How can I get the most out of the money I put in to her savings account? I'm worried that she will have to struggle like I am right now. I don't want her to be rich but I do want her to be comfortable thoughout her life. Are CD's the best thing or is there anything else I can get her more money then I put in. I don't want to play the stock market! I have life insurance for her and she does have some money in her account. The way the world is going right now I'm afraid she will be struggling more so then I am right now.
2007-11-30 07:04:12 · 7 answers · asked by aimstir31 5 in Business & Finance ➔ Investing
It sounds like you are risk averse, which rules out a stock portfolio of any sort.
What you're looking for is any form of an FDIC insured account that will yield good interest as well as protect the savings for your daughter. I personally use Citibank Ultimate Savings, there is no annual fee (very important that whatever account you have has no annual fee) and gives 5% on your money back each year. The interest you earn of course compounds on itself. I have heard EMG Direct is also a good company.
If you're keeping your money in CD's, you should make sure that the rate of interest those CD's give is at least competitive with the money market accounts Citibank/EMG provide.
2007-11-30 07:10:00 · answer #1 · answered by fabled.life 2 · 0⤊ 0⤋
All of the previous answers make some valid points. However, the truth is that this is far too lengthy and complicated a subject to deal with in a forum such as this. Entire books are written on basic investing.
The key to being successful is to properly educate yourself on the subject. I suggest checking for a class on personal finance at your local community college or adult education program. If you're good at studying on your own, get some books on investing for beginners at your local bookstore. Then, you can make better decisions and assess whether other people's advice is appropriate.
This might also help you with your own finances so you don't have to keep struggling.
P.S. I understand your desire to be risk averse. However, not taking on any risk is also very risky, as strange as it sounds. Super-safe investments such as CDs pay very little. If a CD pays 4% and inflation is 2%, you're down to a 2% real return. Once you factor in taxes on the interest, you're down to no return or you may even be losing money!. I applaud you for looking out for your daughter's future, but being 100% in CDs over many years can result in the exact result that you want to avoid. You don't have to take a lot of risk, but taking no risks will not grow the money.
Good luck!
2007-11-30 13:45:56 · answer #2 · answered by The Shadow 6 · 0⤊ 0⤋
Don't be afraid to put some money in stocks. Dollar cost averaging the S&P 500 index is a good place to start. Some money market, CD, bond allocations are useful, but there is risk in buying CD's, the risk that the yield won't keep up with inflation. If your going to buy CD's ladder them. which is just buying CD's with different maturity dates.
2007-11-30 09:05:30 · answer #3 · answered by antiherocontravillain 2 · 0⤊ 0⤋
Playing it safe & being cautious rarely gets one anyplace in life and/or money. I'm not saying be super agressive, but one needs to take some measured risks with one's money.
One of the things that comes immediately to mind here, is why does your daughter need insurance?? Does she have a family to support or something?? Isn't there plenty of time to get insurance if/when she needs it??
Maybe one of the reasons you are struggling, is because you do play it safe?? Pitch the insurance, your daughter doesn't need it. Save the money for yourself. As long as your daughter gets a good education, she will likely be more than able to take care of herself.
2007-11-30 09:36:38 · answer #4 · answered by exactduke 7 · 0⤊ 0⤋
It's the excellent time to begin saving; feel of the pricey matters which you can wish to shop for her as she will get older (simply recommendations, no longer all father and mother might acquire a few of these matters) and also you on no account realize what the economic system will likely be like (my father and mother could not have realize a 3 bed room condo in which we are living might price 5 instances instances mine and companion's cash in 25 years!): personal college eduction institution schooling vehicle condo disposit marriage ceremony But whilst you've gotten time so take some time opting for what you wish to spend money on for her, low hazard coins, bonds, fairness, stocks. With see you later to save lots of you'll be able to more commonly take somewhat extra hazard on board as you've gotten the time to attend out the marketplace and get well losses with approximately 18 years until you want the money. Your angle to fiscal hazard turns out particularly ingrained in folks although so if you're a 0 hazard variety then coins the entire means in spite of the very low earnings. So might be speaking on your financial institution is a begin, they are able to exhibit you the bills that might swimsuit this motive.
2016-09-05 17:07:17 · answer #5 · answered by mcguinn 4 · 0⤊ 0⤋
Hello, aimstir31!
NO, CD's are NOT the best thing. You need to invest in someones business to get highest returns.
I'm not a financial guru, but I am getting around 50% annual interest. I can help you to invest your money with no risk in a way that best suits your needs.
You need to be careful if you do not want to be scamed, and lose your money.
E-mail me more information about your plans and needs, and I'll give you a good advice. Check my profile.
Good luck!
2007-12-01 06:12:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
How old is she, and have you considered a 529 savings plan? The advantage of these plans is that the money in them grows tax-free, and no taxes are ever due on them if they are eventually used for training or education. D
2007-12-02 13:18:50 · answer #7 · answered by HeavyD 3 · 0⤊ 0⤋