Monday, November 17, 2008

Where We're Storing Our Cash

What a crazy year this has been in the financial markets. A few weeks back I wrote a post about timing the markets, claiming that it was impossible. I can assure you that if I could time the markets, I would, and I would be a lot richer right now.

With that said, I hear a lot of people around me saying that now is a good time to buy. I don't agree with this statement. I believe in efficient markets and believe that any time is a good time to buy, because the price of stocks should always reflect all publicly available information, and that the best strategy is to buy a little stock with every paycheck. This article explains that stock prices are not exceptionally cheap right now; they are about on par with historical averages.

Sorry about my stock market rant.

Now, to the point of my post...We're storing our cash under our mattress.

Just joking. We've been using a WAMU savings account which was paying 4.0% just a few weeks ago. Now it's down to 2.5%. With inflation at 4-5%, a 2.5% yield on savings isn't particularly impressive. We decided to open up a savings account at Dollar Savings Direct. As of today, this is the best rate available in the country. Deposits are insured up to 250k by the FDIC. I'm not sure how long the rate will last, but I was excited to find out about it and thought I'd share the info with you. The account opening process wasn't too painful and the website is easy enough to use. More discussion on Dollar Savings Direct is found here.

1 comment:

KristiAnn said...

Hey Tiffany, It's Kristi (Bentley) Fife from growing up. My friend Erin Grange upon moving day was telling me she has a good friend from Naperville and when she said it was you and that you lived nearby... to think all those years I didn't know you were close by. It would have been cool to see you and your family. My parents moved to Mesa almost 3 years ago so I have no idea what anyone is up to from Naperville. I just moved this summer as well so we live in Helena, Montana now. She said to look you up on her blog. I finally did (I just made a blog after Halloween... about time I know). Anyway I'd love to see what you guys are up to and what your family looks like. My blog is feel free to look at it anytime.