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Too Scared to Dive Into a Fixed-Rate Annuity? Interest Rates Make It Worth Dipping Your Toe In

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(Image credit: Getty Images) Money-market funds and savings accounts are liquid and stable, and can offer competitive rates. What’s not to love? Well, you could be earning more on your money elsewhere, especially now that money-fund rates have declined and may be heading lower. While you need full access to some of your money to pay the usual bills and as a safety valve for surprises, such as an expensive auto repair or a medical bill, overinvesting in cash-equivalent funds has an opportunity cost. The key is to strike the right balance. Most fixed-rate annuities and bank certificates of deposit (CDs) yield more than cash funds — sometimes much more — and the rate is locked in for the term. But many people hesitate because they’re leery of tying up their money. Some may believe that rates will be higher next month or next year. But delaying costs you. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor.…

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