It’s been a long time since we’ve seen inflation-adjusted interest rates above zero. Since the Fed began hiking interest rates, investors can once again earn attractive returns on cash. But as Peter with Richon Planning explains to Erin Kennedy, you may be earning less money than you think after accounting for inflation and taxes.
Instead of socking your money away in CDs, treasuries, or Money Market accounts, Peter suggests you consider Buffered ETFs, which can offer full principal protection. Also, unlike cash and cash alternatives, Buffered ETFs don’t generate taxable interest. Instead, you get much more favorable capital gains treatment and only pay taxes when you decide to sell.
