Isn’t that the Million Dollar question? Or $100,000 question (that would be a 10% return)? I don’t have $1,000,000 or any investments offering 10%, so what do I have?

For starters, some common sense ideas. I’ll follow that with some individual stock ideas (and for the record, I don’t own any of these). Finally, a few places to look if you just want something safe to put your money into and not have to think about it much.

In general, if you have 1 Million Dollars to invest, you can probably withstand some risk, but I suspect you aren’t too keen on losing a ton of money. I’m guessing you want to turn the million into something greater. So don’t invest with your Nigerian uncle. I doubt he is Nigerian and I am almost positive, he isn’t your uncle. The really sad thing is people truly fall for the scam. Often the promises of easy riches is just to much to resist. But think about it, how hard did you have work to obtain $1,000,000? It will continue to be hard work to keep it and increase it.

If everyone is pushing a particular investment, it may be a sign that the run is stalling. Take Gold. Nobody was really pushing it when it was around $300.00. If you indeed purchased it back then, your investment is looking pretty good. But with Gold now just over $1,600 it seems everyone and your brother thinks it is a good idea. I’m not saying it isn’t, but I truly believe there is a lot of downside risk at the current levels. If you have the time and inclination, you could probably make some good change day-trading it and taking profits on small up swings, but that would take some serious dedication.

As far as individual stocks, Apple is certainly a hot commodity. And probably one of the most amazing comeback stories to boot. But, I still wonder, how long can it last. Especially, with their refusal to render Flash on websites. That is just plain silly and makes parts of the web off limits to iPhone and iPad users. With other tablets coming out that support flash, this could be a problem. Google is another stock that has steadily grown. But competition for Apple and Google are fierce. Oil stocks of the older companies seem relatively stable and many of them pay good dividends. I just always seem to think about individual stocks too late so I stick with ETFs. Of course, I don’t have a million dollars either. Maybe I would invest differently if I did. I suppose I might be willing to take a few more risks, but like many, I kind of like to hold on to what I have.

With the economy still in the doldrums, CD Investing remains fairly popular. Purchasing long-term CDs with low penalties is turning out to be a good hedge against the low short-term rates and provides for a low exit cost as rates rise. However, rising CD rates seems to be a long way off. Our analysis, looks at 2-year and 3-year equivalent yields. Although, many of these 5-year rates have a good chance of looking good in 2-years. Give us a shout if you would like an analysis.

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As a company our services are tailored to larger portfolios, but I know lots of people come to our site that just have a few thousand or even a few hundred dollars. So here are some ideas for you.

First, do something. The longer you wait, the less you will earn. A big part of investing is the power of compounding. The sooner you start, the more your investment will grow.

Second, you need to determine your investment horizon. When do you plan on using these funds: next month, next week, or thirty years from now. This is important for picking the right investment. Next, determine your risk tolerance.

If the investment horizon is relatively short, then look towards high yield savings accounts, reward checking, or CDs. One thing to keep in mind is of course the time it takes to set those up. Because time is money also. I did a review of Aurora Bank on this site. They have good rates for small, short-term investments (and large). DepositAccounts.com also keeps track of numerous bank and credit union deals.

For a longer horizon (5 to 10-years), I would look to a simple portfolio of index funds or ETFs. Someone that likes high reward (and thus high risk), may have an 80% stock / 20% bonds portfolio. The stocks can be split up between US, International, small, mid, or large cap, etc. Bonds could be strictly government bonds or sprinkle in some high quality corporate issues. The more conservative you are, the more you will weight your holdings towards bonds. My broker allows for commission free ETFs and they had a decent selection so I went that route. Frankly, I am not very risk tolerant so I decided on on 25% US stocks, 25% REITs, 25% TIPS, and 25% Short-term government bonds. I figured with real estate mostly at the bottom it has no where to go but up (sort of). So far the REIT and TIPS ETF are performing the best. Once I feel the economy is on surer footing I will probably adjust my stock percentages, but frankly I am not sure I could take wild swings very well. I may even close a portion and move it to a CD. Even the returns are low, they are guaranteed.

So what are you folks doing?

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Image by: Image: dan / FreeDigitalPhotos.net

Just thought I would make a post before Christmas. We will be closed on the 24th. I will post a “Looking Back” next week. For now, let’s look forward to celebrating the Christmas season with friends and family. May your day be filled with joy, laughter, good food, good conversation, and fun family traditions.

We start on the 24th with a Christmas Eve service at our church. We follow that with a trip around the town enjoying the Christmas lights. Finally, we end up at home and everyone gets to open up one gift.

Our Christmas Day starts between 8:00 and 9:00 in the morning. The kids are able to get up before that and open their stockings and their Santa Gift arrives unwrapped with special labels. My wife and I come down and make some coffee and open our stockings. We move to the living room where the tree and presents are. We start with a reading from Luke (from the Bible, not my son :O) ). We then sing Happy Birthday to Jesus. Next is the passing of the gifts and the opening of the presents. We end our morning with a nice breakfast.

So share your traditions in the comments below. As I said, I’ll be back with a look back and a look ahead to 2011.

Merry Christmas to all and to all a good night.
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First, thank you to everyone that has enjoyed the series of posts featuring various bank and credit union CD rates. Second, I thought I would take a little respite and focus on a few other topics. One may save you a lot of money and hassle, another may alleviate some fears with opening online savings accounts or certificates of deposit, and a third may land you a nice home.

We received a mass fax today from a company that was offering to include our company in their online directory. The company (Yellow Page B.V. or Yellow Publishing NQ LTD) operates a series of websites such as yellowpage-california.com, yellowpage-kentucky.com, etc. First problem is the logo looks very similar to the real Yellowpages logo so many people assume that is who they are. Second, they make a false claim about offering to do a free Google Submission. There is no such thing. Finally, they are charging an exorbitant amount of money ($89/mo) to be listed on a site that has practically no value. If you want some more information visit Yellow Page Scam and/or Fighting Yellow Page BV. Note those are the same site, just trying to help a couple of likely search phrases.

The other topic may assuage some fears when it comes to opening online accounts and your credit score. As you may have run into, many online applications do a soft or hard credit inquiry on your credit. Sol Nasisi who writes for BestCashCow did an article on whether or not it aversely affects your credit score. Check it out: Does opening a savings, CD, or checking account impact your credit score? And it doesn’t have to be online either. Your local bank may do it also, I just run into it more with online stuff.

Finally, something sort of fun. Yahoo ran a story on houses under $100K. Some of these are amazing. My favorite is the Tudor in Michigan. So if you are looking to move, check them out. Homes under $100K. Let me know your favorite.

Have a great Veteran’s Day tomorrow. Remember to give thanks for the sacrifice they have given for our freedoms.

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Hey everybody! I’m excited to bring you a guest post today. It is on a topic that I don’t generally write about, because we focus on helping people who need to invest funds. Marie Nelson provides some tips for a blue print to get out of debt and then hopefully you will be able to use our services in the future. :O) Welcome, Marie, take it away!

If you want to get rid of your debts then you need to have a plan of action to prevent incurring more debts and to get yourself out from its trap. You will need to prepare a budget in order to free yourself from the debts’ shackles. These are the following tips to plan a budget that would pave the path for a debt free life. Enrolling with a debt settlement program may also be helpful.

Achieve a debt free life by planning a budget:

1) Prepare a budget:
Do extensive research on the sources and amounts of your expenses in order to prepare a budget. Obviously your monthly expenses can not exceed your income. If you are spending more than you make, you will need to either cut some expenses, increase income or a combination of both. When you plan a budget make sure that you follow it vigorously otherwise you will stay stuck in the vicious cycle of debt.

2) Calculate the amount of debt you owe:
First, add up all of your credit card bills, mortgage loan(s), car loan(s) etc altogether. This will give a clear picture of the amount you actually owe. You can pay off the debts more easily if you have a proper calculation of the owed amount.

3) Make an emergency fund:
An Emergency fund is crucial if you plan to pay off your debt without taking further loans in time of crisis. Earn some extra cash so that you can avoid financial hardship. By renting your garage or a room of your apartment you can earn some extra dollars in order to increase the emergency fund. If you can cook well then make full use of your talent. You can bake cakes and prepare pudding and sell them in local shops, to your colleagues or friends.

4) Pay off your debts with high interest rate:
Give priority to the high interest rate debts while paying off the owed amount. If you delay paying the high interest rate debts then the interest amount would pile up making the payment plan unaffordable for your pocket.

5) Avoid using credit cards:
You need to avoid using the credit card as it is one of the major causes for people’s debt crisis. If you have incurred debt then using your credit card would further increase that debt. Credit cards can tempt you to indulge into extravagance as you do not see virtual money slipping out from your wallet. Reckless spending will increase the debt burden that would be difficult to over come.

6) Avoid taking loans to pay off your debts:
If you plan to borrow in order to pay off the debts then…Well DON’T! Most people who try this end up with more debt. If you have any plans to come out from this torment then think twice before borrowing. Instead of taking a loan, cut expenses such as Cable TV or consider finding a part-time job until the debt is gone.

Author Bio:
This is a guest post by Marie Nelson who is a financial writer. He has helped lots of people with free counseling and advice on many finance related topics and enjoys helping people solve their debt problems.

Certificate of deposit rate forecast

I wrote a series of articles on various investments that are generally deemed safe. I actually posted them with an article directory that I’ve enjoyed writing for. Anyway, here are the links. Let me know what you think.

Have an awesome weekend. And remember above all else, God is in control.

Safe Investments Part I
Safe Investments Part II
Safe Investments Part III
Safe Investments Part IV

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I was reviewing our logs and noticed that someone had come to Jumbo CDs, looking for the answer to, “What is the difference between FDIC and NCUA Insured?”

Boy, did I feel silly because I didn’t actually have the answer on our site. After all, we help people invest in federally insured banks and credit unions. Of all places, the answer should be able to be found here. And now it is.

And the answer is, there is really no difference as far as federal protection. Both cover your bank accounts (CDs, Savings, Checking, Money-Market) up to $250,000 through 12/31/13. If the Gov’t doesn’t extend that it will revert back to $100,000. Both cover your IRA accounts assuming they are in a bank account and not a securities account up to $250,000. That was a permanent change made in 2004. IRAs are insured separately then your regular bank accounts.
(more…)

Updated our running commentary.

Highest CD Rates

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The biggest difference between an IRA CD and non-IRA CD is the tax consequences. IRAs (Individual Retirement Accounts) can contain a variety of investments, such as mutual funds, bonds, realestate, and of course CDs.

Without going into lots of detail about IRAs themselves, they basically are an investment account that grows tax free. You aren’t taxed until you take funds out. Traditional IRAs are made from pre-tax contributions and you can’t access those funds until you are 59 1/2 or older without paying penalties. There are some exceptions, but I don’t want to spend too much time on that. Roth IRA contributions are made after-tax. The account grows tax free, but you can also being to withdraw fund prior to 59 1/2 without penalty. If you wait until after 59 1/2 you aren’t taxed.

So back to the difference when it comes to CDs. An IRA CD won’t have any tax consequences until you begin to make withdrawals. With a non-IRA CD, you pay regular income taxes on the interest that is earned, regardless of whether you receive it.

For example, let’s say you open a $100,000 IRA CD for 3-years and a non-IRA CD at 5.00% APY. Over 3-years both CDs will grow to about $115,762.00. However, you will only have to pay taxes on the non-IRA CD. If you are over 59 1/2, at the end of 3-years you can take $5000 out and only owe taxes on that amount. The remaining funds can be left in the CD for another term. With the non-IRA CD you pay taxes on the full $15,762.00 (and generally you pay taxes when the interest is earned, so you would pay taxes on about $5250 per year).

An important note, IRAs have yearly contribution limits. You can’t just one day decide to create a $100,000 IRA CD. Those funds would have to have been accumulating over the years. SEP and SIMPLE IRAs (used by self-employeed and small business owners) have a fairly high yearly contribution limit. Traditional and Roth IRAs were $5000 for 2008.

View IRA CD Rates

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Another Bank, First Priority Bank, FL (FDIC# 57523) was taken over by the FDIC on Friday, August 1, 2008. The insured deposits have been transferred over to SunTrust Bank, Georgia (FDIC# 867).

This follows another takeover a couple of weeks ago of First National Bank of Nevada and First Heritiage Bank. The insured deposits were transferred to Omaha National Bank.

This brings me to my latest article. I actually published it on Google’s new service, Knol. Here it is, Calculating FDIC and NCUA Insurance.

Let me?know what you think.

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