Like many people these days, I have to save for retirement on my own. Yes, this means that the only thing the employer provides is gray hair. And I'd be a rich thing if I were to add all of that up. Anyways, CD's or certificates of deposit are still offered at many financial institutions including banks and credit unions. Back in the day CD's had very high interest rates and were very good purchases if used to retire. The problem now is that CD's no longer have those high interest rates and therefore after years of having retirement money in CD's you still do not earn a lot of money from them. When saving for retirement it is a matter of putting enough away and then once you do it becomes a matter of what you invest in or expect to get interest out of to increase. This has not been the situation in recent years. Social Security is not enough to retire off of and unless the US government plans to provide everybody over the age of 67 or even 70 with a government stipend account to help pay for food, utilities, rent, clothing, transportation ect., then citizens who plan on retiring here are in an awful bind if they are unable to save enough money to do so. You probably have asked yourself the same question, "How is a poor society beneficial to America?" Perhaps, it would make us more appreciative, patient(not for me), understanding, respectful and most of all thankful because money may not be everything, but we can't do without it. It could be said that in a way, America is morally bankrupt, cold and is without tolerance, so the lack of money eliminates the status of rich and poor because many people economically are in the same situation. Now if we put all of that aside for retirement "Hey, nobody noticed that they were poor!" This is a way of life and perhaps not very good for the economy, but sure people can live and do without many things, although the world has changed and some things are now necessities. What is needed? Well, we have a US department of treasury that allows people to buy bonds. I just wished that they would kick it up a notch. They can do this by raising interest rates on CD's and allowing them to be purchased alongside treasury bonds. For example: The US treasury sells bonds and then decides to offer CD's to assist in increasing one's investment portfolio. The CD's can be purchased like bonds in $25-$5,000 purchases. The higher the amount you purchase the higher the interest rate you get. Let's say for a $25 CD, the interest rate may be 0.5%, but if you were able to save up and purchase a $100 CD the interest rate would be 5.5% and so on as the higher the amount the higher interest rate. The good thing about the purchase of a CD is that one can buy them for 10,20 or even 30 years as the CD's will continue to earn interest and can be redeemed after 30 years. By allowing people to purchase what they can afford will allow them to have an alternative way of saving will help when it comes to retirement. Bonds and CD's can be purchased through the treasury department and used in conjunction with Social Security for retirement. No worries, you do not have to transfer any money to an IRA once you reach a certain amount, just contribute and when you reach the 30 year limit on your CD's you can redeem them just as you would bonds. This option gives you higher interest rates and will also allow for the redeeming of bonds when they mature to for the purchase of a CD. For example: if you want to cash in a bond after the penalty to do so has expired, you can use that money to purchase a CD with a higher interest rate. By doing so you can use savings money to buy bonds and CD's and then once you're able to cash in a bond you can earn even more money by using it to buy a CD. All those years of working-have something to show for with CD's from the US treasury!
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