's easy to get started.2. Buy a 24 month CD from your bank. (the interest will probably be less than 2%)3. Buy some bonds. (many bonds are virtually risk free and can get you a decent return on investment. ( For instance, these bonds are currently at 4.6% and have a minimum one year term)4. Buy into a good mutual fund. (This is the "riskiest" of the choices, but it's definitely one you should consider. If you buy into a mutual fund (like Ticker Symbol: JNSGX), you won't avoid systemic risk, but you'll be diversified. And this particular mutual fund grew 14.24% over the last 12 months.)5. Once a month, take your $500 and bet it on black. 50% chance at 100% ROI.The way I read the original post is that we're starting with 400-500 (the first months deposit) and will be depositing an additional 400-500 every month. Given those parameters I don't think a CD or bond is an option. Wouldn't he have to have a set total that he's looking to receive a return from to use those vehicles?--editgawdamm customer calls making me late post.--edit part deuxnumber 1 is looking like your best option. I don't know of many mutual funds that are going to let you in for under a grand and with the fees etc I just don't think it's a good short term move. Link to post Share on other sites
Skeleton Jelly 2 Posted May 9, 2011 Share Posted May 9, 2011 Gold obviously. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 Email response from my financial adviser that handles my 401K stuff:Sounds like a great Vacation plan and I commend you for actually “planning” to make it happen! Unfortunately, we do not have anything that would maintain a stable principal for a 2-year time horizon. Your current rate is close to the best rate available ( told him about the 1.15% AMX option). I have heard of 1.30% from a bank in Columbia and maybe slightly higher from a quality credit union. However, in order to get a slightly higher rate, many banks will require you to set up checking accounts, or maybe jump through a few other hoops (as the saying goes). I would do a little research on credit unions but you probably need to stay where you are and hope that rates creep up over the next two years.Please let me know if you have any additional questions. I would also be glad to talk with you by phone. Link to post Share on other sites
brvheart 1,752 Posted May 9, 2011 Share Posted May 9, 2011 You can easily buy into no-load mutual funds on a monthly basis and then fees won't matter. Link to post Share on other sites
brvheart 1,752 Posted May 9, 2011 Share Posted May 9, 2011 The way I read the original post is that we're starting with 400-500 (the first months deposit) and will be depositing an additional 400-500 every month. Given those parameters I don't think a CD or bond is an option. Wouldn't he have to have a set total that he's looking to receive a return from to use those vehicles?Yeah, I didn't really read the OP as good as I should have. I thought he was just investing $500 one time instead of monthly. Link to post Share on other sites
brvheart 1,752 Posted May 9, 2011 Share Posted May 9, 2011 Also, bonds are still an option, you just won't be able to buy anymore once you're one year out from your trip. Link to post Share on other sites
hank213 1,823 Posted May 9, 2011 Share Posted May 9, 2011 Here's an idea. Every month go by 400-500 dollars worth of Euros. It'll definitely keep you from raiding the piggy bank and who knows you may even eke out a small return if you exchange some back to dollars to buy your plane tickets etc. With the leftover you can just head out. Link to post Share on other sites
mrdannyg 274 Posted May 9, 2011 Share Posted May 9, 2011 The thing is this will be a compounding savings deal. Not like I have $10K to buy a 24 month CD up front. I will be adding $400 - $500 every month to this account for a 2 year'ish period.I read your original post wrong.Yeah, I didn't really read the OP as good as I should have. I thought he was just investing $500 one time instead of monthly.lolz, me too! I think he performed ninja edits. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 just had my personal banks investment dude call me and is going to send over a fact sheet on some kind of absolute return fund by eaton vance. something about c class, no up front money, just basically cant touch it or withdraw without fees until 1 year has passed from your last deposit so recommended that for first year then standard high yield savings for 2nd year.said hasnt lost money in 10 years, but not designed to yield high returns either. when market was hammered in 08 it was still up 1.7% and when market rocked sometime last year and up 30% it yielded 11%.sounds like a decent option, will check out fact sheet. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 I thought he was just investing $500 one time instead of monthly.that would not even get me to vegas, let alone 10 days in Europe! Link to post Share on other sites
mrdannyg 274 Posted May 9, 2011 Share Posted May 9, 2011 just had my personal banks investment dude call me and is going to send over a fact sheet on some kind of absolute return fund by eaton vance. something about c class, no up front money, just basically cant touch it or withdraw without fees until 1 year has passed from your last deposit so recommended that for first year then standard high yield savings for 2nd year.said hasnt lost money in 10 years, but not designed to yield high returns either. when market was hammered in 08 it was still up 1.7% and when market rocked sometime last year and up 30% it yielded 11%.sounds like a decent option, will check out fact sheet.At the very least, sounds like your banker is pretty good. Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 At the very least, sounds like your banker is pretty good.good investment planner or good sales person to get me to buy into that? Link to post Share on other sites
ajs510 122 Posted May 9, 2011 Share Posted May 9, 2011 How is it that Clark and Ellen never seemed to figure out that they came home with different kids after every vacation? Link to post Share on other sites
dna4ever 2 Posted May 9, 2011 Author Share Posted May 9, 2011 How is it that Clark and Ellen never seemed to figure out that they came home with different kids after every vacation?kinda relevant video I saw on TMZ last week:http://www.tmz.com/videos?autoplay=true&am...b0-90f85649d95dPretty sure Beverly is TRASSSHED Link to post Share on other sites
ajs510 122 Posted May 9, 2011 Share Posted May 9, 2011 Pretty sure Beverly is TRASSSHEDI sure hope so...In other news, I thought Beverly was still married to Pacino but I guess not. Chevy is married though...wonder what she thinks about the Griswolds tearing up the town a continent away from home? Link to post Share on other sites
hank213 1,823 Posted May 9, 2011 Share Posted May 9, 2011 I sure hope so...In other news, I thought Beverly was still married to Pacino but I guess not. Chevy is married though...wonder what she thinks about the Griswolds tearing up the town a continent away from home?Maybe they're in the army so it's not a big deal? Link to post Share on other sites
Dubey 1,035 Posted May 9, 2011 Share Posted May 9, 2011 $10-12K seems like a lot for a 10 day vacation. Planning on living like a king over there? Link to post Share on other sites
hank213 1,823 Posted May 9, 2011 Share Posted May 9, 2011 $10-12K seems like a lot for a 10 day vacation. Planning on living like a king over there?maybe he's planning on bringing back a stable of eastern european hookers. Link to post Share on other sites
brvheart 1,752 Posted May 10, 2011 Share Posted May 10, 2011 How is it that Clark and Ellen never seemed to figure out that they came home with different kids after every vacation?This is actually a running joke in Vegas Vacation. I mean, hell, the girl in Vegas Vacation is Chinese Mexican or something. Link to post Share on other sites
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