02-23-2012 03:59 PM
02-23-2012 05:31 PM
@ IOBA: You're an inspiration and a genius! I've decided to put 400/week into 6 month CDs. That way, if anything catastrophic is to occur (losing job, etc) I'll be able to not only have enough money for all my bills but a little extra too. I've already opened a USAA CD and that way in 6 months if I'm still okay money wise, I can just roll the CDs every week but if I need a little extra money, I've got it right there. It's a wonderful game!!!!
Wish I started this 3 years ago, when I formed my EF!!!
02-23-2012 05:41 PM
02-23-2012 08:22 PM
02-26-2012 11:56 AM
Creditdreamer - thank you!
I have a suggestion. You had said, "And then if I'm still in an okay financial situation starting in August when the CDs are coming up, I'll add 400 a week and put them back in for another 6 months. So then each time I roll over a CD like that, I'll be able to have 6 months from that date of financial safety. And starting in Feb (2013) I'd start having 800 a week coming up."
What I would suggest, if you can, is when the CD's mature, just keep them on a roll over status. The new $400 you were going to add to the CD --- open that in a NEW CD that is a longer term, say like 3-5 yrs. It will earn a higher interest and be a little further out.
Definitely continue buying a CD every week as you have started doing and plan to do so that money rolls over every 6 months.
02-28-2012 09:50 AM
I am not an investment expert, but wouldn't you be able to do basically the same thing buying tax free municipal income bonds through an online broker and make over 6% tax free? I used an online brokerage with a low monthly fee and the minimum purchase was $20. If you needed to you could sell small increments, but it takes a week or so to get your money. Every month there is the dividend that you can reinvest. It seems more profitable that way, and a lot less record keeping.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO