PERSPECTIVES Putting your money to work in strange times Prognosticators keep saying we’re due for a bear market. Sure, we’ve a had few corrections, but we continue to remain in the longest running bull market in history. While most doomsayers are off by at least a few years, it’s reasonable to expect this stock market boon will end. With stocks getting riskier, and bond yields continuing to be crappy, are there other options? IntraFi Networks are becoming more prevalent and popular. They allow investors to spread money around to get more FDIC insured coverage than the traditional $250k limit. Multiple accounts can be administered by a single bank. They’re an alterative to traditionally safe bonds that are paying next to nothing – and sometimes less – and riskier stocks. JP Morgan, CAIS, and Fidelity are companies creating products with a slightly higher risk than bonds, but with opportunities for higher rewards. These vehicles can offer guaranteed returns with no risk of lost principle. Demand deposit, money market deposit accounts, and CDs are the products. Account maturity terms range from four weeks to five years, with CDs maxing out at three years. According to the Federal Reserve, America’s richest residents are investing the least amount of money in US government and municipal securities than they have over the past 20 or so years. Investment in the last decade alone is down $1.5 Trillion. There’s a reason for that. The average 10-treasury was paying 1.55% as inflation hovered above 5%.
FINANCIAL FIGURES By Michael Shelton Executive Summary: Keep your eyes open … as times keep changing.
The bull market started in 2009. That’s not going to last forever. It’s a good time to start considering alternative investments to what’s worked in the past. IntraFi Networks are open to businesses, not-for-profits, individuals, and even fiduciaries. It’s one middle-road alternative that tempers the risk of securities with returns that make more sense than bonds. Keep your eyes open as there are likely to be more new investment alternatives cropping up for investors as times keep changing.
Networks... allow investors “”IntraFi to spread money around and get more FDIC insured coverage.
Michael Shelton is a financial retirement counselor. Reach him at michael@discover360 Financial.com vbFRONT.com / JANUARY 2022 u
23
