Fed’s Policies Hurting Americans’ Savings
Fed’s Policies Hurting Americans’ Savings By Teeka Tiwari for Casey Research
Chris’ note: There’s still time to sign up for tonight’s big event at 8 p.m. ET featuring my friend Teeka Tiwari. During the event, he’ll unveil his first-ever algorithmic trading system.
I highly recommend tuning in. As you may know, Teeka’s helped his readers make a fortune over the years.
For example, Teeka recommended bitcoin to his Palm Beach Confidential readers way back when it was only $428… netting them a 1,958% gain at its current price.
And tonight, he’ll share his latest strategy… one that could deliver returns of up to $12,000 a month with only 12 seconds of your time.
According to Teeka, this strategy is more important than ever. As he shows below, thanks to the Fed’s “war on savings,” you need a new game plan if you want to retire with dignity…
By Teeka Tiwari, editor, Palm Beach Daily
On September 15, 2008, 158-year-old Wall Street firm Lehman Brothers filed for bankruptcy.
Lehman’s collapse helped trigger the Great Recession.
Three months later, the U.S. economy collapsed under the weight of a national meltdown in housing prices. Riding to the rescue, the Federal Reserve cut interest rates to nearly zero.
That’s the lowest level they’ve ever been in the 243-year history of the United States.
Wall Street pundits called it zero interest-rate policy, or ZIRP.
The Fed believed ZIRP would encourage folks to borrow and invest in riskier assets with higher yields. This “wealth effect” would then stimulate the economy.
The policy did eventually help pull the U.S. out of a recession. But there were unintended consequences. And they’ve hit savers hard.
Today, I’ll tell you what they are – and more important, what you can do about it…
War on Savers
As I’ve told you before, there’s a war going on.
It’s not a shooting war. It has nothing to do with the Middle East. But you’re paying for it.
It’s a “war on savers.”
Let me explain…
Since the Great Recession, ZIRP has made it difficult for ordinary Americans to find safe income investments with a decent yield.
Today, the rate on the benchmark 10-year Treasury note is hovering above 1.9%. That’s less than half its 100-year historical average of 4.6%.
Other traditional income plays yield virtually nothing…
For example, the average interest income on a checking account is just 0.06%. For every $10,000 you deposit, you’ll get back only $6 at the end of the year.
In 1995, you could have earned 4% on your deposits. That’s $400 annually on a $10,000 deposit – or nearly 70 times more than today.
But for some savers, rates are even worse. According to personal finance website Bankrate.com, the most common interest rate on checking accounts is 0.01%.
And it’s not just checking accounts…
Across the board, conventional income-paying investments are yielding historically low rates. Here are the average interest rates banks pay on deposits of less than $100,000:
- 0.06% for interest-bearing checking accounts
- 0.09% for savings accounts
- 0.16% for money market accounts
- 0.51% for 12-month certificates of deposit (CDs)
- 0.66% for 24-month CDs
Friends, if you’re looking for income on your investments, you have few options in today’s market. So if you want to retire with dignity, you’ll need a new game plan.
Take Back Control
The good news is I’ve found a way to take back control of your financial future without putting your current financial position at risk.
It all has to do with creating a large, safe stream of monthly income.