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Emergency funds or Fast Lane of High Yields |
 People are often convinced that having emergency funds is indispensable and can’t bear interests. So most of them keep emergency funds in a secure investments that are highly liquid. This might be for instance a money-market fund or Treasury bills. But wouldn’t it be nice to invest emergency funds in a higher yielding asset class? This might have sense only if you have at your disposal some credit for financial emergencies. Any unforeseen financial occurrence shows up, you can salvage paying with credit card, and then sell off some of the higher yielding assets (made of emergency fund) to repay the line of credit. The point here is: if such urgent financial accidents don’t happen often, you could rake nice interests and reinvest it, again.
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Read more... [Emergency funds or Fast Lane of High Yields]
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Too much plastic in your wallet? |
 Is your wallet stuffed with… some plastic? Got a lot of credit cards? For sure it’s worth to check if they are all in use. Otherwise, you might be paying some unnecessary fees. If you don’t use, for instance, some prestige cards like the platinum card from American Express, consider if it wouldn’t be better to cancel them and preserve a platinum Visa or MasterCard that charges no fee.
Lots of us have cards that we opened for one specific purpose or purchase. Maybe you got some store cards to get some discounts. The most important aspect here seems to be not if you might use it “some day again” but if it charges any fees. And while it is simple to cancel most of them in the name of making order in the wallet and in the hope of canceling pointless fees … you should consider if it can be done also in order to improve your credit score. This might be not so simple.
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Read more... [Too much plastic in your wallet?]
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Does Checking Accounts still bear Interests? |
 The average profit rate, that checking accounts offer, has fallen to a 0.97 percent. More than half of all Interest-bearing checking accounts offer less than 1 percent of yield. In the same time, the average minimum balance obligatory to open an account and earn this percentage is $695.10. If you want to pass up paying monthly service fees on this account you'll have to maintain an average balance of $2,434.50 in your account. |
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Read more... [Does Checking Accounts still bear Interests?]
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How to Save and keep it liquid: Bonds. |
 Looking for the excellent, risk-free way to preserve capital and, at the same time, keep your investment liquid? U.S. Treasury bills, notes, bonds and savings bonds give pretty good returns. Those are government’s Treasury securities sold to raise money to operate the government and pay off debt. Yes, if you buy it, you simply lend your money to government. Treasury securities are quite safe investments because they're covered by the U.S. government.
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Read more... [How to Save and keep it liquid: Bonds.]
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Let Your Money Work For You. |
 Who doesn’t want to invest money, rake up returns, but still keep it liquid? Consider these ways to save your money.
Mutual fund.
Investing in a money market fund you may withdraw money at any time without penalty. Returns it gives are generally comparable to the interest earned on CDs and are variable. Money market funds invest in short-term corporate and government debt securities, mostly of high-quality. The FDIC does not insure your earnings and principal in a mutual funds, but… have you ever heard about losing principal in a money market fund?
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Read more... [Let Your Money Work For You.]
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