An episode on CDs? Before you fall asleep, ask yourself: why are some clients seeking Certificates of Deposit in this high interest rate environment? How do they differ from Money Market accounts? Are they actually "no risk", "low risk" or something else? And just what is the risk of a CD or Money Market? Hosts Dano Weir and Daren Blonski, CFP® dig in to the investment you thought you didn't care about, CD's on this episode of It's All Money.

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Learn more about how Sonoma Wealth helps individuals and families here: https://sonomawealthadvisors.com/book-your-wealth-analysis

CHAPTERS
0:00 Cold Open: Why We're Doing an Episode on CDs
0:59 So What's the Actual Risk of a CD vs. a Money Market?
3:23 What Is a CD, Really? A Quick History Lesson
4:18 FDIC Insurance: What's Actually Covered, and Since When
5:33 Silicon Valley Bank and the Real Risk of a Bank Run
7:31 Money Markets Are Mutual Funds, Not Bank Deposits
9:25 How Money Markets Have Changed Since the 1980s
13:41 CD vs. Money Market: Comparing the Numbers Side by Side
15:14 The Risk Curve: Institution Risk, Government Risk, and More
16:24 Understanding the (Inverted) Yield Curve
23:23 Election Uncertainty and Predicting Where Rates Go Next
25:43 CD Laddering: Spreading Your Money Across Durations
28:12 The Real Risk of a CD Isn't Default, It's Opportunity Cost
28:58 Building a Cash Strategy That Fits Your Actual Plan
32:23 Wrap-Up

References: https://www.investopedia.com/when-were-certificates-of-deposit-invented-5224230 https://www.forbes.com/advisor/banking/money-market-account/what-is-a-money-market-account/#:~:text=Money%20market%20accounts%20were%20created,interest%20rates%20on%20consumer%20deposits