BUS 215 Week 2 Discussion 1, Long term Financial Health

BUS 215 Week 2 Discussion 1, Long term Financial Health BUS 215 Week 2 Discussion 1, Long term Financial Health Investigate at least five different savings and investment vehicles, including savings deposit accounts, mutual funds, IRAs, 401ks, 403bs, etc. Determine the costs, return on investment, risks, and appropriateness for you. Discuss in this forum what youlearned and how youcan use this knowledge to increase your personal wealth. Post a 200 word response to the discussion board. Your answer should focus on organizing your most relevant comments in a coherent fashion. Respond to at least two of your classmates’ postings. The savings accounts offered in my area, Arlington, TX; do not have fixed rates which means the interest rate can change at any time. Certificate of deposit accounts have fixed CD ratesthat do not change, but, if youdecide to obtain a CD youneed to know that your money is not available for anywhere from 30 days to 5 years. If monies are withdrawn from the CD early the holder will have to pay a penalty to do so. The penalty can be from 3 to 6 months of interest depending upon the maturity of the CD. 401k and 403bs are similar. The difference is that a 403b allows youto save more than a 401k. IRAs allow more flexibility than CDs if youhave children and might encounter emergencies. Mutual funds would better serve someone more established with no childrenat home since there is a minimum balance requirement. My husband and I have decided to use savings accounts for now since we have two small children. After researching for this assignment I will belooking into an IRA or a few CDs to help us save for retirement. The interest rate on the CDs combined with the IRA shouldgive us a good start for our retirement savings once I haveobtained my degree and knowledge to manage our finances.