Phil Cannella – Phillip Cannella News: Phil Cannella
Phil Cannella helps American retirees safeguard their hard-earned nest egg, and today’s tip is to avoid one of the most popular methods retirees use to keep their money “safe.”
Everyday bank accounts (savings accounts, money market accounts or CDs) may appear to be safe, and while this is somewhat true, the maximum amount that is legally insured by the FDIC is only $250,000. Also, bank accounts don’t yield high enough interest to provide retirees with steady income in the future, and they aren’t designed for long term investing.
Phil Cannella also reminds you that taxation and inflation are two additional problems you face with bank accounts. The interest accumulated on money you have in the bank must be added to your taxable income, and if there’s enough of it, it can increase your tax bracket and in some cases, even your Social Security taxation. Add inflation to that scenario and your account will grow slower than the inflation and taxes that are eating it up, otherwise known as financial erosion.
In summary, let Phil Cannella be the voice in your head reminding you not to keep your valuable nest egg in everyday bank accounts. They are only equipped to hold your money temporarily until you decide on your next step.
Gain more tips and useful information by visiting Phil Cannella’s website: http://retirementmediainc.com.