RUDI MYERSSON ENTERPRISES FYI's

Did you know that there is often a significant difference in what a LOCAL bank will pay for a BASIC savings account interest rate as compared to what a LOCAL credit union will pay for a BASIC shares account dividend rate?  Both are currently insured (bank - FDIC; credit union - NCUA/NCUSIF) up to $250,000 for individual accounts.  There is a liquidity cap - both types of accounts (bank or credit union) typically limit the number of "free" (non-fee) withdrawals per month.  In fact, certain types of withdrawal frequency are specifically regulated by the Federal government.

• For actual comparison, a local bank pays .01% interest per annum while a local credit union pays .35% dividend per annum.  Depositors (which in fact are investors) receive 35 times more gain from their invested funds at the credit union!

Did you know that two things to consider when buying a particular stock are dividend potential and valuation gain potential?  

• A stock dividend is a return on each share owned by the investor and is based upon the overall economic health of the company/corporation.  A dividend is traditionally paid quarterly (every three months).
• A stock valuation of each share owned by the investor at any particular moment during the trading day may be a combination of the economic health of the company/corporation and outside factors.  One such factor is the reliance by investment institutions on computer driven algorithmic trading - this can result in volatile surges in the market as a whole with automated decisions to buy/sell blocks of managed investor shares.

Did you know that diversification is a very common practice with small investors?  Diversification is the process of investing funds into more than one financial instrument (savings/shares, money market, certificate of deposit, mutual fund, stocks, bonds, precious metals, etc.) so as to lower capital risk, hedge against adverse fluctuation, and/or increase opportunities for financial gain.

• For example, an investor has a basic savings account at a local bank.  Upon realizing that the interest returned is less than what is desired and that liquidity is not of primary concern, a decision is made to transfer a portion into a certificate of deposit (CD) with a substantially larger gain.  The investor now has a diversified portfolio (combination of financial assets).