We are not stock jocks.
Obviously, we pay attention to the stock market. I write about it often.
Over the long-term stocks via the power of compound interest remain one of the best ways to grow your money and beat inflation.
But investing in the stock market is not all we do. Far from it.
We have plenty of clients that hold fixed income positions like treasury bonds, corporate bonds, and CDs. We are holistic wealth managers, which means we manage money in an assortment of investment vehicles outside of the stock market too.
And now…. You can earn money on short-term, low-risk investments. Finally!
Look at that chart. Much has changed in 10 months.
Though money markets still hardly pay anything, you can go about 3 months with an investment backed by the US government and earn nearly 4% APY. No, that ain’t beating inflation, but it’s about 20 times better than sitting in a money market like the one in that chart.
This was unheard of a year ago.
Some of you may be stuck in the past.
You may have money sitting in a savings account at a bank still earning pretty much nothing. That can be a good thing when it comes to emergency funds and needs for liquidity.
It may also be a touch on the silly side.
Does it make sense to be sitting on tens of thousands or hundreds of thousands of dollars doing nothing? Maybe. Maybe not.
This issue is not that you are a terrible investor. The issue may simply be that you don’t know your options.