Putting $15,000 into a certificate of deposit (CD) right now can provide significant savings with low risk. CD rates are currently high, offering competitive interest rates for various terms. Opening a CD locks in the interest rate for the full term, ensuring predictable earnings. However, early withdrawals may incur penalties, so it's important to consider the term carefully.
Investing $5,000 in a 6-month certificate of deposit (CD) is a smart move for investors due to the attractive interest rates currently being offered. With rates of 5.5% or higher, 6-month CDs provide higher returns compared to longer-term options. The fixed rate offers predictable returns, and the liquidity and low risk of CDs make them an appealing investment choice. Additionally, investing in a CD allows for diversification of investment portfolios, reducing overall risk.
Investors seeking to accelerate their passive income snowball can consider high yield, high dividend growth stocks that also offer relatively low risk. Two such opportunities are Brookfield Asset Management (BAM) and Plains All-American (PAA)(PAGP). BAM, with a forward dividend yield of 4.1%, a debt-free balance sheet, and a strong growth profile, has the potential to deliver robust growth and consistent dividends. Plains, despite its checkered past, has sold off non-core assets, deleveraged its balance sheet, and offers an 8.1% yield that is well covered by distributable cash flow. With a promising distribution growth plan, Plains presents an attractive opportunity for maximizing current yield and growth.
