Where the money reside finds, analyzes and takes part in money events to provide a source of information that helps its community tap into this source of monetary reward. It’s a resource where you can generate income having fun with your hobbies. We break down the process into simple steps to make generating income easy. The objective is to empower you to create sources of passive income in the form of cash, free meals and more.
Banking account
Bank accounts are the most common way to hold your money. They can be as simple as a checking account or as complex as an investment account.
Bank accounts are one of the most accessible ways to save your money. Most banks will allow customers to open an account with a minimum deposit, and many banks offer checking or savings accounts that pay interest on funds that are held in the account. You can also open a bank account online by going to your bank’s website and following instructions for creating an account.
Banking institutions offer many different types of accounts. The two main categories are checking and savings accounts, but there are also certificates of deposit (CDs), money market accounts, credit cards and other types of financial instruments you may want to consider before deciding on a type of banking institution for your financial needs.
Money market accounts
Money market accounts are a good option if you are looking for a savings account with higher rates than traditional savings accounts but don’t want to lock away your money for too long. They offer a higher yield than traditional savings accounts, but are FDIC-insured and have low minimum balances and monthly fees.
Money market accounts offer access to your funds through check writing, ATM withdrawals and debit card transactions.
There are four main types of money market accounts:
- Regular Money Market Account – This is the most popular type of MMAs, which offers a higher interest rate than regular savings accounts.
- Higher Yield Money Market Account – These accounts offer higher interest rates than regular MMAs, but they require a minimum balance of $25,000 or more and there may be additional fees associated with them.
- Super Now Money Market Account – These accounts offer the highest interest rates available in online banking and require a minimum balance of $10,000 or more. They also come with fewer benefits than regular MMAs, such as no ATM access or check writing privileges.
Savings bonds
Savings bonds are a safe, secure and affordable way to save for your child’s education. They are low-risk investments that can be purchased directly from the U.S. Treasury through an electronic platform called Treasury Direct or through a financial professional.
The U.S. government guarantees the redemption value of Series EE and Series I savings bonds, so if you hold them until maturity, you’ll get back every penny you invested plus interest earned.
The difference between the two types is how long it takes to earn interest: EE bonds are issued at half the face value and accrue interest semiannually for 30 years; I bonds pay interest for 20 years then continue paying interest for 30 years at half the rate on original issue amount.
Treasury bills
Treasury bills, or T-bills, are short-term securities that mature in one year or less. The interest rate is fixed at the time of purchase and paid at maturity. Treasury bills are sold by auction, which means they are sold to the highest bidder.
Treasury notes
Treasury notes are medium-term securities that mature in 2 to 10 years. They usually pay a fixed rate of interest every six months until they mature. Like Treasury bills, Treasury notes are sold by auction.
Treasury bonds
Treasury bonds are long-term securities that have maturities up to 30 years. They pay a fixed rate of interest every six months until they mature. Their prices fluctuate based on changes in the general level of interest rates and market demand for the bond’s maturity or coupon rate (the rate of interest paid).
These bonds are issued with a minimum denomination of $100 and do not pay any interest until they mature; however, you can buy them through your bank or broker like other stocks or bonds.”
Retirement income needs to replace about 80% of your current income
The financial planning industry has long recommended that you save at least 10% of your annual income for retirement. But in reality, most people don’t come close to hitting that number.
According to the U.S. Census Bureau, the median household income in the United States is less than $60,000. If you’re earning that much and saving just 10% of it, you’ll have saved $6,000 a year not enough to fund your retirement.
To keep the same lifestyle, your retirement income needs to replace about 80% of your current income. That means if you’re making $60k per year, you need an additional $48k from somewhere else to fund your retirement.
Delayed retirement credits
You can start collecting Social Security at age 62 , but for each year you delay past FRA until age 70 , your monthly checks will increase by up to 8%. This is called delayed retirement credits. If you wait until age 70 , your benefit will be 32% higher than if you started at 62 . If you wait until age 66 , it’s 20% higher.
If you have an annual income of $50,000 and file as single, your monthly benefit at age 62 would be $1,500 ; at 66 , $1,740 ; at 70 , $2,160 .
Conclusion
As it turns out, in our implementation we have chosen the Future “swap” option. The total payout for this approach comes out to 1.89%. In contrast, the Bank CD “investment” option that paid 1.9%, the Bank CD Resulting FD “result” would pay .61% and finally at 1.88% the Futures contract option was better than both. To conclude this section we will state that while all values are greater than 1% over the rate of inflation, we rank Futures as the best investment choice over all other four options presented.
