Is a CD the Safest Place for Investments?

[Music] brought to you by the every dooll app start budgeting for free today Juliet is with us in Greenville South Carolina as promised hi Juliet how can we help well I wanted to ask your opinion me and my husband last year had about $250,000 and we invested at um in a CB at a credit union and it has matured and we're want wondering if we should go back to the same um thing invested in the CD and um are to look elsewhere and we're we really don't want to take a risk with the money so we're both 80 years old and we didn't feel like we wanted to take a risk in the stock market but we wanted your opinion of what you thought we should do I would go right back and renew that CD you would yeah okay it doesn't pay very much it's not a very good long-term investment but it gives you a lot of peace and you told me three times you didn't want risk and I heard you and I heard you okay okay okay so I'm 6 I'm 63 and I don't have any CDs all of mine is invested in mutual funds in the stock market but I'm comfortable with that risk and I can tell by talking to you that if you did that with your 250,000 you would be awake at night scared you're probably exactly right and the last thing I want to cause is a sweet 80y old person to be awake at night okay now let me ask you the second question is any of these in do you think that any of these investment companies uh would their CDs pay more than the credit union they might but it's not enough to fool with okay uh in other words what are you getting on this CD what are they offering you when you renew it well I think um I think she said 5.5 that's not bad at all okay okay if you got if you got six but you were dealing with people you didn't know and trust like your credit union again Yes again this is about sleeping well at night and I wouldn't lose I wouldn't go jumping around get a half a percent more and lose sleep right cuz you're very you're very comfortable with this Credit Union and the ncua does have a $250,000 guarantee on this so you're covered on your guarantee and uh if the credit union failed in other words like an FDIC but the uh with a credit union it's not FDIC it's called the ncua but anyway yeah you're you're fine there I I personally would just tell you to stay right there okay that's what I wanted your opinion but you need but I I'll say it again for the sake of our listeners that's not because it's that 5 and a half% is a great long-term investment because it's really not it's because I want you to be able to sleep and 5 and a half% is a good CD and we're do talking about your comfort here not about a 20-year investment Horizon that's right okay so if Juliet called she's 80 80 years old and she says Dave we got $250,000 we just C out the CD which what's the best what would you do if you were us and she wasn't fearful of the risk Juliet was she was n you know again I appreciated you taking care of her because yes we don't want her to be stressed out but if somebody is 80 years old with $250,000 and they're not worried about it as much what would you do at 80 years old well with some of my investments at 63 it would also be more true at 880 I'm I'm already realizing that some of the investing I'm doing is not for me cuz I'll never touch it yeah it's really for the Next Generation yeah and so uh you guys the Ramsey you know the Ramsey kids are going to be getting this stuff and so when I make an investment decision now unless it's a five or a 10e horizon if I'm buying something out there long term I'm obviously thinking about you know the Next Generation after I'm gone and so uh you know if we're to superimpose that on her situation if you've got 250,000 you're putting it into a CD that tells me you're not living on it because that CD is not paying you monthly so you don't need a return on that so they've got other money yeah that they're living on so they very likely uh unless they something comes up and they need this money sure but they very likely are doing their Investing For The Next Generation at 80 years old and so if you took that mindset it'd be easy to put it in mutual funds because you you might not be here 5 years but you know the next generation will be sure and you could they could leave it alone just you know we're going to dump 250,000 in mutual funds and then when we pass it'll pass to the kids yeah yeah and you never you never touch it you're not really investing for yourself at that point yes okay so here's here's what's funny I was telling you during the break Winston and I sat with our smart investor Pro this morning we do it once a year and kind of like look at all the Investments and uh I was actually telling uh someone out in the lobby Avery she's 15 and she was talking about her Roth IRA mhm and I told her that uh I looked at when when I started mine M and when I started working for you guys even in high school and all of it and and as we're talking through all the numbers and looking at everything you know our investment Pro he was like okay this is good you know here and here and here and he's like and what's crazy is what you guys are investing here you probably won't touch it'll be for your kids and so as you're saying this to me your daughter you're investing money that you won't touch I'm investing money I probably won't touch and that you guys is a family tree change like when we say that what you're doing today when you don't need the money to live or to do the things you want to do yeah to to to pass that on and when you give dignity to your kids parents out there with little ones and teach them to work and and you know be able for them to live out the principles on their own regardless of what their parents are doing and then they teach it to their kids right it's just this big big Legacy Snowball Effect that just keeps turning over and over when everyone does their part in each generation it just keeps it going down the line I mean it's pretty it's pretty remarkable and it's really um encouraging out to you out there that are on baby steps one two and three and you're really grinding it out well and if you blink you start to do this if you blink it'll be 20 years cuz that Roth IRA you did as a teenager is 20 years old mhm and that money that you were working and you know I felt a tax return I paid the taxes on it and it was an $800 initial investment Y and that finally he pulled it up it was $800 that that that was what your earned income was that year yeah and that's what you're allowed to report and I put that in into a Roth and then the next year I think it was probably 1,500 or something or whatever I mean several years in a row we did that with each of you as you worked and uh but I mean 20 years later yeah it's amazing what that becomes it's great it's crazy create your free every dollar budget today the simplest way to budget for your life