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Email this10:36 am
ING DIRECT has lowered rates once again (for no reason) to %1.20...not too far from zero
1:43 pm
I am in the process of moving all of my funds out of high-interest savings accounts and into money market funds through my discount broker. Money market funds may not be 100% guaranteed, but most of them are still very safe investments, and even in this market they pay 1-2 percentage points above most high-interest savings accounts (just watch that MER so your savings don't get eaten up by management fees). I think the whole concept of the "high interest savings account" may have to be put on hold until interest rates start climbing again (and that couild be years away).
11:40 pm
November 26, 2008
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At least I took profit from it when the interests rate were of 4.5% and around.
Now I really don't know what I should do with my money.
The day you become free is the day you work for fun.
5:00 am
Personally, I would stay away from the Stock Market, the majority of economists think we are still in a bear market rally and the wrost is yet to come.
MM funds are not a bad idea, I was going to caution what Craig mentioned about the MER rates, because you earn so low on MM funds those MER rates can eat away any gain quickly.
Max, here is something to think about when you look at the lousy 1% Hi-savings rates, Inflation is actually going into deflation now at -1.xx%, so it's not like it's the 4% inflation rate for the past 10 years and you are earning -3% under inflation, you are earning 1.xx% + deflation.
I'm looking at keeping my money in the bank, liquid because rates need to go up by the end of the year to keep the prospect of high inflation out of the economy. I don't want to lock in now as it sounds like Craig doesn't either.
Mike
2:08 am
July 30, 2009
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Inflation is actually going into deflation now at -1.xx%,
Govt inflation statistics are all fake.
Despite falling by more than half, gas prices are still close to the 1 dollar mark as oil companies which are a price fixing monopoly do not pass on the savings to consumers.
Groceries have only gone up as far as i can see. They never go down.
Hidden taxes and fees, fines, insurance..etc. these things either have stayed at the same price or gone up.
Where is the -1% figure coming from?
The govt is punishing savers by keeping rates artificially low. The problem with the fiat monetary system is that it leaves govt in control and the fruits of one's labor. Your savings are not safe from the govt which engages in confiscation through taxation, inflation, devaluation.. etc. The banks offer such a low rate because the govt just prints money for free and gives it to them. The whole concept of working for your paper money is a joke.
As for financial advisors, a good number of them have devastated the portfolios of their clients. They don't know more than anyone else where the market is headed so its foolish to be taking their advice on anything.
I pulled my money (except RRSP) out of ING when they kept dropping the interest rates.
7:41 am
"Where is the -1% figure coming from?"
It comes from large purchases, not small ones like food, gas, bills, etc. But autos, homes, industrial, etc.
Mike
1:02 pm
July 30, 2009
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housing was already well into bubble territory so it isn't that its gotten cheaper. rather its still way overpriced.
don't know about autos but every new car cost 10K at the very least so nothing deflating there.
prices are not passed on if any deflation is going on in industrial machinery.
basically nothing is going down. expenditure at the end of the year if you total it is always headed in one direction only.
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