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CD Alternatives
Inflation is outpacing your CD earnings! |
It has been my experience that most CD owners are rather disappointed with the low interest rates they are receiving. When I asked why they were in CD’s in the first place the answers were inevitably, “I didn’t know what else to do with the money.”
Many seniors invest in CD’s because they like to feel their money is safe and secure and backed up by the banks relationship with the FDIC (Federal Depositors Insurance Corporation).
What has proven to be ironic is that the very security seniors have sought in CD’s has proven out to be more than a risk - it is a certain loss.
After the 1099int form has been received from the bank at tax time many CD’s have produced returns of less than 1.5% in recent years and other still below 1%. Safe? How about a sure loss, CD’s simply are not keeping up with the costs of living. One need only look at the price of a gallon of gasoline or a gallon of milk lately to see my point.
For more information on how we can improve your situation call us today.
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