DON’T HOLD CASH: Use THIS Instead

Unfortunately, if you have any amount of cash whatsoever, most likely you’re losing money without even realizing it…here’s why, and 4 alternatives to prevent this from happening. Enjoy! Add me on Instagram: GPStephan
Merch: http://www.GrahamStephanStore.com/

GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c

Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/

Ok, so first things first: Holding cash is bad. Now when I mean “holding cash,” I don’t mean like you’re actually just holding cash...don’t take that term literally. Instead, I’m referring to either keeping a ton of cash laying around under couch or a mattress because you don’t trust banks or something, or maybe you just keep your money in a checking account or regular savings account - which, unfortunately, is what most people do, and that ends up unknowingly costing them money. Don’t do that.

And this is why you should avoid that: INFLATION. This means that the value of your money DECREASES every single year, because…summed up…the country prints more money than there is value. In 99% of situations, when you just keep cash as cash…you lose money. If you keep money in a checking account, you lose money. If you keep cash in a normal savings account earning .1% interest, you lose money. This is bad. And that’s where most people make the mistake of losing money without even realizing it. So with that said, here are 5 options so you can avoid this:

The FIRST place you can put your money is a high interest, FDIC-insured savings account:
Ally Bank: 2.2% Interest on their savings account
Marcus by Goldman Sachs: 2.25% on their savings account
PNC bank: 2.35% on their savings account
CIT Bank: 2.45% interest for accounts that have a balance above $25,000.

SECOND, if you want a SLIGHTLY better return and don’t need the money immediately, your next option is a CD.
Ally Bank 12-month No Penalty CD: 2.3% interest
Capital One 360 12-month CD: 2.7% interest
Marcus By Goldman Sachs 12-month CD: 2.75% interest
Syncrhony Bank 12-month CD: 2.8% interest with $2000 minimum deposit

Third: TREASURY BILLS.
This is basically a short term “loan” you give, and in return for lending them money, they pay you back with interest. The good thing about Treasury Bills, and a HUGE advantage over anything else, is that they’re not subject to local or state level taxes…so for people in high tax states like California or New York, this could save you a TON of money in taxes!

So the way this works is you can go on TreasuryDirect.gov, make an account, and then purchase 4-week treasury bills, which currently pay 2.428% interest annually. You can also set this up to re-invest every 4 weeks, so that way you’re constantly getting a high rate of return - tax free on the state level - without thinking about it.

Fifth Option: buying a bond.
For instance, we have the Vanguard High-Yield Corporate Fund Investor Shares (VWEHX)…this pays a whopping 6.1% right now, which works out to be 5.87% after fees. Now this is NOT a risk free return, the price of the bond COULD go down, the payout of the bond COULD go down…or they could both go UP and you make more money. But for someone willing to take a little more risk with their money, this is a decent way to take a LITTLE risk with some decent upside.
https://investor.vanguard.com/mutual-funds/profile/VWEHX

Or, you have the total bond market index VBMFX…after expenses, you’re looking at about a 2.9% annual return. And this one is much less volatile.
https://investor.vanguard.com/mutual-funds/profile/VBMFX

Nonetheless, this could be a decent option if you want to take on a little more risk with your money, while still maintaining liquidity in the event you need it immediately.

So there you go…don’t hold on to cash, because if you do, you’re gonna have a bad time and you’re going to lose money with inflation, which is EASILY avoidable if you just put your money in a few of the options I mentioned here. And ALL of these options take you under 10 minutes to setup…it’s really simple, and a great way to PRESERVE your wealth and keep it liquid until you need it for other investments. Like avocado toast.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB

Видео DON’T HOLD CASH: Use THIS Instead канала Graham Stephan