Which is a better investment, a CD in a bank or stocks and bonds and funds?

Depends on what your definition of "better" is.


If you want low risk, for which you are willing to accept lower returns CD's are better.

If you want higher returns, for which you are willing to take higher risk.....then stocks, bonds, and mutual funds is the way to go.

With a CD you will know exactly what you will earn but it will usually be lower than the stock market. In the market prices go up and down and in the long run are usually higher than a CD.

A CD investment is basically risk free as you will not lose your your original investment . Where as stocks and bonds and funds you could lose at all.

Better, or safer? CD's in a bank are safe and you know how much you are going to earn in interest. If you leave the money to maturity, you know how much you will get.

Stock and bond funds have the potential for better returns, but have risk. The more time you have to leave your money in a fund, the better off you are. There are no guaranties in funds, but there is a potential for greater earnings.

If the money is such that you will need it in the short-term, CD's are probably the wiser choice. If you don't need the money for a few years, funds might offer more return.

There is not a definite answer to your question, sorry.

depends on whether you're in the short run or long run, and what kind of a risk-taker you are. Over time, stocks and bonds are better.....stocks are riskier, but are the best over time. CD's generally are not that good of an investment, but it depends. Stocks are risky, bonds are safer, but stocks are generally better.

In a bear market, CDs & bonds are better.

In a bull market stocks are better.

Funds may contain stocks, bonds, or a mixture of both.

CD are safe investments, but offer low rewards since rate are usually around 3-6%. They are great if you need money right after the CD matures.

Investing in stocks are very risky investments, so it offer high rewards if you know what you are doing. Because of its high risk, you can either make lots of money or lose it all (in case of Enron)

Investing in mixture of bonds and mutual funds is a better way to invest in the long run. Mutual funds represents 25-300 different companies, so the risk of losing lots of money is very low. When investing in mutual funds, you always want to stay in the same fund family so that you can get sales discount in the future when your portfolio reaches $25k. For example, if you want to invest in Fidelity funds, then stick with Fidelity. Don't mix your portfolio up with other families such as Van Kampen or Templation or Legg Mason, etc.

Don't forget to figure in inflation, and taxes into the formula, they will have a bigger impact than you think. Inflation between 3% & 4% per year. You probably loose money on a CD. Other options that are risk free and offer potential tax benefits are available. Annuities, Insurance plans, etc. Educate your self. No one else will.

None of them. Try investing in precious metals. Market is very bullish right now. Specially platinum. Check for more information below:

http://preciousmetalsinvesting.blogspot....

Stocks.

Top 5 Answerer in the "Business & Finance" Category.

If you want a risk go with stocks and funds, but if you want a decent return go with a CD!

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