I don’t know about you but at this point in my life I have realized that there is no such thing as something for nothing and getting rich quick. As they say, easy come-easy go.
If you have put aside some hard earned money, you should be conservative and protect your principal. Look at the stock market and all the pundits who knew all the answers! They are still giving advice like they know what they are doing.
If you are risk averse, consider the following:
1. CD’s: Even with the low rates of 1.5% to 2%, you are protecting your principal.
2. I am presently using a credit union that has a special plan that if you keep $25,000/mo. in your checking account they are paying 4.9% interest. They have a few requirements -like using a debit card 12 times per month and having a payment subtracted automatically from your checking account but the payout is good.
3. Money market deposit accounts: These are savings accounts that are federally insured and have check cashing privileges. They usually have a competitive interest rate but could have some monthly charges so you do need to check around. The advantage of these is that you can take your money out at any time.
4. Treasury bonds: Series I savings bonds offer a fixed rate of interest plus are adjusted for inflation. You can defer taxes on these for up to 30 years and they are exempt from state and local income taxes.
You can sleep better at night with the above!
Jacques
CreatingWealthThatLasts
3 comments:
Hi Jacques .. thanks for the bit about the credit union .. I'm not sure ours work that way here. However I like your three other examples - cash deposits, money market deposits and treasury bonds .. the old 'conservative' way of protecting your money - and don't we need it now.
Thanks Jacques -
Hilary Melton-Butcher
Positive Letters
I have a rewards checking account with Renasant Bank that pays 4.00% with no minimums. There are a few requirements each month that are easily attainable such as use of a debit card, direct deposit, paperless statements, etc. If you check with banks in your area, I bet you can find a similar deal.
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