Do you have money buried in your yard? It’s ok, you can admit it here. We are in the Trust Tree. Ok, now that is off your chest, go dig up that money and put it in a high yield savings account or simple investment account. If you don’t do this, you are losing money every day and here’s why:
- Inflation is hovering around 1.9 percent.
- Historically, inflation is around 3 percent.
- This means any money in a pillow or hidden in books around the house is losing value every year.
Ok, Chronicles, that is terrible news, why are you telling us this? Because the solution is simple and even better, rational.
Invest all of your savings in a low fee automated investment account. No i’m not talking about your rainy day fund . . . Keep that in the jar above the fridge. Put everything else in one of these types of accounts:
- Betterment: low fees and an investment return around 6-7%. For those of you averse to math, 6-7 is higher than 1.9, so you beat inflation. Congrats.
- Traditional Investment Account like Charles Schwab or Edward Jones: make sure this is low fee, but these accounts can generally make you around 6-7% or better as well and someone else does the work for you.
- Invest in real estate the old-fashioned way or with roofstock. If you don’t know what roofstock is, stay tuned for our review or check out their website here.
- Use a lending club like lending tree or a similar service. You should get 5-10% back for your investment (always read the fine print on your loans) and this easily beats inflation.
My point is this: if your money isn’t working for you, it is worth less every day. Try one of these options and come back in twenty years and buy me dinner with your wealth. Stay rational.
-B&T