Savings
Why is the bank/credit union the wrong location for your savings? Where should it go?
Why is the bank/credit union the wrong location for your savings? Where should it go?
The bank/credit union is the wrong location for your savings because your money will shrink over time because of that wicked thing called inflation. Earning .01% while inflation runs at 3% (roughly) gets you a -2.9% real return on your money. You can do better, much better.
Vanguard provides a Short-Term Bond Index Fund Admiral Shares that provides a real return somewhere near the current inflation rate (the fund is up 2.43% for the year as of this moment). The risk is minimal because of the short maturities within this bond fund. It is still liquid and accessible as needed for emergencies or big ticket purchases. Learn more by going to Vanguard.com and looking up the Short-Term Bond Index Fund in the search engine. Educate and ACT!