Special to the LiveFree Investments Blog - by Malia Reed and Alex Talcott, J.D.

Yahoo! Finance articles are more even than exclamatory usually. A Friday headline by a senior writer: “‘Astonishing’: Dumbfounded economists struggle to describe today’s jobs report surprise.” The federal Bureau of Labor Statistics found 2.5 million payrolls added. Leisure and hospitality sector workers, who predominantly rent their housing, are returning at the greatest rates.

Government relief payments designed to curb the economic impact of lockdowns during the coronavirus pandemic were already creating a unique opportunity for everyday individuals to begin investing.

According to recent estimates released by the U.S. Commerce Department’s Bureau of Economic Analysis, personal income increased by 10.5 percent in April 2020. Disposable personal income saw an even larger increase, up 12.9 percent. Personal consumption expenditures decreased by 13.6 percent in the same period. In other words about numbers, people are saving more and buying less. Notwithstanding “new normal” notions, ‘normal people’ can live within their means. They in fact are already doing so (the personal savings rate is 33.0%!), for now at least. If our neighbors are not consuming at or above pre-quarantine levels, what exactly are they doing with these ‘extra’ funds? How might that money be maximized?

Savings accounts are an option, but they are not particularly profitable. According to the Federal Deposit Insurance Company, an independent agency, the national average interest rate for savings accounts is 0.06% Annual Percentage Yield. Therefore, cash sitting in a savings account is likely returning very little by any standard. Checking accounts?—Anything beyond cashflow in-and-out for essentials and (prudent) lifestyle falls further behind normal, rising prices (i.e., inflation). [There may even be other suitable spots for some of your cash reserve or emergency fund; consult your financial advisor.]

Beyond banks, there are brokerage accounts, which vary in professional service, products, fees, and performance. First-timer investors are apt to forego firms for apps; unfortunately, those who go “robo” report under-saving. Professional pushes are powerful toward account accountability.

There are other asset classes and avenues to investing (including houses and apartments on actual avenues). Whatever you choose, we’re all for more people earning, earning more, and learning more about putting the money they work for to work for them.

Malia Reed, Houston TX, is an undergraduate student at the University of Notre Dame, where she studies political science, economics, and real estate. She is a summer research intern with a private real estate capital company. Alex Talcott, Durham NH, is Ms. Reed’s supervising partner. He teaches business law and finance at the University of New Hampshire Peter T. Paul College of Business and Economics.