Hello Reddit,
My wife and I have been building up our savings account. We have very little debt and are able to save roughly 2500 after bills. I have one child, and the plan so far is to stay with one. My wife and I would like to give our child 1k or more a year. However, I can not decide if that money should be placed in an Index Fund, a CD, or a REIT.
If anybody is wondering I'm an E-4 in the military. I get roughly 2k a paycheck. Due to BAH, and my incentive pays. My wife currently nannies another child with my child and gets about 900 a month. So total bring home a month is 4900 before bills.
Bills are as follows
Rent 1k
Groceries 80-90 a week. (This varies due to some weeks not needing things than other weeks needing things)
Electricity varies typically between $60-150 due to weather. (We live in the north)
Car insurance $80
Renters insurance $21
Internet - $93
My student loan $90 (Total is 6k, interest is 4% I debated paying it off now, or with my next tax return but it only takes 90 off of my bills so its one of those things. Yes, I know having the extra 90 would be nice, but the loan isn't killing me and this is the only debt we have. I paid my 22k stupid car off within a year and half of owning it. (Talk about learned lesson screw cars) We also paid off my wife's student loans. So that is another reason I would rather save our money now build our emergency fund to at least double my yearly salary if possible.
Phone bill $82 - T-mobile includes Netflix
Unnecessary things include - Diseny+ Hulu $12, recent gym membership $22 a month( looking to lower to different plan) apple music Student $5
So in total, the bills altogether come out to just over 1800 a month.
I'm not putting my savings account number down because I don't think that number is necessary. The reason being is it's a high number and we add to it regularly. My TSP is added to monthly granted I might increase my contribution soon. But that's another topic for a later time.
Really the base of this is my wife and I would like some input on where to put my child's money. I personally think an Index fund or REIT is a better investment option. CD's you can compound them but the return is rather low. But it is a consistent return. Anyway, Reddit some insight and advice would be grateful.
Thank you in advanced Reddit!
Submitted December 15, 2019 at 10:02PM by Financetofuture https://ift.tt/2RXLKu7
