Consumers today must now take on some risk in today’s economy to preserve their capital. While it was once a good idea to place your money in a high-yield savings account, this is no longer the case. In their latest numbers, the Department of Labor stated that the national inflation rate is 2.9% after taxes, and now some banks are only offering saving accounts with interest rates of 1% before taxes. Therefore, consumers are at risk of losing money if they choose to place their savings within these banks. There are several other options available to consumers, such as purchasing gold or real estate and investing their money. However, these options are not without some risk.
See Luke Landes, How Do You Preserve Your Money?, Forbes, Mar. 23, 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
