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My uncle kept 6 months of cash at Wells Fargo and a broker in Denver asked him one thing that made him move it
My uncle had about $14,000 sitting in a savings account at his bank for almost two years. He said it was his safety net and he liked knowing it was right there. Last spring a broker he met through work asked him one question, how much interest is that money making you. My uncle said maybe $8 a month. The broker just nodded and pulled up what a money market fund was paying at the time. It was around 5 percent, which came out to roughly $58 a month on the same $14,000. My uncle moved most of it the next week and kept $2,000 at the bank for quick access. The part people get wrong is thinking they need to pick one or the other. You just need enough at the bank to cover a surprise, and the rest can sit somewhere that actually pays you. Has anyone else run this math on their own emergency fund lately?
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noah41516h ago
Man, $8 a month? That's brutal. My own bank was paying me like 30 cents on a couple grand last year and I didn't even blink, just figured that's how it goes. Watching your uncle go from 8 bucks to almost 60 a month on the same money is wild when you actually see the numbers side by side. That broker did him a solid with one question. I gotta go check what my savings is actually earning now because I bet it's garbage too.
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