Wamu Chase Credit Cards Online Payments
$12,000 worth of savings…what to do with it?
I am a recent college graduate who is going to be going into the navy in March ’09. Currently, I have no credit card debt and about $29,000 worth of student loans.
I have about $12,000 right now in savings with WaMu/Chase. I am getting 3.0% APY in my online savings account. I am wondering what I should do with that money considering the current economic climate.
#1 – keep in savings (3.0% APY)
#2 – put in cds (approx. 4.0% APY for 12-24 months)
#3 – start an IRA
#4 – invest in mutual funds
#5 – invest in the stock market
I do not forsee needing this money short-term (within 5 years or so), and I will have minimal expenses once I am in the navy (just cell phone and student loan payments).
What would be my best options to maximize my profit?
If the interest on your student loans is higher than any amount you will earn, i.e., over 4%, then you will lose money by not paying on the loan. So one may consider paying some of that off. It is a good idea to put some aside in a liquid account in the event of an emergency. If you will not need immediate access within the next 12-24 months, you might consider the CD, but if inflation is higher than the CD’s yield, you will lose money there too. (You’ll just lose less than by not doing anything at all.) Also remember insurance–car, health, perhaps life (but assess your needs). Consider consulting with an adviser, but be careful they don’t charge too much–if anything–and that they don’t push their own products.
debtors revolt, Chase bank, WAMU, Bank Of America, rockerchic4god, credit cards009, 02:13 PM
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