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The answer 100% depends on the time frame. If you only want to beat inflation you probably want the cash in more than 2-3 years but less than 7 years. CDs are p
by soared 8y ago
The answer 100% depends on the time frame. If you only want to beat inflation you probably want the cash in more than 2-3 years but less than 7 years. CDs are probably good. If you're young enough and can tolerate risk then index funds are a better choice if you can take losing money for any random period of time.
- AnimalMuppet 8y agoDo CDs beat inflation? At times at least, I think they have failed to do so. (My dad called them "certificates of depreciation" for a reason.)
- soared 8y agoYeah but not by a whole lot. Inflation last year was 1.8%, this site says 1 year cd gets you about 2.7%. I do remember my dad holding the same opinion so I wouldn't be surprised if thats historically true. https://www.nerdwallet.com/blog/banking/nerdwallets-best-cd-rates/ https://www.nerdwallet.com/blog/banking/nerdwallets-best-cd-...
- deanmoriarty 8y agoDon't forget taxes. Unless you hold them in a retirement account, interest income is taxed at your marginal rate, so your 2.7% easily becomes ~1.5% or less if you are a relatively high earner at the peak of your career.
- deleted 8y ago[deleted]