Comments on: Why Put Your Money in an Investment Earning 0%? http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 08 Nov 2009 07:50:42 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Harold http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181852 Harold Sat, 20 Sep 2008 11:58:04 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181852 Another reason is the foreign governments need some where to put USD that we send overseas due to our purchases of their goods. Another reason is the foreign governments need some where to put USD that we send overseas due to our purchases of their goods.

]]> By: purpelnoon http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181843 purpelnoon Sat, 20 Sep 2008 10:36:27 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181843 So if I have a CD with Washington Mutual earning a nice 5%, if the bank kicks the bucket and the FDIC steps in, do I still continue to earn interest? What happens in a case like this? So if I have a CD with Washington Mutual earning a nice 5%, if the bank kicks the bucket and the FDIC steps in, do I still continue to earn interest? What happens in a case like this?

]]> By: EMilster http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181676 EMilster Fri, 19 Sep 2008 19:40:14 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181676 Interesting point about not investing in the Stock Market. I am on the PR team for MoneyAisle.com and we are really supporting the idea of investing in CDs vs. the stock market. Sure CDs might not have as high a ceiling for return as stocks, but the floor is less likely to crash as well. Especially for those eyeing retirement, CDs seem to be a much smarter place for your money these days. Interesting point about not investing in the Stock Market. I am on the PR team for MoneyAisle.com and we are really supporting the idea of investing in CDs vs. the stock market. Sure CDs might not have as high a ceiling for return as stocks, but the floor is less likely to crash as well. Especially for those eyeing retirement, CDs seem to be a much smarter place for your money these days.

]]> By: Flexo http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181668 Flexo Fri, 19 Sep 2008 18:48:49 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181668 Most individuals bid non-competitively but larger institutions bid competitively. There's a $5 million limit to a non-competitive bid, which forces larger investors to bid competitively. Most individuals bid non-competitively but larger institutions bid competitively. There’s a $5 million limit to a non-competitive bid, which forces larger investors to bid competitively.

]]> By: Someone http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181662 Someone Fri, 19 Sep 2008 18:14:43 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181662 But why wouldn't one just place a non-competitive bid, rather than a 0% bid? Placing a 0% bid just drives the bidding down, while placing a non-competitive bid will still let you get whatever the chosen rate was. But why wouldn’t one just place a non-competitive bid, rather than a 0% bid? Placing a 0% bid just drives the bidding down, while placing a non-competitive bid will still let you get whatever the chosen rate was.

]]> By: Andy http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181661 Andy Fri, 19 Sep 2008 17:52:10 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181661 I moved the funds in my Vanguard prime money market account to my online ING Direct savings account. This is not a reflection on Vanguard, because it is the best fund manager in the industry, it is more a risk management move on my part due to all the financial market and institutional turmoil. Also getting 3% at ING (you can get more elsewhere) rather then the sub 1% treasury rates. I moved the funds in my Vanguard prime money market account to my online ING Direct savings account. This is not a reflection on Vanguard, because it is the best fund manager in the industry, it is more a risk management move on my part due to all the financial market and institutional turmoil. Also getting 3% at ING (you can get more elsewhere) rather then the sub 1% treasury rates.

]]> By: Jim http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181657 Jim Fri, 19 Sep 2008 17:50:43 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181657 OK so then nobody actually got a 0% rate. If everyone got the higher rate then I think its pretty definite that people just strategically bid 0% cause they wanted to make sure they were among the winners but they knew the actual % rate they'd get would be higher then that. OK so then nobody actually got a 0% rate. If everyone got the higher rate then I think its pretty definite that people just strategically bid 0% cause they wanted to make sure they were among the winners but they knew the actual % rate they’d get would be higher then that.

]]> By: Ben http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181651 Ben Fri, 19 Sep 2008 17:12:45 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181651 I guess I did get the bonds/bills/notes confused. The (http://www.treasurydirect.gov/RI/OFBills) were at 0.1% but the TIPS (http://www.treasurydirect.gov/RI/OFNtebnd) which is a much longer committment and comes with a higher rate. I guess I did get the bonds/bills/notes confused. The (http://www.treasurydirect.gov/RI/OFBills) were at 0.1% but the TIPS (http://www.treasurydirect.gov/RI/OFNtebnd) which is a much longer committment and comes with a higher rate.

]]> By: Ben http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181638 Ben Fri, 19 Sep 2008 16:40:50 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181638 Don't you also get the 0.3% plus the rate of inflation? Inflation was 6% last year I'm not sure what it's is at the moment but 6.3% TIP is awesome considering what everything else is doing. Or am I getting the government bond issues confused here. Don’t you also get the 0.3% plus the rate of inflation? Inflation was 6% last year I’m not sure what it’s is at the moment but 6.3% TIP is awesome considering what everything else is doing.

Or am I getting the government bond issues confused here.

]]> By: Adam Lehman http://www.consumerismcommentary.com/2008/09/19/why-put-your-money-in-an-investment-earning-0/#comment-181632 Adam Lehman Fri, 19 Sep 2008 16:30:42 +0000 http://www.consumerismcommentary.com/?p=3956#comment-181632 But isn't the dollar expected to decline in value? But isn’t the dollar expected to decline in value?

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