Alternatives to CD's and Money Market Accounts

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Alternatives to CD’s and Money Market Accounts

This is a great financial market if you are buying something.  Interest rates are at all time lows.  Cars can be bought with 0% financing and home loans can be had in the 2’s!  This is great news for people in the market for new stuff.  For people looking to get a good return on their investments, however, times are tough.  Lots of you have money in the bank.  Whether it be in CD’s, money market accounts or even checking and savings accounts, these low interest rates aren’t doing you any favors.  So the million dollar question is, what do you do with your money? 

When we start talking about investing or retirement planning, there are many options out there.  There are qualified and non-qualified accounts like 401(k)’s, IRA’s, annuities, stocks, bonds, mutual funds, etc.  The problem is choosing the right option for you.  This can be a daunting task, even for an experienced investor.

You probably hear brokers telling you to invest in stocks and bonds and your insurance guy trying to sell you annuities or cash value life insurance.  The real answer is, it depends.  It depends on your goals and objectives.  These things are just tools.  If you use the right tool for the right job then you will make headway.  If not, you will just be spinning your wheels.  Would you use a ratchet to drive a nail? 

Start by assessing your risk tolerance.  If you are in your 20’s 30’s or 40’s you can stand to take a little more risk with your money.  If you are retired or retiring soon, you need to protect your principle investment and focus on guaranteed growth and income. 

What you want to do is talk to a financial planning expert that has access to all of the tools out there.  Insurance guys can’t do stocks, bonds and mutual funds and brokers can show you the guarantees backed by the claims paying abilities of insurance companies.  Most investors would benefit the greatest by someone who can offer you both.  That’s where we come in.  We can offer you brokerage and insurance products in a combined attack to maximize your investments for retirement.

Don’t settle for 1% or 2% growth on your money you have in CD’s and money markets.  It doesn’t make sense.  There are higher guaranteed rates out there that can be had without sacrificing your money.

Jim Meyers

The Resource Center

417-882-1800