I started getting child support after being divorced since 1989. The kids are raised, but I guess the judge didn't forget, so now I have money coming in like manna from heaven. I go to the bank, cash the checks and purchase I bonds. Should I be putting this money in some other type investment? I am not about to give it to my grown irresponsible kids.
2006-08-01 01:51:15 · 4 answers · asked by happydawg 6 in Business & Finance ➔ Investing
I have been investing in a 403b for the last 10 years with an employer match thru the Lincoln financial group. I own my home.
2006-08-01 02:07:30 · update #1
Are you sure that these payments aren't alimony? Child support generally ends when the youngest child reaches 18 unless the child goes to college. If the child goes to college, then child support may continue to age 25. If the money you are receiving is truly child support, it does not belong to you --- it's for your children. In this case, it's a good thing that you are buying bonds with it. When the court orders you to pay it back, you'll have the funds to do so.
If this is alimony, and therefore your money, your wisest move would be to pay off any credit card debt. Pay off the highest rate card first. When you are completely out of debt, then think about investing.
If you don't have a ROTH IRA and you are eligible to establish one, it's the best investment option available simply because it grows tax-free. Should an emergency arise, you can withdraw your contributions (but not any of the earnings) without penalty.
2006-08-01 02:57:04 · answer #1 · answered by #girl 4 · 0⤊ 0⤋
How old are you? What savings do you have set aside for retirement?
Assuming you aren't near retirement age, you should probably be investing a majority of that money in mutual funds. Over the long haul (20 years or more), the stock market has provided a bigger return on investment than bonds or other "safer" investments.
If you are setting the money aside for your retirement, and are eligible to, start a Roth IRA with the money, with the money primarily invested in a growth-oriented mutual fund. Let the money work for you until it is time to retire, and you should have a nice little nest egg to supplement Social Security (assuming it is still around at that time).
2006-08-01 02:02:43 · answer #2 · answered by peytonbarclay 3 · 0⤊ 0⤋
nicely the different solutions weren't very particular...in case you place $200,000 right into a U.S. reductions Bonds and enable it take a seat there and had a %2.00 Semiannual interest cost then you would finally end up with $231,707.37 after the federal taxes are taken out...you will get much greater in case you used it for education in case you qualify...
2016-12-10 19:19:03 · answer #3 · answered by ? 3 · 0⤊ 0⤋
If it is child support, you are commiting fraud by cashing those checks.
2006-08-01 04:21:21 · answer #4 · answered by urbanbulldogge 4 · 0⤊ 0⤋