9 min listen
867 - Should You Be Saving Money Right Now? by Dave Meyer
867 - Should You Be Saving Money Right Now? by Dave Meyer
ratings:
Length:
11 minutes
Released:
Feb 28, 2023
Format:
Podcast episode
Description
The last year or so has been challenging for investors and savers alike. With inflation raging and many of the major markets in correction territory, it’s been difficult to find a safe place to park cash. Bond yields have been below the rate of inflation, and savings accounts have offered pathetic interest rates. Any money held in cash or bonds has been losing spending power against inflation. For real estate investors who often need time to save up cash between purchases, this can be a problem.
Luckily, it looks like things are starting to change. One silver lining of recent rate hikes is that as the Fed raises their federal funds rate, bond yields and the interest rate paid on money market and savings accounts tend to rise. This is exactly what we’re seeing. These low-risk assets now offer the potential to earn a real (inflation-adjusted) return.
Bond yields have fluctuated between 3.5% and 4% for the last several months. According to Bankrate, high-yield savings and money market accounts are now offering between 3.3% – 4.3% as of this writing.
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Luckily, it looks like things are starting to change. One silver lining of recent rate hikes is that as the Fed raises their federal funds rate, bond yields and the interest rate paid on money market and savings accounts tend to rise. This is exactly what we’re seeing. These low-risk assets now offer the potential to earn a real (inflation-adjusted) return.
Bond yields have fluctuated between 3.5% and 4% for the last several months. According to Bankrate, high-yield savings and money market accounts are now offering between 3.3% – 4.3% as of this writing.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Released:
Feb 28, 2023
Format:
Podcast episode
Titles in the series (100)
732 - 6 Tips for Saving Money During Tenant Turnover by Matt DeBoth by BiggerPockets Daily