Feb 23
Why should you avoid trying to grow your money in the bank?
Why should you avoid trying to grow your money in the bank?
Because the interest rate that you get on a CD or a savings account is so small it will not keep up with inflation, also if you put your money in a CD it is tied up for a long period of time and will cost you too get your own money back, you are better off keeping money that you want to grow in the stock or bond market from vanguard, even your savings account can be in a vanguard short term bond fund for bettter results. So avoid keeping more money than you need to pay your bills in the bank if you can and you will get better returns for your hard earned money though no load index funds.
Because when you let your money sit in the bank, your money shrinks because of inflation risk. Instead of trying to grow your money in the bank (NEVER going to happen!), you should invest it at Vanguard (extremely low fees and NO commissions!)
Outstanding comments. I have nothing to add.