Are You a Smart CD Investor?

If you know these 5 things… I’m confident that your savings results will
improve immediately and dramatically.

I know this because it has improved the investment performance of even the best investors I know. If you don’t follow them you could cost yourself thousands of dollars and sometimes even your entire savings.

How could not knowing these things cost you? We will explore in detail how not know the above requirements can harm you but lets have a brief discussion of the dangers right now.

Who are the banks worried about?

If there was any doubt before … the last few years have taught us something about banks. We now know the banks put themselves first … and their customers second. Banks are set up to make money. Make money for themselves … NOT YOU! They will charge you for anything they can get away with and pay you least amount of interest they can get away with. If you do not know what the rates are nationally, your local bank could be taking advantage of you.

Banks have a very good idea what direction interest rates are going far before you and me. If they think interest rates are going down, they try to entice you into investing in short term CD’s. Why? Because if interest rates are going down, they want your CD’s to come mature soon so they can pay you the lower interest rates as the rates go down.

And if the banks know that interest rates are going up, then they entice you to go longer on your CD’s thus locking you into a lower interest rate while the bank makes higher interest. A real profit maker for the bank. You need to be smarter than the bank. And if you know what you are doing that is easy!

Interest rates don’t matter if you lose principal!

You had better know how safe your bank is as well! 212 banks went under in 2009 alone (go here for the list). Many of the biggest banks in the country have more debt than assets. If you don’t know the safety rating of your bank you could be in huge trouble!

What about FDIC insurance? Do you know how long it took people to get their money back from the Savings and Loan debacle? For many it took over 5 years! No access to their money for 5 years. No interest on their money for 5 years. Lot’s of lost sleep for 5 years. You need to know the safety rating of your bank or credit union.

Simple formulas the banks want to keep secret

After you know what the rates are nationally, which way interest rates are headed and have found a safe bank, you then have to invest your money.

Did you know that there are ways to increase your return by 20% all the way up to 32%! Just by knowing how to set up your CD’s properly? How many banks tell you that? You can do it using a simple formula.

Ask Yourself …

Is your banker looking at your tax return before recommending a CD? Has he told you about Split Income Funding or Tiered Placement strategies? Are they telling you what your return is net of taxes? By knowing this simple fact you could increase your return another 15% to 30% on top of the 50% we talked about above.