EnTrends

Certificate of Deposit (CD)- issued by commercial banks

and savings and loans this is a savings certificate that

entitles you to receive interest. CD's are available with

maturity ranging from one month to two years.

Treasury Bill - Short-term debt security issued by the

federal government for periods of one year or less.

College Education Savings

According to The College Board, given a rate of 5% tuition

inflation over the next 18 years, parents of a child born

this year can expect to pay $150,000 for 4-year education at

a private college and approximately $145,000 for a 4-year

education at a public school. Clearly, the time to start

saving for your child's education is now. The best way is

to invest a fixed amount on a regular schedule and to stick

with it.

Stock Mutual Fund - choose no-load mutual funds and

spread your risk over dozens of stocks.

Education IRA - an IRA with a maximum contribution of

$500 per child per year until the child reaches 18.

Contributions to an education IRA are not tax-deductible but

investment earnings can be withdrawn tax-free as long as the

money is used to pay for college costs.

Retirement Options

Experts say to maximize your contributions to

employer-sponsored retirement plans but only to the highest

amount allowable. You don't want to overextend yourself by

going over this amount. Haven't got much put away towards

retirement? Start now!

401K - a voluntary retirement plan offered to employees

that allows a certain percentage of their pretax pay to be

set aside and invested in a retirement plan. The employer

can also contribute or "match" employee contributions. This

money is not taxable until funds are withdrawn.

Individual Retirement Account (IRA)- A retirement

account set up at a bank, credit union, brokerage firm,

insurance company or mutual fund company that allows a

yearly contribution, not to exceed $42,000 for the

individual working person.

Roth IRA - an IRA that allows you to put up to $2000 a

year away non-tax deductible with the benefit of being able

to withdraw the earnings tax-free in the future.

Keogh - A retirement plan used by self-employed

individuals who are not incorporated. You are allowed to

make a tax-deductible contribution up to a certain

percentage of your income.

The Bottom-Line: It's your money

1. Always do your homework.

2. Never be afraid to ask questions.

3. Trust your instincts.

Note: The information in this column is provided for

educational purposes only. Please consult a financial

planner or financial advisor when developing a financial

strategy.

About the Author: Edel Jarboe is the founder of Self Help for

Her.com (http://www.selfhelpforher.com), an online self-help

magazine helping you create your better life. She also

publishes a free weekly newsletter, which features advice on

goal setting, stress management, coping with difficult people,

and overcoming obstacles: Subscribe

(mailto:subscribe@selfhelpforher.com) and receive a FREE
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