Zachary Mineur, CFA, CFP®, Chief Investment Officer of Independence Square Advisors, was quoted in MarketWatch Picks discussing who should — and shouldn’t — consider certificates of deposit in the current rate environment.
Zach’s contribution offered a framework for matching savings vehicles to investor circumstances:
“It all depends on what the alternative consideration is, risk tolerance of the investor, and whether or not there are short-term liquidity needs from that savings. For investors who value the highest level of safety and don’t have a need for the funds in the immediate term, then rates are still decent enough that CDs can be a good choice. For folks with slightly higher risk tolerances, we can look to corporate bonds or bond funds that can pay a higher rate of interest and also potentially benefit from capital appreciation should rates come down. And for those with the potential for shorter-term liquidity needs, money markets or high yield savings accounts would be most appropriate, because CDs are meant to be held to maturity.”
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