How/where to keep my extra money?

**FireBal989** · 09-13-2012, 08:32 AM

Are you still living in Romania ?? In most countries (such as the United States of course) there is some kind of assurance, such as the FDIC deposit insurance here, do they have that where you're living ??

There are many great places to put money, multiple bank accounts, bank accounts and investments, you could put some in bank accounts and stash some in a safe at home etc., it all depends on your choices and what you want to do with your money :-)

**snafu** · 09-13-2012, 10:56 AM

Where are you living? Western country's banks all have government backed insurance. ING is international and generally safe holding zone for savings. Having multiple bank accounts is a hassle to monitor and reduces interest. Young people have years to ride out the ups and downs of the equity market [stock market]. If the savings can remain invested for at least 5 years, I suggest looking at an low fee, Index Mutual Fund for a promising return on your investment. There is an element of risk but it is moderate. I've always looked at drops n the market as an opportunity to 'buy on sale.' The one thing you never do is sell in a downdraft.

**Mooncow** · 09-13-2012, 12:51 PM

Hmmm

Thanks for the replies so far!

I live in Romania.

" ING is international and generally safe holding zone for savings " what do you mean by generally ?

So is it safe to keep all my money in one bank?
Is ING safe?
Are Romanian banks safer?
In what currency should I keep my money?
Would be a good idea to buy gold for a portion of my money?

What is a low fee index mutual fund?
Where can I look for one?
I dont think investing / stock marketing is easy peasy. I bet you gotta learn a lot to be able to have a nice ROI or to even not loose over the long run.

**Mooncow** · 09-14-2012, 01:24 PM

any ideas?

**snafu** · 09-14-2012, 06:02 PM

Since I know nothing about E European Banking I looked at info available on-line and better understand your fear. Romanians are good savers but your banking system leaves Moody's Rating 'concerned.' 12 banks have dissolved or declared bankruptcy. Many banks are linked to countries in dire financial straits like Greece, Spain, Portugal etc. Royal Bank of Scotland has been cited for financial mismanagement repeatedly...yikes. I notice Citi Bank [USA] has an outlet but it's remained solvent by huge government intervention/support. It's very bewildering to Canadians who have such strict banking regulations.

The last figure given was 12% ROI in 2010; we get .02% which leads us to take more risk and invest in equities/stock. Do you have opportunities to study investment risks? Before you trust anyone with money, you need to understand your system and your risk tolerance.

**UnknownXV** · 09-14-2012, 10:42 PM

ING is a fairly secure bank. Even if your government does not offer any deposit guarantees I wouldn't worry too much.

Although if you wanted to invest, I suggest looking into mutual funds, and possibly a bit in gold and silver (gold I expect will keep rising sharply as Qe3 is going into effect.. inflation is going to be rampant).

**Mooncow** · 09-14-2012, 10:53 PM

So snafu if you'd have to choose a bank for your money in romania which one would you go with?

I think I have the time and maybe the interest too to learn a bit about the stock market but imo it would take years to master it. Is that true?

"The last figure given was 12% ROI in 2010; we get .02%" what do you mean by this?

"Before you trust anyone with money, you need to understand your system and your risk tolerance."
Namely who do you mean by anyone? banks? the stock market? also what do you mean by my system?

My risk tolerance is moderate I'd say. I always am really careful with money but could take some hits due to standard deviation? while investing i mean.

What do you guys think where should I look for mutual funds? Also where should I buy gold if I'd want to for a good price?

And last but not least should I keep my money in the bank in a Euro, Dollar, or RON ( Romania's currency ) account?

Sorry for all the questions, but I really want to see things clear.
Thanks.

**snafu** · 09-15-2012, 06:55 PM

Each country has it's own banking and investing system. When I looked on-line at Romania, the figures were for 2010 and indicated Bonds were paying 12% as ROI [Return On Investment]. When we put money in a savings a/c, we get .02% while inflation here is 3% reflected by cost of gas, heating our homes, KwH electric and food prices.

The flight to safety buys gold bullion ingots/blocks rather than gold stock or gold jewelry or gold bullion paper. The problem is how to safeguard actual gold ingots.

In Canada the savers buy stock in the Oil Sands and we all have favorites. It's very volatile but we are used to the 'rollercoaster' feeling. I suggest you find some books on finance at the library. If you have sales representatives from giant companies like Fidelity, Tempelton or Vanguard...phone and ask about their free of charge information seminars.

**SMSF101** · 09-18-2012, 01:40 AM

There are four ways to save your money.
Online Savings Accounts
Reward Checking Accounts
Smarty Pig
Ally Bank 5-Year CD

**Josh28** · 09-18-2012, 10:32 PM

Investing in T-bills and bonds are also a secure way of investing money.Because if that company had any loss you paid first rather than to loss that money.and also get fixed revenue.......

**Mooncow** · 09-19-2012, 01:44 AM

Alright. Thanks for all the replies.

What about the currency regarding the money i have in a bank? Euro, Dollar, or RON ?( Romania's currency )

**victor06** · 09-19-2012, 10:51 PM

For me it is depend on you,bank is one of the best way to keep your money,but if you don't know how to manage your money no matter how many bank you put your money they will lost it,investment for me is one of the best way to keep your money and grow.

**jasonbinary** · 01-20-2013, 09:05 PM

I am not a financial advisor, you might want to go talk to one, but in all honesty all they usually try to do is sell you something that they can make a commission off of. I personally dont deal with IRA's or Roths because of the restrictions. You are very young investing at 20 and have a lifetime to grow knowledgeable in investments and the problem to me with IRA's is that they hold your money hostage and only allow investment in stocks and mutual funds. I also started investing young having family in the investment business, and i have at many different times completely pulled out of the stock market for different reasons.

How/where to keep my extra money?