TS_eXpeed

Alright, so I think I want to start up a little fund for myself.

My main purpose of the fund is not long term. I wanted to start up a fund that I could put in money every month for say 5 or 6 years, and then be able to take out what was in there after that.

My main purpose for it is so whenever I'm out of college and decide to either get my own place, or, whatever, I'll have a little pot there waiting for me.

I'm not looking to have 50 or 100K after this...I'd be content to have 15K or so.

Is a money market the right path for this??

Also, is Edward Jones a good company to go through for it?

airjam21

I'd agree with you that a money market is the way to go. Might want to look at some low risk bonds as well. As far as a company, I'll plug Vanguard. They have a pretty good money market rate and you can hook up your bank account to your Vanguard account and swap money back and forth w/o fees. PM me if you have any questions.

hornyleprechaun

^Same thing he said, but I use Fidelity.

imj0257

iTrader: (1)

Only thing with money markets is the rates aren't what they used to be. I've seen some paying 1.5% others paying up to 4%.

Shit, I opened a savings account last year before the market fell to shit and got 5.1% return on it but no its down to 3%. Oh well..

agranado

A money market account is much like a checking account but with the added bonus of having an interest on your deposit much like a savings account, but will require a high min. deposit (as per WaMu.)

Those are good if you're going to be using the money on a regular basis.

If you're saving, I recommend you come to my bank (if you're in Miami) and open up a long term CD (48-59 mo.) at 5.0% APY (which will net you about a (5% interest on your deposit every 12 mo.)

a CD (certificate of deposit btw) can be opened with a minimum of 1000.00$.

for example, 10,000.00 /12 @5% apy = 500$ earned on interest every 12 mo.

That'd be 2,000$ earned at the end of a 48 mo. term.

only thing is with a CD you will be penalized for early withdrawl.

TS_eXpeed

Even if it's at the CD's end period???

I'm really just wanting to get some money in somewhere and let it grow for 5 or 6 years, and then take it all out once I either

1- Decide to get a new car
2- Decide to get a place of my own
3- Decide that I need some major help for graduate school.

agranado

well what will happen is that the CD matures at the end of its term, and you have seven days to withdraw it and do what you will with it (place it in a new CD, or whatever account/withdraw). but after the 7 days, it gets redeposited into the same account it was, and at a much lower rate to boot