[Sum180 Lead Coach]

You were good at math as a kid, weren’t you, Stacey? I could never remember how this calculation works.

Unfortunately, the trickier thing yet is to find somewhere to get 8% interest. The most recent estimates I’m seeing for projected market returns are 5%, and of course most people aren’t getting more than 1% on cash/bonds. Meaning we have to save a lot more for a lot longer. It explains why my portfolio hasn’t achieved that skyrocketing estimate I got from a broker 10 years ago. Is it just me, or is it harder than ever to build financial security?

[Stacey Daprile – Ambassador]

Carla, you are right! If we look at the rates of the traditional savings account we will probably never double our money on interest alone. Any little fee would eat it right up! This frustrates me with our emergency fund. While it needs to stay liquid it shouldn’t also just sit doing nothing. Any thoughts on this? Maybe laddering CDs or even an income fund? Laddering CDs (with some not tied up at all) would allow for gradual withdraw should an emergency arrive. Income funds are subject to market changes but pay more. Maybe a combination of both?

My dad also taught me the adage, money makes money. But my emergency fund has yet to find a paying job. 🙂