The U.S. government's I bonds, which are linked to inflation and offer a nearly risk-free investment, will now pay 4.28% annual interest until October 2024. The fixed rate makes them attractive for long-term investors despite falling rates. However, they may not be suitable for short-term savers with better options available.
Inflation is staying high, so the Federal Reserve may not lower interest rates soon. This is good news for people with cash to save, as they can now earn higher returns on their money. Treasury bonds, Series I bonds, and high-yield savings accounts are great options for locking in high rates. Just be sure to consider when you might need the money and spread your deposits across different accounts to minimize risk.
The American Dream, including homeownership and retirement savings, is becoming unattainable for many due to rising living costs and stagnant wages. A $100,000 salary, once a benchmark for financial security, is now inadequate. People are increasingly relying on debt to cover expenses and are struggling to make ends meet. This shift has eroded the financial freedom that was once associated with a high income.
Americans now estimate needing $1.46 million for a comfortable retirement, but experts say this "magic number" is less important than having a high savings rate. Financial literacy advocates emphasize setting clear goals and prioritizing saving rather than focusing solely on an estimated retirement amount.
Costco now sells 24-karat gold bars, sparking interest in the "gold rush" trend. While gold has been performing well, experts advise against it being your sole financial strategy. Despite the intrigue, Costco's limited stock and no-return policy make it a challenging investment. Finding a gold bar in stock may require some effort, adding to the treasure-hunting experience.
If you have more than $250,000 in a bank account, recent changes to FDIC insurance coverage may affect you. Trust account limits have changed, and some investments that were previously covered may no longer be fully insured. To ensure your deposits are fully covered, consider spreading your money across multiple FDIC-insured banks or opening accounts with different ownership categories.
