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Archive for February, 2006

What to do with a small inheritance?

February 28th, 2006 at 03:02 am

Not that this type of thing happens often to me (actually, try never), but it is likely in the near future I will get a small inheritance (guesstimate is around $5,000). In the past I would just put the money into a CD, but I have more than that already in CDs, plus ING and HSBC accounts. So I already have money available if an emergency comes up (6 months worth).

My Musings:

I have been considering setting up a Roth IRA, perhaps this could be the starting money for that.
I already put 10% into an retirement plan at work, so I don't think I need to do more there.
I could pay down my mortgage some, but its not like that is necessary. Also doing that, while good, would limit my flexibility with the money. Also, I'm at the point my payments are about 75% principle, so its not like a large payment now will make a huge difference in the overall length I will be paying out.
A plain mutual fund? At least there the money would be accessible if needed. And it hopefully would have a better return than either a CD or early payment on my mortgage.

In any case I hope this will hold off for a while but if not... I'm leaning towards a mutual fund, hopefully something low load and low turnover. Since I'm a newbie with this, where does that leave me? Some type of an index fund? I guess its time to research this more and be ready.

What is high impact saving?

February 28th, 2006 at 02:46 am

OK, so why did I come up with the "High Impact Saving" for the blog? Well the easiest is to say I couldn't stand coming out with "Mr. XYZ's financial blog".

Anyhow, as I read commentaries (though not here in these blogs) I see people saying "I've cut to the bone, what more can I do?" I think if you're single (or even not), you need to come up with ideas that not only save you money, but save in other ways as well. Or can save you money in multiple areas.

So what do I do that falls into this category? Well one thing is recycling. I think this is something that helps the environment, and its just plain the right thing to do. But more than that, by doing it I have much less garbage, so little in fact I stopped my garbage pickup last fall. I take the very small trash with me once every two weeks to the local transfer station on my way to work, and save myself $30/month (remember, thats after taxes)

I have some more high impact ideas (some of which I use), I'll put them on here in coming days. But in any case, when you have run out of simple ideas to save, try to come up with something that does multiple purpose saving.

And so it begins

February 28th, 2006 at 02:43 am

Tonight I set this thing up, and tomorrow I start with ideas that have been rattling about for some time. If you plan on stopping by later, I figure to be better on giving out ideas on saving money than investing it. I know some on investing, but there are others out there that really know how to set up finances. I'm just someone who knows enough to be dangerous (to himself).

For me, my finances are some 401k(s), a pension (not vested yet Frown ), CDs, savings bonds, stocks (just a few - DRIPs), savings (online and brick, money market & savings). Oh... and a house I bought in '98 and has tripled in value since (whew, talk about buying at the right time!)