What do I do with inflation and interest rates and my
savings?
Well I don’t know but you might consider the Series I Savings
Bonds. Here are the restrictions but
right now they are paying 9.62% for the initial rate sold from May through October
2022. You are required to hold them for
one year and they pay interest for up to 30 years or until you cash them in,
after the one year. The interest changes
each 6 months. An example: if you cash it in in 18 months you get paid
the interest on the first 15 months. The
interest is compounded semi-annually. The
interest rate changes each 6 months based on a formula tied to inflation. If you want more detail information, go to
the Treasury’s site. There is an annual
limit of $10,000 per year per person.
(treasury-direct.gov). strangely
enough, you can purchase an additional $5,000 per year in paper I bonds using
your federal income-tax refund. You can
purchase them for friends, like me, relatives, and others. If you purchase for a friend or family the
limit is on them not the buyer. If you find this too complicated call a
financial advisor (not me as I am retired, however I will give you a few names
to call).
Relative to the market, there are a lot of thoughts and
ideas out there. Fear is the biggest
problem and if one looks to history the answer is simple, at least for me. I am staying put in the market with the money
I do not need for the next two years. This
is deemed part of the bucket theory and has worked well for me and many
friends.
Now to just assist a little money saving ideas: for me getting rid of cable was an easy
savings of about $150 per month. I
replaced it with PLUTO which has about 250 channels and is free. So what is the downside? Commercials and no recording of shows. What is the upside? $150 towards retirement or debt or something
fun to do with my family. You decide but
most of all do something! As my dad,
Cliff Olson, said “let’s do something, even if it is wrong”. My dad was a blessing and a wonderful teacher
of the basics in life. He never said to
keep it simple but, that is what he did.
He taught by example.
So what do you learn in the Osage?
·
If you take idleness and turn it into action you
will never regret (never might be too strong)
· Even
the Bible tells us to not be idle Proverbs
16:27. In The Living Bible, it says, “Idle hands are the devil’s workshop; idle
lips are his mouthpiece.”
· to be
prepared, you have to prepare … go figure
thanks for listening,
gary@mylifelegacy.co
