Are CDs "No Risk" ?
from It's All Money Hosted by 707 Media
An episode on CDs? Before you fall asleep, ask yourself: why are some clients seeking Certificates of Deposit in this high interest rate environment? How do they differ from Money Market accounts? Are they actually "no risk", "low risk" or something else? And just what is the risk of a CD or Money Market? Hosts Dano Weir and Daren Blonski, CFP® dig in to the investment you thought you didn't care about, CD's on this episode of It's All Money. Full video available on our YouTube Channel Learn more about how Sonoma Wealth helps individuals and families here: https://sonomawealthadvisors.com/book-your-wealth-analysis CHAPTERS 0:00 Cold Open: Why We're Doing an Episode on CDs 0:59 So What's the Actual Risk of a CD vs. a Money Market? 3:23 What Is a CD, Really? A Quick History Lesson 4:18 FDIC Insurance: What's Actually Covered, and Since When 5:33 Silicon Valley Bank and the Real Risk of a Bank Run 7:31 Money Markets Are Mutual Funds, Not Bank Deposits 9:25 How Money Markets Have Changed Since the 1980s 13:41 CD vs. Money Market: Comparing the Numbers Side by Side 15:14 The Risk Curve: Institution Risk, Government Risk, and More 16:24 Understanding the (Inverted) Yield Curve 23:23 Election Uncertainty and Predicting Where Rates Go Next 25:43 CD Laddering: Spreading Your Money Across Durations 28:12 The Real Risk of a CD Isn't Default, It's Opportunity Cost 28:58 Building a Cash Strategy That Fits Your Actual Plan 32:23 Wrap-Up References: https://www.investopedia.com/when-were-certificates-of-deposit-invented-5224230 https://www.forbes.com/advisor/banking/money-market-account/what-is-a-money-market-account/#:~:text=Money%20market%20accounts%20were%20created,interest%20rates%20on%20consumer%20deposits
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