Dollar bills and inflation
Dollar bills and inflation
Dollar bills and inflation

Did Inflation do Something Good?

OK, inflation is bad for the cost-of-living. Food, gas, housing, and clothes all cost more. Our money buys less than it could. Here’s a silver lining for people who take action. Something good has come from inflation. Here it is: Your cash can buy you “more income” because interest earned on many savings accounts and investments is now higher. Maybe your bank increased what they pay on your savings account, or maybe they haven’t.

OK, inflation is bad for the cost-of-living. Food, gas, housing, and clothes all cost more. Our money buys less than it could.

Here’s a silver lining for people who take action. Something good has come from inflation. Here it is: Your cash can buy you “more income” because interest earned on many savings accounts and investments is now higher. Maybe your bank increased what they pay on your savings account, or maybe they haven’t.

Most banks still pay less than 1.0%, and the US average is about 0.4% on bank savings accounts¹. But get this…investors in US Government Treasury Bills (T-Bills) now get over 5%. That’s right, 5x to 10x more than traditional savings accounts. T-Bills are US government debt backed by the Treasury that mature in 1 year or less. That could be $250 per year for people with savings of $5,000 invested at 5%.²

Boost Income on Savings

So, you might be wondering how you can also earn around 5.0% income on your cash, even if you’re investing smaller amounts.

You could look for ETFs designed to own US T-Bills. It’s an easy way to earn income from the interest paid by T-Bills.


Disclosure:
1. 0.40%: US Savings Account Rate as of June 30, 2023 (Y-Charts).
2. 5.26%: Yield on Bloomberg U.S. Tr Bills: 1-3 Months TR Index Value Unhedged as of June 30, 2023.

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Saving for the future might seem daunting, but there’s a straightforward way to grow your money with tax advantaged—Individual Retirement Accounts, or IRAs. These accounts come with tax benefits designed to help you build a retirement nest egg over time.

Saving for the future might seem daunting, but there’s a straightforward way to grow your money with tax advantaged—Individual Retirement Accounts, or IRAs. These accounts come with tax benefits designed to help you build a retirement nest egg over time.

Saving for the future might seem daunting, but there’s a straightforward way to grow your money with tax advantaged—Individual Retirement Accounts, or IRAs. These accounts come with tax benefits designed to help you build a retirement nest egg over time.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

Nobel prize winning economist Harry Markowitz famously said, “Diversification is the only free lunch in investing.

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Copyright © 2024 Beanstox. All Rights Reserved

Copyright © 2024 Beanstox. All Rights Reserved