Foster City, CA (PRWEB) April 28, 2009
What's the best way to manage cash you have on the sidelines while waiting for the stock market to settle down? Richard Barrington, a new personal finance expert and retirement advisor for MoneyRates.com--a leading source of information on bank rates, personal finance, savings accounts and investing since 1999--weighs in on money management during tough economic times.
"When investors get scared off by market volatility, they often park money in cash," Barrington said. "However, there is no reason why this has to be dead money."
The choices investors make while they wait for a better time to enter the market are crucial in this economic crisis.
"Returns are hard to come by," Barrinton said "so it is crucial not to leave any money on the table."
According to Barrington, that means smart shopping when figuring out what to do with your money while you sit out the volatile stock market.
"The easy thing to do is just park your money in a savings account," Barrington said. "However, you can earn a full percentage point just by committing money a little longer by buying a 6-month CD. Shopping for the best CD rates could earn you another percent on top of that. Two percent may not sound like much, but when it's a sure thing, who can afford to let it go by?"
Barrington explains that CD rates vary widely because banking conditions fluctuate, as well:
"Some banks are more eager for new depositors than others," Barrington said. "Some banks have comfortable profit margins, while others are struggling and can't afford to offer attractive CD rates. You'll see some banks have more trouble than others adjusting to the recent increases in FDIC premiums, and again, this will show up to different degrees in CD rates."
Barrington advises savers and investors to use Internet resources to compare a wide range of CD offerings, and where possible, choose medium- or longer-term CDs because the difference between short- and longer-term CDs is especially steep right now. An excellent source for the most current rates on CD's: http://www.moneyrates.com.
In a recent survey done by MoneyRates.com, 58 percent of respondents had increased cash holding either "somewhat" or "by a considerable amount" in the last six months, thus showing the importance of people knowing how to make the best use of that cash while they are waiting for more favorable investment conditions.
"You can wait around for something good to happen, or you can make something good happen by being a smart shopper," Barrington said.
About MoneyRates Expert:
Richard Barrington, CFA, is the primary spokesperson and personal finance expert for MoneyRates. He is a 20-year veteran of the financial industry, including having served for over a dozen years as a member of the Executive Committee of Manning & Napier Advisors, Inc. He earned his Chartered Financial Analyst designation in 1991 with the Association for Investment Management and Research (AIMR).
Richard has written extensively on investment topics, including investments, money market accounts, certificates of deposit, and personal finance as it relates to retirement. Richard has been quoted by numerous media publications such as The New York Times, The Wall Street Journal, and Pensions & Investments magazine.
Richard can discuss economic and market history in detail and is well respected for his ability to relate to a broad audience from a personal financial standpoint. Richard approaches financial topics with an understanding that fresh perspectives are often more valuable than mainstream consensus. He has written for over 50 financial Web sites, such as Investopedia, Yahoo, MSN, Allbusiness, and Encarta, and is most sought after by members of the media for his niche expertise in these topics:
-Housing and Mortgage Meltdown
-Macro Economic and Government Policy Issues
-Historical Financial Events
-Discerning Long Term Implications
-Saving for Retirement
-Certificates of Deposit
MoneyRates.com has been a leading source of information on bank rates, personal finance, savings accounts, and investing since 1999. We provide the highest rates on certificates of deposits, money market accounts, and high yield savings accounts. Money-Rates.com has been featured in The Wall Street Journal, The New York Times, Barron's, USA Today, US News and World Report, and the Los Angeles Times as a valuable resource for individual investors and consumers. According to a recent survey, MoneyRates users agree that the site "finds better and more rates than other sites."
For more info on MoneyRates or to schedule an interview with Richard Barrington, please call Jessica Austin at 479-452-0019, email at jaustin (at) quinstreet (dot) com, or contact us on twitter @MoneyRates and @RichBarrington.
# # #