Wealth Care Corner # 5 Where to put money

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Interest rates are at their lowest: here’s how you can get a competitive rate of return on your money

Investors have been dealing with an extremely low interest rate environment for some time now.

This creates challenges for those who need to maintain a level of liquidity in their portfolios or who are saving for short-term goals.

Here are some alternatives to consider in this low interest rate environment.

Money market funds are generally as liquid as savings accounts, but often offer higher returns.

Rates are usually guaranteed for a set period of time, so a CD laddering strategy may make sense to maintain liquidity.

If the money isn’t needed for more than a year, short-term bond funds might also be a good idea. Bonds are issued by large corporations or government entities which often offer additional tax benefits.

Any cash management strategy you pursue should be consistent with your overall financial plan. The Capital Wealth Advisory Group team can help you explore your options. Visit CapitalWealthCares.com for more information.

Capital Wealth Advisory Group, a private wealth management consultancy firm of Ameriprise Financial Services, LLC

This information is provided for general information purposes only and does not constitute a solicitation to buy or sell any of the securities, accounts or strategies mentioned. The information is not intended to be used as the sole basis for investment decisions, nor should it be construed as a recommendation or advice designed to meet the particular needs of an individual investor. Please seek the advice of a financial advisor regarding your particular financial situation.

There are risks associated with fixed income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is generally more pronounced for longer-term securities.

The investment products are not insured by the Federal Government or the FDIC, are not deposits or bonds of, or guaranteed by any financial institution, and involve investment risks, including possible loss of principal and fluctuation in value.

Investment advisory products and services are available through Ameriprise Financial Services, LLC, a registered investment adviser.

Ameriprise Financial Services, LLC. FINRA and SIPC member.

2021 Ameriprise Financial, Inc. All rights reserved.


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