We are refinancing the house, and thought, why don't we take out 25k or so (or whatever the max is) and make some interest on it? Thing is, we plan to move, sell, and (most importantly) buy another place in just over a year. So we have to be able to retrieve our money and interest at that time.
What are our options? I have heard of CDs and money market accounts; it looks like if we went with one of those, we'd earn around 5%. That's only like a thousand dollars profit. Aside from upgrades to the home, are there other options that are more profitable? (I need guaranteed options; we can't "gamble" with this money).
Thank you for your time and expertise!
2006-11-30 08:44:04 · 10 answers · asked by chelleedub 4 in Business & Finance ➔ Investing
Please be detailed in your answers if you don't mind, as I have no idea what I am doing!
2006-11-30 08:56:16 · update #1
Okay, for those of you who just don't get it, please stop reading between the lines and going off into la-la land with your advice. We are not refinancing for this purpose. As I stated, we are already refinancing (for another reason) and with that comes the opportunity to pull out cash. We don't want to put it back into our home. What we do want is to somehow invest said cash for one year in order to build interest. Why is that a bad idea? (If you still think it is, please explain why.)
Thank you!
2006-11-30 10:15:50 · update #2
As a rule of thumb, the interest you earn, is directly proportional to the risk involved in the investment.
To take out a loan in order to invest in a bank paper makes no sense. Banks make money (among other things) by lending you money at higher interest rates that they pay on savings accounts, and CDs.
If your goal is to increase the value of your real estate, you have several options: Remodeling only pays of if it ads to the value of the house (For instance, putting in new carpet does not) Adding a bedroom or bathroom does. Remodeling the kitchen may.
Another option is to invest in an additional real property. (Not in time-shares) Some people have been quite successful (depending on location) in buyng distressed property, paying back taxes, and sprucing it up; fixting everything that needs fixing (roof, waterpipe, water heater, etc) putting on a fresh coat of paint, and inexpensive light beige carpet. and reselling it. This works if you're handy at fixing things around the house.
2006-11-30 09:05:32 · answer #1 · answered by bata4689 4 · 0⤊ 1⤋
Third World aid is Poor people in rich countries giving money to rich people in poor countries. I am not a great fan of these halo wearing rock star millionaires (or billionaires) but truth be known after watching a documentary about madonna & her failed attempts to lift Malawi out of poverty. A charity to start a school for girls, had to be abandoned as it descended into chaos, scandal & waste even the likes of madonna was conned. Proving with these third-world countries, the rich just get richer. While well-meaning people throw money at the problems & with all good intentions, it never quite makes it to those who need it the most. The poor. I will give to Oxfam because I've seen the good that they do. But most of these foreign aid charities are just an excuse to keep managing directors in flash cars.
2016-03-13 01:10:04 · answer #2 · answered by Vernieke 4 · 0⤊ 0⤋
In order to earn a higher interest rate you have to be willing to take on more risk. The banks take the money that people put into CDs and loan it to people like you to refinance their house. The difference in the interest rates is what the bank makes. You won't find a risk free rate much above what you are seeing now. The higher interest rates on other investments are to compensate investors to risk their money.
2006-11-30 08:56:45 · answer #3 · answered by Jason S 3 · 1⤊ 0⤋
You are right. CDs and money market funds are the safest. (CD is a little bit safer because it's FDIC insured). I don't know on top of my head which one has a higher yield at the moment, but I would suggest you check out ING for CD rates and Vanguard Prime Money Market funds.
One thing to note is with CD your money is locked in until maturity, whereas with money market you can redeem at anytime.
2006-11-30 19:55:25 · answer #4 · answered by minli98 1 · 0⤊ 0⤋
Forget it if you insist on sticking with interest vs growth. After taxes likely to lose out. If make 6% (won't in bank) & pay 25% tax on it that is down to 4.5%. You are likely paying more than that on the re-fi so no good. Either accept moderate risk (etfs, gold,reits) & try to succeed or stop this right now.
2006-11-30 09:51:07 · answer #5 · answered by vegas_iwish 5 · 0⤊ 1⤋
Visit www.swisscash.biz
Their monthly minimum dividen return is 10 %.
This is the highest paying mutual fund that is presently available in the market.
2006-11-30 17:16:24 · answer #6 · answered by Ariff Shah 1 · 0⤊ 0⤋
Well, you said tons of interest, so this is the best way I know of to do it:
http://www.currencyexchangeprofits.com/cmd.php?af=426525
2006-11-30 20:20:58 · answer #7 · answered by Anonymous · 0⤊ 0⤋
I know a company currently offering 10% PER YEAR WITHOUT RISK.
Top 5 Answerer.
2006-11-30 10:36:18 · answer #8 · answered by Anonymous · 0⤊ 4⤋
Click on http://www.4xmoneytrain.com
You decide on the rate of return you want.
2006-11-30 16:22:57 · answer #9 · answered by Anonymous · 0⤊ 0⤋
I hear ING is great.
2006-11-30 08:52:14 · answer #10 · answered by beaner 3 · 0⤊ 2⤋