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.