RICHMOND, VA (WWBT) – We are just days away from the Debt Ceiling Deadline and many of you are probably wondering how to protect your money. NBC12 talked to a local investment expert about what this all means and what you should be doing with your money.
Cory Bunting knows a lot about investments, he spent 22 years on Wall Street. Now he's the Associate Director for VCU'S Capital Markets Center. We asked him to grade the current financial crisis.
"We are growing but there is a lot of room for improvement so I would give it a "C" with a bullet, a "C" Plus if you will," he said.
Bunting knows everyone is watching their money and worried if lawmakers will work out a plan as the debt ceiling deadline inches closer -- we've heard the political back and forth in D.C. -- but what does it all mean.
"It means that we are spending more money than we are bringing in and we have been doing this for a lot of years," he explained.
So the question is -- how will this impact your bank account? Like many Americans, you may be wondering what to do with your money, invest, keep it in the bank or put it in a safe at home.
"Pulling your money out and putting it under a mattress seems a little rash to me but if it helps you sleep better at night to pull a little bit out and stick it under your pillow, then that's fine to but as a general rule, our banks are safe," Bunting said.
Your money is FDIC insured for up to $250,000. Bunting is confident in the banking system and tells us things are risky now, but says your money can only work for you if you invest it. When it comes to your Portfolio, Bunting says the safest option is to diversify. And back to that question of gold -- prices are up right now, and while it may be a good investment -- Bunting says moderation is key.
"Gold is just an asset, it doesn't necessarily have these magical mystical qualities that we are sometimes lead to believe when we watch late night television," he told us.
He is confident a deal will be reached and we will avoid a default-- but admits - the Country's AAA credit rating could be downgraded. That would increase interest rates when the country borrows money...and that could trickle down to the consumer.
"A ratings downgrade is kind of like a fight with your wife, you can get over that. A default is like a divorce, it's kind of final so I don't see the default scenario happening but the ratings down grade could possibly happen," Bunting said.
Bunting's final piece of advice -- it's okay to be concerned and keep a close eye on your money, but he feels there's no need to panic. The deadline to raise the debt ceiling is August 2nd, of course we will continue to watch the developments from D.C. and bring you the latest on air and online.