For most of my working career I have been in IRA CD's , mostly because of NAFTA. In this area companies open and close to only go to Mexico, Malaysia etc etc within 5 years; so I eventually rolled My 401k's over into a IRA CD.
However with the crappy rate of 3.5% at best, it looks like the market and policy makers are creating a vortex to suck more people in and that worries me...so many people are in the market who would otherwise not be there because of the rate of returns elsewhere....the economy has become more linear and not diverse enough to go from a small recession to a major one again....too many people are in the market who would otherwise not want to be there!
It feels like the last few Administrations have propping up this economy with low interest rates and when this bubble pops, there will go the last remaining wealth of the American middle class that wasnt gobbled up in the 2007 bubble....spiraling into the abyss.
I dont like the market, I dont trust the market but a dividened income stream from a utility company would be a lot better than 3.5 percent...I guess my interest "breaking point" is 4 %...anything less than 4% will turn me into a lemming too; ready to go off the cliff with the rest if my CD IRA rate drops below 4 %
