Topics Discussed
- Savings Account – Primis offers existing customers 5.07% annually. For new customers, it would be 4.75%. There is another bank, Pibank, that is offering 5.50% annually.
- Certificates of Deposit (CDs) – With rates going down, another option is to “lock in” a current rate for a fixed term.
- Properties – With rates dropping, it is expected that home prices will rise again. At the moment, it’s challenging for both investors and regular buyers. Homes under $300k could be a good investment, as long as the mortgage (higher interest than if it’s owner-occupied), taxes, and insurance are less than what would be received in rent. In a future post, we will dive into an example or two on analyzing the cash flow and calculating the return on investment (ROI).
- LexisNexis can be used to protect our information. More research to be done.
- Private Lending – Hard money lending is an option to use other people’s money at 10-12% to invest. So it has to provide a much higher return to leave profits. [Who’s down with OPP (Other People’s Money)? Lol]
- LLC for buying an investment property – It offers protection. But banks lend at higher interest rates. And it wouldn’t qualify for the $250k capital gains exclusion for selling a primary residence. There are benefits, but you have to evaluate if it’s for you. Alternatively, depending on the purpose, a Revocable Living Trust might benefit more.
- Fidelity Accounts for Children – They offer $50 to set up an account, and children can start investing, even getting paid when they complete financial classes.
- Bitcoin more research to be done and shared in future post.
- Mortgages for Primary Residences – They offer lower interest rates, and there are programs that provide a lower down payment, such as 3% FHA.
- Credit Card Debt – Credit card debt needs to be paid off. Banks charge 15 to 20% on average, if not more. It doesn’t make sense to have savings even if they pay as much as 5 or 6%, if you’re paying triple that to banks with debt. There are several credit cards offering 0% interest for 18 to 21 months to help lower balances without interest for a period. Snowball or avalanche method could be leveraged.
