5 Best Places To Park Cash Now To Beat Inflation
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- Опубліковано 27 вер 2024
- Here are 5 excellent options for investing cash today. Each of these cash accounts offer security and rates that, for the moment, exceed inflation.
Savings Account: www.allcards.c...
Money Market Account: www.allcards.c...
No-Penalty CD: www.allcards.c...
T-Bills: fixedincome.fi...
iShares iBonds Treasury ETF: www.ishares.co...
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Certainly. Exchange-Traded Funds (ETFs) are popular for long-term investments due to their diversified nature. ETFs offer exposure to a wide range of assets, such as stocks, bonds, or commodities, which can help reduce risk. Some top choices for long-term investing include broad market index ETFs, sector-specific ETFs, and bond ETFs, as they provide potential for growth and income over an extended period while minimizing the risk associated with individual stocks.
Numerous compelling stocks span various industries for you to consider tracking. While it's not necessary to act on every prediction, enlisting the guidance of a financial advisor is advisable. They can assist you in determining optimal entry and exit points for purchasing and selling shares or ETFs, ensuring well-timed decisions aligned with your investment goals.
I concur with your sentiment, which is why I find immense value in having an advisor steer my daily investment choices. Their comprehensive skill set encompasses both long and short strategies, effectively utilizing risk for its potential upside while also mitigating risk as a safeguard against market downturns. Coupled with their access to exclusive information and in-depth analysis, it becomes highly challenging not to surpass expectations. I've relied on my advisor for more than two years, resulting in a substantial net gain of over 2.8 million dollars.
Kindly share the details for reaching your advisor. With inflation negatively affecting my funds, I'm in search of a more lucrative investment strategy to optimize their performance.
My Financial adviser is ‘’Colleen Janie Towe’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Insightful... I curiously looked up her name on the internet and I found her site, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Rob, you’re on a roll today 👍🏻
Thanks for the info.
Ive never heard of most of these banks. I worry about stability
I m holding 3 mo T-bills 5.3%. storing cash while waiting for housing market to change. Went through Fidelity they are really great helpful.
Do they charge a fee to purchase T-bills (if so how much) and did you look at Treasury Direct vs Fidelity?
@@TheHdfatzFidelity and Vanguard have zero fees to purchase T bills. The interest rate is exactly the same as treasury direct. If you buy T Bills in the secondary market, there are no fees, but there is a bid ask spread.
Addition to what joeb said, if you ever needed to sell a T-bill, it’s much easier at Fidelity than at Treasury Direct. At Treasury Direct, you have to go through some process and fill out forms.
Nice one; thank you
You didn’t mention the 17 week treasury bill, which is new this year and was not shown on Fidelity’s chart. They pay very close to what the 26 week T-Bills pay and with interest rates still potentially going up, it’s where I’m invested. I have a four month ladder.
That iShares ETF is not for me. They’re paying 2.3%, when you can make over 5% on all T-bills? No thank you.
Thanks for mentioning this. I"ll included it my next update video.
Do 4 week t bills actually pay 5.3% or is it one twelfth of that? T.y
5.3% is the interest earned in twelve months. A four week t-bill would earn one twelfth of that amount.
Thanks for the content. I saw the screen and did not realize that the two year Treasury Notes rates were that high. I have been buying T-Bills in small amounts on every auction for a while though Treasury Direct without the reinvestment option. When they mature I reinvest at the next available auction plus the small contribution. In June I have enough for next year's Roth max contribution for me and my wife. As they mature I'm putting more into newer T-Bills that mature near Jan so I can lump sum contribute at the beginning of the year to our Roths. Now I'm putting aside funds in T-Bills for insurance premiums and other upcoming expenses instead of parking it in our credit union savings account for a few months that earns a whopping 0.1%
We also have most of our short term cash in a money Market online bank account and a few CD's some are penalty free.
We're been just using Treasury Direct too. It's not that hard to use and we're buying 1 month, 2 month, 3 month and 6 month TBills since they pay the highest rate. Like you, just rolling the money over but if we need it, it won't be long before we have the money back...
I’m interested to know why you would buy something that pays 4.99%, when you can buy a 17 week or 26 week treasury bill that pays real close to 5.5%? With rates still potentially going up further, rates on shorter term t-bills can go higher and you lose even more if you’re stuck in a two year note at 4.99%, losing a lot of money, vs a 17 week, which is what I’m in. Maybe you don’t like re-investing every 17 or 26 weeks, but for me, it’s worth it. Only when interest rates start to come down, would I consider investing in longer-term bills or notes.
Great video, one question though
All my retirement money is in regular IRA are these OK to use in that retire in 3.5 years pull SS 5 years later
You want to roll over the regular IRA, in increments each year, depending on your tax bracket, as much as possible over the next 3.5 years. When you have to take a required minimum distribution from your IRA each year, once you retire, if it’s a lot of money, it could put you in a higher tax bracket, Plus, you you might have a penalty on your Social Security earnings and pay more for your Medicare coverage. You don’t want that. I highly recommend talking to a tax advisor on this and create a plan now, way before you retire. Based on all the above, the tax advisor would vies you on when to start taking Social Security. Delaying taking Social Security might benefit you.
Buy $JEPI, $JEPQ or $SPYI. These stocks pay around 10% a month in dividends with not much risk of losing value.
Muni bonds?
Too risky for cash, IMO. Reasonable option as part of a bond portfolio, however.
@@DoughRoller ultra short term limits interest rate risk- good for non-tax-advantaged accounts.
Is there anything higher for larger amounts of money?
CIT Bank is currently offering 4.95% interest on a savings account if you maintain more than $5k in the account. Fee-free, mobile deposit & atm card unlike many other online banks.
@@Jen-ur4ut what about six figure amounts....Raisin seems to be the best
22% inflation since inauguration of FJB, 5-6% is nothing compared to what it is costing you to live today. So if you get 5% this year your only lost 17%
over the past 20 months!
SWVXX money market in brokerage
I do not understand clearly the difference from an investor point of view between buying the iShare iBond 2023 (IBTD) and buying a 3 years treasury standard bond etf. Both have variation in their day to day trading. I understand that a standard treasury fund has bonds maturing at different dates. It constantly replace those when they matured with new bonds. IBTD has every bond maturing on Dec 2023. But what does that actually changes? It does not prevent a variation in its day to day price. On April 2020 shortly after it started, it was $25.69 while it closed at $24.72 today.. This is expected with the rise of interest rates that occurred. Is there a guaranteed price when IBTD close?
Excellent review. Question what is your position on NON Callable Brokered CD's where the interest is NOT Compounded vs a Regular CD's you can buy from a Bank which is compounded? I'm struggling with which one to buy. Thanks.
There are better way, it is call floating treasury etf, just buy it and reinvest dividend and forget it. sell anytime with no capital lost and make 90 day treasury rate. over 5% now
Hi Rob, is there a reason why you decided not to mention money market funds?
It’s the second item he discusses about two minutes in…
@@davearey4922 Those are money market *Accounts*. They are different :)
@@alessandrosavino1431 Yep. Sorry about that. And you’re absolutely correct. Only Rob knows why he did not discuss money market mutual funds.
No reason. They are reasonable alternatives as well.
thanks Rob!
I'm also a ROM fan.
You don’t need to beat inflation.
Everyone’s inflation basket is different.