The Best Place to Invest Cash Right Now

In this video we discuss the underlying dynamics of interest rates and why banks pay you interest on your deposits. We also go into the basics of how a savings account and money market fund works. Lastly, we discuss some of the best options for beating the low rates currently offered by banks.

Useful links:

1) Treasury Direct

2) Why do Banks Need Deposits?

Cullen Roche is the CIO of Discipline Funds, an asset management and financial advisory firm. He has managed billions of dollars in his career and helped thousands of people achieve financial independence. He is the author of the best-selling book "Pragmatic Capitalism" as well as the most widely read macroeconomic paper on the SSRN database "Understanding the Modern Monetary System".

**Disclaimer** - This is for educational purposes only and is not financial advice.

#savings #investing #wheretoinvestcash

[disciplinefunds]

Thanks for watching everyone. If you like the videos please like and subscribe. If there's a topic you want me to cover in the future please leave me a comment and I'll make a video about it.

[MrGaetan]

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[Ellesar]

3:10: 'if you're proactive and you *invest*...'

Ahem.

I've been watching some stranger on the internet, and I'm pretty sure you meant 'save in those instruments'. The only investment is in yourself😉.

[benitoproto]

I hope you can add some advice for Europe people like me that follow you. Thanks!

[hugosalinasaliaga]

Hello Cullen, have you used Treasury Direct to purchase T Bills? (I own I-Bonds)

[zinzandorfling]

I'm <new to trading how can I make more profitable investment in market now

[paolopg]

Since bonds are yielding at least a couple percentage points, could you make a vid on low-cost bond etfs? For example TLT or SCHO? I tried reading the prospectus but I still don't fully get how they are priced. With stocks I can discount cash flows, for an index you could do something similar, maybe a dividend discount model. But nobody ever talks about how to determine the value of bond etfs

[robertburke]

Is it possible the Fed could take a long pause (a few months or more) on any movements on interest rates next year? Is it likely they will lower interest rates next year for a soft recession?

[woodcoast]

1:06 explanation is incorrect. The quote from the video is " when the government raises their benchmark rate banks are then able to borrow from the government and get paid interest which then allows them to offer us higher rates on all of our cash deposits ." That is not correct. Actually what happens is that as Borrowing from the Fed becomes more expensive, banks are then as an alternative, they are paying us more interest to attract Fed balances to their Fed accounts.