Certificate of Deposit (CD) accounts represent a secure avenue for investment, blending the reliability of savings accounts with enhanced returns. These financial instruments necessitate committing funds for a predetermined duration, referred to as the term. Throughout this period, account holders earn a steady interest rate, with the opportunity to reclaim their capital upon maturity.
While CDs demand locking away funds, often spanning several months to years, they prove advantageous for individuals saving towards clear future objectives. Upon reaching maturity, decisions must be made regarding whether to reinvest, liquidate, or explore alternative options. Insights from three financial experts illuminate optimal strategies in today's economic environment.
Deciding on the best course of action involves evaluating personal financial aspirations. For example, aligning CD durations with anticipated needs can streamline planning. As explained by financial expert Bobbi Rebell, choosing terms that coincide with significant expenditures, such as a home down payment, ensures timely access to funds. Similarly, selecting shorter-term CDs when immediate liquidity is required avoids unnecessary restrictions.
Economic conditions significantly influence these choices. National securities authority Kimberly Flewelling highlights how Federal Reserve actions impact interest rates over extended periods. She advises opting for shorter-term CDs during rising rate phases and transitioning to longer durations once stability occurs. Monitoring these trends empowers investors to optimize returns while minimizing risks associated with premature withdrawals.
An innovative approach gaining traction among investors is the CD ladder strategy. This method involves diversifying investments across varying terms, ensuring consistent access to maturing funds. According to wealth management professional Kelsey Wilson, structuring CDs to mature at staggered intervals provides flexibility. Should interest rates fluctuate, this setup allows reinvesting proceeds into higher-yielding opportunities without forfeiting accessibility.
Embracing strategic planning enables individuals to harness the benefits of CD accounts effectively. By aligning investment horizons with personal goals and adapting to changing market conditions, savers enhance both security and profitability. Engaging professional guidance further refines decision-making processes, fostering long-term financial resilience.
A probe initiated by the Wallace Police Department is currently underway following an incident involving counterfeit currency at the local Food Lion store on March 8. Law enforcement officials are appealing to the public for help in identifying a key individual linked to this event.
The authorities have released visual materials depicting the person of interest, hoping these will assist in gathering more information. Community members who recognize the individual or possess any relevant details are encouraged to reach out to the police department through designated channels.
Collaboration between law enforcement and the community plays a vital role in maintaining the integrity of our financial systems. By working together, we can ensure that such fraudulent activities are swiftly addressed, promoting a safer environment for everyone involved.
A limited group of taxpayers still has the opportunity to claim their 2021 Recovery Rebate Credit before the deadline. Individuals who did not file their 2021 income tax returns yet can secure a potential refund of up to $1,400 per person by April 15. This credit was part of the federal government's efforts to bolster the economy during the pandemic. Families with no dependents could receive up to $1,400 for singles and $2,800 for married couples filing jointly without children. The IRS emphasizes that those eligible but unclaimed funds must be claimed via a 2021 tax return, even if their income was minimal or non-existent.
The Recovery Rebate Credit represented the final round of stimulus payments distributed in response to the economic challenges posed by the pandemic. In early 2021, the Internal Revenue Service initiated direct payments to households as advanced credits. These payments were more efficient due to prior data collection from earlier stimulus rounds. Matt Hetherwick, from the Accounting Aid Society in Detroit, mentioned an uptick in filings this year for the 2021 tax year, indicating some individuals are catching up on missed opportunities. He reassured that most people already received their payouts, but certain groups might still qualify.
For those unaware, additional tax benefits expanded during the pandemic include the child tax credit, dependent care expenses, and earned income tax credit. Filing a 2021 return offers access to these extra credits, making it advantageous for eligible taxpayers to submit their forms. The IRS provides free assistance through its Volunteer Income Tax Assistance and Tax Counseling for the Elderly programs for individuals earning $67,000 or less annually.
Not everyone qualifies for the maximum credit; eligibility depends on income thresholds. For instance, single filers earning above $80,000 and married couples filing jointly earning over $160,000 do not qualify for the recovery rebate. Those within the phaseout range may receive partial credits. Furthermore, any recovery rebate credited does not affect eligibility for other federal benefits such as Supplemental Security Income or food assistance programs.
Despite the looming deadline, many have already benefited from the stimulus payments during the pandemic’s peak. Interestingly, some late recipients saw unexpected refunds in recent months after filing overdue 2021 returns. Approximately one million taxpayers received surprise payments due to overlooked claims. The IRS proactively identified these cases and issued automatic payments without requiring further action from the beneficiaries.
Beyond the recovery rebate, substantial unclaimed refunds totaling over $1 billion remain available for those who haven't filed their 2021 returns. Michigan alone accounts for nearly 40,300 individuals owed roughly $37.3 million in refunds. By meeting the April 15 deadline, taxpayers stand to recover withheld taxes or access various tax credits enhancing their financial stability.