which is a better investment, a CD in a bank or stocks and bonds and funds?

Answer 1

Depends on what your definition of "better" is.


If you want low risk, for which you are willing to accept lower returns CD's are better.

If you want higher returns, for which you are willing to take higher risk.....then stocks, bonds, and mutual funds is the way to go.

Answer 2

CD are safe investments, but offer low rewards since rate are usually around 3-6%. They are great if you need money right after the CD matures.

Investing in stocks are very risky investments, so it offer high rewards if you know what you are doing. Because of its high risk, you can either make lots of money or lose it all (in case of Enron)

Investing in mixture of bonds and mutual funds is a better way to invest in the long run. Mutual funds represents 25-300 different companies, so the risk of losing lots of money is very low. When investing in mutual funds, you always want to stay in the same fund family so that you can get sales discount in the future when your portfolio reaches $25k. For example, if you want to invest in Fidelity funds, then stick with Fidelity. Don't mix your portfolio up with other families such as Van Kampen or Templation or Legg Mason, etc.

Answer 3

Better, or safer? CD's in a bank are safe and you know how much you are going to earn in interest. If you leave the money to maturity, you know how much you will get.

Stock and bond funds have the potential for better returns, but have risk. The more time you have to leave your money in a fund, the better off you are. There are no guaranties in funds, but there is a potential for greater earnings.

If the money is such that you will need it in the short-term, CD's are probably the wiser choice. If you don't need the money for a few years, funds might offer more return.

There is not a definite answer to your question, sorry.

Answer 4

A CD investment is basically risk free as you will not lose your your original investment . Where as stocks and bonds and funds you could lose at all.

Answer 5

depends on whether you're in the short run or long run, and what kind of a risk-taker you are. Over time, stocks and bonds are better.....stocks are riskier, but are the best over time. CD's generally are not that good of an investment, but it depends. Stocks are risky, bonds are safer, but stocks are generally better.

Answer 6

With a CD you will know exactly what you will earn but it will usually be lower than the stock market. In the market prices go up and down and in the long run are usually higher than a CD.

Answer 7

If you want a risk go with stocks and funds, but if you want a decent return go with a CD!

Answer 8

Don't forget to figure in inflation, and taxes into the formula, they will have a bigger impact than you think. Inflation between 3% & 4% per year. You probably loose money on a CD. Other options that are risk free and offer potential tax benefits are available. Annuities, Insurance plans, etc. Educate your self. No one else will.

Answer 9

whilst are you retiring? good now, in all likelihood none of them. nicely, genuine supplies interior the Rust Belt is in all likelihood a solid investment nonetheless, yet i might stay removed from maximum of those. check out foreign places and non-inventory investments good now. Watch the commodities markets good now too. they are exceptionally volitile, yet they would be going up even bigger. in case you will get gold at around $500-$six hundred and oz., i might purchase that. My wager is which you will see it up as extreme as $2000/oz..in some unspecified time interior the destiny contained in here few years right here. long term investment smart, pool your money and watch the shares. As they proceed to fall, it would desire to be a solid time to commence making an investment interior the "fireplace sale" for long-term earnings. ensure you're making an investment in companies that have a solid economic plan and stability to make it in the process the arriving economic gadget nonetheless. nonetheless, i think of that a nicely various portfolio it is focusing heavily in foreign places, commodity, and non-industry appropriate investments is the superb. which potential not one of the above reported are solid different than for countless the ok researched genuine supplies. If it rather is a sturdy deal, purchase it. yet evaluate that a great style of the U. S. nonetheless has grossly inflated genuine supplies fees, don't be afraid to grant ridiculously low gives you and purchase on projected deals (not basically because of the fact it rather is "decrease than industry fee" good now).

Answer 10

In a bear market, CDs & bonds are better.

In a bull market stocks are better.

Funds may contain stocks, bonds, or a mixture of both.