Even though CDs and money markets are offering better returns than two years ago, their 5-5.5% yields still lag behind inflation and growth needs. The solution? Embrace higher risk for potentially higher returns.
While CDs and money markets are making significantly more now than they were just 2 years ago, 5-5.5% still isn’t a whole lot, especially if you consider inflation and have a desire for growth.
The answer to how to make a better return might seem obvious, but it is true: take more risk.
CDs and money markets are about as low risk of an investment as possible, since nobody knows for certain what the future holds, and they practically guarantee interest payment.
The downside is that since the risk is so low, the return reflects that. In the same way, if you were to take a calculated risk and buy some good stocks or mutual funds, your risk would increase, but your…
