Originally Posted by Benzasaurus (Post 3155155)

I'm at the bottom of my career path right now so I don't have the money for a rental yet. But to be honest even if I did I'd rather put my money in an REIT and spread the risk within the real estate market. I invest 1/3 of my after tax income just into stocks because I have time to be aggressive, so I'll use REITs to protect against inflation when I'm closer to retirement.

Originally Posted by frosty (Post 3155152)

This is what I figured but was't sure because earning just $100 on $10K after 12 months doesn't seem much, but it is sorta like getting free money for letting the bank use yours, so not bad. I currently have x amount in a "preferred savings" account, which essentially earns a bit higher interest than a regular savings. But this MM account is even more than my preferred savings rate. I also have a CD that I rarely ever touch. I'm not rich by any means but I have money saved and I'm just beginning to wise up and make use of money "sitting" around. I'm woefully ignorant of investments and mutual funds, so I want to play it safe and do something that has a garunteed return. Of course, the bigger the return, the better. Specialized savings account through my bank seems to be the safest bet. Most banks have under 1.0% rate for MM or savings. So far my bank is offering this 1% promotion, and it's the highest compared to other big banks I've checked online.

About the 0% APR credit cards. I've played this game before with big purchases, so I know the "fine print." Last year I bought a new bicycle using such a card. I had the money to pay it in cash from the start, but why do it when I can borrow money for free! Got the bike using a nice monthly plan and paid it off before the promotion ended. Did that with a dental plan too. I borrowed money for free and didn't get suckered in using the card for other purchases or fall for the ridiculously low minimum monthly payment. I wouldn't recommend using a 0% card if you couldn't afford the item outright.

I got my Simplicity card and next thing I will do is transfer enough money from my BoFA card to it and then pay off the remaining balance on the BoFA. I do not like seeing that I'm paying around $80 in interest fees. That will go soon!

Originally Posted by spdrun (Post 3155163)

REITs are for suckers who want Wall Street scumbucket dirt to pocket 50% or more of their potential rental income. Also, leverage (mortgage/margin) rates are much better (lower) for personally/LLC owned real estate than equities. You're much more likely to cash-flow on a leveraged property investment than on an REIT bought on margin.

Sorry to put it so bluntly, but I tell it like it is. As far as spreading risk, you're trading one point of failure for another -- a market can crash, but a single corrupt and/or stupid business official can doom a company (or fund) to failure. Call it a Nick Leeson moment.

Lastly, don't know about you, but rehabbing property with my own two hands is actually really fun and relaxing for me. Call it a profitable hobby. Clicking on an E*trade account and buying/selling stocks, not so much.

Originally Posted by Benzasaurus (Post 3155172)

People get to do what they want with their money. I do what I want. Frosty gets to do what he wants. You get to do what you want.

And to clarify: 1) I don't buy any of my investments on margin. 2) I invest in vanguard which is client owned and has low fees. 3) what little money I have in an REIT right now is in an international one, so I think the spread is pretty wide. 4) sure, the global real estate market can crash, which is why I have an equal amount of money in bonds in case of deflation, some in cash and the rest in stocks. I'll be fine.

Originally Posted by Skid Row Joe (Post 3155216)

You guys playing around with revolving loans/unpaid credit card balances through a bank are gonna keep gettin' snakebit.

Bad enough having a credit card with one where you pay their balance in full each and every month. They'll still get to you every few years.

Originally Posted by TheDon (Post 3155127)

I just to my first and only cc from m credit union. It's for $500 and it's only getting used for diesel fuel and paid off monthly. The guy at the credit union said to leave a balance on it evey month because I will look good in my credit, no it won't, you just want me o give th credit union my hard earned money.

Originally Posted by E150GT (Post 3155882)

Just because it reports a balance does not make it accrue interest. A non reporting credit card will actually not factor in your CC for a FICO standpoint after so many months so its in fact true, it will not help your credit if it doesnt report a balance at least every once in a while.

Originally Posted by Hatterasguy (Post 3156295)

If your playing the balance transfer game your spending to much. Adjust your habits and dump the Bank of America card.

They are scumbags and I wish we let them go bankrupt.

Discover has been treating me very well, no foreign transaction fees to which are nice when you travel.

Amex is nice but almost no one takes it overseas unless your in a first world country.

Originally Posted by frosty (Post 3156386)

I hardly use my BoFA card these days and don't use my Citi card much either. The debts on these cards were accrued back when I thought it was "convenient." Perhaps I'm fortunate that I'm not much of an impulse buyer and for the most part am pretty conservative with my spending, so my combined debt isn't astronomical and can be paid off now if I wanted to. The thing is that I'm not too keen on getting a big chunk out of my checking--I like seeing a big balance in my monthly statement. But I suppose the smart thing is to pay off the debt in one swell swoop and be done. I would be saving around $160 monthly in interests that I'm paying to both banks. My plan is to make bigger monthly payments.

This is my first time to transfer a balance, BoFA and City have been sending me junk mail with "blank checks" to transfer money with 0% interest for x months. I think with this Simplicity card I may as well give it a go, but it's something I've put some thought in first. I intend to make this work and save some money. Soon I just want my paycheck to go to rent, bills, student loan (which has a consistent monthly payment), and have more go to my checking/savings.

Originally Posted by ps2cho (Post 3156345)

I analyze consumer credit reports at my job. The cards report to the bureau's different codes for an inactive month and a month with a zero balance (0 versus C for what its worth -- inactive/no usage and current respectively they usually report it like so: ccc00c00cccc0ccc etc...) Use the card, pay it off. Carrying a balance to increase your score is a myth and I have noticed no correlation between them either from an experience perspective.

Originally Posted by E150GT (Post 3156430)

right but there is a difference between carrying a balance and letting a balance report. Many people think they have to pay interest to get a better FICO score or if they let a balance report. From what I have learned recently the best score comes from letting all cards report a zero balance except one that reports anywhere from 1-9% utilization.