Business Innovators Radio - Episode #70 – High-Yield Savings 2024 – The 15 Minute Financial Feast Podcast – With Mark Triplett & Troy Westendorf

Episode Date: September 22, 2024

We believe that every dollar has a purpose and a timeline. When and how your retirement assets will be used should be understood before making important financial decisions.The Triplett-Westendorf Purpose and Timeline 5 Step Planning Process (PT5) begins with Discovery.Understanding where you are now, and then defining where you want to go (Your Purpose) and when you want to get there (Your Timeline), programs your financial GPS. Our Purpose and Timeline 5-step process (PT5) programs your financial GPS.Learn more: http://triplett-westendorf.com/ | https://mypt5.com/The 15 Minute Financial Feast Podcasthttps://businessinnovatorsradio.com/the-15-minute-financial-feast-podcast/Source: https://businessinnovatorsradio.com/episode-70-high-yield-savings-2024-the-15-minute-financial-feast-podcast-with-mark-triplett-troy-westendorf

Welcome to the 15-minute financial feast podcast, bringing you 15-minute segments to help you retire with purpose on time. We're serving up food for thought and bread for the head. Are you hungry to learn? Here are your hosts, Mark Triplett and Troy Westendorf. Welcome to another episode of the 15-minute financial feast. Today, you are listening to the audio from a live television interview where one of our favorite local news station anchors asked us questions about a financial topic on the minds of many hardworking folks in our community who are trying to make good decisions and get ahead.

High interest rates have been painful, but one group has actually thrived. They're called high interest savers, but this could all change if the Federal Reserve ends up making some changes. So we've got Financial Pro Mark Triplett joining us this morning with more about these saving options. Mark, first of all, thank you for joining us. We appreciate your time. Let me ask you this. So what exactly is a high interest saver?

Well, first of all, I'm glad we're bringing attention to this topic. We've been encouraging the folks we serve to use these type of accounts for a long time. They're online savings accounts that work just like your savings account, your brick and mortar, but they pay much higher interest rates. That means your money grows faster. So folks that are using these type of accounts are enjoying the benefit of higher interest rates. They're also liquid. So you can access your money.

and their FDIC insured up to $250,000. So if a bank were to fail, your money's protected. Now imagine for just a moment you're saving for a large purchase, let's say a new car, and you have $10,000 that's sitting in your checking account or your basic savings account earning next to nothing in terms of interest. If you just take it from your left pocket to your right pocket and use one of these online high-yield savings accounts that are paying 4 to 5 percent, your money could be earning an additional $4 to $500 per year just for having it in the right place.

That's a very good point. Like you said, just having it in the right place. That helps a lot. But a lot of people are really struggling right now. So can you kind of break down a little bit more? Why are these savers doing so well when you have so many other people who are struggling? So as the Fed raised interest rates over the last couple of years to fight inflation, they were trying to make borrowing costs higher to slow things down.

So we've seen things like car loans and mortgage rates. go up. Interest rates on credit cards as well. Now, those lenders are charging more for the capital that they're putting out. Banks are borrowing money from savers. And so in that equation, the saver is the lender, and they're enjoying a higher interest rate. However, it could be temporary. When the Fed starts to reduce rates, and we're expecting this to potentially start to happen

as soon as next week, these type of accounts will also start to see interest rates come down. And that's obviously a scary thing for these people who felt so safe for so long. Now, aside from that change, are there any other drawbacks when you do this type of a saving option here? A couple of things to pay attention to. Number one, read the fine print. Some of these accounts offer, let's say, a 5% rate, but it's only on the first several thousand dollars and anything above that gets a lower rate. So really read the fine print before you select to move your money into one of these high, yield online savings accounts with a particular financial institution. Number two, drawing your money

out is a little bit more challenging than maybe just using your debit card that's connected to your brick and mortar checking account. You may have to wait a day or two to get it back into one of your accounts that's at your brick and mortar savings, like your bank, where you can actually access it. So maybe a 24 to 48 hour period delay in terms of access. Now just real quick, if anyone else has any other savings options, is there any place where they can get more information? Well, first of all, I would use your internet search as your best tool to find the highest rates that are available, read the fine print.

Check with your financial professional that you work with. And always remember that every dollar has a purpose and every dollar has a timeline. So before you engage in any type of financial instrument, any type of investment or financial product, make sure that you have a clear distinction of what that dollar's purpose is and the timeline for when it will be used and then work with a financial professional to help you choose the right tool. All right, good advice. Mark, thank you for your time, sir. You've been listening to the 15-minute financial feast podcast. Remember, every dollar has a purpose and every dollar

has a timeline. If you have questions about today's topic, schedule a call with a team member. Visit www.mip5.com. Until next time, be sure you're taking steps to retire. with purpose on time. Mark Triplett is an investment advisor representative of and advisory services offered through Royal Fund Management LLC, an SEC registered investment advisor. Nothing contained in this program should be considered an offer to buy or sell securities.

Different investments have different risks associated with them and not all investments are appropriate for all investors.