CD at 5.3% for 14 months or Fidelity 500 index fund

[jmlrn]

Currently have a $15,000 CD maturing today. I'm tempted to roll it over for the 5.3% but the potential gains of the Fidelity fund will exceed that amount of interest. Money will not be needed within the next two years. I am trying to get as much potential gains as possible because I am 64 and do not know if I can even continue working to full retirement age. Recently I am in a lot of pain after a day of work. I never really managed investments before I was widowed and I feel like I am gambling my money. Previously we had laddered CDs and very little invested. I currently have a very small amount in the Fidelity 500 fund.

[azucena]

I'd lean towards the sure 5.3% CD since you're close to retirement. Think about if it would cause you to lose sleep at night working about Fidelity fund going down.

[jmlrn]

Jan 8, 2024 11:20:05 GMT -5 azucena said:

I'd lean towards the sure 5.3% CD since you're close to retirement. Think about if it would cause you to lose sleep at night working about Fidelity fund going down.

I think I'm past the losing sleep at night anxiety. I just want to do what makes sense to get a good return. Money most likely won't be needed for a long time.

[busymom]

I'm a big fan of CD's.  The years that I was looking over my Mom's finances, when she reached the point where she needed help, her CD's were kicking my a$$, compared to money I had in the stock market.  Yes, in the good years, the stock market can make money, but I don't think the process includes figuring the years of losses, and you need to make back the money you've lost.  And, who knows what the future holds?  At least CD's are safe.  Just make sure they're FDIC insured.  I recently got the "opportunity" to invest in a high interest rate CD through a church organization, but it was a hard pass once I learned the funds had NO insurance.

[TheOtherMe]

I am with you on never putting my money any place where it is not insured.  

I am a retired IRS agent and I saw too many people lose everything.

I was still preparing tax returns when the Bernie Madoff ponzi scheme fell apart.  I can still see the faces of people nearing retirement age as they realized all of their money was gone.

[WannabeWealthy]

Jan 8, 2024 10:27:34 GMT -5 jmlrn said:

Currently have a $15,000 CD maturing today. I'm tempted to roll it over for the 5.3% but the potential gains of the Fidelity fund will exceed that amount of interest. Money will not be needed within the next two years. I am trying to get as much potential gains as possible because I am 64 and do not know if I can even continue working to full retirement age. Recently I am in a lot of pain after a day of work. I never really managed investments before I was widowed and I feel like I am gambling my money. Previously we had laddered CDs and very little invested. I currently have a very small amount in the Fidelity 500 fund.

I am also VERY worried about my health before retirement age.  I've decided to enjoy life more now and assume the inevitable a little later.  I'd rather have fun now and worry about money issues later than to continue saving and be fully ready for retirement but can't enjoy life because I'm crippled.