Expensive insurance

We have limited funds and need every bit of income possible. In addition to three certificates of deposit, we have $15,000 in various savings including $1, 000 in regular savings at 5 3/4 and $2,000 in a credit union account at 6 3/4 that includes $2,000 of life insurance. Any suggestions? C. M.

While your certificate accounts are doing reasonably well, you could be gaining more income from the $3,000 now in regular savings. I suggest moving the $1,000 into one of the repo deposits at a strong S&L or into a money-market mutual fund. The $2,000 in credit union savings are losing at least $140 a year in potential income. The $140 premium for $2,000 of insurance appears high. Thus, you should ask -- is the insurance necessary and are there any other alternatives for gaining $2,000 coverage for less than $140? The $140 is the loss of earnings represented by the difference between 6 3/4 percent and 13 3/4 percent or more that could be earned elsewhere. Without knowing more about your personal situation, including health, I can only suggest you examine your alternatives more closely.

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