# What should I be doing with all this money I have laying around? (long)

**URL:** <https://boards.straightdope.com/t/what-should-i-be-doing-with-all-this-money-i-have-laying-around-long/624350>\
**Category:** In My Humble Opinion\
**Created:** [June 7, 2012, 3:55am UTC](https://boards.straightdope.com/t/what-should-i-be-doing-with-all-this-money-i-have-laying-around-long/624350 "2012-06-07T03:55:19Z")\
**Posts on this page:** 1\
**Page:** 4

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**Author:** ![Voyager](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/voyager/32/133_2.png) [@Voyager](https://boards.straightdope.com/u/Voyager)\
**Post date:** [September 2, 2012, 7:42am UTC](https://boards.straightdope.com/t/what-should-i-be-doing-with-all-this-money-i-have-laying-around-long/624350/61 "2012-09-02T07:42:53Z")

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> [@Joey\_P](#):
>
> When I originally set up my daughter’s savings account I promised myself I wouldn’t touch it. No matter what was going on in my life, any money that went into that account, wouldn’t leave it unless it was for a college bill for her. A few years later I realized that was a bit silly and back off a bit and told myself that I would, in fact, touch it if I was ever in danger of losing my house or car. Basically, even though it’s her college money, until my emergency fund is built up a bit higher, it’s still (more or less) part of my double secret back up money.

There are a lot of liquid investments that pay more than savings accounts. They may not be FDIC insured, but they are still pretty safe. For instance, my father insisted that all his money be in municipal bond funds. (He hated taxes, even though he didn’t make enough interest for it to be an issue.) His account was almost untouched by the crash, and it is still easy to get money out. It wouldn’t be good as a checking account, but plenty good for your needs. I’m definitely not saying that this is good for you, but there are plenty of options.

> [@](#):
>
> This is what I’m worried about. Sure, a savings account might not keep up with inflation, but at least I can’t lose the principle. I hate to have another market crash right as she’s getting ready for college and all my hard work is gone. My only hope would be that I would have enough other money that I could pay for it with that and/or loans and ride it out.

You don’t have to keep the money in relatively risky investments up to the time her first tuition bill comes due. You can start moving money to safer places before. We’re moving some money from more risky investments to ones that are more stable but are targeted to produce income as I get closer to retirement. But I do agree that you don’t want to be too aggressive, especially not when she hits 14 or so.

> [@](#):
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> What about I Bonds? If I’m reading it correctly, they gain interest (currently 2.2%..maybe, another page on the site doesn’t support this) plus they’re designed to protect you from inflation. Even if it’s only 1.1%, that’s still better then the .8% I’m getting at ING and it’s only slightly less liquid.

A diversified portfolio should have some bonds also. You can do better than `1%, but their value fluctuates also.

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