Finance

  Investing in CDs. This article fist appeared here . Personal financial advisors believe it is. A recent  news  item on investopedia suggests that depositing money into a CD  may help to reach the goal of earning an extra $2,000 over the next 12 months. The report further suggests that  In the next 12 months, there’s a real possibility that the Fed will lower rates. If that happens, CD and savings rates will follow suit and also drop. Locking in a high-paying CD now can help you enjoy 5.00% interest rates for longer, even if other rates drop.  What is a Certificate of Deposit? This article first appeared here. A certificate of deposit (CD) is a savings account that pays a fixed interest rate on money deposited and held for an agreed period of time. A withdrawal before agreed period attracts an early withdrawal penalty. What are the things that make an investment in CDs attractive? 1. An investment in CD has low risk, is safe (if you open a CD with a bank t...

  This article first appeared here . Which  should be the priority in uncertain economic times? Retirement savings  or emergency fund? When you’re nearing your retirement and you’re  working and living on a tight budget in  uncertain economic times, when future economic environment is unpredictable, it’s always going to be difficult to know which to prioritize between retirement savings and  emergency fund . The reality of life is, both are necessary. It is necessary to set aside a stash of money to take care of income and  spending upsets. No one prays for a job loss but it can’t be ruled out in uncertain economic times. And in life, no one prays for unwanted expenses like a medical emergency, but it still happens. So, an emergency fund is necessary.  The regular contribution to  retirement savings is also necessary.  Why is it necessary?  70 years is the age of retirement from active service.  You’re expected to bow out of ac...