Congrats on your recent graduation! While it may be tempting to spend all your graduation money on a vacation or shiny new toy, investing can help establish a financial foundation for your future. Here are three ways for how you can put your graduation money to work.
Purchase a Bond
Bonds are a great way to grow your money and come in a variety of price ranges. Here’s how a bond works: for example: you can buy a $50 bond with a maturity rate of 30 years. It will grow and earn more for the next 30 years. Once it hits maturity, you can cash it in and see how much you’ve earned.
TIP: Research the different types of bonds to choose the one that’s right for you.
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Start Saving For Retirement
You just graduated and you’re saving for retirement already? It may seem early, but it is actually a great way to increase your money. A Roth IRA is an investment tool for retirement. You pay the taxes up front so when you retire all of the money you’ve earned goes straight to you. Just think, if you grow your money now, you’ll have more to use when you are retired!
Open a Certificate of Deposit Account
A certificate of deposit, also known as a CD, is kind of like a savings account. They differ because a CD earns a lot more interest than a regular savings account. Interest rates can range from 0.4 to 1.5 percent (or more). Plus, the rates can be anywhere from 3 months to 10 years. This is a great and low risk way to help invest your money.
Let MNFCU Help You Start Investing
If you need a little extra help deciding what your best option for investment is, come visit us at Metro North Federal Credit Union. Our specialists can inform you about what services we provide and how each can be used to help you save for your future. Start earning more with help from MNFCU today. For more information, speak with one of our representatives!