I received a question a few weeks ago from Kris who was asking what’s the best way to invest. And you can read my response, but there isn’t an easy answer-unfortunately there’s no quick fix right now. Just in case you missed it, or don’t want to thumb through everything, here is a quick overview:
In these uncertain times, when it comes to investing, my advice is to think long term. I’ve been sharing that with our members for the past few months, and I hope that everyone takes heed. I know there are some out there, who surf rates among banks and credit unions. Believe me, I understand that you are looking to get the most that you can for your money. But my advice, if you can skip the short term rate and GO LONG-do it!
Sure, a 4 or 5 year share certificate of deposit may not be the most attractive to you NOW-because these are uncertain times, and most folks want money now, but in the long run, you will be ahead.
Just some of my thoughts-also, If you have a chance to post an upcoming volunteer event on our GIVE WITH US site-please do-it’s there for you.
Filed under: Uncategorized
[...] Hopewell CU blogs about various topics surrounding credit unions. They suggest 4 to 5-years may not be too long. [...]
As rates have drifted below average levels going too long may not be a good idea. I think a 2 to 3-year term would be good unless you already have a longer-term ladder established. I think laddering your maturities is the best way to weather the ups and downs. If you have larger amounts you may want to invest funds across the spectrum. Although, 1-year rates will most likely be lower next year this time.