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Low risk investments like CDs
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<blockquote data-quote="Alpha_Romeo" data-source="post: 1293864" data-attributes="member: 6220"><p>The risk of CDs is loss of value of the initial investment due to inflation. Of course, you will get the initial balance back, plus interest upon maturity. But you may find that you are able to purchase less. Interest rates are artificially surpressed, so CDs are a losing proposition. They are only useful for parking money for short periods of time, not as a long-term investment.</p><p></p><p>S&P index tracking fund with low expense ratio would be a better “set it and forget it” type of investment (there are probably others). Only invest the amount that you can afford to lose.</p></blockquote><p></p>
[QUOTE="Alpha_Romeo, post: 1293864, member: 6220"] The risk of CDs is loss of value of the initial investment due to inflation. Of course, you will get the initial balance back, plus interest upon maturity. But you may find that you are able to purchase less. Interest rates are artificially surpressed, so CDs are a losing proposition. They are only useful for parking money for short periods of time, not as a long-term investment. S&P index tracking fund with low expense ratio would be a better “set it and forget it” type of investment (there are probably others). Only invest the amount that you can afford to lose. [/QUOTE]
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