The One Account Everyone Should Have, But Most Don’t

What if we told you that we think traditional bank savings accounts are overrated. Well, it's true. Typically everyone has a savings account, and for most people the rule of thumb or the goal is to have anywhere from three to six months worth of expenses saved. 

If you are one of those people that keep a high balance in your savings account, we should talk! Don’t get us wrong, we are big believers in cash reserves, but just not in them accumulating in a traditional bank savings or checking account. We ARE big believers in brokerage accounts, and think everyone owes it to themselves to have one!    

If you aren’t familiar with brokerage accounts, they are what we like to refer to as the savings account on steroids. You can find brokerage accounts that earn anywhere from 1.63% to 4.99% annually! Most people haven’t seen that sort of interest build up in their bank account over their lifetime!

Check out the quick bullet points below on why this may be something you should consider:

  • Accounts are easy to set up

  • It allows your money to work for you at a better rate than your savings account

  • Gives you the best of both worlds, liquidity (access to your money) and being invested so you are gaining some return on your money

  • There are no tax implications on withdrawing money from this type of account Some companies, like the one we work with to establish accounts for our clients, have the ability to issue a debit card that is associated with your brokerage account 

  • For those that don’t like the quick ease of being able to transfer funds back and forth because it makes it easy to spend what is in your savings, we can set up very simple ‘stop-gaps’ to make sure it isn’t as easy as a click of a button, but  doesn’t feel like big brother is in your business either

  • Typically these are accounts with low fees. The one that we like to use for our clients ranges from 0% - 1.2% per year

As always, our hope is to educate and empower you, so you can feel confident in all your financial decisions.

If you want to find out more about brokerage accounts or where you can set one up, please reach out to us here, we are happy to help!

Ciera Krinke