Archive for the ‘ Mutual Funds ’ Category

The Highest Saving Account Rates

Rather than sticking with one bank that may not consistently be offering them the best rates, savings account holders should periodically research financial institutions to discover those that offer the highest saving bank account rates. Savings rates will vary between institutions and over time depending on the market. Account holders can compare savings rates to discover those that offer the best opportunity to earn and change financial institutions as needed to ensure they are making the most of their savings over time. If you are not taking advantage of the highest saving account rates, you may be missing out on the opportunity to earn a significant amount of interest on your savings.

There are several factors that affect the interest rate that banks pay toward a savings bank account balance. Some of the influencing factors include federally established interest rates, the health of the broad economy, the financial integrity of individual financial institutions and the value of the US dollar. Over the years, interest rates that banks pay account holders have fluctuated. The first decade of this century saw a great decline in the rates that banks were paying account holders, as national interest rates were established by the federal government and maintained at historic lows.

Money market accounts rates are often more lucrative than other savings bank account rates in terms of potential earnings for clients who require only minimal access to their funds.

While developing a financial plan, it would be prudent for individuals and families to seek out those banks that pay a higher than average rate of return on savings balances. The banking industry is a highly competitive one, and it pays to conduct adequate research in order to locate banks that are not only financially stable and viable, but also offer their customers the highest saving bank rates. Read more

2011
07/03
CATEGORY
Mutual Funds
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Where to Invest Money Now

Where to invest money now is the question of the new decade. If you invest money safely you earn next to nothing. Invest in riskier asset classes and you may find trouble. Here we look at where to invest to make the best of it from the average investor’s point of view.

In 35 years of investing money I’ve never found the question of where to invest more difficult than it is now. It’s a whole new frontier where interest rates are extremely low in a weak and/or uncertain economy. Let’s make the best of it and look at the alternatives. For the vast majority of investors the answer to where to invest starts with mutual funds, the investment of choice offering many possibilities. We’ll start with the safest funds offered.

Money funds invest your money in safe money market securities and pay interest in the form of dividends that increases when interest rates go up and decreases when rates go down. They currently pay yields that are close to zero after expenses, reflecting the state of today’s money market. Eventually interest rates will rise and make money funds more attractive. In the meantime take a look at the tax-free versions that pay interest that is free from federal income tax. Believe it or not, many of them are paying a higher dividend yield than their taxable counterparts.

Bond funds have been the traditional answer to where to invest money to earn more interest income. That’s the good news. The bad news is that, in terms of investing money and changes in interest rates, they are the flip side of money funds. Bond funds don’t get more attractive as interest rates go up. Instead they lose money, and so do their investors. Here’s where to invest and what to avoid in this fund category. Read more

2011
05/03
CATEGORY
Mutual Funds
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