Saturday, September 5, 2009


I've been looking around at different investment options lately. It frustrates me that CD's are seen as "safe" investments! Um, newsflash: there's a risk in everything you do with your money! If the interest rate on your cd is less than the inflation rate for the time period, you've just lost money! To be precise, you're losing value on your money. Inflation is the devaluation of your money. While the monetary amount does increase, the actual purchasing power of your money decreases.

Especially now, as the American dollar is poised to plummet into practically worthlessness, opening up CD's to store your money while the economy "turns around" seems like an extremely stupid thing to do. Inflation is going to outpace your rate of interest.

My solution? Invest in mutual funds and stocks, and then hold on tight, because you're hopping on a roller coaster. Wait it out (think long term, not short) and you'll be able to not just match inflation, but earn money, too.

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