This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why It Doesn't Pay to Save

Oftentimes, people shy away from these accounts because they qualify as investments - the money doesn't sit safely in a vault, waiting for you to claim it. Rather, it is invested into different mutual funds or various stock options. However, account holders can specify the level of risk they are willing to take with their money and, according to Schwark, save a significant amount of money through the tax deferment and long-term investment.

Consider investing in the stock market.
Those who can focus on long-term gains should consider getting into the stock market, since the poor economy has driven the prices of stocks so low. "If you can hold the stock for the next 10 years it's a good time to buy," Satyavolu explains.

Buy municipal bonds.
A bond is a formal contract to repay borrowed money with interest at fixed intervals, except in this instance, you are the lender. A municipal bond, specifically, is essentially an IOU from a city or local government agency that uses the funds to finance community projects such as sewer construction or road repairs.

According to Satyavolu, bonds are a good option for cautious investors, who profit from the interest they receive and benefit from the fact bonds are exempt from federal income tax and, in many cases, state and local taxes as well.

>To submit a news tip, email:


Follow on Twitter and become a fan on Facebook.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $125.44 1.80%
FB $82.88 -0.50%
GOOG $549.49 0.21%
TSLA $183.05 -1.10%
YHOO $44.91 -0.42%


DOW 17,978.28 +265.62 1.50%
S&P 500 2,080.95 +19.93 0.97%
NASDAQ 4,926.9510 +35.7320 0.73%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs