I have a CD that will mature in about a week. This has all the $$ my parents have given me for college. Anyway I'm deciding if I want to put if back in a CD or perhaps bullion. I am not very familiar with bullion on a large scale though. As far as I am aware a CD is safe, but I'm looking at like 2%. Bullion can go up and down, so their is risk, its also at $18/oz currently and I'm kinda iffy on the fact that it might not go much higher. I also have no safe or anything like that. So anyone have any good links or suggestions? :rolling:
NEVER, NEVER bet your college education on bullion. Roll-over the CD. You have arrived at one of those decision points in life where one wrong move could cause a lifetime of pain. Gold, silver, stocks, and long term bonds, are only suitable for risk capital. Not for money earmarked for education. Keep the money safe.
I don't think it is a good idea to put your college fund at risk either. How old are you, anyway? You might want to consider using the CD funds whose earnings are taxable to purchase municipal bonds which are exempt from all taxes, but before you make any decision, you should talk to an investment counselor on the pros and cons of munis. The only thing you want to be sure to avoid are munis issued by municipalities or states with low credit ratings. Though these pay the highest interest rates, there are greater risks associated with them. Chris
You have a better idea of how much you will need for tuition, board, etc., But I agree to roll over more than enough to cover all. IF IF IF! you think you have more than enough, maybe 5% in PM. But roll enough for education. Education will increase rapidly in cost in this economy, so make sure you will have enough. A 2.5% will not keep up with college education. The college education will pay you back in the future far more than any PM investment.
I agree with everyone but it also makes me a hypocrite I used my savings from last year to buy bullion and I've made a lot of money in the past year. It was stupid of me to do so though, as the markets are volatile. I'm probably going to hold on to my bullion though for a rainy day. I figure I can pay off my student loans once I get out of college making a decent amount of money at whatever job I have. For me, the gold and silver I own is more of a way for me to stop myself from spending it while also making a good return which is higher than the interest I would have gained in my bank accounts. Just letting you know what I did as an incoming college freshman. Good luck!
Oh and to parallel your situation, I am being awarded 1250$ for an 'academic scholarship' towards college, in the form of a check in my name. Although once again stupid, I'm going to spend half of it in silver as I think silver has a lot of future potential. Keep in mind too that I'm going to be making a lot of money at my job this summer, so it's not like I'm using all my income on PM's. I also have a couple stocks and a crap load of savings bonds.
Talk to your parents , seems they were prudent enough to pay for your Education , talking to a financial planner could'nt hurt either . I'd only use money that you earn or have as spending money for PM . JMO rzage
Hold the cash in a safe so it is not counted against the $$ you may get from financial aid, unless your parents make too much and you are under 23. Also, I talked to a financial advisor about municipal bonds late last year and he said you need 50K minimum to start.
Forget the CD. What are they offering you 1.5% on a year CD.....2% on a two year CD. Interest rates might go up soon, or they might not. But, if interest rates go up, you are now stuck with 2% for two years. I suggest going to a credit union and seeing what raw interest rates they are offering. I have a checking account that requires a minimum deposit of $10,000, but offers 1%. 1% for a checking account. My money is liquid and I'm making as much or more than people with a 1 year CD. Shop around for a regular good account....and don't rule out credit unions.
That minimum was probably a self-imposed requirement form that firm, and it is not a general rule when buying munis. Even when it comes to financial planners, it pays to shop around. Chris
Roll it over if you are unsure what to do. Do not put money at risk that you cannot afford to lose (especially money earmarked toward an education). Have you ever thought of a 529 plan? There are both conservative and risky investments in these plans. TC
Advice given is correct ! Get an education , then a job. Save then what you will in divisions that fit your needs.Look at past history and look at the future. Learn to be a independent as you can. Study all forms of investing. The money for college may only come once. Be wise and utilize state schools which can give you a great variety of specialty classes at a reasonable price. Get a loan and take a masters at an upscale school if you can.Do what you do well and want to make a life with your education I have two daughters that followed this plan. It has worked very well for both. They are 36 & 40 years old.
If it matures in about a week and you are not yet certain what you want to do then I would suggest strongly to keep the money safe. It might sound stupid, but you should do your homework in everything and not just in formal school.
Since you mentioned that the money that your parents gave you is for college, then it should be used for college expenses and nothing else. Even though I like gold and silver, you should not put college money that you will need very soon into ANY kind of investment that will have the potential to go down in $ price and that includes gold and silver. Keep it liquid. Silver Surfer mentioned putting it in a credit union savings account and I agree with Silver Surfer on that. The idea is to have that money accessible when it comes time to pay the college tuition. Do not touch the college money that your parents gave you. If you want to buy PM's, then you should get a part time job and use a little bit of that money from that part time job to start buying PMs as well as any other misc. expenses. However, I would first google gold and silver to find more information on gold and silver. That is what I did to learn more about gold and silver.
I wouldn't roll the CD over, and I wouldn't put it in silver either. Open an online savings account (ING, HSBC, Smartypig, etc). Their rates are comparable to a CD and you can get your money in 2 business days with no penalty. As others have said, don't bet your college savings on PMs. If you want to get higher returns, you are going to have to take on more risk. Unless you have a time horizon of more than 5 years, there is no reason you should be taking on more risk. If you want to invest in some silver, just do so with some money you are earning from a side job.
I think the CD rates are totally pathetic. They use your money to lend out and are making a profit off it. I had to tie up my money for 4 years in a CD just to get 3%. This could be wrong thinking but gold [and maybe silver] should see a better return than 3 percent over the next four years.
It could , but we're talking about tuition money his parents gave him , what happens if it goes down . PMs and stocks are a form of gambling , and I wouldn't gamble with money for school . rzage
My first choice on advice: Can you get a part-time job and just invest that in Silver/bullion and not touch the college fund? Silver should be a very longterm investment plan, not short term if you plan to complete your degree in a desired timeframe (not like me - many years later). How about Vo-tech school? Maybe you are looking at more than four years in school. Not sure what you might be studying in college. If it is just a liberal arts degree (minus a History degree), then by all means get a summer job and start buying. If and when you do buy, direct your funds into the most cost effective bullion (the least premium - and brand bars are good for selling back someday - if neccessary). You might consider a little gold too. If you are studying something very marketable, like nursing, and will be out in 2 years, then maybe focus on extra can food, cash in the form of metals. I like nickels. Some silver exposure is good, but you don't want to bet the farm. Keep in mind this is my opinion. I took forever to finish school. Left with one Master of Science degree, and abandoned the second Masters when I married. I paid cash most of the way, but it took more than 20 years. My income along the way was always rather poor, but I saved and invested almost always - since about age 15 years old. So pray about it, and follow your gut!
