Recent
New York
Sign in
Show promo
Show promo

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

Background check for employment or hiring, work experience or career history concept, criminal or drug check on candidate or employee, businessman with magnifying glass checking candidate documents.

Q&A: Mitchell-Lama Unit Rules

Q&A: Mitchell-Lama Unit Rules
Electoral fraud and hacked elections concept with a hand wearing a leather glove and stuffing a ballot box isolated on white background with copy space and a clipping path cut out

Q&A: Contesting an Election

Q&A: Contesting an Election
Contract and break contract. Breach and terminate of paper document. Cancel, torn and rip of agreement for law. Termination deal in business. Failure in partnership. Icon of disagree in work. Vector.

Q&A: Problems with a Building Owner-Sponsor-Manager

Q&A: Problems with a Building Owner-Sponsor-Manager
 

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