Business and economic information you need to know
Oct 8, 2008 8:04 pm US/Eastern
Safe Investment Options Still Exists
MIAMI (CBS4) ―
With stocks and bonds in turmoil, and the housing market still in the dumps you're probably wondering: Are there any safe places to stash your money in this market?
CBS4 Consumer Investigator Al Sunshine says yes there are.
"We're not making any profit out of our 401K anymore," said Miami resident Anderson Munoz.
Munoz and his coworkers are concerned about that, and he says some of them are drastic measures.
"Some of my coworkers are actually planning to start, you know, making withdrawals," said Munoz.
If that's your plan, think again.
"There's a difference between losing actual cash and losing money on paper," George Joseph with the Dade County Federal Credit Union said.
Joseph also say's don't bail on the stocks in that 401K.
"If you try to rebalance now depending on where you are in the market, you may be taking a significant hit," explains Joseph.
Instead, go forward and invest in your 401k's stable value funds.
"Obviously it's a smaller return, but there's no risk," said Joseph.
And don't forget to make cash a part of your financial plan.
"You should have in immediate cash available in the event of an emergency two times your monthly salary," Joseph said.
Where to stash your cash? How about some old school standby's, at your bank or credit union, certificates of deposit, individual retirement accounts, and money market accounts.
Check for competitive interest rates, and be assured that the FDIC will back your money, now more than ever.
"The government has approved the increase in the insurance from 100-thousand to $250 thousand," Joseph said.
Finally, if you have additional funds to invest, you can open a money market account through an investment firm. The good news, many of them are now insured by Uncle Sam. Be sure to read the fine print before you invest.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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