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Savers are Losers

If you have a savings account you are a loser! OK not calling you a loser but you are losing money. Here is how what are you getting in interest i check prior to publication BMOHarris site if you had less then $2500 it .01%. Money Markets and CD’s did not fair any better 1.193% for $100,000 for 60 month. Wow pathetic.

Lets run an example or two:

First asunption $100K in a savings account intreste rate of .01%

100,000

x       .01%

=    $10

Made $10 in a year.

Second assumption $100K in CD intrest rate of 1.2%

100,000

x      1.2 %

=     $1,200

Made $1,200 in a yearNow in either one of these can you live of savings or CD’s? One will get you lunch once and the other might pay your expenses for month. How about inflation According to the Bureau of Labor and StaticsCore inflation for June was 2.2, food 2.7 energy 3.9. Add them up 8.8 is your total for June of this year according to our government. . Lets run the numbers one more time$100,000x     8.8%

=   8,800

Lost $8,800 in a year.

How did you loss one word INFLATION take away purchasing power. Inflation happens when there is a increase in the money supply. Meaning when the FED prints money. The by product of that is the cost of good goes up.

If you don’t want to keep more of that hard earned money rather then letting inflation take it away you need to find investment that get better the 8.8% return.

 
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