I still think keeping your money safe in the bank or some CD's is your best choice. You'll sleep better at night, and you'll have more money freed up in case you have emergencies. We all have our realities financially.
You might have a wife and 2 kids and barely enough to put anything in the bank even making 75 G's a year. But if you are able to save about 5 grand in a couple years in your cash account think seriously about putting that money in 6 month and 12 month CD's from your local bank.
Do your own financial planning. If you can afford it, buy two CD's to make a bit of extra cash. You won't make a lot, but a bit more than being in just a bank account. Lets say your 6 month Cd gets 2 percent, and your 12 month gets 2.5. At least you're making a little more interest and your CDs don't stay at the same interest rate.
But your money is safe and if you keep on putting in more money into CDs, each one will make more money from interest and be staggered so they aren't stagnant in regards to interest. Once you have enough cash you can put money into a 5 year CD at the most. You'll be able to get 2 or 3 percent interest at most. Not a lot but still better than being in a mutual fund where you might make money. That's a big might. Okay, you want a CD in these amounts and maturity dates.
2,500 1 year at 2 Percent
2,500 2 years at 2.5 Percent
2,500 3 years at 3.0 Percent
2,500 4 years at 3.5 Percent
2,500 5 years at 3.75 percent
Each Cd will make you more as they each mature. This way you're not stuck at one interest rate like in bank accounts. But make sure you don't need the money as you invest in new CDs. As well, don't put your cash in IRA's. Yeah, you get cash back as a tax shelter. But eventually yoy pay tax on it when you take some out.
With basic CDs and bank accounts you don't worry about that. I hope that helps you.
Mark
You might have a wife and 2 kids and barely enough to put anything in the bank even making 75 G's a year. But if you are able to save about 5 grand in a couple years in your cash account think seriously about putting that money in 6 month and 12 month CD's from your local bank.
Do your own financial planning. If you can afford it, buy two CD's to make a bit of extra cash. You won't make a lot, but a bit more than being in just a bank account. Lets say your 6 month Cd gets 2 percent, and your 12 month gets 2.5. At least you're making a little more interest and your CDs don't stay at the same interest rate.
But your money is safe and if you keep on putting in more money into CDs, each one will make more money from interest and be staggered so they aren't stagnant in regards to interest. Once you have enough cash you can put money into a 5 year CD at the most. You'll be able to get 2 or 3 percent interest at most. Not a lot but still better than being in a mutual fund where you might make money. That's a big might. Okay, you want a CD in these amounts and maturity dates.
2,500 1 year at 2 Percent
2,500 2 years at 2.5 Percent
2,500 3 years at 3.0 Percent
2,500 4 years at 3.5 Percent
2,500 5 years at 3.75 percent
Each Cd will make you more as they each mature. This way you're not stuck at one interest rate like in bank accounts. But make sure you don't need the money as you invest in new CDs. As well, don't put your cash in IRA's. Yeah, you get cash back as a tax shelter. But eventually yoy pay tax on it when you take some out.
With basic CDs and bank accounts you don't worry about that. I hope that helps you.
Mark
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