The options for retirement investment solutions can be overwhelming with many options to choose from. Whether you're looking for low-risk solutions or an investment that can potentially provide a higher yield, options are available.
Money Market Account (MMA)
A regular Money Market Account (MMA) is an interest-bearing account. This type of account will generally yield a higher interest rate than you would get with a regular savings account. More specifically, a retirement money market account is an account held within a retirement account, like an IRA or 401(k). Your deposits are invested in low-risk options.
A retirement MMA can help diversify your retirement investment portfolio while adding elements of stability and liquidity. This type of account also allows you access to your funds, while other accounts do not provide consistent access to all your funds.
Regular Savings Account
A savings account is an interest-bearing deposit account. Most regular savings accounts will pay a smaller interest rate but can be safer and more reliable than other investment options. You have access to withdraw your funds, but it may be limited compared to other types of investment accounts.
The interest rate that's applied to your savings account may change over time, so you may not be able to count on earning a specific amount.
Certificate of Deposit (CD)
A Certificate of Deposit is a product that pays interest on the account's principal in exchange for keeping a specific amount in the account for a certain length of time. Different CDs offer different interest rates and terms.
The highest-paying CDs pay higher interest rates than savings accounts and money market accounts, but you will not have access to your funds during the term of the CD. CDs are known as safer and more conservative investment options. Once you agree to the terms, those terms are set in stone until the maturity date. Those terms include the interest rate you will earn, the length of time and the principal.
These are all types of accounts in consideration as we continue partnering to build your financial future. Contact the office if you have any questions.
This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.
Money Markets are not FDIC or govt. insured/guaranteed, & it is possible to lose money.
A diversified portfolio does not assure a profit or protect against loss in a declining market.
Bank certificate of deposits are insured by an agency of the Federal government and offer a fixed rate of return whereas both the principal and yield of investment securities will fluctuate with changes in market conditions.