Comments on: Online Savings Accounts and Battling Inflation http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/ ... where my idea of splurging is feeding my cat Fancy Feast. As a full-time student with a limited income stream, follow my journey in obtaining financial awareness and prosperity Thu, 28 Aug 2008 03:10:14 +0000 http://wordpress.org/?v=2.1 By: Jim Murphy http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2218 Jim Murphy Wed, 15 Aug 2007 16:18:40 +0000 http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2218 <i>In 1965, on one of his annual trips to Las Vegas, a gambler named Jay won $25,000 after taxes at a casino. Just for reference, Jay could have purchased a modest home for that sum in 1965. Instead, he put the money in a safe deposit box, where it remains today.</i> Unless I'm mistaken in 1965 the casino would not have deducted the taxes from Jay's winnings. At the time he would have also been able to not cash out his winnings (keeping them in the form of casino chips) and keep them in a safe deposit box *at* the casino. This way he could have "withdrawn" his winnings gradually, keeping them under the IRS reporting requirements for casino winnings. This was a very common practice until the last decade, and would have enabled Jay to a) not pay taxes on his winnings and b) move them into some sort investment that would have yielded interest.... In 1965, on one of his annual trips to Las Vegas, a gambler named Jay won $25,000 after taxes at a casino. Just for reference, Jay could have purchased a modest home for that sum in 1965. Instead, he put the money in a safe deposit box, where it remains today.

Unless I’m mistaken in 1965 the casino would not have deducted the taxes from Jay’s winnings. At the time he would have also been able to not cash out his winnings (keeping them in the form of casino chips) and keep them in a safe deposit box *at* the casino. This way he could have “withdrawn” his winnings gradually, keeping them under the IRS reporting requirements for casino winnings. This was a very common practice until the last decade, and would have enabled Jay to a) not pay taxes on his winnings and b) move them into some sort investment that would have yielded interest….

]]> By: Jay http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2236 Jay Thu, 16 Aug 2007 12:45:31 +0000 http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2236 I just stumbled upon your site and have found it highly informative and interesting. So, thanks! In reading over your iGoBanking posts I thought that I would head over and start a savings account. One question I had while reading the terms and conditions is the issue of 'early withdrawal penalties.' Now, I would plan to use this as a nest egg/emergency fund like yourself, but one of the stipulations reads: If your account has an original maturity of one year or greater: * The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty. ...does this mean that even if I maintained an account for 20-30 years, I'd still have to pay a fee upon withdrawal? My understanding of a savings account is that, unlike a CD it does not have a 'maturity date.' I'm a bit of a dummy when it comes to finances and the like, so any clarity would be extremely enlightening. Thanks peace out ~J I just stumbled upon your site and have found it highly informative and interesting. So, thanks!

In reading over your iGoBanking posts I thought that I would head over and start a savings account. One question I had while reading the terms and conditions is the issue of ‘early withdrawal penalties.’ Now, I would plan to use this as a nest egg/emergency fund like yourself, but one of the stipulations reads:

If your account has an original maturity of one year or greater:
* The fee we may impose will equal six months simple interest on the amount withdrawn subject to penalty.

…does this mean that even if I maintained an account for 20-30 years, I’d still have to pay a fee upon withdrawal? My understanding of a savings account is that, unlike a CD it does not have a ‘maturity date.’ I’m a bit of a dummy when it comes to finances and the like, so any clarity would be extremely enlightening. Thanks

peace out
~J

]]> By: SP http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2478 SP Wed, 29 Aug 2007 17:02:44 +0000 http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-2478 Do you have any news on Canadian high intrest bank accounts? Do you have any news on Canadian high intrest bank accounts?

]]> By: John Jackson http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-4625 John Jackson Fri, 28 Dec 2007 05:57:01 +0000 http://www.brokeass-student.com/online-savings-accounts-and-battling-inflation/#comment-4625 Investment is the way to go. Let your money work for you. Investment is the way to go. Let your money work for you.

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