jpmcgrew
Executive Chef
Most definitely.
So what you are saying is that CDs are also vulnerable to great loss?
Most definitely.
Most definitely. Anything can happen, even with the feds...So what you are saying is that CDs are also vulnerable to great loss?
kriss Kristoffersonson is teilling me to let my hair down.........yeah Kriss for you I will.......and I have long hair...........no greys yet.........why i don't know the hell why............I have grey tonails........we've taken big hits.........that's the economy now.........but we;re not selling either...........we've also come into some big money in the past........it all evens out in the end.......don't invest $$$ unless you can afford to lose it..........
...only on paper. You'll be fine for the long term.
Most definitely. Anything can happen, even with the feds...
According to what I know and according to Suzy Orman and several other knowledgable financial experts, CD's are the safest thing you can invest in. Your interest rate will go down only if there is a huge drop in the interest rate and that never happens. I have had CD's for 30 years and never had one drop a point in interest. This is very safe, that's why I pulled out of the market just before the big drop a couple of days ago. Timed that one right. Bought another large CD this morning at Wamu (now J.P. Morgan Chase).
I bought that same WaMu CD last night. I'm also kicking myself in the butt because I bought 4 CDs (laddered) about 10 days ago at much lower rates elsewhere.
How can the rates go down if it's a fixed CD? They shouldn't.
If you buy a 5% CD and for some strange reason the interest rate goes down to 2% it is no longer profitable for the bank to pay you 5% so they will pull your CD. You have the choice of leaving it in at 2% or taking it and going elsewhere to invest it. This has only happened once in 40 years so don't worry. It is a possiblity but not a probability. Before you invest, get the answers you need from your banker. You need to know exactly what you're doing with your money. When I bought my second CD this morning, I held out a large amount in a money market liquid account so that if the interest rate goes higher, I can put that money in at the higher rate.
I believe all CDs are insured regardless of which institution you buy it from.