Is a 5.00% CD Better Than Investing With a Broker? Key Factors to Consider
Key Takeaways
- The stock market has had another big year, with the S&P 500 seeing total returns around 33% year to date.
- While there’s potential for big gains, stock market returns aren’t guaranteed and can lead to losses.
- Some prefer the certainty of certificates of deposit (which are currently paying 5.00%) over investing with a broker, but a combined approach can also work well.
Don’t let high prices get you down this holiday season. You can outpace inflation and take advantage of high interest rates with a top-paying CD or you can start investing with a broker and capitalize on stock market gains.
Year to date, the S&P 500 has a total return of 33.30%. That means if you were to invest $1,000 on Jan. 1 in an S&P 500 index…
