To be able to secure a comfortable future, investing is essential for people. By investing, you make sure that you have a passive income when you retire. Investing helps you grow your wealth, allowing you to tackle your financial goals over time.
This time, we’ll give you some advice about investments, so you can have a clue what to seek.
Best Place To Invest Money Right Now In 2019
So, what is the best place to invest in 2019? There are tons of options, including growth stocks, treasury securities, various bond funds, and dividend-paying stocks. However, if you want a pleasurable time when you retire, there isn’t a better choice than Certificates of Deposit.
Certificates of Deposit
Certificates of deposit, known as CDs are issued by banks and are backed by the government, making them a great option for safe investment. They offer a higher interest rate than savings accounts.
How do They Work?
CDs are federally insured time deposits with specific maturity dates, which can range from several weeks to several years. Since we’re talking about time deposits, you can’t withdraw the money for a certain period of time, without penalty. When getting a CD, the financial institution pays you interest at regular intervals. When the CD matures, you can get the money back, along with accrued interest. As of May 2019, you can earn about 3% interest on these investments.
When it comes to liquidity, CDs are less liquid than money market accounts or savings accounts. This is because your money is tied until your CD reaches maturity. Once again, you can get the money before the CD matures but you’ll have to pay a penalty.
There isn’t a risk-free investment. CDs come with reinvestment risk. Simply put, when the interest rates fall, the investors will earn less when investing in principal and interest in new CDs with lower rates. The same applies in the opposite scenario. When the rates rise, the investors won’t be able to prosper because their money is locked into a CD.