Nextmanup Posted April 28, 2023 Share Posted April 28, 2023 On 4/27/2023 at 12:05 PM, SDS said: same exact story. Started with the ING account, went to capital one, got shafted with 0.3%. Now I’m in the process of moving out. I wouldn’t have looked into this if they just gave me the 3.5% and now they will be losing all my business because because they gave me incentive to look for something else. The moment my ING Orange (from Holland) turned into Capital One, I was pissed off and knew it wouldn't end well. I'm moving on as well, ultimately. To Augie: it's not that Capital One was actively modifying my account in this market to pay .3%. It's just that this is what it was from another time and they never actively modified it to give me more money. Maybe that is equally outrageous! I was pretty pissed when I noticed my rate was not the going rate. I'm going to look into Barclay's based on your comments! Quote Link to comment Share on other sites More sharing options...
Punching Bag Posted April 28, 2023 Share Posted April 28, 2023 2 hours ago, Nextmanup said: The moment my ING Orange (from Holland) turned into Capital One, I was pissed off and knew it wouldn't end well. I'm moving on as well, ultimately. To Augie: it's not that Capital One was actively modifying my account in this market to pay .3%. It's just that this is what it was from another time and they never actively modified it to give me more money. Maybe that is equally outrageous! I was pretty pissed when I noticed my rate was not the going rate. I'm going to look into Barclay's based on your comments! This is very common with financial institutes valuing external money more than internal. I saw one report on a bank in that bank was losing as much old money as new money obtained but it failed to point out many of the customers were transferring money out in order to be able to utilize new promotions. The problem with that is sometimes when customers take it out intending to put it back in they find another rate even better than promotion rate. Quote Link to comment Share on other sites More sharing options...
EmotionallyUnstable Posted April 30, 2023 Share Posted April 30, 2023 SoFi savings account is 4.2% APY, requiring a direct deposit though. Opened one a few months back to stash some emergency funds. So far so good. Quote Link to comment Share on other sites More sharing options...
Augie Posted April 30, 2023 Share Posted April 30, 2023 (edited) On 4/28/2023 at 2:24 PM, Limeaid said: This is very common with financial institutes valuing external money more than internal. I saw one report on a bank in that bank was losing as much old money as new money obtained but it failed to point out many of the customers were transferring money out in order to be able to utilize new promotions. The problem with that is sometimes when customers take it out intending to put it back in they find another rate even better than promotion rate. I managed retail bank branches for years. You ALWAYS have the rate shoppers who want a little extra on a CD rate “or else”, or a free safe deposit box. “I have $100K in here, I deserve a free SD box!” Yeah, well we have people with millions who pay for their boxes. What banks want is as many products or relationship ties as they can get in a household. It’s easy to move your money market and never come back. Have your checking and credit cards, with auto-pay bills and direct deposit set up? That move just became much less likely. . . Edited April 30, 2023 by Augie Quote Link to comment Share on other sites More sharing options...
jkeerie Posted April 30, 2023 Share Posted April 30, 2023 (edited) My first credit card was Discover...right out of college eons ago. I think they were the first one to offer a cash back bonus. They have the 5% categories that change quarterly that I take advantage of. I have since acquired other cards, all offering a cash back bonus. I select which card to use based on which is most advantageous, always paying them off each month. Discover was also one of the first to offer online savings accounts as well. Years ago I was earning better than 3% on my savings. They also had a 5% CD that I took advantage of. When Ally came about, I moved my online savings there. Their rate was slightly better at the time but mainly I had more flexibility in how I could structure beneficiaries. When interest rates dropped, their rate would drop...but never to the pittance you get at your local bank. As rates have increased, they have raised their rates again. Right now they are just under 4%. Very easy to do business with as well (both them and Discover). Easy to set up and move money as needed. Quite honestly, I don't know why folks don't take advantage of savings mechanisms and avenues that have been available for a long time. Edited April 30, 2023 by jkeerie Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 I have an investment question for those who might know. @Augie I think this is your field. So I have a Traditional IRA account that I completely forgot. My first job in 2008 is when I opened it because that company didn't have a 401K. I got a letter in the mail that my account was moved and currently has roughly $16,000 in it. I have a 401K now so I'm not really concerned with this IRA account...I view it as house money. I'm thinking about cashing this out and use it to invest...aggressively invest in something like stocks. I believe I would have a 10% penalty along with my tax bracket....I'm probably looking around a total of 40% hit? So roughly $10,000 after all this? I'm not cashing this out to buy a car or anything like that....I would use it to invest. Anyone have thoughts on this? Quote Link to comment Share on other sites More sharing options...
billsfanmiamioh Posted May 10, 2023 Share Posted May 10, 2023 25 minutes ago, Royale with Cheese said: I have an investment question for those who might know. @Augie I think this is your field. So I have a Traditional IRA account that I completely forgot. My first job in 2008 is when I opened it because that company didn't have a 401K. I got a letter in the mail that my account was moved and currently has roughly $16,000 in it. I have a 401K now so I'm not really concerned with this IRA account...I view it as house money. I'm thinking about cashing this out and use it to invest...aggressively invest in something like stocks. I believe I would have a 10% penalty along with my tax bracket....I'm probably looking around a total of 40% hit? So roughly $10,000 after all this? I'm not cashing this out to buy a car or anything like that....I would use it to invest. Anyone have thoughts on this? Keep it invested and avoid the penalties & income tax 🤷🏻♂️ 1 2 Quote Link to comment Share on other sites More sharing options...
Augie Posted May 10, 2023 Share Posted May 10, 2023 23 minutes ago, Royale with Cheese said: I have an investment question for those who might know. @Augie I think this is your field. So I have a Traditional IRA account that I completely forgot. My first job in 2008 is when I opened it because that company didn't have a 401K. I got a letter in the mail that my account was moved and currently has roughly $16,000 in it. I have a 401K now so I'm not really concerned with this IRA account...I view it as house money. I'm thinking about cashing this out and use it to invest...aggressively invest in something like stocks. I believe I would have a 10% penalty along with my tax bracket....I'm probably looking around a total of 40% hit? So roughly $10,000 after all this? I'm not cashing this out to buy a car or anything like that....I would use it to invest. Anyone have thoughts on this? To each their own, but I’m not paying penalties and taxes to free up that money (or what would be left of it). That should only be done in desperate circumstances, IMO. You are guaranteed a loss before you ever get started. By “invest” can I assume you mean in real estate? You can obviously keep it tax sheltered, avoid losing a big chunk of your asset and still “invest” in more traditional ways. But that’s just me. Do what makes you feel comfortable, and good luck! Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 1 minute ago, Augie said: To each their own, but I’m not paying penalties and taxes to free up that money (or what would be left of it). That should only be done in desperate circumstances, IMO. You are guaranteed a loss before you ever get started. By “invest” can I assume you mean in real estate? You can obviously keep it tax sheltered, avoid losing a big chunk of your asset and still “invest” in more traditional ways. But that’s just me. Do what makes you feel comfortable, and good luck! I've been talking with some Financial Investors and they also advised against it as well. They would have a financial plan if I moved forward with it to invest in stocks or other things that can make me money before I'm 59 and a half. They won't get specific until I sign an agreement with them. Quote Link to comment Share on other sites More sharing options...
Augie Posted May 10, 2023 Share Posted May 10, 2023 5 minutes ago, Royale with Cheese said: I've been talking with some Financial Investors and they also advised against it as well. They would have a financial plan if I moved forward with it to invest in stocks or other things that can make me money before I'm 59 and a half. They won't get specific until I sign an agreement with them. There should be an easy way to do that. Be careful what you are signing and agreeing to. You could just find a couple nice index funds and handle it without making it complicated or paying extra fees. What are they being paid, and for what service? The mutual funds will already have management fees built in. Do they want to get paid to pick those funds? Or do they want to go picking stocks for you? It’s hard to beat the market, so we are mostly un funds. Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 9 minutes ago, billsfanmiamioh said: Keep it invested and avoid the penalties & income tax 🤷🏻♂️ That does seem like the most safe and logical plan. I think I'm just being impatient but I also want to take a risk. I'm kinda viewing it like it's free house money since I haven't done anything with it since like 2010. I currently have a 401K with my current company. I own one condo that I'm renting out that I'm going to sell once my tenant moves out. I keep researching articles on short term investing and covid slowed it down for a bit but its exploded since then and it's forecasted to continue the growth. People are able working from home more and more and are helping the short term investment market. I talked to a guy this weekend that is good friends with my brother. He owns a cabin in North GA and it stays rented all year round. Many people are from the city and just want to get out to somewhere peaceful to work for a bit. A vacation without having to take vacation days from work. He generates roughly $8,000 a month on average. After all expenses paid out, he's netting about $3,000-$3,500 a month. This is what I'm working towards and something like this would be used towards my retirement instead of the IRA. My assumption is the growth from the real estate would grow more than my IRA....which is why I'm willing to risk the IRA to invest in other entities. Quote Link to comment Share on other sites More sharing options...
The Jokeman Posted May 10, 2023 Share Posted May 10, 2023 If you can put as much into your 401k as possible, I put in 15% with my company matching 6%. I also started investing a separate account with a mutual funds broker when I was younger and just letting it build and build and add to it if/when see my savings is more than 4 months worth of mortgage payment. I then try to pay credit cards off before the interest starts toss in it's 2-3% cash back, also I use store credit cards on large purchases as often they'll let you go so many months without interest. I suppose I could put the savings into a CD to get more interest on my savings but meh ultimately that's too much work and want to ensure I have some cash on hand incase an emergency. Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted May 10, 2023 Share Posted May 10, 2023 12 minutes ago, Royale with Cheese said: I've been talking with some Financial Investors and they also advised against it as well. They would have a financial plan if I moved forward with it to invest in stocks or other things that can make me money before I'm 59 and a half. They won't get specific until I sign an agreement with them. The money in your IRA should still be in whatever investment vehicle you chose when you set it up or last edited your allocation. Its invested. If you want this money in the same place as your current 401k for ease of managing, you can roll it to your new provider without tax consequences. It is an easy process. 1 Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 5 minutes ago, Augie said: There should be an easy way to do that. Be careful what you are signing and agreeing to. You could just find a couple nice index funds and handle it without making it complicated or paying extra fees. What are they being paid, and for what service? The mutual funds will already have management fees built in. Do they want to get paid to pick those funds? Or do they want to go picking stocks for you? It’s hard to beat the market, so we are mostly un funds. It's a $1,250 a year to help me plan and advise on stocks. Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted May 10, 2023 Share Posted May 10, 2023 3 minutes ago, Royale with Cheese said: It's a $1,250 a year to help me plan and advise on stocks. Thats an absurd fee for $10,000. 12.5% is like 10x what admin fees should be. These are closer to hedge fund fees 2% of AUM and a 20% carried interest. 1 Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 2 minutes ago, Jauronimo said: Thats an absurd fee for $10,000. 12.5% is like 10x what admin fees should be. These are closer to hedge fund fees 2% of AUM and a 20% carried interest. It's $1,250 is for the advisement fee regardless if I use my IRA or not. If I'm going to play the stock and use my IRA to do it, I could just sign up for Etrade or Robin myself. Quote Link to comment Share on other sites More sharing options...
Augie Posted May 10, 2023 Share Posted May 10, 2023 3 minutes ago, Royale with Cheese said: It's a $1,250 a year to help me plan and advise on stocks. It depends on how much they are managing, but you need to consider what % of the account size that is. I see no need to take the risk of individual stocks. We used a guy once who picked stocks for us. He sucked. We couldn’t afford to let him near our money, despite his slick presentation. Mutual funds have built in fees, but are probably reasonable compared to that flat fee. When you get to bigger accounts (the wife’s bank has a $10 Mil minimum account size, recently raised from $5 Mil) they charge as a percentage of the account. If they grow the account, their fees go up. Lose money and it goes down. I’m not a big fan of trying to pick stocks or trying to time the market. We put it in solid funds and let it work without anxiety. 1 Quote Link to comment Share on other sites More sharing options...
Royale with Cheese Posted May 10, 2023 Share Posted May 10, 2023 2 minutes ago, Augie said: It depends on how much they are managing, but you need to consider what % of the account size that is. I see no need to take the risk of individual stocks. We used a guy once who picked stocks for us. He sucked. We couldn’t afford to let him near our money, despite his slick presentation. Mutual funds have built in fees, but are probably reasonable compared to that flat fee. When you get to bigger accounts (the wife’s bank has a $10 Mil minimum account size, recently raised from $5 Mil) they charge as a percentage of the account. If they grow the account, their fees go up. Lose money and it goes down. I’m not a big fan of trying to pick stocks or trying to time the market. We put it in solid funds and let it work without anxiety. So essentially, long term investing is probably the best and smartest path? 1 Quote Link to comment Share on other sites More sharing options...
Jauronimo Posted May 10, 2023 Share Posted May 10, 2023 1 minute ago, Royale with Cheese said: It's $1,250 is for the advisement fee regardless if I use my IRA or not. If I'm going to play the stock and use my IRA to do it, I could just sign up for Etrade or Robin myself. Fees are usually based on a % of assets invested and range from 0% to 2% depending on style of management (Active vs passive). What does $1,250 get you? Sounds like a newsletter with their picks. Quote Link to comment Share on other sites More sharing options...
Augie Posted May 10, 2023 Share Posted May 10, 2023 2 minutes ago, Royale with Cheese said: So essentially, long term investing is probably the best and smartest path? There’s always the OTB! 😋 Quote Link to comment Share on other sites More sharing options...
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