Investing-Saving-Banking-Credit Cards

[Lon]

Are there any Investors in this Community? Online trading? Online banking? Do you use credit cards online? Where do you see the market heading? How do you feel about saving, investing?

[Erinna1112]

I bank online, and pay bills through Paytrust - it's awesome. I don't own a single credit card (and as a result I have no consumer debt whatsoever) so I don't use them online. I use my debit card online, however. I have an account that is specifically for online purchases that has a debit card linked to it. That account has enough in it to cover my online purchasing, and not much more. That way, if the information is compromised (it never has been, in years of purchasing online) there isn't much in that account that anyone can get to.

I don't invest yet - I am in the process of setting aside 3-6 months of expenses for an emergency fund. After that, the investing will start, both for my retirement (ok, I contribute a little to my 401k at work and I have a Roth) and for my son's education. Once I'm investing about 15% of my income into tax-sheltered retirement funding and some into a fund for my son's college, I'm going to aggressively pay down my mortgage - an investment in itself. But I believe that focused intensity on one step at a time is key. That's how I dug myself out from under $24,000 of credit card debt in sixteen months. So, one thing at a time.

[Lon]

Originally Posted by Erinna1112

I bank online, and pay bills through Paytrust - it's awesome. I don't own a single credit card (and as a result I have no consumer debt whatsoever) so I don't use them online. I use my debit card online, however. I have an account that is specifically for online purchases that has a debit card linked to it. That account has enough in it to cover my online purchasing, and not much more. That way, if the information is compromised (it never has been, in years of purchasing online) there isn't much in that account that anyone can get to.

I don't invest yet - I am in the process of setting aside 3-6 months of expenses for an emergency fund. After that, the investing will start, both for my retirement (ok, I contribute a little to my 401k at work and I have a Roth) and for my son's education. Once I'm investing about 15% of my income into tax-sheltered retirement funding and some into a fund for my son's college, I'm going to aggressively pay down my mortgage - an investment in itself. But I believe that focused intensity on one step at a time is key. That's how I dug myself out from under $24,000 of credit card debt in sixteen months. So, one thing at a time.

CONGRATS ERINNA----Looks like you got it all together financially.

[jane]

I use credit cards on-line - no worries at all. Have bought e-books (loads!) and trades (a few). On-line is defiitely the way to go. I like the instantaneous purchase of e-books especially.
Jane

[Kat]

Originally Posted by Lon

Are there any Investors in this Community? Online trading? Online banking? Do you use credit cards online? Where do you see the market heading? How do you feel about saving, investing?

I perform most of my trades online, needless to say, I do invest.
I use online banking and I have shopped online with my credit card.
As for saving money, I always "pay" myself first. Thirty percent of my bring home pay goes into 3 different savings accounts. That does not include the retirement account which is feed in pre-tax dollars.

How do I feel about it? My goal has been to retire and be able to do anything I want, when I want to, that will not be a issue.

As for my investments and which way the market is going, I have attempted to place my funds in situations that will not see a great deal of fluxuation no matter what the market does. I have a steady growth of 14.3% a year, averaged out over the past 20 plus (plus!) years.

[Erinna1112]

The advisor that I'm using recommends a (rather conservative) mix:

25% in each of the following: Growth, growth and income, aggressive growth, and international mutual funds.

Yep, it's conservative...I like it that way. I've got a quarter of the stuff I'm going to invest (going to be out of debt by the end of next month so the investing starts then) going into stuff that's higher risk and higher return, but I can live with that level of risk.

I'm a single mom, with no fallback income right now. I need to be conservative.

[Lon]

Originally Posted by Erinna1112

The advisor that I'm using recommends a (rather conservative) mix:

25% in each of the following: Growth, growth and income, aggressive growth, and international mutual funds.

Yep, it's conservative...I like it that way. I've got a quarter of the stuff I'm going to invest (going to be out of debt by the end of next month so the investing starts then) going into stuff that's higher risk and higher return, but I can live with that level of risk.

I'm a single mom, with no fallback income right now. I need to be conservative.

No fallback income!!!

With all due respect Erinna, most Financial Advisors worth a dam would never encourage a single mom to invest anything without having at least six months of income in hard cash savings, adequate medical and disability insurance. Why? If you had an emergency and had to draw upon your investments when the market was down it defeats your investment goals.
I made my living giving financial advice before retiring 14 years ago.

[A Karenina]

I bank online, and shop online. I don't invest in the market yet - I invest in my college tuition.

"They're" saying to put 50% of your funds into international investments these days. What do you think, Lon?

[Lon]

Originally Posted by A Karenina

I bank online, and shop online. I don't invest in the market yet - I invest in my college tuition.

"They're" saying to put 50% of your funds into international investments these days. What do you think, Lon?

50% ??? Hmm

There is not sufficient info for me to give an intelligent response.

age of investor
rent or own home
tolerance for risk
size of investment funds
purpose of investing ----------and a whole lot of other questions.

Personally, I have $$$$ invested Internationallly

[Erinna1112]

Originally Posted by Lon

No fallback income!!!

With all due respect Erinna, most Financial Advisors worth a dam would never encourage a single mom to invest anything without having at least six months of income in hard cash savings, adequate medical and disability insurance. Why? If you had an emergency and had to draw upon your investments when the market was down it defeats your investment goals.
I made my living giving financial advice before retiring 14 years ago.

You're absolutely correct, and the advisor I use says precisely this. I wasn't saying I don't have cash reserves...I do, as well as medical, disability, and term life. What I was saying was that I'm a single-income household. I don't have a second income to fall back on. That's all.

And my reasons are precisely what you lay out. If the roof falls in, the investments I'm going to expand on (I have them started in a small way already) aren't going to be liquid enough to get to if I need them quickly, or I will incur penalties for early withdrawal.