Join Nick and Dave as they address some questions they have received recently about interest rates and CDs.

Interest rates are looking pretty good, especially when you start driving around town and seeing billboards for 6 % twelve-month CDs. So part of the questions have been, “Why don’t we just put everything in CDs and earn 6% and be happy and go on our merry way?”

When you look at the stock market this year the S&P500 is up over 10 percent so far year to date. It can be in the eye of the beholder if you think you should stop investing in this vehicle that’s done over ten percent this year so you can get 5%.

There’s always an element when it comes to investing that is about the future but also applies to this cash conversation.

Essentially if you invest in cash over the long term, while it’s attractive right now, your long-term real return is actually negative. Over time cash investments aren’t going to keep up with inflation.

The key to this conversation and thinking about CDs versus stocks is your long-term investments should be invested into a portfolio that makes sense for your long-term and you should definitely have short-term cash available to weather the storm. The good news is that cash is getting much better interest rates than it used to.

Listen to the entire episode for more on this discussion.

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