Francois Cote, CEO of Fig Financial, joins BNN Bloomberg to discuss debt consolidation and changing rates scenario.
Investment advisors recommend always having a portion of your portfolio in cash for potential bargain hunting expeditions, but the waiting game could be a lost opportunity in itself. The interest rate they offer is known as the annual percentage yield, or APY. It is expressed as an annual yield but calculated for shorter periods of time.
The downside to money market funds are annual fees based on a percentage of the amount invested, which can top a full per cent. That fee, or management expense ratio , is deducted from the yield but could still top a high-interest savings account.Higher yields require longer commitments. Another way to keep income flowing at a higher rate is through fixed term guaranteed investment certificates .