Kurt and Brian co-hosted an April edition of Baird's Your Wealth and You podcast. Click play below to listen to the entire episode:
Below is a video segment that discusses surprising developments with auto-renewed Bank CDs:
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There are differences between Certificates of Deposit (CD) purchased from a bank and those purchased from firms such as Baird. These differences may affect the rate of return and degree of risk for purchasers and may include but are not limited to variable interest rates, call features by the issuing bank, trading in the secondary market, price paid, transaction costs not typically associated with a traditional CD, redemption value, and withdrawal or sale prior or maturity. While secondary market purchases are also available, the FDIC insurance only covers the principal amount of the CD and any accrued interest up to that coverage limit. Investors should carefully consider these differenced before investing. CDs are subject to availability and minimum purchase amounts. Interest rates are subject to change without notice and could greatly impact the value of the CD. Availability and pricing are subject to change. Fixed income is generally considered to be a more conservative investment than stocks, but bonds and other fixed income investments still carry a variety of risks such as interest rate risk, credit risk, inflation risk and liquidity risk. In a rising interest rate environment, the value of fixed income securities generally declines and conversely, in a falling interest rate environment, the value of fixed income securities generally increases. High-yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield. Municipal securities investments are not appropriate for all investors, especially those taxed at lower rates.