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]

Erinna1112 wrote: 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.

[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]

Erinna1112 wrote: 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]

A Karenina wrote: 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]

Lon wrote: 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.

[capt_buzzard]

I have never and will never use credit cards online. No Way. I heard so many stories here. www.boi.ie

[Lon]

Erinna1112 wrote: 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.
Thanks for the clarification. It's sounds like you have a good advisor.



Good Luck with your investing.

[Lon]

capt_buzzard wrote: I have never and will never use credit cards online. No Way. I heard so many stories here. www.boi.ie
I don't know about Ireland Cap'n, but U.S. credit card companies only hold one liable for the first $50 of unauthorized charges, and they even waive that, if you notify them within a reasonable time period. I am able to access my credit card account online and check several times weekly to verify my charges. In addition, I download the data into a well known financial and accounting program (Quicken). I have used my card online for 14 years snf have never had a problem. Last year, I was notified by phone by my credit card company, saying that they believe there had been an unauthorized purchas of one dollar to my account. They went on to say that they were mailing me by FED EX, a new card. They explained that sometimes when credit card data has been lost or stolen, the user will try a small charge to see if it goes through, and if it does, go on to make a larger charge. I asked "why did you happen to catch my particular account?", they replied that they monitored all accounts with fairly high credit limits that are used Internationally and use their computers to access their accounts. Obviously, I am quite happy with my credit card company.

[capt_buzzard]

Lon wrote: I don't know about Ireland Cap'n, but U.S. credit card companies only hold one liable for the first $50 of unauthorized charges, and they even waive that, if you notify them within a reasonable time period. I am able to access my credit card account online and check several times weekly to verify my charges. In addition, I download the data into a well known financial and accounting program (Quicken). I have used my card online for 14 years snf have never had a problem. Last year, I was notified by phone by my credit card company, saying that they believe there had been an unauthorized purchas of one dollar to my account. They went on to say that they were mailing me by FED EX, a new card. They explained that sometimes when credit card data has been lost or stolen, the user will try a small charge to see if it goes through, and if it does, go on to make a larger charge. I asked "why did you happen to catch my particular account?", they replied that they monitored all accounts with fairly high credit limits that are used Internationally and use their computers to access their accounts. Obviously, I am quite happy with my credit card company. Well perhaps in the States you guys do it better than they do here. Check out our banks www.boi.ie and www.aib.ie compare :driving:

[Erinna1112]

Lon wrote: I don't know about Ireland Cap'n, but U.S. credit card companies only hold one liable for the first $50 of unauthorized charges, and they even waive that, if you notify them within a reasonable time period. I am able to access my credit card account online and check several times weekly to verify my charges.
Visa has had a Zero Liability Policy for several years now. It applies to Visa-branded debit cards as well, as long as the transaction is conducted through the credit-card network rather than the bank-card network (It really is two different processes - and the credit route costs the store less).

From Visa's own website:

"Visa’s Zero Liability policy took effect April 4, 2000, and is a great improvement on the previous policy. The former policy required that you report fraudulent activity within two business days of discovery. After this two-day period, you could be held responsible for up to $50 of the unauthorized charges. With the new Zero Liability policy, you’re no longer required to report fraudulent activity within two days and you’re not responsible for any fraudulent transactions made over the Visa network.

The Zero Liability policy covers all Visa credit and debit card transactions processed over the Visa network—online or off. The only transactions not covered under the Zero Liability policy are commercial card, ATM, and non-Visa-branded PIN transactions."

[Lon]

capt_buzzard wrote: Well perhaps in the States you guys do it better than they do here. Check out our banks www.boi.ie and www.aib.ie compare :driving:
From Bank of Ireland



"liable for any losses incurred up to the time that you notify us"



I see the problem.



There are so many different credit card companies in the states that I suspect the competition has caused them to libralize their procedures.

[Lon]

Erinna1112 wrote: Visa has had a Zero Liability Policy for several years now. It applies to Visa-branded debit cards as well, as long as the transaction is conducted through the credit-card network rather than the bank-card network (It really is two different processes - and the credit route costs the store less).



From Visa's own website:



"Visa’s Zero Liability policy took effect April 4, 2000, and is a great improvement on the previous policy. The former policy required that you report fraudulent activity within two business days of discovery. After this two-day period, you could be held responsible for up to $50 of the unauthorized charges. With the new Zero Liability policy, you’re no longer required to report fraudulent activity within two days and you’re not responsible for any fraudulent transactions made over the Visa network.



The Zero Liability policy covers all Visa credit and debit card transactions processed over the Visa network—online or off. The only transactions not covered under the Zero Liability policy are commercial card, ATM, and non-Visa-branded PIN transactions."
Thanks for that---------------Visa is my card