Options other than savings????

[patriots0000000]

Hey guys I currently have a high-yield savings account with a decent sum of funds but I am wondering about other financial options I may have to put my money in that is fairly safe but will accrue more money over my time in med school than my savings account. Any piece of advise will be great, Thanks

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[TMP-SMX]

I don't know about you, but my high yield savings account went from about 4% to 2.3% in the past year. There just isn't that much out there that will guarantee you a higher yield than 6.8% for short term gains if you want some type of security. Honestly I doubt there is much out there that can get you those gains even with risk since the markets are crap.

 

[FLDoc]

Moral of the story: Use every penny before taking loans

 

[TMP-SMX]

Moral of the story: Use every penny before taking loans

And only take out as much as you need.

 

[LADoc00]

Moral of the story: Use every penny before taking loans

uh huh....okay No.

See we are about to enter into a hyperinflationary globalized economy, if we arent already in one. The current rate of inflation in the US over 5% but if you are add in fuel, energy and food the true inflation rate is probably double digits or will be soon.

In hyperflation is always better to get loans because you are paying em back with cheap money. Likewise if you have loans and consolidated them at a low interest rate do NOT opt for early payback, you will pay them back in 30 years for far less $$$.

 

[Bobblehead]

Hey guys I currently have a high-yield savings account with a decent sum of funds but I am wondering about other financial options I may have to put my money in that is fairly safe but will accrue more money over my time in med school than my savings account. Any piece of advise will be great, Thanks

Depending on the amount of money you're investing you may wish to look into Vanguard's money market funds. Depending on your tax bracket, Prime Money, Admiral Treasury or Tax-Exempt Money market may be reasonably choices. Be aware of the various investment minimums, Vanguard fees for low balances and ways to avoid these (electronic statements, etc.) and that these are not FDIC insured accounts.

However, if you are concerned about Vanguard going bankrupt and you losing your money there are plenty of others that have asked the same question and essentially it's not possible: http://www.bogleheads.org/forum/viewtopic.php?t=12493

I used the following calculator to determine which MMF made the most sense for me (it was Tax-Exempt at that time):

http://thefinancebuff.com/2007/04/which-vanguard-money-market-fund.html

 

[nsx]

Hey guys I currently have a high-yield savings account with a decent sum of funds but I am wondering about other financial options I may have to put my money in that is fairly safe but will accrue more money over my time in med school than my savings account. Any piece of advise will be great, Thanks

Are you talking about a savings account or a money market account? If it's just savings, check out bankrate to compare money market account options in your area. Do your homework because higher minimum deposits don't always correlate to higher APY. Like Bobblehead alluded to, FDIC insurance differentiates money market accounts from money market funds.

 

[lord_jeebus]

uh huh....okay No.

See we are about to enter into a hyperinflationary globalized economy, if we arent already in one. The current rate of inflation in the US over 5% but if you are add in fuel, energy and food the true inflation rate is probably double digits or will be soon.

In hyperflation is always better to get loans because you are paying em back with cheap money. Likewise if you have loans and consolidated them at a low interest rate do NOT opt for early payback, you will pay them back in 30 years for far less $$$.

This still only makes sense if you have an investment worth more than 6.8%. Otherwise the cash disbursements lose value under inflation faster than the debt obligation.

I suppose if you are very confident in your ability to predict the future, you could put that money in commodities - but compared to the 6.8% of not borrowing so much money, I don't know if I'd recommend it.

 

[mackaikai]

so if i have cash, and can't find a way to make 6.8% in investment (which is very hard for a newbie to do), i should pay back my student loan which is 6.8% now right?

 

[mgdsh]

so if i have cash, and can't find a way to make 6.8% in investment (which is very hard for a newbie to do), i should pay back my student loan which is 6.8% now right?

You can't consolidate into anything better than 6.8%?

 

[lord_jeebus]

You can't consolidate into anything better than 6.8%?

those days are gone forever

 

[link2swim06]

Hey guys I currently have a high-yield savings account with a decent sum of funds but I am wondering about other financial options I may have to put my money in that is fairly safe but will accrue more money over my time in med school than my savings account. Any piece of advise will be great, Thanks

If you are willing to risk losing money, and want to make more than a savings account try investing in a well diversified global mutual fund. Some years you will lose money, some years you will gain money, but over a long period (over 10 yrs) you will most likely do better than your saving account (if history holds true and my CPA is right).