04/30/2026
When I worked at a credit union, the majority of retirees would put most of their assets into high-yield CDs, giving them today roughly a 4% APY. They love to shop rates at different financial institutions, and they do this every year. They like them because they have no risk and have a high return in comparison to other safe products when they don't have a need for liquidity.
However, are you really making 4% if you are recognizing an exchange every single year when you are required to report to the IRS that you made money from the interest accrued from that CD? You are missing out on many other growth opportunities that would benefit you and your family by sticking to this popular method. After you've paid the taxes, the money you've made will barely keep up with inflation rates. And even worse, rates generally change every year, so what will happen if the best CD you can find five years down the road is 2% instead of that 4% you shopped for?
But believe it or not, there are strategies out there to provide tax-efficient growth and safety for your retirement. I would love to answer your questions about optimizing your retirement and help you achieve your goals in the best way we know how.
