After a lifetime of saving, I have $300,000 in ”chicken money,” other investments, and a pension. Like everyone, I am chasing higher CD rates. Should I take $100,000 and invest it in a five-year CD at 2 %? Interest rates are low and may not increase much. There is no immediate need for the money. Is five years too long of a time frame? I am 67. So glad I took your advice a lifetime ago. Thank you!

Terry Says:  I’m not doing that — 5 years.  I think two years is far enough out for chicken money lockup.   I could be wrong — but with so much money printing going on around the world we will either have inflation (higher rates) or go down drain in de-flation.    Either way you’ll be glad you kept your money liquid.  Also, at age 67, you have at least 20 years to go on an actuarial basis –and probably longer!  So you might need a small portion of your investments growing in an equity-income fund.  I say this assuming that you may have other money doing this in an IRA or 40l(k) plan.