Certificates or stocks? Certificates pay a fixed, nominally-guaranteed yield (~19-21.5% a year) with near-total capital safety, but the real return erodes with inflation. Stocks carry more risk but have historically out-returned certificates over the long run and hedge inflation better. Rule: need short-term liquidity and safety? Certificates. Have a 3+ year horizon and can stomach swings? Allocate a slice to stocks.
Certificates or stocks? Certificates pay a fixed, nominally-guaranteed yield (~19-21.5% a year) with near-total capital safety, but the real return erodes with inflation. Stocks carry more risk but have historically out-returned certificates over the long run and hedge inflation better. Rule: need short-term liquidity and safety? Certificates. Have a 3+ year horizon and can stomach swings? Allocate a slice to stocks.
Yes, and that is usually the smarter move. Most advisors recommend diversifying across assets to balance growth, safety and inflation hedging.