We want to start savings accounts for our LO (for his future) and one for us (for retirement) but dont really know where to start.
My hubby is an independant contractor and I'm a SAHM so we dont have this option with work. We have to do it on our own.
Where should we start? What are good accounts which we can contribute to as we can afford and will collect interest?
Answer by louise2 at 10:33 AM on May. 2, 2010
Check out 529 plans in your state. Probably you can google it. Those are college savings plans. And I found this through google: http://money.cnn.com/retirement/guide/SelfEmployed/
Good luck, it's great you are thinking about this already!
Answer by kjrn79 at 10:36 AM on May. 2, 2010
Answer by Anonymous at 10:37 AM on May. 2, 2010
Answer by JazzlikeMraz at 11:32 AM on May. 2, 2010
Talk to a mutual fund broker. If you are investing for the future then you need something that will at least keep up with inflation. Inflation has averaged about 4% a year, so anything that you get at a bank right now isn't going to keep up with that.
I would suggest a Roth IRA for both you and your husband. You can put a max of $5000 in it per yer per spouse. And an ESA (educational savings account, nicknamed the Education IRA) for your son. Both of them grow tax free which means by the time you retire, or your son goes to college, you don't have to pay taxes on all that growth!! Woohoo :)
You can put up to $2000 into an ESA per child per year. That is dependent on your income though- I think you have to make less than $200,000 married filing jointly. I could be wrong though- so talk to a mortgage broker. Get into a mutual fund, or two, or thre
Answer by Anonymous at 2:46 PM on May. 2, 2010
Answer by Anonymous at 2:47 PM on May. 2, 2010