You will not be able to save enough money in bank CDs to be able to have a comfortable retirement.
Your view of investing is grossly skewed by whatever crazy lenses you have opted to see through. No one "lost their savings" in the market crash unless they did something foolish like pulling out all their money at the bottom.
It took just 4 years to recover from the market bottom, and the S&P is now more than 30% higher than the high of 2007.
BUT - - - since you have already decided (though I think you should reconsider) that you're not going to "invest in the market" - - - I would strongly suggest you find something to invest in besides bank CDs (perhaps real estate).
ONE MORE THING: You have more than 40 years until you retire. There has NEVER (ever) been a 40 year period in which a major market index has lost money. Quite the contrary - - the markets have trounced bank savings rates in every 40 year period.
What a stupid plan. A 24 years old should be invested within the stock market. Although it is said that the younger the investor is, the more tolerance for risk she has, there is another point of view. The younger you are when you start investing, the more time you have for your money to grow, and the less likely you are to fall for get-rich-quick investment schemes that carry high risks and may actually jeopardize your nest egg. You can stay conservative and invest in safer products, thereby gradually growing your wealth. Those who start too late in their lives with investments are often tempted to opt for the riskiest ventures, just so they can catch up to where you are already. More often than not, these risks do not pay off. Dont fear the stock market because the market always goes up over the long term.
Get yourself a ROTH IRA and 401K from your job. As well as a total stock market index fund from vanguard. You should research Inflation protected I-bonds from www.treasurydirect.gov
The choice is yours
Bank CDs although safe will barely keep pace with inflation.
You need to invest some of your money in the stock market
to get ahead of the game. As an investor for 25 years, I have
been through 2 crashes and survived. Over the long haul
I am making a gain of 8% on my mutual fund investments.
Fear is your worse enemy.
Investing in stock, in the long run, is not gambling. It is not a lottery ticket. It is a fractional ownership of a company. You should read more books about investing and learn what it means to be shareholder of a public company. You will never get ahead with CDs. It is the government's plan to inflate the economy and the savers will pay for it.
Check out Vanguard or Fidelity 2050 Target Funds.
Not to have "some" money in the stock market is not a "good" idea. Historically the market returns 6 to 10% in annual returns.
Read about Warren Buffett and "invest" like him, the "greatest" investor of our time. "Buy (high) quality and hold for decades".
If the American economy keeps chugging along, you will want to be "invested" in the "Blue Chips" (XOM, PG, JNJ, T, IBM) for growth, appreciation and dividends.
Good Luck!
My recommendation for anyone that doesn't know stocks is to sign up for thestreet's actions alerts. You can buy and sell with professionals that way and it takes your guessing out of it. I do that and I think its been great, if its to expensive then get together with a few people and chip in on it. Thats my recommendation.
Try to understand each and every concept when you trying to trading in the market. Even if you choose to go for gold trading you should know the current situation of the market. It is also quite important for you to understand how MCX and NCDEX can help you to be profitable in the market.
You saved good amount of money, if you have knowledge about forex market so you can easily increase their money. You can invest here & double you money . Proper & right guidance will help you to convert your investment in profit.For this you can take help experts financial advisory firm.
I'm 24 years old with a full time job that pays $57,000 a year. So far since I had worked I have save $19,000. I have all this money with my bank account in a CD account. I'm thinking in putting more money in my bank's CD account for the long term future. Basically I want to keep safe my money by putting part of my paycheck savings with the Bank's CD account for the next 40 years until I retire. Also, I NEVER plan to own and invest in any type of stocks, mutual funds, and bonds in the next 40 years because for me I think it is like gambling my money and throwing it to the trash. I have also a 401k employee plan from the company that I work, but also I don't contribute at all to this 401k plan due to the fact that it has a target date fun that for me it is worthless. I say this because of the 2008 crash in which many retired people lost their savings from their 401K plans. So for this reason in the next 40 years I will be just investing my money in a Bank CD account until I retired at 64 years old in order to have security and peace of mind. Do you think it is worth it?
