Still no hope for those who rely on a money market or a CD!

Ralphy1

Ralphy1

Well-known Member
The Fed did not raise interest rates once again and those who rely on these investment vehicles will still gain no return of consequence. Are you one of them?
 

Money market or CDs have NEVER been the way to make money... just a place to park it for a small return.. now it's even smaller, but it never was an investment.
 
Beg to differ with you as you could make up to 14% on a CD in the past and 5% in some money markets, which allowed you to sleep at night...
 

Ralphy1 said:
Beg to differ with you as you could make up to 14% on a CD in the past and 5% in some money markets, which allowed you to sleep at night...
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Yeah.... I remember 16% in the early 80's... but then you paid that as an interest rate to when you bought a home.. Certainly don't want to go back to those days.. do you? Glad we don't have that rate of inflation.. Right now.. CD's are useless as a money making proposition.. I don't own any.
 
QuickSilver said:
Yeah.... I remember 16% in the early 80's... but then you paid that as an interest rate to when you bought a home.. Certainly don't want to go back to those days.. do you? Glad we don't have that rate of inflation.. Right now.. CD's are useless as a money making proposition.. I don't own any.
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I think plain old passbook savings were averaging 8%. But yes CDs for about the last 20 years have had very poor returns. Most would be better off in a dividend and distribution paying mutual fund like a bond or income fund.
 
Interest rates are so ridiculously low and my bank is always sending me missives in the mail requesting me to tie up money in those useless no yield cds.

I have cash in the bank and a stock portfolio with another financial institution and remember fondly the days when a cd was something more of an investment than it is now.
 
It's smart to have at least 6 months income in a regular savings account so you can access it quickly in an emergency, or if something unforeseen happens. The rest should be invested in varying amounts of risk depending on your circumstances and what you feel you can tolerate.
 

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