With so much talk of a recession, should i leave my money in a cd?

Question

With so much talk of a recession, should i leave my money in a cd?

Answer 1

It depends on many things. What are your time horizons? How much risk are you willing to take? What other kinds of investments do you have?

The best strategy for any time is a diversified portfolio with low fees. In the stock market try to get some low fee mutual funds that track large, medium, and small companies, international companies and bonds. The allocation depends on your tastes for risk and what your goals are. It is not a bad idea to have some cash on hand for emergencies and a mix of CDs and money market funds would be a good choice. The rule of thumb is that about 2 months living expenses should be kept liquid for emergencies but for the most part invest your money and make it a regular habit. Buying during a downturn is like getting companies on sale. See a financial planer and set up a plan and then stick to it investing monthly or quarterly.  Try not to chase returns it is a good way to buy at the top and sell at the bottom. Be aware of things that sound too good to be true.