I currently have the money in ING Direct savings which gives me 4.4 percent in interest. Are there any other options I might want to consider?
2006-10-17 09:01:06 · 18 answers · asked by PrimeTime 2 in Business & Finance ➔ Personal Finance
some CD's have pretty good returns and the $$ grows pretty quick...
2006-10-17 09:02:30 · answer #1 · answered by akelaamy 5 · 0⤊ 0⤋
Start with a savings account or bonds. Once you have accumulated $1000 or more, use long-term Certificates of Deposit. They usually have a better interest rate than savings accounts.
If the child is very young, you may want to look into some mutual funds. Many mirror the S&P performance ratings. A copy of Barron's monthly report may help you decide.
If ear marked for education, some of the money can be used as a tax break. The rules have changed recently, but your tax preparer can fill you in.
Planning ahead is your best defense against the rising cost of education.
2006-10-17 16:06:43 · answer #2 · answered by Terri M 1 · 0⤊ 0⤋
Open a non-liquid CD.
That means you can't access the money prior to it's maturity date without a hefty penalty.
The interest is paid monthly, and you can add to the CD pretty much at will.
If you want to continue the CD after maturity, it should roll-over automatically after a short grace period (in case you want to withdraw a portion w/o penalty).
I've had one for about a year now, and it is paying off quite well.
Good luck.
2006-10-17 16:12:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Put money into a tax exept college or retirement account, call a financial planner to help you. Doing this will be the best decision you make for the child!
2006-10-17 16:07:22 · answer #4 · answered by lulu 2 · 0⤊ 0⤋
I put mine in a mutual fund in my name. I made a living trust so that my children would get the money if I died w/o it going thru probate. You can make arrangements to have the money used for certain things, like to pay for college if you die before the child is old enough, to support a disable child by monthly payments, etc. Any monies in y our child's name might keep him/her from getting financial aid for college, therefore, you want it in your name so that you can disburse the funds..
2006-10-17 16:13:54 · answer #5 · answered by bettyswestbrook 4 · 0⤊ 0⤋
Invest it directly in a basket of strong huge, successful, dividend paying multinational companies. This will give you most likely good retuns over a period of 20 years or so. Don't do mutual funds and the like !
2006-10-17 16:17:22 · answer #6 · answered by Cheanea 3 · 0⤊ 0⤋
I have educational CD's at our local credit union for both of my boys. You can add to it in increments of $100.00 and I am getting 5.5% interest at this time. Every year my mom goes in when they are up for renewal and always negotiates a better interest rate than what is standard.
2006-10-17 16:03:52 · answer #7 · answered by lcritter55118 4 · 1⤊ 0⤋
take some and place it in Cd's that have a higher rate of yield and roll them over when they mature. Also look into annuities that are specifically designed for this purpose. Some of them do well.
2006-10-17 16:10:03 · answer #8 · answered by Biker 6 · 0⤊ 0⤋
E-loan gives 5.5% for the same account as ING
http://www.eloan.com/
(click on Savings & CD's tab)
2006-10-17 16:08:14 · answer #9 · answered by ddb v 1 · 0⤊ 0⤋
Give them a set amount every week like an allowence and dont allow any more to be given till the next week or every other week.
2006-10-17 16:02:59 · answer #10 · answered by fakealaugh 1 · 0⤊ 0⤋
Look at short and long term CD's (between 1 year and longer).
When they are old enough and earning money, get them started on on 401k asap.
2006-10-17 16:04:33 · answer #11 · answered by Joe S 6 · 0⤊ 0⤋