The Certificate of Deposit (CD) is Still King

Regardless of the trend of recent decades toward greater sophistication in retirement savings, the certificate of deposit, or CD, is still king. The obvious advantage of the CD over traditional savings accounts is that they typically yield significantly higher interest; with the primary drawback being the commitment that one incurs to maintain the deposit for a specified period, usually from six months to five years.

Retirement Savings – Safety

With interest rates now rising, it may be the time to invest in a certificate of deposit ladder or US Treasury Bills.

In saving money, safety has always had an opportunity cost; that is, lower rates of return than for instruments incurring greater risk. In retirement, we don’t want to loose our savings, that is for sure.  So, how can we offer ourselves the greatest opportunity while we are obsessed more with the return OF our money than the return ON it? Continue reading “The Certificate of Deposit (CD) is Still King”