Originally Posted by gsparks2
that is what I call it. It is an accounting term I think but it is a method allocating periodic sums to accumulate for a future large expenditure. I may be using it wrong.
I recall from my college accounting class (decades ago) the same thing. The example I remember described the term "bond sinking fund" as a business setting aside every year a portion of the principal of a bond it had sold so by the time it came time to pay it off it would have the money already there.
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.
"I want my money working for me instead of me working for my money!"