The MFGS Chronicle – June 2015
What Interest Rate are You Earning on Your Savings?
This is a tough time to be a saver. Take a look at some of these rates, which were gathered from various websites in May 2010:
- 0.40% 1-year Treasury bill
- 0.25% Chase Bank 1-year CD
- 0.10% Bank of America savings account
- 0.05% Wells Fargo Bank money market savings
- 0.01% Vanguard money market fund
If you have money in these or similar accounts, you may be thinking, “Well, at least my money is safe.” But actually, it isn’t.
Consider this. Every day, the prices of things you purchase inch up a little bit. You know what I’m talking about. You feel it at the gas pump. Or, one day you walk into your favorite restaurant, and all the entrees cost a dollar more. Or, you wonder how your groceries suddenly became so expensive. After all, you just bought a few things.
The problem is that at these low interest rates, your money is losing purchasing power. It just adds insult to injury when you need to report this interest income on your tax return.
If you really want to keep your money safe, please let me know. I can offer you retirement annuities that provide you a written guarantee of safety, backed by all the assets of a strong insurance company, together with an attractive interest rate. Annuities offer a balanced approach to maintaining and growing the purchasing power of your money.
If your money is earning a rate like those you see above, it is time to look at another option. An annuity just may help you prosper.
Wayne McLeod, Safe Money Adviser
Affiliated with National Brokerage