Let’s see if this sounds familiar….you have some money sitting in a savings account and it is probably making next to nothing. If you are not really sure what to do, you have several options. 🤔
You can go to a bank and stick it in a savings or money market account, chances are they are not going to pay you anything. If there were, you wouldn’t be watching this video.
With that in mind, I want to talk about 7 alternatives to placing you savings into a bank. 🏦
I am also going to share a client story with you about where a client was keeping his cash. (You won’t believe where he was keeping it or how much he was keeping there!)
So let’s dive right into your options:
01:10 ➡️ Online savings – Any sort of online savings or bank account (just make sure they have FDIC). They have a lot less overhead than traditional brick and mortar – this could mean higher interest rates.
03:54 ➡️ US Treasuries (TBills) – It may seem a little old school – but you can do all of this online.
04:42 ➡️ High Dividend Stocks – This is a little higher risk and not somewhere you want short-term money. Just because a stock pays a dividend doesn’t mean it won’t drop in value.
06:27 ➡️ Bonds – You are most likely not going to buy individual bonds, but rather bond mutual funds. I would suggest ETFs, just remember higher yield = higher risk.
09:30 ➡️ Blended Portfolio – This would be a mix of stocks and bonds, and utilizing ETFs to get this blend. You can utilize a platform like Betterment or Wealthfront.
🤯 Before we get to the last two, I want to tell you about this client …he had $140,000 in a safe in his basement. I can’t remember how long he had this cash sitting there, but I thought it was crazy. Sitting there, making nothing for him. This is an option that you DO NOT pick.🤯
12:14 ➡️ Real Estate Investment Trusts (REITs) – This is a way to invest in real estate without managing properties. You can buy these many different ways, the simplest is to buy a REIT ETF. Another is online real estate investing, my favorite platform for this is Fundrise.
14:25 ➡️ Peer-To-Peer Lending – This allows YOU to be the bank. You are lending money to other peers. The great thing is, you can see their reasons for borrowing. This allows you to set your risk level.
That is my top 7 alternatives to bank accounts. You can pick as many or as few of these options as you like. I just wanted to share that there is more than one way to invest and earn interest.
Which options sounds the most attractive to you?
Are you already using one or more of these options? Let us know how this is going for you.
★☆★Resources Mentioned in Video★☆★
★☆★ Want More Good Financial Cents? ★☆★
💻 Check out my blog here: https://www.goodfinancialcents.com/
Listen to my podcast here:
Pick up my best selling book, Soldier of Finance, here:
Connect with me on Twitter:
My most favorite inspiration T-shirt line, Compete Every Day: