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I’m Scared to Put My Money in the Bank. Where Else Can I Invest It?

I’m Scared to Put My Money in the Bank. Where Else Can I Invest It?

The recent liquidation of two banks in Silicon Valley has sent shockwaves through the country, causing many Americans to question the safety and security of their hard-earned money. For decades, we have been taught to trust banks as a reliable means of storing our wealth, but this sudden turn of events has left many uneasy about entrusting their finances to these institutions. However, another option for those looking to invest wisely without risking everything is treasuries. In this post, we'll explore why investing in treasury bonds may be the most brilliant move you can make with your money right now.

What Are Many Investing in Treasury Bonds?

Federal regulators' shutdown of Silicon Valley Bank and Signature Bank has pushed many to invest in bonds, as they are deemed safer to invest thanks to being backed by the government. Currently, Treasury Bond Yields are the highest in many years. They are superior to Money Market funds, CDs, Muni bonds, Corporate Bonds, and Fixed Annuities. Especially with the current financial climate, Treasury Bond Yields are the best alternative to investing your money in banks.

Why Are Treasury Bonds Safer?

Bonds, with their government-guaranteed backing, offer a secure, low-risk option for diversifying one's portfolio. Their returns may be lower than other investments, but interest rates on bonds generally exceed those of regular savings accounts. Keep in mind, however, that bonds are usually a long-term investment, and should not be sold before the investment period expires without penalty since bond profits are also subject to federal taxation.

Two forms of bonds have been popular lately - Series I and Series EE. Series I bonds have recently been used as a strategy to combat inflation, as discussed by GOBankingRates, and are more widely purchased. As for Series EE bonds, it is promised that your investment will be doubled in a span of 20 years.

In order to begin investing in bonds, an initial amount of $25 is necessary. For electronic investments, $10,000 can be allotted for Series I bonds annually. Meanwhile, if you decide to purchase paper bonds, you can do so up to $5,000 for Series I bonds and $10,000 for Series EE bonds.

What Are The Advantages of Investing in Treasury Bonds?

Treasuries offer an attractive choice for investors in the present market for a number of reasons. Short-term investments with a duration of 3 months to 1 year can yield more than 5%, free from the FDIC Insurance's $250,000 cap. Liquidity is secured since no penalties are applied in the case of early withdrawal. Furthermore, the interest gained is exempt from state tax. The abundance of available treasuries makes it easy to build a comprehensive bond ladder. Should you be currently holding savings, liquid cash, or old bonds or certificates of deposits, don't hesitate to contact us for an analysis of how treasuries can benefit you.

In recent times, Treasury bonds and other bond types have become increasingly popular in response to the closure of two banks. Traditionally, people trusted banks to safeguard their wealth, but that confidence appears to be diminishing now. Investors have now come to rely more on bonds as a safe alternative; the government stands behind bonds, providing a greater assurance of retrieving one's capital.  

Please feel free to call us at 845-240-1551 if you have any questions or if you currently hold savings, liquid cash, or old CD’s/Bonds. We can do an analysis and comparison to determine the advantages for you.

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