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Category: Savings Accounts

Understanding the Important Difference Between “Yield” and “Total Return”

Yield and total return are concepts SMI has historically discussed in relation to bonds or other savings vehicles. But because our Dynamic Asset Allocation (DAA) strategy recently presented a scenario involving these
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How Much Emergency Savings Do You Really Need?

Money — or rather the lack of it — is the most common concern that keeps Americans up at night. Some 72% of respondents to a recent American Psychological Association survey said they are stressed over their finances at
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Do EE Savings Bonds Have Any Redeeming Value?

Uncle Sam's EE savings bonds used to be an attractive deal. Introduced in the early 1980s, these safe bonds (backed by the "full faith and credit of the United States government") once paid an impressive 11% interest rate.
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Three Types of Savings Everyone Needs – What Could Go Wrong?

During an enjoyable dinner with my wife and some good friends the other night, I glanced beyond our dining room through the windows in our kitchen and was surprised to see the sky turning ominously dark. It had been a
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For Savings You Won’t Need to Draw On for Two Years or More

If you took shop class in high school, you learned the principle of "having the right tool for the job." That principle also applies to money management. Some savings/investing vehicles are suited for certain tasks but not
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When CD Rates Seem Too Good to Be True

An SMI member in Texas recently sent us two newspaper ads for CDs with surprisingly attractive rates. One, from a company called First Fidelity Tax and Insurance, offered a 5.39% APY rate on a 3-month CD. The other,
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Do You Have in Place the One Financial Essential for the New Year?

A question we've heard countless times is "What are the most common mistakes people make when managing their finances?" One of our leading answers: making spending and investment decisions apart from a personalized
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Could You Pass a Personal Financial Stress Test?

For most of us, the Oct. 1 partial shutdown of the federal government started out as just a news story to be followed. But for the roughly 800,000 federal employees furloughed (initially without pay), it was more than
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First Save, Then Invest

Building up savings may seem boring enough already, but when you consider how little interest banks are paying today, saving can be painfully boring. But that doesn't change the fact that having money in reserve is an
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Liquidity Matters: Will You Have Money to Face an Emergency?

Some people consider their home-equity line of credit (HELOC) or credit cards to be their emergency fund. But when it comes to being prepared for the financial equivalent of a rainy day, there's nothing like personal
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