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| *Ostroff, Fair and Company>>>Investing |
CD's -investment? |
I want to invest in a CD but I don't know what is the difference between monthly and maturity. Is there any? CD's play a vital part of an overall investment strategy. As one accumualtes wealth, and as one ages, reduction of risk becomes a priority. If one can obtain a 5.2% guaranteed return with no risk, then a percentage of one's portfolio should be considered in certificates of deposit. Especially when the oveall market (stock market) is averaging 8-10%. /// I would avoid all cds. You are much better off these days going to www.emigrantdirect.com and getting 5%+ on daily money. Cds really are the worst investment becuase the best you do is breakeven on your money after inflation and taxes. CDS are more to preserve capital. If you are getting 5% on your savings money market it is not worth tying up the funds to get a fraction more. Good Luck Robert A CD can be of any amount, $5K on up. Interest is paid monthly, but you can't touch it for the period of the investment, which could be from 6 months up to 5 years. The longer the maturity date, the more interest you can accrue. I have 4 CD running, each one for a 1 year period, expiring every 3 months. Then, if I need the money, I only have to wait no more then 3 months before one of them comes due. If you have any other questions go talk with your banker, or if you feel uncomfortable, just drop a line, and I'll explain more. |
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