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Mom Confessions Mom Confessions

Help me think this through logically. IF you wanna be a b****, thats cool too, I'll just weed out the b*tchiness.

Posted by Anonymous   + Show Post

 My husband and I are going to be receiving a settlement. We have NO idea about the amount yet, but we are thinking it out long before we get it so that we can have the plan, and do it.

It could be anywhere from 30k to 300k. We really have no idea. So we are PLANNING the 30k and if it is more, we will put much of that into some form of savings until we purchase a home so that we will not have a mortgage payment.

My question: What is the best (in your opinion) plan on savings. Regular Savings is great for smaller amounts, but we are not wanting to waste the time with such a low interest on a larger amount.

Any advice would work too! :D

Posted by Anonymous on Nov. 26, 2012 at 10:50 PM
Replies (41-50):
CoolRelax
by Platinum Member on Nov. 27, 2012 at 12:20 PM

Of course you'll need to talk to a financial manager, but I would suggest putting a good sum into high yield savings that you can't touch for awhile without a penatly, and some short term savings/investments that you can access at any time.

My mom made the mistake of putting all the money from my dad's life insurance into long term savings, then she went crazy taking it out and owes Uncle Sam a LOT of money.  And I do mean a lot. 

she_walk_softly
by on Nov. 27, 2012 at 12:21 PM
1 mom liked this
Buy a pony!
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raegansmom
by Gold Member on Nov. 27, 2012 at 12:21 PM

 I work at a bank.  I would recommend you go & talk to your bank & let them know.  They have specific investment departments who are really there for your best interest.  The best part is....it's free!

mom2ljh
by on Nov. 27, 2012 at 12:22 PM
Speak with a financial planner.
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brittany208
by on Nov. 27, 2012 at 12:23 PM

I have no idea bc we don't have that kind of money laying around. But I would call into the Suze Orman show, ask her, and do whatever she said lol. I think its: have an 8 mo emergency fund, fully fund your 401K, then Roth IRA maybe?

lnrmom
by Ruby Member on Nov. 27, 2012 at 12:26 PM

I received a settlement I was thinking was going to be ginormous and it ended up being a fraction of what I initially thought (and still believe it should have been). I'd throw some ideas around, but don't put the cart before the horse.

Obviously find the best interest rates - CDs are great and you can time the purchase so that you'll always have access to the money, but you'd have to do some serious planning and be prepared to have your money locked up for 6months to a year. Also, money market accounts tend to have a higher interest rate. Pay off debt - better to be earning no interest than be racking up an interest bill. If you have no debt, even better.

Personally, we paid off some bills, and I took my girls on vacation. It was nice and we did a lot and I'd do it again in half a heart beat. I think after everything we had gone through, we totally need it. We did it on the cheap though which meant I got more bang for my buck. :)

Anonymous
by Anonymous 10 on Nov. 27, 2012 at 12:29 PM
A CD earns high intrest
Ali5683
by Ruby Member on Nov. 27, 2012 at 1:23 PM

You can go ahead and deposit it into my account. Message me for details. ;)

Seriously though, talk to a banker. They will know the laws regarding large deposits.

♥ Ali5683
SCENTSY :: aliciaivie.scentsy.us
FINDING ALICIA :: www.findingalicia.com

SnapIt
by Ruby Member on Nov. 27, 2012 at 1:24 PM
i say talk to a financial advisor
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Anonymous
by Anonymous 11 on Nov. 27, 2012 at 1:26 PM

I would put it in a tax-free money market account....franklin templeton has some very good ones that earn around 4% interest.  The general rule of thumb is to have 10% of your wealth in liquid assets, so I'd take 10% and put it into a savings or mm account that is insured.  As for the rest you might consider mutual or index funds with a conservative growth pattern.....you can talk to a financial planner for more detailed advice...I'm only an accountant.

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