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CDs vs. Mutual Funds: What's the Better Investment Now?

The Motley Fool

Image source: Getty Images There are many excellent options for investors right now, including high-yield certificates of deposit (CDs) and mutual funds. Meanwhile, mutual funds give you access to a large portfolio of different investments, like stocks and bonds, with the potential to grow your money over the long term.

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Warren Buffett Recently Sold 34 Million Shares of Bank of America. But That Doesn't Mean You Should

The Motley Fool

Here's an intriguing headline: " Warren Buffett's Berkshire trims Bank of America stake for the first time since 2019 after strong rally." And another: "Warren Buffett's Berkshire Hathaway sells 34 million Bank of America shares." Buffett's Bank of America sale in context Let's first examine this sale in context.

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This Is the Average 401(k) Balance, Data Shows. How Does Yours Compare?

The Motley Fool

Instead, that account gets funded before your paycheck even hits your bank account. Rather, you're usually limited to different funds that allow you to invest in the stock market, either on a very broad level (like with an S&P 500 index fund) or based on the choices someone other than you makes.

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Got $500 to Invest in Stocks? Put It in This Index Fund.

The Motley Fool

Of course, before investing, you should probably create an emergency fund (in a bank account, CD, or other easily accessible but super safe account) with three to six months of living expenses in it. Probably the best-known option here is a mutual fund , but most mutual funds require more than $500 to get in the door.

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3 Little-Known Ways to Avoid Taxes on CDs

The Motley Fool

Most HSAs give you plenty of options to invest your contributions, such as stocks, ETFs, and mutual funds. Like bank CDs, HSA CDs can give you a fixed interest rate for guaranteed returns. One thing to note is that CDs in retirement accounts won't be bank CDs. Likewise, CDs are usually among this mix.

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Get Decades of Passive Income From This High-Dividend-Yield ETF

The Motley Fool

Luckily, there's an exchange-traded fund ( ETF ) that accomplishes that goal with just one purchase. About the Vanguard High Dividend Yield ETF ETFs are like mutual funds in that they are baskets of stocks selected for specific characteristics. ETFs are more flexible, however, as they trade during the market day.

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This Is the Average 401(k) Balance for Ages 55 to 64

The Motley Fool

Average 401(k) balance for 55 to 64 year olds Mutual fund company Vanguard crunches the numbers every year using data from its own clients. Credit card and banking fees are yet another cost that can be minimized with just a little effort. Most 401(k) plans only offer a limited number of mutual funds to choose from.