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Money Myths #1 A Bank Savings Account is the Best Place to Keep an Emergency Fund

Myth #1 - My Bank Savings account is the best place to keep my emergency fund. Often the bank is considered the safe and convenient place to store your emergency fund. There are a few problems though with this myth.

  1. Fraud is rampant with bank deposit accounts, Creditors can easily gain access without you being able to stop them. Fraud against bank deposit accounts amounted to $25.1 billion in 2018, up from $19.1 billion in 2016, according to ABA estimates. - American Bankers Association

  2. At Least they Earn Interest. Not really. Most saving accounts are paying .5% on the high end right now. With Inflation the money is actually being depleted in a savings account. With bank fees also hitting you, under the mattress is sounding like a better option.

  3. In a savings account your money can only do one job at a time. Very inefficient.

  4. So what is an alternative to your bank savings account? How about 5% average growth, Safe from fraud and creditors, Easy access, Ability for the money to work in multiple ways and to be leveraged for future purchases so that you don't loose the compound growth of that money even while you use the it, Your own family bank, a death benefit if you pass or a tax free advance of a portion of your death benefit if you get sick or need long term care. The ability to take a tax free income from it to supplement retirement. Debt Elimination and much more. You are going to buy vehicles, pay for college, buy houses and other large ticket items through out your lifetime. Why not earn interest on the money you use for those items and pay your self back at your pace. This way if you loose a job you have no fear of the car being taken back by the bank or the credit card company hitting your credit with a late payment and racking up all that interest. A properly structured High Cash Value Life Insurance policy can accomplish all of these things while protecting your family financially. This has been used for over 150 years as a savings tool and has held strong through the great depression and the great recession when many lost liquidity and that was when they needed it most. Forbes called it the Financial Bunker for scary times. Walt Disney, Doris Christopher from Pampered Chef, Foster farms, Stanford University and many others were able to do what they did because they had this setup for emergencies and opportunities.

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