MoneyWise

Rob West

CD Alternatives

November 12, 2020
00:00 0

For years, Certificates of Deposit, or CDs, have been the “go-to” place to keep your money with no risks. However, a lot of people aren’t happy with today’s low interest rates on CDs. Today, host Rob West and Steve Moore discuss the issues with CDs and the best alternatives to use.

 

·      With a CD, your money is deposited in a bank or credit union for a set amount of time, anywhere from 6 months to 5 years.

 

·      The longer the term, the higher the interest rate. Right now, the best you’ll do on a 5-year CD is about 1.5%. That’s a long time to keep your money tied up for such a low rate.

 

·      You need to have your 3 to 6 month emergency fund in place first. Rob recommends having it with a higher yield account at an online bank such as Ally, Marcus, or Capital One 360.

 

·      You have the potential to earn more at an online bank because you’re not locked into a fixed rate like with a CD.

 

·      Invest for the future in a 401(k) or IRA, with some of your portfolio invested in stocks or mutual funds.

 

Here are a couple of questions we answered from our callers on today’s program:

 

·      My house is valued at $800,000 and I owe $503,000. The loan is at 3%, but the company was saying they could refinance it at 2.375%. We have 26 years on the loan we have now, and the new loan would be for 30 years. Do you think they would let us do the new loan for 26 years, or is it even a good idea to accept the new loan?

 

·      I’m 59 years old, I have my own construction business, and I own 8 properties that I rent out. My CPA told me that if I didn’t have my construction income, I would pay a lot less in taxes. What are the advantages and disadvantages to retiring at my age, under these circumstances? Should I keep my business or let it go?

 

 

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About MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West

Rob West is the host of the nationally syndicated radio programs MoneyWise and The MoneyWise Minute heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


 

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