A bit OT...but i cant discuss with DH because of the skids (cross post)
I got a promotion at work in January so I can now afford to set up a savings plan of some sort for my two boys. Dh is categorically against saving for the kids futures. I've asked him repeatedly to set up accounts for the skids (before we had our own) and he says no. I've asked him since we had our own to set up for all the kids and we can both contribute and he says no. So now I am setting up for just my two. No way I am saving for kids that aren't even mine if dh won't contribute too.
So my question is....what kind of savings plan do you have for your kids? A savings account...CDs....mutual fund.....? I've tried doing g research online but there's so much out there I need some direction. I'll be able to put $100 a month the into each to start with.... Hopefully more as time passes and I get in a better place with my career.
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CD's because they are
CD's because they are guaranteed to go up and you're less likely to raid them. Mutual funds could dip because of the economy and savings accounts you might empty.
My mutual funds in my Roth grew 15% and 12% most years but then dipped down to below what they were when the economy crashed. Sometimes I got negative returns. They are still probably going to get a higher return than CD's but if you aren't trying to gain as much as possible and satisfied with a modest return then you may look at something safer and more steady.
I would contact a financial
I would contact a financial advisor. Check with your HR dept, that may be part of your benefits package. If not someone at your bank should be able to help you.
Yeah I plan to talk to the
Yeah I plan to talk to the bank before I do anything....but I just like being informed before I do. The bank is obviously going o be pushing their products and down playing the drawbacks. If I'd be better off at a credit union , or an online bank or something they wouldn't tell me that.
Do they have pre-paid college
Do they have pre-paid college plans in your state? Where I live, that's an option and covers all state schools. It's a pretty good deal. That is another option.
I agree the credit unions are the best. But any bank, CU, brokerage firm, etc.. is going to push their own products. Just find the one that works best for you or split between two. Also, a financial advisor is better than self-directed investing as they know what they are doing. Try to find one that you like. I know my CU has them. Also, sometimes advisors will do free seminars on different topics. Look for ads in the local paper. You cna't get free advice.
I'm prepared for dh to get
I'm prepared for dh to get mad about everything I do. But this is my kids future so I am not going to let him fuck it up. Theres no way that there will be any money for our kids after the skids hit college age. They are 6 and 7 yes older than bs3 so they will both go through all 4 years of college (if they even go) before my kids are ready.
He will scramble at the last minute to give his princess everything and give no thought to our joint kids and by the time its their turn he will be so burnt out that he won't lift a finger to help them pay.
Always a mix of investments
Always a mix of investments for long-term investing. Rates are low, CD rates won't earn anything really-- just protect your investment. I'd mix cash equivalents (like CDs) with mutual funds. Talk to a financial advisor about setting up a 529 account for college.
I work for a financial
I work for a financial advisor and it really depends on a lot of things. First - what are you saving for? How important is it that you can get the money out for an emergency, etc.
Something to think about is that if you put $5K away when your child is 17 and never touch it again, by the time they retire at, say 67, it would be worth over 200k! If you put 5K away by the time they are 17 and then add only 2K to it each year - with an 8% return, it would be worth 1.4 million dollars!
Then again, if you're saving for college, I would contact an advisor anyway and look at a 529 account or even a ROTH IRA. The market is statistically the best place for long term savings just make sure you have a good advisor.
I have a 529 for my BS17.
I have a 529 for my BS17. Not much in there but, it will pay for about a year of college. You should never save more for your kids unless you are maxing out your retirement for you. I wouldn't do anything for my Stepkids. That is for DH or BM to do. Neither of them do, so that is their problem.