Interest Rates are at Rock Bottom: Here’s How You Can Earn a Competitive Rate of Return on Your Cash
Investors have had to cope with an extremely low interest rate environment for quite a while now.
This creates challenges for those who need to maintain a level of liquidity in their portfolios or are saving for near-term goals.
Here are some alternatives to consider in this low rate environment.
Money market funds are generally as liquid as savings accounts, but often offer higher yields.
Rates are generally guaranteed for a set period, so a CD laddering strategy can make sense to maintain liquidity.
If the money isn’t needed for more than a year, short term bond funds could also make sense. The bonds are issued by large corporations or government entities which often provide additional tax benefits.
Any cash management strategy you pursue needs to be consistent with your overall financial plan. The team at Capital Wealth Advisory Group can help you explore your options. Visit CapitalWealthCares.com for more information.
Capital Wealth Advisory Group, A private wealth advisory practice of Ameriprise Financial Services, LLC
This information is being provided only as a general source of information and is not a solicitation to buy or sell any 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 usually more pronounced for longer term securities.
Investment products are not federally or FDIC-insured, are not deposits or obligations 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 made available through Ameriprise Financial Services, LLC, a registered investment adviser.
Ameriprise Financial Services, LLC. Member FINRA and SIPC.
2021 Ameriprise Financial, Inc. All rights reserved.