David Hawkins Posted August 13, 2010 Report Share Posted August 13, 2010 OK, I hope I can put this in the right words to be understood. This is a question for you investors................. If I were to put $750,000.00 to $1,000,000.00 into a savings account, how much interest would be earned monthly. The Interest will have to be accessible on a Monthly basis to pay some Bills. Link to comment Share on other sites More sharing options...
09 Red GT500 Posted August 13, 2010 Report Share Posted August 13, 2010 Simplifying everything, at 1.2% yearly earnings rate equals about 0.1% monthly. That means that $1 million will earn $1000 per month. Link to comment Share on other sites More sharing options...
gth0007 Posted August 14, 2010 Report Share Posted August 14, 2010 Simplifying everything, at 1.2% yearly earnings rate equals about 0.1% monthly. That means that $1 million will earn $1000 per month. Then at the end of the year the Bank will send you IRS form 1099 showing all of the Interest you earned. Deduct that from your $1,000 a month. Now you can see how retirees are having difficulty surviving. The low interest rates given by banks is a reflection of the Interest Rates set by the Federal Reserve, who can't really raise interest rates, if they did the Federal Government debt would skyrocket. So instead of letting the market dictate interest rates, the Federal Reserve keeps the rates at around 0% for the banks, the Treasury keeps printing more money, un-employment soars (everyone including businesses are hanging onto their cash), and more US Treasury notes are sold to the Chinese and Middle-east, more debt, more pressure to keep interest rates low, more lack of confidence, and the downward spiral continues. Go back and few years and see how the Soviet Union collapsed, it wasn't a result of war, it was a result of reckless government spending BORROWED money, printing currency not backed by the gold standard, hyper inflation (the result of printing money to pay your debt). Sorry for the rant, but the simple answer is that your cash ain't going to get you much via savings accounts or Certificate of Deposits. I would consult with a financial adviser because, depending on your age and financial situation, there may be another option for your cash. Whew!! that felt good. Link to comment Share on other sites More sharing options...
BIKEBOY Posted August 14, 2010 Report Share Posted August 14, 2010 Then at the end of the year the Bank will send you IRS form 1099 showing all of the Interest you earned. Deduct that from your $1,000 a month. Now you can see how retirees are having difficulty surviving. The low interest rates given by banks is a reflection of the Interest Rates set by the Federal Reserve, who can't really raise interest rates, if they did the Federal Government debt would skyrocket. So instead of letting the market dictate interest rates, the Federal Reserve keeps the rates at around 0% for the banks, the Treasury keeps printing more money, un-employment soars (everyone including businesses are hanging onto their cash), and more US Treasury notes are sold to the Chinese and Middle-east, more debt, more pressure to keep interest rates low, more lack of confidence, and the downward spiral continues. Go back and few years and see how the Soviet Union collapsed, it wasn't a result of war, it was a result of reckless government spending BORROWED money, printing currency not backed by the gold standard, hyper inflation (the result of printing money to pay your debt). Sorry for the rant, but the simple answer is that your cash ain't going to get you much via savings accounts or Certificate of Deposits. I would consult with a financial adviser because, depending on your age and financial situation, there may be another option for your cash. Whew!! that felt good. +1 Could not have articulated that ANY better! In a word...IMHO...'Real-Estate'! Link to comment Share on other sites More sharing options...
twobjshelbys Posted August 15, 2010 Report Share Posted August 15, 2010 The current interest rate is going to remove a whole generation of "savers". When I was a kid, passbook savings accounts earned 6% or so (on average). Our kids were encouraged to put a small amount away. My grandmother lived off the interest of her Certificates of Deposit. She did very well during Jimmy Carter's time Now passbook and even money market accounts are only getting 0.01%. This is likely the least that can be paid and not be 0.... All of my cash is languishing at essentially 0% since anything greater has two year terms (and even then they're only 1-2%). It might not be earning anything but I'm not losing money on this part of it in the stock market. Link to comment Share on other sites More sharing options...
08SC0023 Posted August 15, 2010 Report Share Posted August 15, 2010 ^ = +1 That's how I ended up buying my car. Watching my savings just sitting there, I decided I wanted one Shelby in my lifetime. I've got no regrets, even though it's a depreciating asset. Makes me smile a lot more than the bottom line on a balance sheet. Link to comment Share on other sites More sharing options...
mundies Posted August 15, 2010 Report Share Posted August 15, 2010 I think if I had a million to invest I would put 30% into rental property, 20% into gold, 20% into selective stolck/ETF picking, and 30% on the sidelines to take advantage of the next greater market collapse that is coming..............or something like that. Link to comment Share on other sites More sharing options...
SVT NAJA Posted August 15, 2010 Report Share Posted August 15, 2010 Then at the end of the year the Bank will send you IRS form 1099 showing all of the Interest you earned. Deduct that from your $1,000 a month. Now you can see how retirees are having difficulty surviving. The low interest rates given by banks is a reflection of the Interest Rates set by the Federal Reserve, who can't really raise interest rates, if they did the Federal Government debt would skyrocket. So instead of letting the market dictate interest rates, the Federal Reserve keeps the rates at around 0% for the banks, the Treasury keeps printing more money, un-employment soars (everyone including businesses are hanging onto their cash), and more US Treasury notes are sold to the Chinese and Middle-east, more debt, more pressure to keep interest rates low, more lack of confidence, and the downward spiral continues. Go back and few years and see how the Soviet Union collapsed, it wasn't a result of war, it was a result of reckless government spending BORROWED money, printing currency not backed by the gold standard, hyper inflation (the result of printing money to pay your debt). Sorry for the rant, but the simple answer is that your cash ain't going to get you much via savings accounts or Certificate of Deposits. I would consult with a financial adviser because, depending on your age and financial situation, there may be another option for your cash. Whew!! that felt good. gth0007, We can all thank FRC (or should I say economics idiot) Alan Greenspan who lowered interest rates to near 0% for much of the current financial ills we are experiencing. As long as these clowns in Washington keep spending our tax money with abandon and the Treasury keeps feeding the printing press with ink and paper, our economy will continue to spiral down towards its inevitable crash landing. It won't be pretty when it happens. Link to comment Share on other sites More sharing options...
David Hawkins Posted August 16, 2010 Author Report Share Posted August 16, 2010 Thanks all. As to some comments, it is not a Million Dollars to Invest, it was a Million Dollars to Save and earn interest so Monthly Bills could be Paid from the Interest Earned. A special project that I will try my darnedest to get off the ground soon could cost me around $150K to do but it could generate in upwards of 10 to 15 Million Dollars when completed. So I was hoping to open an account to maintain the up keep from the Interest Earned. from what I have read, I will need to rethink this part but I am still wanting to move forward. Link to comment Share on other sites More sharing options...
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