saving money question.

[buck440]

i don't know much about banking but is there a way you can put money away for like 10 years and not be allowed to touch until then?

[quad2xtreme]

bonds and CDs.

[krt400ex]

savings bonds. you buy them for so much, after a number of years they mature, often times when they mature they are worth more than you paid for them. if you sit on them longer, you do gain interest on them. if you redeem them before they have matured, however, they are usually worth less than what you paid for them.

[buck440]

a cd sounds best. i read that you can take money out anytime you want but there is a penalty.

[CJM]

Bonds you buy and leave alone for 10 years. Good investment but they dont mature much.

CD's you cant touch without a penalty till a set number of years, mature much faster and are usually what people do when investing.

[quad2xtreme]

ladder your CDs. Don't buy 1 CD. Spread the money across different maturity dates. It will give you ample access to your money should small needs arise without penalty. Obviously if you need all of it then you need all of it and you will pay a penalty. The ladder effect gives you access to smaller portions on a regular basis though which works for most people.

Just do a google search on CD laddering...lots of info.

[buck440]

yah but the thing is i don't want to be able to touch it at all until the time is up. i have a savings account for money if i need some.

[quad2xtreme]

Originally posted by buck440
yah but the thing is i don't want to be able to touch it at all until the time is up. i have a savings account for money if i need some.

Doubt you will find an investment offering from a bank that doesn't allow early withdrawal (with penalty of course). Most investors want the option of access in case of emergency. Sounds like you want something that absolutely stops you from accessing your money before the deadline. The idea to laddering CDs is it lowers the risk of penalty if an emergency does arise.

Just buy a straight 10 year CD then. You should get higher interest rates since it will all mature at once...and have a penalty for early withdrawal.

[buck440]

yah i don't want to even touch it at all until time is up. i'll probably put $50-$100 a week in it. how much interest Roughly could i get over 10 years? hundreds? thousands? just rough estimates.

[wild250rman]

look into an IRA if you want to keep adding to it through the years.

[rbgnwa45]

You'll be 60-70, but still!

"The annual cost of smoking one pack of cigarettes daily is between $1000 and $2000 in Canada, or about $800 in the United States. That's local currency, of course. Two thousand dollars invested at 10% interest tax-free compounded annually for 42 years yields $1,085,231."

[derekhonda]

To me, if this is what you have to do to not spend money, it is one of the dumber ideas i have heard in a while.

What is the game plan? What if the day after you put the money away, someone says I've got a mint 1969 camero with 5,000 miles on it, first $2500 gets it?

Of course that is a far out situation, but it is your money, why would you want to lock yourself out from it?

If it is for a down payment on a house, there is a great way to do that but I guess I'd need to hear your reason for the savings first.

[buck440]

i'm wanting it to move out of this country and get a house or a house to rent until i get settled in. there is the cost to move my vehicles, my guns, passports, and misc bs that has to be done. i'll have some in savings but most of it will be in the cd.

[slightlybent47]

Remember that all income even cd’s, ira’s ect. Is taxable income so you need to consider that when you calculate your projected earnings.