Over the recent months the potential of a falling stock market, rising interest rates and a slowing economy have compelled many mutual fund investors to move their money from equity funds to bond funds and from aggressive bond funds to more conservative options.
But perhaps those clients seeking security and income should be skipping funds altogether and consider the simplicity and income offered by certificates of deposit. Here are five factors favoring CDs over bond mutual funds.
Kevin McKinley is principal/owner of McKinley Money LLC, an independent registered investment advisor. He is also the author of Make Your Kid a Millionaire (Simon & Schuster).