Top 3 Reasons California CDs are the Best Investment
California is a place known for innovation in investments, but there is still no investment that can match a California CD with a high rate. Let’s take a look at why housing, stocks and even retirement funds can fail in comparison. Here are some reasons CDs beat the following investments:
1. Investing in Real Estate
In California and the rest of the country, housing has taken a beating. Many people who invested hundreds of thousands into investment properties are now underwater on their mortgage, facing foreclosure and walking away. Had they invested that money into a CD even at 4%, their returns would be much greater today versus being in a losing position.
2. Putting Money in Stocks
Since the peak of 2008, stocks lost about 43% of their worth. Many people suffered a double whammy in losing at the stock market and in home values. Again, a safe investment like a CD will never lose money compared to stocks, which can be extremely volatile.
3. Retirement Funds
Retirement funds are mostly invested in stocks, and they suffer from the same kind of losses and systemic risks of that investment grade. Many people lost over half of their retirement portfolios and have had to avoid retiring. As people get older, a more conservative investment like a certificate of deposit will work wonders for hedging more risky investments.
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