I Just Bought A 12 Month CD

I never thought that I would be buying a CD, never I really meant it. But just last week I started making videos about current CD rates, once that non-penalties, and I started to get interested in it.

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1. Why I bought a CD instead of Stocks
– Now a CD is a certificate of Deposit
– I entered into an agreement for them to pay me a fixed amount of money
– As long as I don’t take the money out
– If I do take the money out, they can charge me a fee
– Now to be fully transparent this CD makes me about 5%

However I also have money in the stock market, that returns about 10% annually on average
– So I could have probably made double my money in 12 months
– Instead, I went with a CD

Why?
– This Money is money I’m going to need within 3 years most likely
– It’s not money for investing, its money for buying a house
– So If I lock it into a CD and I need to buy something ( I can do that )
– But if I put into the stock market, and the market goes down my 30% then I’m going to have to wait for the recovery or sell my stocks at a potential loss, that’s the idea

2. How much money is this CD going to Make me and why it matters
– Overall you want your money to outperform inflation or at least keep up with it
– So if you can make at least 3.5% plus what it taxes ( then it is more than enough )
– Plus consider that there is no risk at all to me

Here is why:
– Since I bought a CD for less than 250k, it FDIC insured
– So I know for sure I’m going to get my money back if anything happens

But what if I had ( 250,001) what would I have done then
– I would have bought a treasury bond and I know it’s guaranteed
– Because the government can just print more money and pay me

One thing I like about the CD over the Bond is:
– I would get paid monthly
– While bonds pay out every 6 months more than usually

3. What I’m I going to do with this cash
– I’m going to be saving 100% of all the income made from it
– I’ll then recycle that money for investing

4. Would I consider breaking it

– The short answer is Yes but the likelihood is overwhelming no
– Let me explain, this is money for buying a house
– If I found the perfect house at a crazy bargain price then I would have bought it
– But the likelihood of that happening is very low
– I’m thinking about building my home

Tip: the minute I got into the CD, I started looking up excuses to break them, but they’re just not good enough lol

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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