Recent
New York
Sign in
Show promo
Show promo

COOPERATOREVENTS NEW YORK EXPO. TUESDAY NOVEMBER 18TH . JACOB JAVITS CONVENTION CENTER. REGISTER NOW!

Q&A: How can we get a better rate of return on our reserve investments?

By Mindy Eisenberg Stark, CPA, CFE   2015 November Q&A
Q&A: How can we get a better rate of return on our reserve investments?

Q. My co-op has $570,000 in reserve funds invested in CDs earning approximately 0.5% interest. My question is this—are we being too cautious given that the rate of inflation is about 2.7%? How can we get a better rate of return or is this good enough?

          —Money Manager in Melville

A. According to Mindy Eisenberg Stark, a certified public accountant and certified fraud examiner with the Scarsdale-based accounting firm of Mindy Eisenberg Stark (MES), “Your board has a fiduciary responsibility to preserve the principal on the funds. That said, speak to a broker. Sometimes there are other CDs that might offer a slightly higher rate of interest.” 

Related Articles

Deal with difficult people, bossy manager or trouble employee, tough or complicated colleague, confusion or conflict concept, frustrated business people dealing with difficult and fussy coworker.

Q&A: Removing a Problematic President

Q&A: Removing a Problematic President
simple illustration of hanging CCTV

Q&A: Camera Placement

Q&A: Camera Placement
Are You Covered?

Q&A: Coverage Required?

Q&A: Coverage Required?
 

Comments

  • Joel Tax on Wednesday, April 6, 2016 7:30 PM
    I perform reserve studies for common interest communities and we encourage communities to be cautious with their reserve account balance as we saw some that invested before the big downturn in the economy lose a substantial amount of their balance and were then forced to sell their investments as the money was needed for large scale projects.

Leave a Comment