Our mission is to serve as a educational platform for those who seek to empower themselves. The blogs posted will consist of Illustrations, Principles and Wealth philosophies. I encourage readers to have a dialogue around the blogs. Please be social and share.
Saturday, December 28, 2019
Certificate Deposits - CD's
Yesterday, I visited my Bank. Bank of America, I thought I had a new savings opportunity that the teller mentioned to me the week before. We were both wrong. Instead, I was gifted with the opportunity to learn about CDs. Certificate Deposits are best used when someone has a lump sum of cash that they don't want to be able to access for a period of time, in return for a sure return.
The rate that I was offered was about 1.6% on the amount required (CDs can require $500-$250,000). The more you have the better your guaranteed return. Unlike stock markets you don't have to worry about the fluctuations in the market. Yes, the extremely gifted and talented can 4/10 times assure themselves a better return that says 1% but what I've learned is that passive safe returns can allow the individual to put their focus elsewhere while growing their base wealth.
I would recommend educating yourself more on Certificate deposits. Instead of having savings account that you slowly deteriorate the CD can protect you from your own Free will and serve as a Barrier between and your financial future. In order to fulfill my CD obligations I wouldn't be able to touch the money for 13 months. There would be no penalty attached if I did. I would however lose any interest gained in that amount of time.
Let's remember to play the long game. Wealth may be created in a fashion that seems fast but it is kept by continual commitment to master the game. CD's should an option for all of us, it may not be the best opportunity out there but it is still an opportunity to position yourself.
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