Are Your Lousy CD Interest Rates Making You Sick To Your Stomach?

I’ll bet they do!

To add insult to injury, not only are interest rates on CD’s pitiful, but they are also subject to taxation and inflation, potentially resulting in a net loss in real dollars!

Many people have turned to the stock market as an alternative to bank accounts…only to discover that investing in the market has been very costly. Whether you are investing in stocks or in mutual funds, many Americans have seen their portfolios act like a roller coaster, in some cases drastically sinking during, the last few years. This can negatively impact your retirement plans as well as have an unsettling effect on your emotions.

According to the AARP, as a result of the market losses in the past few years:

59% had to change their lifestyle 

47% had to reduce spending, and

34 % took fewer vacations

It gets pretty depressing. And at this time in our lives, depression should not be what we feel.

We should be enjoying our families. We should be getting that wonderful peace of mind that comes from being in complete control.

Feeling in control of our lives brings that peace of mind we all want so badly. And feeling like we have little or no control of our finances can make life a lot less fun.

One of the potential best ways to maintain control of your money, investing in the market’s upside…and possibly avoiding the downside is a strategy called Indexing backed by highly rated insurance companies! More on that later.

Remember when you could save money at rates that would actually allow you to get ahead, and not merely survive? Imagine if time travel was possible! If someone from 20 years ago landed in this time, they would be shocked at $2.55 a gallon gas, $25,000 for an average car, the median home price being over $200,000 and the DOW over $23,000.

In the “old days”, people would stay in one job for a lifetime. It was almost unheard of to switch jobs or heaven forbid, change careers!

It was common for people to put most of their savings in the local bank and their company’s stock and feel secure that this nest egg would be enough for their retirement.

Think about all the things I’ve just mentioned, and compare them to today’s post 09/11, post Enron/MCI world.

Today’s world and business leaders are not believed or trusted. Politicians take polls before taking any action, and sway in the political winds, changing their minds every day. Laws are so complicated, many members of Congress admit to not reading bills before voting.

Now, things are totally different. Control is the one word you wouldn’t use to describe our emotions now! It seems that a series of events over the last decade has put us all in a deep hole, really deep. And now, we’re all paying for the mistakes, we’re paying in the form of higher taxes, and with RIDICULOUSLY LOW INTEREST RATES!

Some CDs are paying less than 1%? Is it also possible that banks can still be charging 18% (and higher) on credit cards? (It’s disgusting. They make 17% profit on your CD money.)

 

What can we do? Check out my next post