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Saving money for LO and for us

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 Question
 
Munchkin09

Asked by Munchkin09 at 10:29 AM on May. 2, 2010 in Money & Work

Level 4 (28 Credits)
Answers (6)
  • Go to your bank and ask them this question.
    louise2

    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!

    kjrn79

    Answer by kjrn79 at 10:36 AM on May. 2, 2010

  • Certificates of Deposit are great ways to invest your money long term.
    Anonymous

    Answer by Anonymous at 10:37 AM on May. 2, 2010

  • Talk with your bank. They can help you into creating an account that will accumulate a good amount of interest and benefit your future.
    JazzlikeMraz

    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

    Anonymous

    Answer by Anonymous at 2:46 PM on May. 2, 2010

  • *Sorry not a mortgage broker, a MUTUAL fund broker.
    GOOD LUCK :)
    Anonymous

    Answer by Anonymous at 2:47 PM on May. 2, 2010

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