Deciding Between Certificates of Deposit and Stock Market Investments
Tuesday, 2 April 2024, 00:00
CD vs Stock Market: How to Make the Right Financial Decision
There are important considerations to keep in mind when weighing the options of investing in a CD or the stock market. Here's how to decide:
1. Can I afford to risk losing the money?
Investing in the stock market carries some risk, while CDs are FDIC insured.
2. When am I hoping to cash in on the investment?
Short-term investments in the stock market are riskier due to market volatility.
3. What are my goals for the funds?
Consider whether you prioritize maximizing returns or keeping your money safe.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.