"Savings options: Lower returns are OK"
The Minneapolis Star-Tribune writes "Savings options: Lower returns are OK", which is subtitled, "Finally fluffing up that cash cushion? Focus on safety, not return." It says, "If you're one of the many Americans realizing that having a cash cushion is critical, your rate of return should not be your top priority. With short-term cash, it's about 'return of principal, not return on principal." Columnist Kara McGuire cites our Peter Crane and adds, "No matter what short-term cash vehicle you're considering, think about convenience in addition to yield, said Crane. Is it worth going across town or putting up with another username and password for a few basis points? I also like Crane's so-called wildebeest strategy -- 'stay in the middle of the pack' when it comes to yields." Also, see Morningstar's "Seven Questions with Mercer Bullard", which says, "Similarly, the worst mutual fund scandal arising out of the current crisis is the failure of the Reserve Funds, again costing investors only a few pennies on the dollar."
