It’s a Great Question!
“Why should I invest in the market when I can get a guaranteed five percent right now?” What a great question. And with CD’s, money market accounts, high-yield savings, and T-bills all at their highest rates in over a decade, this question is being asked much more frequently.
Couple that guaranteed five percent with the growing fear caused by multiple wars, budget deficits, and a long-predicted recession, and it seems like a no-brainer to sit safely on the sidelines earning five percent. But like many “no-brainers” there is more to it than meets the eye. Let’s dig a little deeper.
Join our very own Jake Ridley for a discussion of this relevant and common question.
Three considerations if you find yourself pondering this question yourself!
- The “Guaranteed” Can be short-lived – Introducing Reinvestment Rate Risk
- What might have been – Introducing Opportunity Cost
- Start with the End in Mind – Introducing DTR – Defining the Relationship (aka “What is the money for)?