Easy Money

This is absolutely the best place to park your money in the current environment. It's safe and you'll collect monthly paychecks. 

You've read the headlines. INTEREST RATES AT RECORD HIGHS!!!

Interest rates have gotta come down right? Well... no they don't. If history is to be guide, interest rates could stay at this level for longer or even go higher! 

To give you an idea how long interest rates could remain at today's levels, let's peek at interest rates back to 1954. [CLICK HERE]

The Federal Funds Rate is set by the Federal Reserve. It's the bench mark that drives all other interest rates. This chart makes it obvious today's interest rates are really not at record highs. 

The real deviation from historical norms were the record low, sub 1%, Federal Funds Rate triggered by the 2008 Great Financial Crisis. This was special financial stimulus, not the norm.

If you're waiting for mortgage rates to drop back below 3%, history is not on your side. You'll need another great financial crisis or global pandemic before interest rates drop to those low levels again.

There is a silver lining. At today's interest rates, your savings should be able to safely generate decent income. 

The longer interest rates remain at today's levels, the longer you can collect decent income from your savings. If interest rates increase, your income from your savings should increase too.

If you're not earning at least 5% interest on your savings, consider moving your cash to a 

brokerage account and putting it in a money market fund. 

I use Charles Schwab for investing and trading. It's park my cash in a Charles Schwab money market fund to earn returns higher than I can get at the bank. 

To see how much you can earn from a Charles Schwab Money market fund [CLICK HERE].

PS... I get no commission or fees from Charles Schwab, I'm just sharing what I do with my money.

If you saw a $20 bill lying on the ground, would you stop, pick it up and put it in your pocket. Sure you would!

Moving your savings to a Money Market Fund to earn higher interest is like finding a $20 bill lying on the ground. It's money sitting there waiting for you to pick it up. It's easy money.

Our Creator reminds us of this BIBLICAL WEALTH BUILDING PRINCIPLE.

Lazy hands make for poverty,

but diligent hands bring wealth.

Proverbs 10:4

My main bank is a full service bank with branches nationwide. I use them for... checking, ATM card, recurring bill pay and I even have a safety deposit box with them.

All my transactions are channelled thru my main bank (collecting rent and paying all my bills). It's a lot easier doing taxes and checking transactions when everything is going thru one bank.

I don't put my savings there because they only pay a meager 0.25% interest on savings deposits.

For my savings, I put it into a Charles Schwab money market fund. I do this to generate higher returns on my savings. 

My Charles Schwab accounts are linked to my main bank so I can easily transfer money back and forth online. It's amazing how much you can do online these days.

Doing this, I get all the benefits of a full service bank and benefits from higher interest rates paid by money market funds.

If you found any of this useful, please tell your friends to checkout AbundantLife.me!!

Have a Great Day!

Dragon Xu

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