Ask Terry Questions cd investment

cd investment

By Terry Savage on November 29, 2023 | Investments

my wife and i are retired. both about 70 we have about 350,000 to invest. are a series of cds a good investment. i was thinking of about 1/3 in 1 yr, 1/3 in 2 year and 1/3 in 3 .yr.. they are payin about 5 percent. between social security and a miner pension we about break even each month between income and expenses . We would keep about 50000 in stock for emergency.

Terry Says

That’s not a bad idea. Or you could do the same with 6-month Treasury Bills. REad this:

And I’m pretty sure you didn’t mean to say you’re keeping $50,000 in stock — for an emergency.
Yes, you might want to have that much in a diversifed stock portfolio — the S&P 500 stock index fund. But that’s not your “emergency” money — that’s your “taking risk to keep up with inflation” money!
Your emergency money should be $10,000 in a money market deposit account at your bank where you can get to it quickly in an emergency.



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