Originally Posted by
Forgotmyhat
Exactly this. That 5-6% isn’t “risk free”. It doesn’t even beat inflation! This is a losing investment! So your cash is tied up for what, 2, 3, 5 years? Shoot, you could’ve put it all in the S&P and in 5 years, dollars to donuts you’d at least have beaten inflation! Short term CDs should be used in lieu of a savings account for when you need to set cash aside for a purchase next year.
When you build a large enough portfolio of money producing assets (CDs, dividends, business payments) then you can actually live without working and still grow your wealth. Unless you are a professional trader I don’t see how a Ferrari is part of an investment strategy. What is insurance costs on something like this? Where does a normal person drive something like this in a northern city where massive potholes are the norm?