Matt Garrigan is our Financial Advisor member. He says the biggest question he is getting lately is “What should I do with my cash?” These customers are looking for the safest investment but anything making more than 1% interest has risk attached to it. Buying CDs are safe but you to lock up the money for a set amount of time. Short term bonds (2 years or less) are safer than long term (30 years) because you can be more flexible to take advantage of changing interest rates. If interest rates go up, you’ll get your money back sooner which you can reinvest at the higher rate instead of being locked in at a lower rate and risk principal loss. Municipal bonds are usually higher risk but are tax free. Long term he still believes the U.S. stock market is a good investment but have a mix of stocks and bonds. The percentage of each depends on your personal situation which Matt can help you determine.
Remember Matt Garrigan and Robert W. Baird when you hear your associates mention that they have questions about their financial plans.