Re: 100k what to do ?
If you assume a rate of inflation at 4%, a CD at 3.45% is losing some money in terms of value of the future dividend by .55%. So if inflation makes $100,000 worth only $96,000 in 12 months, and you earn $3,500 in interest from a CD, you've shielded your money somewhat. But it's still worth about $500 less, even though you have $103,500. The rule of thumb I was taught was to seek at least 6% return on investment to beat inflation and make some money.
The other thing is debt. If the interest on the debt is greater than the interest from the CD, you may as well pay off the debt.
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