A reader expressed an interest in buying a CD from Millennium Bank that appears to be a very high yielding product.
The reader wonders whether I would buy something like this and then why or why not. While I did not read the fine print, the main page is very clear that there is no getting your money out early. They are not saying if you break the CD you pay a penalty, they are saying you cannot get to the money, period.
As a matter of philosophy I don't like to lock up money in this way. This is not a comment on investing but personal preference and so probably does not offer much value. I prefer to keep options open to me, not just financially.
I can't say that the reader should or should not but the CD I am just saying this is not for me.
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1 comment:
I had to go though my fathers financial records as part of a move for my parents from living independently to living in an assisted living setting. He was a meticulous record keeper and nearly all of his records over the last 50 years were there. It was quite an eye opener for me to watch the power of compounding help him accumulate wealth over several decades. Most of the compounding was through CD's with local banks with durations of from 1-3 years. My parents always lived below their means and put money away for their retirement. I have a new respect for fixed instruments like CD's Tom in Indy
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