Are Money Markets and CDs a Good Investment Now? Advisors’ Advice
January 18, 2023 by John Manganaro
With interest rates higher than advisors have seen in a generation, is it time to reconsider investments such as money market funds or certificates of deposit?
ThinkAdvisor put this question to a stable of financial professionals with the XY Planning Network for the latest edition of the Advisors’ Advice series. We posed a simple query: Have interest rates now increased enough to make the potential role of CDs, MMFs or straight-ahead savings accounts more important in 2023?
Wink’s Note: ThinkAdvisor asks, “with interest rates higher than advisors have seen in a generation, is it time to reconsider investments such as money market funds or certificates of deposit?”
With fixed annuity rates crediting an average of 4.26%, I expected that at LEAST one of the respondents of this poll would suggest annuities, over a taxable investment like CDs.
I mean, the average one-year CD rate today is a mere 1.41% (and even less for longer terms).
But…I’m getting used to being disappointed.
I think you have to consider the source on this one.
So, read this, if you want to be all “SMH” like me. -sjm