Money Talks: How to Manage Your Savings

With banks paying historically low interest many cases less than 1%... this certainly doesn't seem to be a good place for long term savings.

At least until you compare it to the stock market, where doubts about the economy are keeping prices in a narrow trading range.

Then there's housing. While prices have shown signs of stabilizing in some parts of the country, foreclosures in other parts are keeping prices depressed.

I've been investing in both stocks and real estate for more than 30 years. And while I can't tell you what's going to happen in the next few months, I'm not afraid to make some long-term bets.

Example? Although the Dow is essentially where it was 10 years ago, two years from now, I think it's going to be 20% higher.

I've already put my money where my mouth is: my portfolio is right here online.

As for real estate, I think now's a great time to buy.

The horrible housing market we've had nationwide has meant not enough homes are being built. I think that's ultimately going to lead to a housing shortage and higher prices.

But if both those ideas are too risky for you, here's a prediction you'll like better: I think within two years, savings rates will be more than twice what they are today.

If there's one thing I've learned in my investing life, it's to buy when others are selling and sell when others are buying. But that's not the only reason I'm a buyer: check out my logic...and my picks.