Where to earn more interest on your money

A bit of gaming the system. But the Bucks blog at the New York Times website posts about a sneaky suggestion from a reader to open up a 60-month CD at 2.99% at Ally Bank and even if you end up paying a penalty of 2 month's interest you're still likely to come out ahead.

Read the whole post: http://bucks.blogs.nytimes.com/2010/06/02/a-trick-to-earn-more-interest/

Personally, I still like my HSBC account even if the interest rate is not-so-hot these days. I also took a look at the comments where some folks rightly point out that Ally is part of the formerly known as GMAC Bank, which has been bailed out twice(!) by the U.S. government, which is now the majority owner. That's kind of sketch, in my opinion.

Buy low, sell high

Whoa, just when I finally got into the market, it's taken roughly a 10% tumble in the last month! I just have to keep reminding myself that I'm investing for the long haul. To keep calm and carry on, you might say, especially if you were into one of those ubiquitous posters.

On the other hand, sparing a dreaded "double-dip" recession the economy could be pulled into, if you are buying low, now would be a good time, right? I'm trying to up my contributions now for just that reason.

How're the rest of you faring the current "market correction"?

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On April 20

Is it appropriate to say that not smoking — legal or only-legal-for-medicinal-purposes-in-certain-states substances — is also a pretty good choice from a frugal perspective?

Part of the reason I could never see myself smoking is I never would be able to stand the cost of the addiction.

That said, even though taxes raised on cigarettes (there's even talk now and then of legalizing and taxing marijuana) benefit society. you have to feel a bit for those who are truly addicted. Especially in the case of cigarettes where the cost does hurt individual's finances, but it's more difficult for someone to quit in spite of the fact.

Are there many PF bloggers out there who are cigarette smokers? I'd be a bit surprised if there are.

Roth IRAs

(Hi, again blogosphere! Why yes, it has been a looooong time since I've posted!)

Well, I just recently opened a Roth IRA an account to make a contribution before the expiration for the 2009 tax year. I opened my account at Vanguard and opted for one of their retirement target date fund accounts, Vanguard Fund Target Retirement 2050. Why? I guess that's because it seemed like the easiest choice without too much work.

I went with Vanguard over other companies for my Roth IRA because of its non-profit/co-op like status. For a financial services company, I liked the sound of that.

But for future investing, I've heard of good things with TradeKing and investments in ETFs from Vanguard. That's a little over my head yet at this point, but I will be looking to consider that route for future investments.

Any advice out there for newbie investors? What's the PF blog world's experience been?