Saturday, June 17, 2006

Goodbye ING Direct... Goodbye Online Gambling!

I just cashed out all but $1 from my ING Direct account. Additionally, I cashed out all but $3 from my online gaming account.

ING Direct has simply fallen behind the pack in offering competitive rates. Heck, my local credit union (Navy Federal) is offering as high a return on their money market accounts. Cashing out now also establishes a lower baseline account value in the event ING Direct tries another promotional period of offering a higher interest rate to new money.

As for gambling, I've kept to a budget; however, most games require a "rake" which shifts any game from equal odds to one that has a negative implied value (house always win). I feel that i'm better off using these new funds to boost my prosper.com bankroll in order to construct a real return portfolio that should net my family around a 12%+ real return.

So far, I've got 9 active loans (18.38% avg interest rate) with 4 going to funding and 2 in the bidding process. Short term, i'm considering keeping my loan bids around $50 or so. I'll probably start doubling my bids to $100 once our loan portfolio achieves $50/month in interest income.

2 comments:

Jane Dough said...

Bravo on turning away from online gambling. Not only is it a smart financial move, but also a great example to others! Gambling is entertainment - not a part of a sound financial plan.

As for ING Direct - good move on keeping the account open with that $1. Who knows what is ahead with the ongoing rate wars. Plus, keeping the $1 means you don't give up any earned income you may have accrued during the month.

Finance Junkie said...

Thanks for the applause jane dough, it adds to my will power reserve.