The 5 Best Places to Stash Your Cash

Gold?

Why trade one kind of paper for another? A little prettier perhaps? There is no intrinsic value in paper, and when the all the big-shot authorities and market manipulators have run for the hills, that paper will only be good to wipe your backside. The point is not to make a gazillion dollars, but to preserve what you have earned through sweat. NOTHING will do it like gold and silver.

Bryan of IA @ Dec 01, 2008 13:38:33 PM

Time Horizons

Like anything dealing with investing or savings, your actions depend ENTIRELY (no buts) on your time horizons...something not addressed in this article.

Retiring soon? A time horizon of 1-3 years will make a portfolio look entirely different than a guy in his 20's (working with a 40 year+ horizon). And when I say portfolio, I mean it...no savings strategy should be all or nothing (either cash, equities, bonds, etc). Additionally, there's a reason equities are included (and "should" be a majority of your holdings for the long haul: they've returned, on average, 10% a year since NYSE's opening in 1903. If you notice, that time frame includes the Great Depression, Stagflation 70's->80's, Black Monday, the S&L Crises, the Dot-Com bust, etc. Year to year, or even year to 2-year fluctuations should be disregarded if you're in it for the long haul.

Cash/totally liquid assets made sense to get into at the peak...not the bottom. Likewise, stocks are now by nearly every metric (incl. fundamental analysis, P/E, P/B, discount models) undervalued. Buy at the bottom or heading to the bottom, ride it to the top (or appropriate valuation), or hold if the company is solid. Simply put, do you buy when things are cheap, or when they're expensive?

This article may make sense to some, not to others. But all too many will read it as "move it into cash now." This article pleasantly downplays the very real worries of inflation (yes, it makes a VERY brief mention of inflation). Which do you think will hold value better: the equivalent of 'cash under your mattress', or money invested in an international equity that can hedge itself against inflationary pressures? Get back to me in several years and we'll compare.

Economics and personal finance are a heck of a lot broader than this one article would lead many to believe. Markets are not nearly so simplistic. This article is a perfect example of knowledge without context.

Matthew Mahoney of LA @ Dec 01, 2008 13:27:27 PM

Gold???

Are you a nut job or what??? Put your faith in something other than gold. Only a maroon would listen to that tired old line of bull!! Obviously the last person sells gold for a living, or they snuck out of the luney bin and found a computer. These are trying times to be sure, but there is much better advice out there and many of the other readers comments are my proof!!!

Scott of WA @ Nov 29, 2008 21:30:51 PM

GOLD???

this is pretty amateurish advice; if your not in the market to make a kagilion dollars in seconds then you need to 'stash' your money in hard assets like gold and silver.

gold will hit 2000$ within a year, invest like crazy - especially with all this new inflation / devaluation brought to you by the federal reserve bank - your gonna regret not doing this when gold is worth a ton, and your gonna more than regret it when the dollar collapses.

of NE @ Nov 29, 2008 15:24:35 PM

This is not good advice...

Parking your money in a CD, Money market, or savings account is one of the worst things you could do with your money right now. It was one of the best things you could've done 5 months ago.

However, if you have already lost a bunch of money in the stock market, or even if you haven't, equities are more reasonably priced right now than in more than a decade. On top of that, corporate debt, even highly rated debt, is yielding more than it has in years.

If you put your money in any of these vehicles, you are a fool. You are certainly going to see your money lose to inflation, and the stock and corporate debt markets.

I hope you are not considering following the advice in this article, but if you are, please consult a financial planner first. Anyone worth his salt will be able to steer you into investments that are safe and have a higher rate of return.

Claude of MD @ Nov 27, 2008 14:15:34 PM

CHECKING FOR HIGH CD RATES

GOOD WEB SITES TO CHECK FOR CD RATES IS:

1. BANK - CD RATE SCANNER When you bring up site, click on yellow box in the center near the top. Hundred of banks throughout U.S.

2. BAUER FINANCIAL --- Lists U.S.Banks CD RATES, also gives financial strength of banks (1 to 5 stars)

of KS @ Nov 26, 2008 17:15:08 PM

On-line savings accounts

FNBO (First National Bank of Omaha)FDIC. currently pays me 3.5% interest. No fees of any kind & no minimum balance required.

of KS @ Nov 26, 2008 16:53:13 PM

another safe bank investment - high yield reward checking

In addition to money market accounts and savings accounts, hundreds of small banks and credit unions around the country are offering reward checking accounts that pay between 4% and 6% apy.

There are 2 main catches: around 10 debit card purchases per month are required to earn the high yield and the balance that qualifies for the high yield is limited (usually to $25,000).

Besides these 2 catches, there's not much downside. Most all are free checking accounts with no monthly fees even if you don't meet the debit card usage requirements.

Ken of TX @ Nov 26, 2008 15:02:45 PM