Do you want to earn more than the current 5 year or 10 year Treasury bonds without giving up the safety they offer? Or maybe you just want a way to start saving without taking on the risks of the market. With treasury rates at all time lows, CD rates are a safe second option offering more flexibility and backed by the FDIC.
CD Rates Offer Flexibility
We’ve come a long way since the 30 year Treasury rate was above 5%. The last time was 2007. It’s been a year since the 30 year was above 4%. Today its hovering at a pitiful 2.59%, at or below the inflation rate. Not a great way to make money.
With interest rate risk (the heart of the bond price and yield dilemma) this high, it’s not worth it. When rates start rising, you’ll lose money if you sell the bond and if you hold it to maturity you’ll miss out on higher rates. Of course, it’d be even worse with a bond fund which will just lose value as rates rise. Continue Reading…
Tracking your investments is more than glancing at those monthly statements. A regular investment review needs to be done. Of course there are no set rules, just some basic guidelines to consider.
That Nigerian official doesn’t need your help getting money out of the country, you don’t have a long-lost uncle that left you millions in a Malaysian bank and money still doesn’t grow on trees. Securities fraud, or investment fraud, is a nonstop problem and thanks to email, we’re bombarded by it every day.
The two most popular and easiest ways to buy/sell a stock or ETF