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slims099 · 01-27-2012, 08:09 PM

How does one put away money for a certain amount of time and never get it back until 1-2 years is up? I have the worst financial self control in the world, so minus the option of learning self control, minus one of you guys holding onto it (haha funny), and minus one of you ladies holding onto it (haha funny), What's the best way to put money into some sort of account for 12-24 months and watch it grow, to where I can't GRAB IT! Under any circumstance! Until the time period is up.

There has to be some way. Also don't say cut up your credit card, don't go by the bank, I can easily do those, I've thought of those already haha.

I guess I really need to learn control, but DAMNIT it's tough...

pyramider · 01-27-2012, 09:23 PM

Have it removed automatically from your checking account to a Money market savings account.

safire_sweet · 01-27-2012, 09:29 PM

Quote:

Originally Posted by pyramider

Have it removed automatically from your checking account to a Money market savings account.

Randy4Candy · 01-28-2012, 05:13 AM

You can have money put automatically lots of places but the key is to restrict your access. There needs to be someone/something between you and your money.

Roothead · 01-28-2012, 09:06 AM

Been there done that..... just lock it up - any good Bank or Wealth Advisor (Merrill Lynch, etc) does this all the time.... also, go with a basic annuity - once it is in there, it needs to stay there....

gashpump · 01-28-2012, 11:23 PM

Money market account is too easy-pickins. You'll need to lock it into a 24 month CD that penalizes you 10 percent if you withdraw early. Today though, watching any bank account grow is like watching the grass grow on your lawn.

JDNorthface · 01-29-2012, 12:12 AM

Quote:

Originally Posted by gashpump

Money market account is too easy-pickins. You'll need to lock it into a 24 month CD that penalizes you 10 percent if you withdraw early....

Not necessarily. Auto-drafts can be sent to MM's external to your local bank. Those can be configured to prevent easy withdrawal (no checks, no bank electronic withdrawals, etc.). Regular monthly deposits can't generally be added to CD accounts. This option wouldn't satisfy the OP's regular investment needs.

gashpump · 01-29-2012, 12:44 AM

Quote:

Originally Posted by JDNorthface

Not necessarily. Auto-drafts can be sent to MM's external to your local bank. Those can be configured to prevent easy withdrawal (no checks, no bank electronic withdrawals, etc.). Regular monthly deposits can't generally be added to CD accounts. This option wouldn't satisfy the OP's regular investment needs.

MMA can be withdrawn from or even closed in a heartbeat. I've done it several times. That's the main draw for having one. I didn't see the OP say anything about monthly deposits. My assumption was that he had some cash that was burning a hole in his pocket, and wanted to keep his hands off it for one to two years. And I wasn't recommending a CD, because I won't touch them myself. I haven't looked lately, but the interest rates are now probably far south of two percent, even if you lock for two years. If the OP is employed, the best way for periodic deposits is through a company 401k. He can't touch that (unless they let him borrow against it) until he leaves the company.

Right now a mix of diversified bonds, possibly through an ETF vehicle, would be my choice for relative safety, and would probably earn better returns than the current lackluster equity market. That is unless you really can keep on top if it daily with day or swing trades.

(Usual disclaimer past performance does not guarantee future returns, blah, blah...blah.)

Oh.... and I'm not a licensed broker, just a tightwad.

Oppa · 01-30-2012, 09:24 AM

Quote:

Regular monthly deposits can't generally be added to CD accounts. This option wouldn't satisfy the OP's regular investment needs.

Actually there are options that can do that. See the Installment Savings Account at Metro Bank. They will actually autodraft a monthly amount, 1 to 3 year term, minimum $1,000 contract amount. They can actually design the term and maturity to emulate a CD. It has early withdrawal penalties similar to a CD.

http://www.metrobank-na.com/pbsave.asp

I don't have a dog in the fight when it comes to banking, but I am familiar with the Metro Bank product as I've used it in the past when CD rates were actually decent.

Quote:

If the OP is employed, the best way for periodic deposits is through a company 401k. He can't touch that (unless they let him borrow against it) until he leaves the company.

Agreed this is the best way, but the OP said he was looking for a 1 to 2 year term.

slims099 · 01-30-2012, 07:23 PM

Man you are all super helpful. I think the ultimate real way is to give it to somebody to hold onto who I absolutely trust (who DOES NOT have financial issues) for 1 year and watch it grow. But that option is probably not gonna happen. I'll look into CD's and MM accounts for sure! Thank you guys!

slims099 · 01-30-2012, 07:38 PM

Then after I accomplish this great feat, I can see Safire like 15 times for Xmas... Yee-haw!

Oppa · 01-31-2012, 01:11 PM

Whatever you do, you need to have it autodrafted where it comes out of your checking account automatically. If willpower is an issue and you physically (or just online willfully) have to move the money yourself, it will never happen.

Guest030824 · 01-31-2012, 01:39 PM

With near zero interist on CDs just increase your with holding for taxes. They won't give it back untill you file taxes next year.

Missy Mariposa · 01-31-2012, 03:33 PM

My Credit Union has a "Christmas" fund that you can't touch money in until November without a large withdrawal penalty. Check with yours and see if they have something similar. If you really have issues and need to put away money long term a wealth manager may be the way to go.

I'm the type that loves to squirrel away money, it's spending it (even when I need to) that's my issue :/