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SAFE MONEY PLACES
COMPENDIUM
Summer
2010
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FDIC
$250,000 Made Permanent
The Dodd-Frank Wall Street Reform and Consumer Protection Act signed by
the President 21 July 2010, raises the standard maximum deposit insurance
amount to $250,000. This makes permanent the temporary increase scheduled
to expire 31 December 2013. The FDIC insurance coverage limit
applies per depositor, per insured depository institution for each account
ownership category.
Chasing Yields
With bank yields around 1%
and fixed annuity yields of 2%-3% interest income has simply gone away.
Low yield periods often tempt consumers to chase yields and thereby take
on more risk than they would normally accept. There is nothing wrong with
earning a higher yield if one understands the risks, but often the risk is
difficult to fully understand, or the need for the higher yield causes us
to pretend the risk isn't really there. If this interest rate cycle is
like all of the previous interest rate cycles rates will go back up.
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Safe Money Places®