CDs are at 5%+ – Why Risk Investing in the Market?

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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)?