Banks are they really a good idea???
Yes, I have a couple of US credit union account and a couple of offshore accounts but do I depend on banks? No not at all and here is why. back in the the day you could expect 6% to 8% on a standard saving account and possibly up to 12% on a high yield account or CD ( Certificate of deposit ).
I keep a limited amount of living expenses money in my US credit union accounts and any other money in savings accounts abroad. One reason that I only keep limited funds in US accounts is that it is NOT profitable.
If you were to deposit $100 on January 1st by December you would have earned 1 penny in interest based on the interest rate of .001 % Does not make any sense does it? Now if you were to invest the same amount of money every month into a Mutual Fund or other type of investment that you would a savings account you could be earning from about 4% to 12%. Would you not agree that this makes more sense?
Banks serve 2 major uses:
1) If you have large amounts of money they are insured FDIC to $100,000 per account
2) They are useful for paying bills electronically
That's their only real use in todays world. later I will explain about better protecting your assets , yourself and family in regards to banking etc
Thursday, August 4, 2016
Wednesday, August 3, 2016
Tonight we will discuss Term Life vs Whole Life. many companies try and sell whole life which is a policy that also builds cash value, meaning that it is interest earning. The problem is that it is more expensive than term and for the first few years you earn nothing.
Now, with term insurance it is much cheaper and you can also get more coverage for less money than if you actually bought whole life. Now here is the real kicker, you can purchase term insurance for say $85.00 per month and use the balance of what you would have spent on an investment preferably mutual funds . Can we not agree that you would receive a higher amount of return with the mutual funds that start earning right away then waiting several years for a small return using whole life?
It all makes good sense. And protecting your family in the case of untimely death is the most important thing you can do for your family.
Now, with term insurance it is much cheaper and you can also get more coverage for less money than if you actually bought whole life. Now here is the real kicker, you can purchase term insurance for say $85.00 per month and use the balance of what you would have spent on an investment preferably mutual funds . Can we not agree that you would receive a higher amount of return with the mutual funds that start earning right away then waiting several years for a small return using whole life?
It all makes good sense. And protecting your family in the case of untimely death is the most important thing you can do for your family.
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