Friday, December 24, 2010
Saturday, June 20, 2009
High Yield Savings Account, HA!
Because of the recent market turmoil I am sure you have heard of people talking about other alternatives to the stock market. The information is all over the Internet. Of all these different options, I think one of the most talked about is a High Yield Savings Account.
But what exactly makes a savings account "High Yield"? I have seen numerous banks trying to sell you on their "High Yield" savings account by offering 1% return. WOW! What a great deal! not. Apparently, because so many banks/ financial institutions are offering a savings account/ MMA at .80 percent, High Yield could actually mean .81 percent (after all, it is higher). But Seriously now... they are seriously calling these high yield returns. Because it bothers me so much, here is a list of banks that offer this ridiculously low "high yield":
Wells Fargo .65 percent (with $25,000 minimum)
Wells Fargo .05 pecent (less than $25,000)
US Bank .40 percent (with $25,000 minimum)
Chase Bank .15 percent (with $25,000 minimum)
UCCU .698 percent (with $500 minimum)
Online (much better option)
Citibank 1.40 percent ($25,000 minimum)
Zions Bank 1.87 percent ($1,000 minimum)
AIG Savings 1.91 percent (10,000 minimum)
Some of these rates are okay.. but would you really classify them as High yield? not me...
By the way, in case you are wondering which High Yield Savings Account I saw that was the highest, then check out SmartyPig.com
They offer a Saving Account Rate of 3.05 percent... but don't be misled, this is valid only until June 22, 2009. After which the rate will change to 2.75 percent...and there is no minimum balance.
If you have any topics you want me to discuss or research for you, please feel free to leave a comment.
But what exactly makes a savings account "High Yield"? I have seen numerous banks trying to sell you on their "High Yield" savings account by offering 1% return. WOW! What a great deal! not. Apparently, because so many banks/ financial institutions are offering a savings account/ MMA at .80 percent, High Yield could actually mean .81 percent (after all, it is higher). But Seriously now... they are seriously calling these high yield returns. Because it bothers me so much, here is a list of banks that offer this ridiculously low "high yield":
Wells Fargo .65 percent (with $25,000 minimum)
Wells Fargo .05 pecent (less than $25,000)
US Bank .40 percent (with $25,000 minimum)
Chase Bank .15 percent (with $25,000 minimum)
UCCU .698 percent (with $500 minimum)
Online (much better option)
Citibank 1.40 percent ($25,000 minimum)
Zions Bank 1.87 percent ($1,000 minimum)
AIG Savings 1.91 percent (10,000 minimum)
Some of these rates are okay.. but would you really classify them as High yield? not me...
By the way, in case you are wondering which High Yield Savings Account I saw that was the highest, then check out SmartyPig.com
They offer a Saving Account Rate of 3.05 percent... but don't be misled, this is valid only until June 22, 2009. After which the rate will change to 2.75 percent...and there is no minimum balance.
If you have any topics you want me to discuss or research for you, please feel free to leave a comment.
Thursday, June 18, 2009
The Beginning of an Era of Responsible Money Management?
In case you have been living in a cave these past 10 years- the economy is nothing like it was. In a matter of 14 months (more or less) the Dow has fallen to half it's former high. Last years high (15000) is nothing more than a beautiful dream... Today's value of the Dow is just above 8000- which is seriously HALF of what it was.
So the question facing the millions of Americans that lost 50% of their wealth last year is: Do I ride out the storm and hope that the market will bounce back? Or is it time to evaluate other money management systems. Well, there are a few topics to consider when making this decision.
A) How long will I be keeping my money in the stock market?
B) What other opportunities are there for financial growth?
C) Can I depend on past trends to tell me the future of the stock market?
D) How much do I depend on this money (what is my tolerance for risk)?
So A) How long will I be keeping my money in the stock market? Well, if studying stock trends teach us anything, it is that after a big crash, there is always a rally. How long will it last? No one really knows. But you are guaranteed a rally after a crash- especially after a crash of this magnitude.
If you are okay with risk (there is always risk in the stock market) then staying in the market is the right thing to do. When everyone else is feeling great about the market and throwing their money into it- then it is time to pull out and stay in safer options. If you are young and willing to ride out some crazy storms, then just stay in... things will always get better (can't get much worse)- kind of reminds me of a Beatles Song.
B) So just what options are available to investors? Well, you think of it, you can do it. A few of the most popular suggestions are bonds, annuities, High Yield savings accounts, government bonds, etc. But some options that people never discuss are those that are a bit more radical, but WAY more fun! You should start your own business, be a financier for a credit institution, be an angel investor, own rental units (if your into that kind of thing) sell things on ebay... or my personal favorite- that hobby that you love doing? start a business doing that full time! If you are doing what you love, and you are ready to keep up on your hobby, then you will never go out of business.
C) Stock Market trends are so last century! Seriously! and its a good thing! Right after the stock market crash last century, people decided to be more frugal.. they decided that they wanted to get the most for their money... and do you know what is most amazing? the flamboyant 1920's look amazingly similar to the decade of 2000-2010. People were doing so well and spending money on things they really didn't need! Hummers, boats, big houses, etc. well... news to them- they are now being foreclosed on and losing their vehicles. The same stocks that did well coming out of the great depression, are going to be what does well today... people are again frugal- and Hummer as already seen their doom!
D) My answer to this question is amazing similar to question B. If you are not relying on this money for your survival- then there is no better use for it than your happiness, and nothing is going to make you happier than a nice hobby and lots of friends (employees) to share it with.
I hope you find this post amusing if not informational. Keep in mind that I am not a certified financial planner, and I cannot guarantee any kind of return on your money... all I can do is hopefully make you think about the different options you have for your money management.
So the question facing the millions of Americans that lost 50% of their wealth last year is: Do I ride out the storm and hope that the market will bounce back? Or is it time to evaluate other money management systems. Well, there are a few topics to consider when making this decision.
A) How long will I be keeping my money in the stock market?
B) What other opportunities are there for financial growth?
C) Can I depend on past trends to tell me the future of the stock market?
D) How much do I depend on this money (what is my tolerance for risk)?
So A) How long will I be keeping my money in the stock market? Well, if studying stock trends teach us anything, it is that after a big crash, there is always a rally. How long will it last? No one really knows. But you are guaranteed a rally after a crash- especially after a crash of this magnitude.
If you are okay with risk (there is always risk in the stock market) then staying in the market is the right thing to do. When everyone else is feeling great about the market and throwing their money into it- then it is time to pull out and stay in safer options. If you are young and willing to ride out some crazy storms, then just stay in... things will always get better (can't get much worse)- kind of reminds me of a Beatles Song.
B) So just what options are available to investors? Well, you think of it, you can do it. A few of the most popular suggestions are bonds, annuities, High Yield savings accounts, government bonds, etc. But some options that people never discuss are those that are a bit more radical, but WAY more fun! You should start your own business, be a financier for a credit institution, be an angel investor, own rental units (if your into that kind of thing) sell things on ebay... or my personal favorite- that hobby that you love doing? start a business doing that full time! If you are doing what you love, and you are ready to keep up on your hobby, then you will never go out of business.
C) Stock Market trends are so last century! Seriously! and its a good thing! Right after the stock market crash last century, people decided to be more frugal.. they decided that they wanted to get the most for their money... and do you know what is most amazing? the flamboyant 1920's look amazingly similar to the decade of 2000-2010. People were doing so well and spending money on things they really didn't need! Hummers, boats, big houses, etc. well... news to them- they are now being foreclosed on and losing their vehicles. The same stocks that did well coming out of the great depression, are going to be what does well today... people are again frugal- and Hummer as already seen their doom!
D) My answer to this question is amazing similar to question B. If you are not relying on this money for your survival- then there is no better use for it than your happiness, and nothing is going to make you happier than a nice hobby and lots of friends (employees) to share it with.
I hope you find this post amusing if not informational. Keep in mind that I am not a certified financial planner, and I cannot guarantee any kind of return on your money... all I can do is hopefully make you think about the different options you have for your money management.
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