A CD, or a certificate of deposit, is a popular and reliable way to invest your extra money. However, they're certainly not the only route for curious investors. Whether you’re looking for a higher potential payout or just want to learn about all your options, consult this list before meeting with a financial advisor.
What to Invest in When You Don’t Want a CD
1. Bundled Mortgages
After you take out a mortgage loan, the bank or lender will eventually lump your loan with others and then sell the bundle to other investors through a brokerage firm. You can act as one of these investors, claiming ownership of one of the securities.
You’ll receive a portion of the borrower’s monthly payments on a regular basis. This option can be riskier than a CD—particularly if the borrower defaults on their mortgage—but it can also generate a more rewarding yield.
2. Money Market Accounts
After you open one of these accounts, you’ll have to deposit your investment into it, much like a standard savings account. In exchange for a high initial investment and restricted withdrawals, you’ll get the reward of a much higher interest rate. Over time, your money will make far more than it could in a savings account or certificate of deposit.
If you’re looking for a safer investment route, consider bonds. When you purchase a bond from either the government or a corporation, you’ll become the lender in the relationship. Once your bond reaches the end of its term, such as seven years, you’ll get your money back as well as interest on top. While it may not yield as high a return as the other options, bonds are a stable and low-risk option.
Navigating your investment portfolio can be tricky, but Seeman Holtz offers a wealth of valuable, experienced advice. By partnering with money managers nationwide, these financial advisors offer their clients comprehensive guidance and a wide variety of investment opportunities. Based in Boca Raton, FL, and serving clients nationwide, the company will also provide risk management services and insurance, so you can preserve your investments for the long haul. To learn more about their offerings, visit them online or call (800) 991-3592 today to schedule a meeting with a financial advisor.