Unfortunately, if you have any amount of cash whatsoever, most likely you’re losing money without even realizing it…here’s why, and 4 alternatives to prevent this from happening. Enjoy! Add me on Instagram: GPStephan
Merch: http://www.GrahamStephanStore.com/
GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Ok, so first things first: Holding cash is bad. Now when I mean “holding cash,” I don’t mean like you’re actually just holding cash...don’t take that term literally. Instead, I’m referring to either keeping a ton of cash laying around under couch or a mattress because you don’t trust banks or something, or maybe you just keep your money in a checking account or regular savings account - which, unfortunately, is what most people do, and that ends up unknowingly costing them money. Don’t do that.
And this is why you should avoid that: INFLATION. This means that the value of your money DECREASES every single year, because…summed up…the country prints more money than there is value. In 99% of situations, when you just keep cash as cash…you lose money. If you keep money in a checking account, you lose money. If you keep cash in a normal savings account earning .1% interest, you lose money. This is bad. And that’s where most people make the mistake of losing money without even realizing it. So with that said, here are 5 options so you can avoid this:
The FIRST place you can put your money is a high interest, FDIC-insured savings account:
Ally Bank: 2.2% Interest on their savings account
Marcus by Goldman Sachs: 2.25% on their savings account
PNC bank: 2.35% on their savings account
CIT Bank: 2.45% interest for accounts that have a balance above $25,000.
SECOND, if you want a SLIGHTLY better return and don’t need the money immediately, your next option is a CD.
Ally Bank 12-month No Penalty CD: 2.3% interest
Capital One 360 12-month CD: 2.7% interest
Marcus By Goldman Sachs 12-month CD: 2.75% interest
Syncrhony Bank 12-month CD: 2.8% interest with $2000 minimum deposit
Third: TREASURY BILLS.
This is basically a short term “loan” you give, and in return for lending them money, they pay you back with interest. The good thing about Treasury Bills, and a HUGE advantage over anything else, is that they’re not subject to local or state level taxes…so for people in high tax states like California or New York, this could save you a TON of money in taxes!
So the way this works is you can go on TreasuryDirect.gov, make an account, and then purchase 4-week treasury bills, which currently pay 2.428% interest annually. You can also set this up to re-invest every 4 weeks, so that way you’re constantly getting a high rate of return - tax free on the state level - without thinking about it.
Fifth Option: buying a bond.
For instance, we have the Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)…this pays a whopping 6.1% right now, which works out to be 5.87% after fees. Now this is NOT a risk free return, the price of the bond COULD go down, the payout of the bond COULD go down…or they could both go UP and you make more money. But for someone willing to take a little more risk with their money, this is a decent way to take a LITTLE risk with some decent upside.
https://investor.vanguard.com/mutual-funds/profile/VWEHX
Or, you have the total bond market index VBMFX…after expenses, you’re looking at about a 2.9% annual return. And this one is much less volatile.
https://investor.vanguard.com/mutual-funds/profile/VBMFX
Nonetheless, this could be a decent option if you want to take on a little more risk with your money, while still maintaining liquidity in the event you need it immediately.
So there you go…don’t hold on to cash, because if you do, you’re gonna have a bad time and you’re going to lose money with inflation, which is EASILY avoidable if you just put your money in a few of the options I mentioned here. And ALL of these options take you under 10 minutes to setup…it’s really simple, and a great way to PRESERVE your wealth and keep it liquid until you need it for other investments. Like avocado toast.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Merch: http://www.GrahamStephanStore.com/
GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
Ok, so first things first: Holding cash is bad. Now when I mean “holding cash,” I don’t mean like you’re actually just holding cash...don’t take that term literally. Instead, I’m referring to either keeping a ton of cash laying around under couch or a mattress because you don’t trust banks or something, or maybe you just keep your money in a checking account or regular savings account - which, unfortunately, is what most people do, and that ends up unknowingly costing them money. Don’t do that.
And this is why you should avoid that: INFLATION. This means that the value of your money DECREASES every single year, because…summed up…the country prints more money than there is value. In 99% of situations, when you just keep cash as cash…you lose money. If you keep money in a checking account, you lose money. If you keep cash in a normal savings account earning .1% interest, you lose money. This is bad. And that’s where most people make the mistake of losing money without even realizing it. So with that said, here are 5 options so you can avoid this:
The FIRST place you can put your money is a high interest, FDIC-insured savings account:
Ally Bank: 2.2% Interest on their savings account
Marcus by Goldman Sachs: 2.25% on their savings account
PNC bank: 2.35% on their savings account
CIT Bank: 2.45% interest for accounts that have a balance above $25,000.
SECOND, if you want a SLIGHTLY better return and don’t need the money immediately, your next option is a CD.
Ally Bank 12-month No Penalty CD: 2.3% interest
Capital One 360 12-month CD: 2.7% interest
Marcus By Goldman Sachs 12-month CD: 2.75% interest
Syncrhony Bank 12-month CD: 2.8% interest with $2000 minimum deposit
Third: TREASURY BILLS.
This is basically a short term “loan” you give, and in return for lending them money, they pay you back with interest. The good thing about Treasury Bills, and a HUGE advantage over anything else, is that they’re not subject to local or state level taxes…so for people in high tax states like California or New York, this could save you a TON of money in taxes!
So the way this works is you can go on TreasuryDirect.gov, make an account, and then purchase 4-week treasury bills, which currently pay 2.428% interest annually. You can also set this up to re-invest every 4 weeks, so that way you’re constantly getting a high rate of return - tax free on the state level - without thinking about it.
Fifth Option: buying a bond.
For instance, we have the Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)…this pays a whopping 6.1% right now, which works out to be 5.87% after fees. Now this is NOT a risk free return, the price of the bond COULD go down, the payout of the bond COULD go down…or they could both go UP and you make more money. But for someone willing to take a little more risk with their money, this is a decent way to take a LITTLE risk with some decent upside.
https://investor.vanguard.com/mutual-funds/profile/VWEHX
Or, you have the total bond market index VBMFX…after expenses, you’re looking at about a 2.9% annual return. And this one is much less volatile.
https://investor.vanguard.com/mutual-funds/profile/VBMFX
Nonetheless, this could be a decent option if you want to take on a little more risk with your money, while still maintaining liquidity in the event you need it immediately.
So there you go…don’t hold on to cash, because if you do, you’re gonna have a bad time and you’re going to lose money with inflation, which is EASILY avoidable if you just put your money in a few of the options I mentioned here. And ALL of these options take you under 10 minutes to setup…it’s really simple, and a great way to PRESERVE your wealth and keep it liquid until you need it for other investments. Like avocado toast.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Your honor
CHORE LICZENIE ! JAK TO OBJAC?
I Bonds
CIT BANK is good only if you have the funds and if they have the location where you live or work. Not ideal for those with no savings starting out.
Old video = bad advise.
Storing your wealth in gold and silver is essentially inflation proof and has a higher long term return than most of these and can be very liquid
The most amazing YouTuber
What happens when inflation is like 10% a year lol.
Is this guy for real??? Or joking? Inflation eats those peanuts up far beyond that up and turns it into a major loss.
The most uniformed nonsense I’ve ever heard. Fiat paper will always go to its true value, ZERO! Hold assets in paper you loose.
This video gets more relevant every year.
This didn't age well.
I miss this kind of videos.
Do you have updated thoughts about where to keep your emergency fund?
Need an updated version of this.
Wish i saw this video when it came out! I got a few sheckles in my savings account and i want to put it in a safe place that makes more than my savings account
I found out that Gemini dollars can be a low-risk (if not risk free) way to store money. After processing fees, they pay a 8.05% APY+ and the best part is that they're NOT volatile at all.
+NOT FDIC INSURED
Also, have you considered making an updated list of best savings or checking accounts for 2022? The interest rates have dropped substantially on banks you mentioned in this video since the illness began.
Why do you like Ally if they offer the least??
Already loosing it.
Where are those rates. When I look it’s 0.50% rate
Fantastic information thank you!
oh how the might interest rates have fallen
So I’m a big fat financial noob- can someone dumb down what exactly “interest” is in this context and how it benefits me?
A mutual fund clowns all of these tbh.
I hate Covid
Treasury investment rates are pretty freaking low now :[
I guess the date of the video is important…PNC Bank that was offering 2.35% two years ago is now at 0.40%. If I throw all my cash in their and save for a year, I could fill my car with gas.
Great research!
I am using a T-Mobile Money checking account as my cash account for now. It hasn’t changed its yield since inception. 4% on funds up to $3000 and 1% on everything after. Pretty insane considering current High Yield accounts are only offering .6 🤷♂️ perfect for parking my emergency fund until interest rates improve. May be a while before we see savings accounts able to match it again.
Hey Graham, would it be a good idea to open multiple high yield savings accounts? 🤔 I mean, ‘cause right now the APY is .50% on AMEX savings, Marcus, Discover, Ally, and a few other banks.. $0 minimum, $0 fees. i have enough money to spread into each of these savings accounts if i were to open them, i could put down $1,000 to start in each.. and then i’d just keep the leftover cash in my chase & wells fargo checking for spending on essentials and such.
Bitcoin returns around 400% annually on average, so still the best option 🙂
Le Indian Banks : Avg 7% interest on CD
DFC has a 6.17% on a savings account way better than any you off those you mentioned.
Good info as some need to hold cash for a short term. Not everyone is in the same place.