Friday, July 22, 2011

The Right Savings Vehicle

Recently I began to ponder upon some of the changes in my life at a stage when most are planning for retirement.  Having two very young sons, however, has led me into a much different path in my musings.  How do I provide for their future?  As I thought about this, a number of options crossed my mind.  Almost any kind of investment comes with some risk.  Realizing the importance of having a solid financial base for a college education for them, I wished to minimize that risk while still ensuring the best possible return on my money.  As I have watched part of my retirement money melt away with stock market fluctuations along with the fact that the stock market is for the longer term, I realized that stocks were probably not the way to go.

Lately I have concluded that government bonds are no longer viable for this situation, so I turned to looking at what some of the local banks were offering.  While a simple savings account is fine for that rainy day fund ( and necessary too, I might add), that type of investment did not give the needed return.  It was very flexible, allowing me to withdraw money whenever needed and deposit whenever I had some extra, but it also had a rather low interest rate.  I checked into the money market which is also rather flexible and found a slightly better rate; however, after shopping around, I did find a savings vehicle that seemed to be a good fit.  Certificates of deposit yield a higher interest rate and allow flexibility of both amount and time.

A website that gives excellent information on different investments may be found at   Many of my questions were answered by this page.  The drawback to this type of investment is that there is a penalty for early withdrawal, but one may choose the length of the term until maturation.  Of course, the longer the term, the greater the rate will be.  One can find a good comparison of rates on the best  CD  by visiting Discovery Bank.

1 comment:

Saleslady371 said...

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