So I have 30,000 in a CD coming due in the next few days. i also have 2 Roths , one with fidelity, one with credit union. Thinking about another 10,000 in CD because i don't know where else to put it. I haven't been maxing out the Roths because I'm so afraid of what this crazy ass regime will do. Already seeing overseas markets are outpreforming US. Any ideas would be appreciated. BTW i am 72 and only started investing at 65
Confusion about CD or what else
byu/dave830 inpersonalfinance
Posted by dave830
4 Comments
Well, if you have enough earned income and are under the income limit, I have no idea why you wouldn’t put the $8600 for this year (and $8000 for last year through when you file your 2025 taxes) into a Roth IRA. You could just keep the money in there in T bills or probably even CDs within the Roth IRA and then not owe taxes on the interest earned. Unless you just love paying taxes on the earned interest….
At 72 you’re probably better off staying conservative anyway, so another CD isn’t the worst idea if rates are still decent. Maybe split it between a shorter term CD and throwing some into your Roth since you’ve got time to let it ride – the tax advantages are solid regardless of whoever’s in office
Put it in VMRXX Vanguard Cash Reserves Federal Money Market Fund which grows at 3.875% per month.
At your age, I’d focus less on trying to squeeze out returns and more on keeping things simple and stress-free.
CDs aren’t a bad place for money, especially if you like knowing exactly what you’ll get. That said, putting more into CDs just because you’re unsure what else to do can slowly work against you with inflation.
Since you already have Roth IRAs, it might be worth looking at how they’re invested. You don’t need anything aggressive, even a conservative mix can still give some growth without big swings.
I wouldn’t worry too much about politics or trying to time markets. A boring, diversified setup that lets you sleep well at night is usually the right answer.
Having some cash or short-term money for flexibility, and the rest invested conservatively, is a pretty reasonable middle ground.