Retired Already? Continue Earning Even After Retirement with CDs

Surveys show that a common sentiment among retired people is that they are already good for nothing but staying idle at retirement homes, watching the sun set and enjoy a care-free life. While it’s true that retired people are entitled to the benefits of a stress-free life, some retired people still want to engage in other worthwhile activities—like money making opportunities— despite their careers being way past them already.

There are two points that must be addressed here. Not all money making ventures exhibit greediness. This is a misconception since you be using the money for other worthwhile purposes other than pure capitalistic aims. And second, retirement is not the end of one’s career. In fact, there are many successful entrepreneurs who reached success in their “careers” when they were already retired.

The lump sum that employees get upon retirement can be used for this purpose. You wouldn’t really get to spend much money in a month. Simple save yourself a couple of bucks for some restaurant treat or some weekend movies. Certificates of deposit are short-term investments that can run for as short as 3 months. And within three months, a significant interest will already be added to the original value of the investment.

This short term investments are great ways to earn instead of just letting your money sit idly in the bank. For one thing, the institution offering CD investments might put it to a better purpose (such as business investment) which can stimulate the economy. Doesn’t that make you feel better? You could be helping create more jobs for your countrymen with your money. Why keep it in a vault when you could lend it to some investment company and earn a monthly interest yourself?

But why should you be investing in CDs? Why not n series EE bonds, for that matter? While EE bonds have higher interest rates than CDs, they cannot be withdrawn before the agreed upon date of maturity. The investment is deemed worthless during urgent needs because the investor cannot get his hands on his own money. On the other hand, if the person invests on certificates of deposit, he can set as short as 3 months before withdrawing the money. On other instances, that maximum period can be set and the investment can still be withdrawn—minus the penalties for not finishing the contract. But at least, the money is withdrawable.

Also, why not in money market mutual funds when this could have a higher liquidity compared to CDs? Mutual funds may have higher liquidity but there are already established and proven ways to gain the principal amount of CDs investment without being penalized by the bank. Either the investor could just keep his emergency cash in an easily withdrawable account or choose to encash the investment by selling it to other investors.

You can sell the CD in secondary markets which will then give you the amount of investment plus the interests gained before you sold the CD. Also, CDs are more consistent in the interest rates they offer and are easier to sell in secondary markets because of the high profitability. Buyers will be interested in buying a CD which is set up in a maximum period of 5 years and is already near its maturity. Besides getting premium interest rates per month, the investment will also be back in a couple of years.

So stand up and prove to the world that retirement is not the end of it all. Making cash while retiring is a great way to make revenue. And just when you think there’s nothing more than you can do, think again. Sit back and enjoy your retirement while making your money work for you.