Financial Focus with Robert

cooperspotQ.   Robert, what are most retiree’s doing to combat low CD rates these days.  It is unbelievable how little my return is.  I am not even close to keeping up with inflation.  When do you think CD rates are going to get better and how long do you think the stock market  is going to continue to go up?  – Ed in High Point

A.  Ed, you are going to make me dust off my old crystal ball.  The questions you bring up are good; however predicting the market is extremely difficult.  As far as CD rates go, I think we are still a few years away from seeing respectable numbers.  According to the national average rate for a one year CD is 0.23%, and the average for five years is 0.79%.  Several of my clients have told me they have seen one year rates as low as 0.08%.  For all of us mathematically challenged folk, that translates to an $80 return for a $100,000.00 investment.

For some of our clients that like the safety of CD’s, we have a fixed annuity product that is currently paying 3% (as of the time of this article).  That still sounds low, but 0.08% for most people is not getting it done.

As far as the current Bull market goes, your guess is as good as mine.  However, you can look at historical trends.  The Dow Jones, for example, has had roughly four bull markets since 1896.  The shortest one was five years and the longest was 18 years.  Inevitably there will be a correction, meaning downturn in the future.  If you watch any of the financial themed shows on TV, you can see for yourself how even the experts do not agree on market issues.  There was an interesting article in Investor’s Business Daily recently.  It was basically stating that by 2016 there will be more money withdrawn from 401K accounts than being added.  This will be the first time that has happened.  Since most 401K’s have a lot of stock inside of them, a lot of money will be coming out of the market.  What exactly does that mean?  When I dust off that crystal ball, I will let you know.


Robert Cooper 

CRPC, RFC   Registered Investment Advisor Representative / Providing Financial Planning Services in the Triad for Over 20 Years

336-993-2012 •

935-E Mountain St., Kernersville, NC 27284

Investment Advisory Services Offered Through Global Financial Private Capital, LLC, an SEC Registered Investment Advisor.


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Any comments regarding safe and secure investments and guaranteed streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims paying ability of the issuing company, and are not offered by Global Financial Private Capital.




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