"Savings" Account NOT!

[fightingquaker13]

Ok, so a couple of weeks ago, I opened an account at my local credit union. I've got to do some home repairs and such, and some I can get a tax deduction on, so I dropped five grand in a savings/checking account so there is zero confusion when I file my taxes. Turns out I get a whopping .7% interest on the account. Now the rate of inflation is 1.98%. So, even though my math skills are rusty, that means that money, just sitting in a "savings" account earns me $35 dollars. While the rate of inflation eats $99. So basically I lose $64 a year. WTF? I'd be better off buying non perishable goods or just going to Vegas. Yeah, I'd lose there too, but at least I'd have fun doing it.

[tombogan03884]

It's called "transfer of wealth", and it is one of Govt's favorite scams.

[TAB]

Don't feel bad, even my money market is not 1%     its a joke really.

[alfsauve]

This is a very big problem.  What to do when other investments mature.   State/City who have bonds outstanding paying 5% are calling them in an refinancing them with much lower rate ones.

The stock market is inflated so it's not a good place to put cash.

There are however, some ETFs (Exchange Traded Funds) in oil and gas royalties where are paying 4-6%.  

If you have an on-line trading account then the commissions should be low.  

CTR Oil and Gas is paying dividend yield of 5.85%

Or a mutual fund in preferred stocks which pay regular dividends.

PGX Powershares is paying a dividend yield of 6.34%

Here's the Motley Fools blurb on ETFs. http://www.fool.com/investing/etf/index.aspx


WARNING:  I'm not an investment adviser.  Do not take my advice without through and proper research and counsel.  YMMV

[TAB]

There really isn't a safe place to put your money now.   all of them are out of wack.

[Sponsor]

[Solus]

piles of gold or silver hidden in your attic might hold some value

[tombogan03884]

Gold works to preserve "wealth" in the long term since it holds intrinsic monetary value .
However for daily use in the event of an economic collapse silver is the better investment since it also holds intrinsic value but your local grocer is more likely to be able to give you change for a silver coin when a gold coin may buy his entire inventory and building.

[Solus]

you would need to convert gold or silver, coin or bullion, to cash at a broker.  The face value of the coin would suffer inflation just as the Dollar does.

It will preserve your wealth, but it will be a pain to get cash every time you want to by a  $623 Quarter Pounder at McDonald's.

 

[RTFM]

Well Tom, Walmart only charges you $2.64 for a tube of KY 

http://www.walmart.com/ip/K-Y-Brand-Jelly-Personal-Lubricant-2-oz/10293877

That screwing looks cheaper than the one you're getting form the CU. But then again, it boils down to how much lube you plan on going through in a year.

By my maths that's 23 tubes to break even or 24 for more in KY than your CU. 

[tombogan03884]

Well Tom, Walmart only charges you $2.64 for a tube of KY 

http://www.walmart.com/ip/K-Y-Brand-Jelly-Personal-Lubricant-2-oz/10293877

That screwing looks cheaper than the one you're getting form the CU. But then again, it boils down to how much lube you plan on going through in a year.

By my maths that's 23 tubes to break even or 24 for more in KY than your CU. 

What the hell are you talking about ?   

you would need to convert gold or silver, coin or bullion, to cash at a broker.  The face value of the coin would suffer inflation just as the Dollar does.

It will preserve your wealth, but it will be a pain to get cash every time you want to by a  $623 Quarter Pounder at McDonald's.

 

The point would be to use real money instead of the phoney federal reserve notes .