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Interest for the year 2010

January 6th, 2011 at 04:38 pm

I kept track of how much interest I made last year on cash sitting in the banks and in C.D's. I made $13,788.61. That sounds pretty good, but last year I made $21,824 and that was on the same amount of money. It is obvious that the rates keep going down, down, down.
Dh and I have never had a pension plan. He has always been self employed and I have worked for small businesses. I had hoped someday to earn enough interest to support us, but unless rates go way, way up, that probably will never happen.
The $21,824 was for the year 2009 and in 2008, we made almost $26,000. So actually this year (2010) we made about half what we made in 2008. Rates have really dropped.

Posted in Uncategorized | 6 Comments »

6 Responses to “Interest for the year 2010”

  1. creditcardfree Says:
    January 6th, 2011 at 05:08 pm 1294333706
    1294333706

    I hope rates go up too...much better for us savers!

  2. patientsaver Says:
    January 6th, 2011 at 05:20 pm 1294334401
    1294334401

    Even if you are well over 60, I don't think you should have ALL of your savings in CDs and bank accounts, for the very reason you've mentioned. I would invest a portion, even just 15%, in low-cost equity mutual funds at someplace like Vanguard. Otherwise, you're dealing with not only low interest rate risk, but inflation risks, too. If that money's in taxable account, chances are the after-tax value equates to a 0% or less interest rate. That's why you need growth.

  3. Petunia 100 Says:
    January 6th, 2011 at 05:20 pm 1294334448
    1294334448

    Do you mostly stick with cash? (I know you have made 3 loans and also are building a spec house). Are you uncomfortable with stocks and bonds?

  4. Ima saver Says:
    January 6th, 2011 at 06:50 pm 1294339842
    1294339842

    No, I am not uncomfortable with stocks and mutual funds. I have several of each. I let the cash build up because we were building spec homes in the $400,000 range and I was paying cash for all the labor and materials.

  5. patientsaver Says:
    January 7th, 2011 at 01:09 pm 1294405788
    1294405788

    Make sure you don't have more than $250K in any one bank, as FIDC insurance only insures up to that amount in the event of bank collapse.

  6. Petunia 100 Says:
    January 7th, 2011 at 04:24 pm 1294417493
    1294417493

    At last, some truth in advertising. Julie, you really are a saver! My goodness, your stash is impressive. I'm going to be paying close attention to your savings strategies.

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