Bottom line. When deciding between a long-term CD or putting money in the stock market, always take into account your goals and how long you'll need to achieve them. For long-term plans like retirement, the market offers better returns than locking up your cash in a CD.
Having a larger allocation of stocks in the early years of retirement will help guard against the risk of outliving your retirement savings. Later on, you can adjust your allocation to focus more on generating income and preserving your money.
Stocks have historically proven to be a reliable hedge against inflation. Inflation erodes the purchasing power of your money over time, but stocks have the potential to provide returns that outpace inflation. By investing in stocks, you can help ensure that your portfolio retains its real value over the long term .
CD's make more since if you have 1 million in them. The math is just better.
Bottom line. When deciding between a long-term CD or putting money in the stock market, always take into account your goals and how long you'll need to achieve them. For long-term plans like retirement, the market offers better returns than locking up your cash in a CD.
Having a larger allocation of stocks in the early years of retirement will help guard against the risk of outliving your retirement savings. Later on, you can adjust your allocation to focus more on generating income and preserving your money.
Stocks have historically proven to be a reliable hedge against inflation. Inflation erodes the purchasing power of your money over time, but stocks have the potential to provide returns that outpace inflation. By investing in stocks, you can help ensure that your portfolio retains its real value over the long term .