The Benefits of Investing in CDs for Retirees, According to Suze Orman
Monday, 6 May 2024, 00:00
Why Suze Orman Suggests Investing in CDs
Financial expert Suze Orman advises retirees to allocate some of their 'safe' money into certificates of deposit (CDs) due to their higher interest rates and stability. This strategy aims to provide a secure financial backup outside of volatile markets.
Considerations for Retirees
- Advantages: CDs offer fixed rates and FDIC insurance protection, making them attractive for retirees seeking guaranteed returns.
- Disadvantages: Early withdrawal penalties can impact principal if funds are needed before the CD matures.
Retirees with sufficient emergency savings and a long-term outlook may benefit from diversifying their investments with CDs, while those with limited liquid assets should prioritize accessible cash.
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.