Should You Invest in CDs Right Now?

With CD rates over 5% right now, is it wise to invest in them? Their fixed maturity, predetermined interest rate, and FDIC insurance make them a low-risk — yet sometimes low-return — option. We're directing the risks, benefits, and potential returns of investing in CDs on this episode of the Wise Money Show.

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Kevin Korhorn, CFP® offers securities through Silver Oak Securities, Inc., Member FINRA/SIPC. Kevin offers advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. KFG Wealth Management, LLC dba Korhorn Financial Group and Silver Oak Securities, Inc. are not affiliated. Mike Bernard, CFP® and Joshua Gregory, CFP® offer advisory services through KFG Wealth Management, LLC dba Korhorn Financial Group. This information is for general financial education and is not intended to provide specific investment advice or recommendations. All investing and investment strategies involve risk, including the potential loss of principal. Asset allocation & diversification do not ensure a profit or prevent a loss in a declining market. Past performance is not a guarantee of future results.

Intro: (0:00)
Segment 1: (0:11)
Break 1: (10:25)
Segment 2: (12:16)
Break 2: (22:31)
Segment 3: (24:28)
Break 3: (34:46)
Segment 4 (35:20)
Outro: (45:35)

[alfredocamba]

I went to sell my record collection but they only offered 400 bucks so I bought a Tangerine Dream & King Crimson 5 cd box sets for 30 & 25 dollars. If you can handle the storage this one of the best times to invest in cds if you find em at the right price

[slimdawgwoof]

Why CD ladders instead of treasuries for their tax advantages (no state taxes)?

[silver]

Fidelity has 5 year brokered CDs for4.45% now. Callable ones are 5.3% for 5 years and 10 years (non callable 10 year is 3.9%)

[TravelingTheWorld]

Roth IRA and Roth 401K withdrawals does not count as income. This is huge in retirement. Why is this hardly ever mentioned?

[davidfolts]

Great discussion about RMD penalties. While the penalties have become less severe, some believe that the IRS will become stricter when enforcing those penalties of 25% and 10%. Even though there previously was a 50% penalty, very few people paid it, even with the weakest of explanations.

[mjchristian]

Just opened a 5 year CD @ 5%. Don’t need the money for a while. Already have an emergency fund.

[erlindaventocilla]

Very sad for the widow to pay so much taxes after her husband passed. This could result to change residence because this could mean unaffordable to live the way of life they used to have when her husband was alive.

[ChloeBensonBeautyBoxes]

I think they can temporarily be part of your plan until they drop again.

[josephjuno]

I bought a 1yr CD at 5% but anything longer than that drops off a cliff so i cant really buy a CD Ladder? It used to be the longer the CD the Higher the rates?

[BerniBurnett-eq]

Buy short term Treasury Bills. They’re currently paying 5.3%. If you live in a state that collects taxes, Treasury Bill interest is state tax free.😊

[richardburnett]

I’m getting 4 1/2% interest rate through Michigan school and government and Christian financial credit union

[michelesteiner]

Enjoying your show. I want to rollover my 403b to a traditional Ira but not sure. Been thinking about fidelity or my esl acct. I am retired.

[oldgunowner]

Hard to beat treasury bills with a CD rate. Treasury are paying over 5% on
everything up to a 1 year bill. CD rates are not better than that. I live in a high tax state and treasuries are state tax free.

[suespony]

I actually just did one 150 k at 5 percent for 8 months

[CaliSunshne]

What happen if you put your money in a 6 months CD and the bank went out of business after 3 months?

[keithhager]

If your roll over in a renewal of a CD do the gains get taxed?

[roburb]

Marines are bad ass, but sadly, they struggle the most transitioning from service. Many separate without higher education, etc. The Corps doesn't care what you do when you're out, similar to the Army. They care about being an infantryman and shooting a weapon. Every Marine I know struggled in the civilian world.

[terrenceebert]

Invest in CD 4 a short term make money then reinvest

[Christopher-tzmr]

No offense to these financial experts, but with the way the US dollar's value being as low as it is and the fact the dollar is on the verge of being replaced around the world, investing in ANYTHING that just produces dollars seems like a bad move. What exactly would be the point in doing something to make millions of dollars when dollars eventually vanish? Need to invest in something that is outside the dollar.

[Joe-zqq]

I am deaf. Please make this so I can read it