CD interest rates are at an all time low, are there safe alternatives without the risk of losing money?

CD interest rates are at an all time low, are there safe alternatives without the risk of losing money?

The short answer is yes!

While writing this post, the current 5 year CD rates are between 0.6% and 1%.  If you have money sitting in the bank or in certificate deposit accounts (CD’s) you are probably thinking, how can I get more yield?  As you are approaching retirement or are currently retired, a lot of concerns come into play:

  • How long am I going to be retired? I do not want to outlive my money
  • I cannot afford to lose any money, but there must be a way to earn more than 1%
  • Am I paying needless taxes on the money I have in the bank?
  • With the cost of living and inflation, my money needs to outpace inflation

Over the past 10 years CDs have only paid an average of just over 2%.  If you calculate the taxes you pay on CD interest and include the basket of goods inflation percentage, you are losing money. 

What is the alternative? Put your safe money into the market? The market has had record earnings over the past several years, but are you willing to go through another downturn like in 2001 or 2008?    Most pre-retirees or retirees are not willing to take that risk.   

There are easy, proven, time-tested strategies you can use to increase your income now and for the future, with more guarantees and less risk.

You can beat inflation, reduce your taxes, increase your returns, and avoid the downside risks of the market.  I am not talking about a shiny new product, or a product that guarantees double digit or higher return. There is no such thing!  What we are talking about is simply is positioning your assets properly, to allow you to get more from what you have.

 Many of the people I help do have an advisor, an accountant, or friend who has them with their financials. Unfortunately, while in most cases these advisors were well intentioned, they generally had a narrow perspective of the problems and solutions. The advice they gave was based mainly on their limited area of expertise and/or what has worked for them personally. Unfortunately, what worked for them, in many cases, was not the best solution for the people they were trying to help. Yes, they had some success. But, their situation could have been much better.

If you want to see if what options are available to you, my consultations are no cost and no obligation. Please reach out.

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