Anyway, in the mean time I've come up with a pretty good idea. My thought is to have some sort of interest accruing account that we can put a small amount of money in every month or payday to save money for baby things we'll need in the future. Since we don't a large amount of money to put into an account right now and eventually we'll want to be able to take money out of it whenever we need it without being penalized by the bank, I've been doing research on the kind of account we should have and interest rates at different banks.
My knowledge of "banking services" is limited and I would like to know what everyone thinks we should do. I know you all know more about this than we do!
A lot depends on how long you think it'll be before you start taking $ out. If it's going to be awhile, you may want to look into a Schwab account. We have one that we have automatic deductions to from both our paychecks and it accrues quickly w/o our even realizing it's doing so. Otherwise, a credit union is a good choice. They generally pay higher interest rates and don't charge anything for withdrawals. We've used both the Navy Federal Credit Union (for 24 years) and Kitsap Federal (local) for the last 13 or so. Of course, Kitsap Federal may not work that well for you, but perhaps NFCU or something else similar. Again, have an automatic withdrawal and you'll never even notice it's gone. Good luck, and a GREAT plan! XXOOX Mom/Tracy
ReplyDeleteHold on a sec. Can some please explain a Schwab account to me please?
ReplyDeleteDanny and I plan on seeing a financial advisor before heading back to the states.
Go to Schwab.com...or try USAA, I think Danny is familiar with them. Esatblish a direct deposit and or drip fund into whatever you decide will be th ebest for you guys. (This would be after your TSP) There are several ways to go for your wants and future needs. Of course along the way you'll make the wrong choices too, welcome to life. If you have other questions, you both have family that can provide you with "advice". Love you Both and looking forward to hopefully being able to see you.
ReplyDeleteDad/Dan
I do not have a lot of experience in banking accounts but as Tracy said check into a credit union they are much better than a bank.
ReplyDeleteI agree with Dan don't forget your TSP. It will be a good start to retirement. Take advantage to any matching funds the government wants to give.
I have been told to be a little careful of financial planners and how they get there fees. Some I believe get paid on commission so they want to sell you everything. I would check to see whom the Navy recommends. Don't settle with the first thing you see. Your financial future is very important and the sooner you get started the better off you will be.
CD's are good but you need money to invest and the longer you leave it alone the better the interest rate but if you take it out early they will get you with penalties.
Just because I don't comment doesn't mean I don't read your postings. What would I say about Knitting.
By the way this is twice this month so my record is better than the Mariners.
GO SEAHAWKS!!
Right now we are just looking for a short term savings. Once we start having a family we'll invest for the kids' college and other expensive things. Our other focus is paying off debt. If expensive things (like traveling to the states) didn't keep coming up, then maybe we could get ahead!
ReplyDeleteDanny is building up his TSP.
The Navy/Marine Corps Relief Society is supposed to offer financial counseling. If they do, I am hoping to meet with them. Otherwise we'll have to go to a FFSC class.
ING accounts are apparently really good. They're just typical checking/savings accounts, but they're high interest. The only hitch is that you need to be approved for the account, but you guys should be fine, I would think. Something else worth looking into is a money market savings account - I used to have one through Bank of America, and while it required a $300 minimum, it was worth it because the interest was pretty high on an account that I could withdraw from whenever I wanted. (I think the ING interest rates are generally higher, though. But at least with BoA, you don't need to be approved!) Also, like your dad says, it's worth looking into CDs. Generally you can find a good rate (around 5% or so) by doing $1,000 for at least a year - and most banks will allow you to keep putting money into the CD, usually up to double the original investment. That way you have money in savings, but you can't touch it until you need it. Meaning you won't spend money you want for baby purposes, and you won't be tempted to have a baby until the CD has matured!! :)
ReplyDelete