Discover the benefits and considerations of CDs for your financial strategy
- Suze Orman recommends investing in certificates of deposit for guaranteed earnings
- Certificates of deposit can provide higher interest rates for extended periods
- CDs may be a smart move if interest rates are expected to drop
- Not everyone should invest in CDs, as liquidity may be limited and penalties may apply
- Other investment options to consider include growth stocks, Treasury Bills, and municipal bonds
Financial expert Suze Orman advises Americans to invest in certificates of deposit (CDs) to take advantage of current high interest rates. CDs with a one-year to two-year maturity can provide guaranteed earnings and protect against potential rate drops in the future. However, it’s important to consider individual circumstances and financial goals before investing in CDs. While CDs can offer higher returns compared to traditional bank accounts, liquidity may be limited, and penalties may apply for early withdrawals. It’s also worth exploring other investment options such as growth stocks, Treasury Bills, and municipal bonds. CD laddering and finding the right maturity date are key factors to consider when investing in CDs. Ultimately, the decision to invest in CDs should align with your financial needs and goals.
Public Companies: Alliant (null)
Private Companies: undefined
Key People: Suze Orman (Financial expert), AJ Vignola (Certified financial planner at King Financial Network), Matt Bacon (Certified financial planner at Carmichael Hill & Associates), Bobbi Rebell (Founder of Financial Wellness Strategies), Kim Palmer (Finance expert at NerdWallet), Mary Grace Roske (CD Valet spokesperson), Ken Tumin (Senior industry analyst at LendingTree)
Factuality Level: 7
Justification: The article provides information from multiple sources, including financial experts, about the benefits and considerations of investing in certificates of deposit. It also mentions projections from the St. Louis Fed regarding the Federal Funds rate. However, the article does not provide any counterarguments or potential drawbacks of investing in CDs, which could limit its overall factuality.
Noise Level: 6
Justification: The article provides some useful information about investing in certificates of deposit (CDs) and the potential impact of changes in interest rates. It includes quotes from financial experts and offers different perspectives on the topic. However, there is some repetition of information and the article could have provided more evidence or data to support its claims. Overall, it provides some insights but could have been more rigorous and actionable.
Financial Relevance: Yes
Financial Markets Impacted: Certificates of Deposit (CDs)
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the recommendation by financial expert Suze Orman to invest in certificates of deposit (CDs) due to the potential decrease in interest rates in the future. This information is relevant to financial topics and provides advice for individuals looking to make smart money moves. However, there is no mention of any extreme events or their impact.
www.marketwatch.com 
