Are Money Markets and CDs a Good Investment Now? Advisors' Advice

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With interest rates higher than advisors have seen in a generation, is it time to reconsider investments such as money market funds or certificates of deposit? ThinkAdvisor put this question to a stable of financial professionals with the XY Planning Network for the latest edition of the Advisors' Advice series. We posed a simple query: Have interest rates now increased enough to make the potential role of CDs, MMFs or straight-ahead savings accounts more important in 2023? As the advisors note, with the Federal Reserve's target interest rate now sitting firmly in the realm of 5%, investors can now expect to earn far higher returns from these types of investments in the years ahead. As such, their possible roles have expanded in retirement portfolios — as have the number of client inquiries regarding these investment and savings vehicles. See the gallery for timely portfolio insights from the advisory experts. While each brings a different perspective to the interest rate discussion, all agree that 2023 is shaping up to be a challenging but opportunity-rich year for retirement investors.