Don’t Let Your Bank Screw You This Way

Wealth Whisperer Team

Everyone should have seen this coming… and yet few have done anything about it.

Banks are literally STEALING MONEY from you right now. Chances are you’re a victim like so many Americans.

But we’ll show you how to flip the script in less than 24 hours.

Mark Skousen has been all over this problem for some time now. In fact, he highlighted the problem pointedly in his latest issue of Skousen Cafe.

You see, a decade of basement-level interest rates made money market funds unpopular. Let’s face it, who would park their cash to earn close to 0% interest?

That all changed when the Fed hiked interest rates to levels not seen since the second Bush administration. At the current pace, we’re likely to touch rates last paid when President Reagan was in charge…

…ahh the good old days…

Today’s money market funds pay in excess of 4%… YES, 4%!

However, take a look at your bank or brokerage and see what your cash is doing. Odds are, you’re getting paid bubkis.

This is how you put a stop to this.

The Wall Street Journal…

published an article back in early February pointing out a startling discovery.

Most banks and brokerages pay investors close to nothing on their cash.

You see, these big banks use cash-sweep vehicles to handle cash sitting inside investor accounts.

These programs sweep the proceeds of stock and bond sales, dividend payments, and other interest into a bank-deposit vehicle that pays next to nothing.

Morgan Stanley’s cash sweep pays…get this…0.01% annually for accounts under $500,000.

If you’re a big baller with $1 million or more, you could earn a paltry 0.15%. Have more than $5 million? You get a full 0.5%…

But it gets even better.

These same brokerages can invest your money for themselves by putting them into higher-rate investments … like money market funds!

To Be Clear

None of this activity is illegal nor hidden from sight.

Most of us simply lose track of it.

Money Market Funds, while highly liquid, still require settlement.

So, you can’t use it like a checking account.

However, with just a little bit of planning, you can take back the profits banks are stealing from you.

First, it’s worth pointing out that not all brokers are the same.

As the WSJ article points out, and we’ve confirmed with the company, Fidelity promotes its money market funds through emails and on its homepage.

Many brokers will allow you to automatically push settled capital into a money market fund without the need for active management.

But even the most forthright companies can’t force you to move your money around.

You can’t really blame them for actions YOU fail to take.

Where It Makes Sense

Money market funds aren’t designed for everyone and should be used in all situations.

Remember, these are funds that require you to sell before it becomes cash you can access.

For active options traders like Bryan Perry, you want to have cash available because the opportunity costs of missing  Premium Income Pro trades can far exceed any risk-adjusted gains from money market funds.

We also know that money market funds change over time.

If and when the Fed eases off higher interest rates, you can bet the yields for lucrative money market investors will fall.

That’s precisely why Bob Carlson’s Retirement Watch closely monitors money market funds. Getting the most out of your retirement savings is critical. But enjoying retirement and life is equally important, if not more so.

Retirement Watch keeps members updated with relevant information freeing them from hours of sifting through headlines and reports.

We want folks to achieve the greatest results that match their risk profile and preference.

Money market funds may not be as hot as electric vehicles.

But no one should be throwing away their hard earned savings, especially to the banks that broke our economy in the first place.

That’s why we encourage you to watch THIS VIDEO Bob Carlson put together that outlines some of the most important steps you can take to secure your retirement.

Because this is YOUR MONEY, not theirs.

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Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

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