Shelter from the Storm: Safe, 'Boring' Financial Products Are Exciting Today
As you approach and then enter retirement, it's wise to gradually shift much of your savings into vehicles that guarantee your principal while providing a good interest rate.
The stock market's extreme volatility in 2020 shows that relying too heavily on equities exposes mature investors to unneeded risk. They need ways that reduce risk while having their after-tax savings grow at a rate that keeps up with or exceeds inflation.
U.S. Treasury bonds and notes are tops for safety, but safety comes at a cost. Rates are very low today. A 10-year Treasury, for instance, was paying 0.76% in mid-April 2020.
Bank certificates of deposit are safe
