Question for the financially knowledgable

Henrietta · Post by **Henrietta** » 5/26/2005, 2:01 pm

I was driving around my rural, quaint, booming town today and realized how important a home and land is to me. Yeah, I'm sentimental and nostalgic like that. I was thinking that I should start saving for that, but if I just put it in a regular savings account, then I'll just end up "needing" it and taking it out at a later date. I know they have IRA accounts and such with good interest rates that you can't take out until you're 60, and the same for education accounts. Do they have such things for land and a home? If I just starting putting 10 bucks a week into one that would at least get me started on a lot. Anyone have any clues?

Post by **xjsb125** » 5/26/2005, 2:07 pm

If you want to put some money aside and invest it for future use, I recommend investing in some mutual funds. They are generally safer than just buying stock in companies. You might also stop by your local bank and ask if they have any savings plans. I also know that you can get pretty good rates on new home owner loans, if you have a good work and credit history.

nelison · Post by **nelison** » 5/26/2005, 2:18 pm

ya the best thing to do is go to the bank and talk to them about what you want. Financial consultants will figure out what type of investments suit your needs, plus answer any other questions you have.

Henrietta · Post by **Henrietta** » 5/26/2005, 2:34 pm

Yeah I'm sure they have great rates on loans and stuff...but I'm nowhere near ready to actually buy the land. I just want to start saving the money to do that.

Thanks though, I think I will just swing by the bank sometime soon.

nelison · Post by **nelison** » 5/26/2005, 2:54 pm

well in terms of investments they'll help you save. It doesn't mean you have to take out a loan or whatever. Unfortunately being Canadian I don't know much about American investing so it's hard for me to say what is best to do in the US.

Axtech · Post by **Axtech** » 5/26/2005, 3:45 pm

I don't know if it's different in the US, but mutual funds and RRSPs are good for putting money away to save without having access to it.

Your best bet is to go into your bank and sit down with a financial advisor who can go over the different plans and break them down to simple terms for you. :nod:

Henrietta · Post by **Henrietta** » 5/26/2005, 9:02 pm

Post by **xjsb125** » 5/26/2005, 9:06 pm

Axtech wrote:Your best bet is to go into your bank and sit down with a financial advisor who can go over the different plans and break them down to simple terms for you.

What Robbo is saying, is that he thinks you aren't smart enough to figure it out on your own. Way to be an ass, Robbo. :mad:

Henrietta · Post by **Henrietta** » 5/26/2005, 9:43 pm

<_<

>_>

No, I think that's what you're saying, Matt!

Post by **xjsb125** » 5/26/2005, 9:46 pm

nikki4982 · Post by **nikki4982** » 5/27/2005, 12:20 am

Monkey · Post by **Monkey** » 5/27/2005, 8:26 am

if you have a job, see if they have a 401k. theyll take a percentage of your pre-tax paycheck (mine's 4%, you can adjust up to a company set limit or down to whatever would fit your budget). the company will match a certain percentage of what you put in.... for instance, for every dollar i put in, Staples (who i work for) may put in a quarter. so me putting away a dollar means ive put away $1.25.... times around 15-20 a week... equals roughly $20 a week. i havent invested in my 401k for very long, maybe a year, and i already have $1200-1500 put away.

if you don't have a job, most banks offer IRA's which more or less do the same thing. interest rates vary from bank to bank, and if im not mistaken they can be as good as a 401k maybe even better, but money is only added when you put it in.... vs pulling it out of your paycheck every week so you have a steady flow of money going into it.

if believe you need to be 21 yrs old to have either of these, at least with 401k's. my parents told me to get one as soon as possible. i did the calculations a while ago and if i remember correctly, at my current rate of investment (maybe a point or two higher) i'm gonna have close to a million dollars to retire on.

by the way there's only two occasions where you can withdraw from this account and not be heavily penalized (monetarily) - when retiring or (in your case) when buying property.

this has been your financial lesson for the day.

Axtech · Post by **Axtech** » 5/27/2005, 8:41 am

xjsb125 wrote:
Axtech wrote:Your best bet is to go into your bank and sit down with a financial advisor who can go over the different plans and break them down to simple terms for you.

What Robbo is saying, is that he thinks you aren't smart enough to figure it out on your own. Way to be an ass, Robbo.

Or, I'm saying that, working in a bank, I've seen a lot of young people come in with no idea what they're doing, and come out with a good, solid plan, after talking to someone.

Henrietta · Post by **Henrietta** » 5/27/2005, 12:11 pm

Thanks Monkey!

:lol:

Bandalero · Post by **Bandalero** » 5/29/2005, 8:59 pm

is your dad a veteran of military service? cause if he is, i think there's a program that sells defaulted lands to veterans and their families cheeper than market value.

Henrietta · Post by **Henrietta** » 5/29/2005, 9:36 pm

Nope.

Bandalero · Post by **Bandalero** » 5/31/2005, 12:07 am

all i thought about when i read this topic was when stewie was dreaming of himself on a rocking chair in the south drinking lemonade saying "it's good to own land" :lol:

Axtech · Post by **Axtech** » 5/31/2005, 6:33 am

Who do we know in Larchmont?