2 Replies Latest reply on Jan 22, 2016 11:12 AM by JerryD

    Where to Put Money for Safety

    Dr. John M. Wolper   Associate Vice President of Adult Learning and Special Programs

      Where does one now put money into a more secure investment during a global shift.

        • Re: Where to Put Money for Safety
          Chris Teofilak

          Hi John,


          Hope you are not worrying too much given the recent stock market volatility. 


          To me, a secure investment is one that has a guaranteed positive return where there is no historical risk of losing even a penny.


          Here is a list of historically guaranteed investments that pay decent interest:

          1) FDIC-Insured CD under the $250,000 per registration requirement

              - Synchrony Bank has a 5-Year CD earning 2.25% per year.  If you take out the money before the 5 years, the penalty is 6 months of previous interest.  You can also take partial withdrawals from the CD and the penalty only applies to the amount you take out.  Even with the penalty, after 1 year you still made 1.12% which is better than any money market or high yield savings account.

              - You can check out the banks with the highest CD rates at Bankrate.com .  I like Synchrony because they have a good web site and customer service. 


          2) If your money is in a 403b or 401k, check to see if your plan has an investment option called a "Stable Value Fund".  If you have one, check the rate, they tend to be in 1.5%-2.5% range these days.


          I hope this helps!



          • Re: Where to Put Money for Safety

            As I have recommended several times for this type of question, I suggest that you increase your education level on investment options especially at TIAA-CREF (and other university-offered brokerages). One of the best places that I have found for "expert" advice from a community of those preparing for or already in retirement is the morningstar.com forum on TIAA-CREF Funds, It has a population of very smart and involved participants that gladly share their knowledge and answer your questions just like your favorite prof did. That's because many of them are or were high-level profs at important universities.


            Lurk there for a while. Look around at previous threads. When you are ready for specific questions, get an ID and wade in. I promise that you will enjoy and benefit from it.  GOOD LUCK!!!!   :-)))))


            See: TIAA-CREF Funds