What is Safe Money?

What exactly is “Safe Money?”

• Is it money that needs to be risk free?
• Is it money that needs to be available?
• Is it money that must provide a safe and secure retirement?
• Is it money that must last years? A lifetime?

What exactly is the true definition of “Safe Money?”

The answer may surprise you: The answer is based on your specific personal situation and your desired goals. For many people “Safe Money” is money that will be there when it is needed. For others it could be a calculated risk factor on some selected asset allocation plan. Once again…it all depends. For the truest definition of “Safe Money” let’s look at it in its purest forms… safe and free from risk. This may come as a surprise to you; if your money is to be completely risk free you only have three options. These options are based on the underlying guarantees that come with each category. If the very worst scenario happened…would your money still be safe…. Your options are:

• US Treasuries: guaranteed by the full faith and credit of the United States.
• Bank and Credit Union Accounts: guaranteed by the Federal Deposit Insurance Corporation (FDIC) and the NCUA with underlying guarantees of the full faith and credit of the United States.
• Fixed Annuities: guaranteed by the assets of the insurance company and the underlying guarantee of each state’s: State Guarantee Fund.

So why don’t all of us keep the majority of our money in one of these three options? One reason could be the yield or the interest earned. The safer the deposit the lower the yield. If you demand the total and complete security of a guarantee then your yield may not be enough to sustain your goals. Like all things in life, common sense is a solid reminder of how to maintain momentum and not lose sight of your goals. Approaching this issue with common sense may be the very best possible option. When the need for a higher yield is your goal what other options can be considered?

• Stocks
• Bonds
• Mutual Funds
• Gold and other precious metals
• Real Estate
• Variable Annuities

So here is a tip for you that is unsolicited and it is also free. Ready? Do it yourself! The only way to personal and financial freedom is to depend on no one but you! Self-education and self-management of your money is at the very basis of this book. By assuming responsibility for your own goals you remove or reduce the fees, expenses and charges which would have been subtracted from your hard earned money by the financial experts who are happy and ready to assist you. Do it yourself and you will find a new freedom. You might ask, “How can I be such an expert?” The answer is very simple…information. Information is the key and using this book as a guide will help you find, locate and evaluate information that can be truly helpful to you in meeting your goals. Here is a tip worth its weight in gold when looking at sources for information!

Ask yourself this:

• Who and what is the source of information?
• Why is it being offered?
• Is someone trying to sell me something? If they are, is their rate of commission a priority over the right investment choice for me?

These are great question when dealing with financial planners. Information is the key and information will provide the guidelines to making the best possible decision for your Do it yourself and be informed!