By Spencer Tierney | NerdWallet

Competitive rates on certificates of deposit have started to dip this year. If that trend continues, you might have a savings decision to make: Should you lock in CD rates now or wait?

Yields on savings accounts and CDs are some of the highest in more than a decade — above 5% at best, as of mid-February — but there are signs that these rates may not last. CDs are federally insured like savings accounts are, but their rates are fixed for the term you choose, generally from three months to five years.

Getting a CD with a yield multiple percentage points higher than the national average might be a boost for some of your savings.

CD rates: Their rise — and slow fall?

Since March 2022, the Federal Reserve raised its benchmark interest rate 11 times to curb inflation. Banks and credit unions generally take their cue to follow the direction of Fed rate changes. As a result, the highest CD rates soared from below 1% in January 2022 to their current heights of above 4% or 5% depending on term length. In contrast, CDs’ national average rates have remained below 2%.

However, CD yields might’ve peaked. The Fed’s last rate increase was in July 2023, and the Fed expects to begin rate cuts this year, according to its mid-December projections. But it’s unclear when.

“We expect that the Fed will lower its benchmark rate later in 2024, as early as March, but more likely, markets indicate later in the year, perhaps at a meeting this summer,” Rob Williams, managing director of financial planning at Charles Schwab, said in an email. Market rates for new brokered CDs longer than one-year terms have fallen modestly in part due to the expectation of rate cuts, he said.

High-yield CD rates outside brokerages have also seen dips. Nearly two dozen online banks and credit unions started dropping rates incrementally across many CD terms from December 2023 to January 2024, according to a NerdWallet analysis. For example, the midpoint for one-year CD rates in this group dropped from 5.10% to 5.00% since September 2023, while five-year CD rates stayed the same.

Traditionally, savers can expect that the higher the CD term, the higher the rate you can get. But this trend hasn’t been the case since January 2023 when short-term CDs, such as one-year rates, surpassed long-term CDs (such as five-year rates), based on NerdWallet data.

“Markets aren’t expecting a dramatic drop in rates in 2024, but for investors looking to lock in short-term rates now, it’s likely a good time,” Williams said.

The time and place for CDs

CDs can be best for earmarking funds for a large upcoming purchase, such as a car or home, or to maintain a guaranteed return for some of the cash portion of your investments.

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Since you give up access to funds during a CD’s term, CDs aren’t for everyday savings or an emergency fund. Withdrawing early from a CD usually means paying a penalty of at least several months of interest. CDs also don’t have the highest returns, so they’re not for long-term savings to grow your money, such as for retirement. Top CD yields are higher than the current inflation rate of 3.1%, so using CDs to protect some savings from inflation is possible now — but not always.

“A diversified portfolio of stocks, backed up by the stability and diversification of cash and bonds, based on an investor’s time horizon and risk tolerance, has generally been the most effective way to outpace inflation over time,” Williams said.

Choosing where you open CDs is important, too. Online banks and online credit unions tend to have some of the best CD rates and are generally accessible to anyone in the U.S. CDs at investment firms, known as brokered CDs, can offer competitive yields, but you need a brokerage account and some investing know-how to navigate the buying process. Community credit unions can have high yields too, but watch for membership restrictions and minimum or maximum deposit requirements.

Big traditional banks tend to have some of the lowest CD rates. They might offer promotional CDs with unusual terms such as seven or 13 months. Read the fine print since these CDs can automatically renew into more standard terms with lower rates.

Hedging bets instead of timing CDs

If you’re hoping for a crystal ball to know how much and how soon CDs will fall, don’t hold your breath. Even the first Fed rate cut may depend on inflation.

“That January [inflation] report was not reassuring that inflation is coming down and [so] it may be sticky, staying higher for longer,” says Daniel Talley, professor of economics and statistics at Dakota State University. “If inflation sticks around, then that means that could push out further when we can expect the Fed to lower rates.”

One strategy that takes the pressure off timing CDs is a CD ladder, which consists of opening several CDs of staggered term lengths such as one-year, two-year and three-year terms. You can redeem CDs at regular intervals and decide each time whether to renew in a long-term CD or withdraw. Given current rates, though, you might shorten your ladder, such as terms of three, six and nine months and one year, to take advantage of the highest yields.

If juggling multiple CDs sounds complicated, you can also open a no-penalty CD, allowing you to redeem early, then choose another CD or a different investment.

Compare CDs with other options

For regular access to funds, consider high-yield savings accounts while rates remain high. For comparable and stable returns to CDs, but more investing knowledge required, there are Treasury bills and bonds, which are backed by the full faith and credit of the U.S. government. Williams sees money market funds, which hold Treasury bills and other short-term, low-risk investments, as another cash investment option that can sell generally within 24 hours to access cash.

If your short-term goals align best with CDs, consider locking in high rates sooner rather than later.

 

The article The Best Time for High CD Rates Might Be Right Now originally appeared on NerdWallet.

The high school wrestling state tournament will take over downtown St. Paul for the next three days, with the team state tournament taking place Thursday and the individual tournament playing out over the course of Friday and Saturday before individual champs across three classes are crowned Saturday night. All competition will be held at Xcel Energy Center.

Action can be streamed at https://prep.spotlight.tv/MSHSL

Here are East Metro teams and individuals to watch:

TEAMS

Class 2A

No. 1 Simley

Hastings’ Blake Beissel holds up the first place trophy after defeating St. Michael-Albertville to win the Class 3A team championship of the State Wrestling Tournament at Xcel Energy Center in St. Paul on Thursday, March 2, 2023. (Craig Lassig / Special to the Pioneer Press)

Class 3A

No. 1 Mounds View, No. 4 Hastings (defending champion), Apple Valley and Forest Lake

BOYS INDIVIDUALS

(those ranked in the top three of their respective weight classes by The Guillotine)

Class 2A

Simley’s Turner Ross (107), Simley’s Austin Grzywinski (114), Simley’s Cash Raymond (152), Mahtomedi’s Evan McGuire (189)

Class 3A

Eagan’s Dylan St. Germain (107), Stillwater’s Joe Dauffenbach (107), St. Thomas Academy’s Grayson Eggum (114, son of Gophers coach Brandon Eggum), Mounds View’s Brett Swenson (114), Hastings’ Blake Beissel (121), Hastings’ Trey Beissel (127), Farmington’s Davis Parrow (139), Apple Valley’s Jayden Haueter (139), Woodbury’s Alex Braun (145), Mounds View’s Apollo Ashby (152), Woodbury’s Brad Little (152), Mounds View’s Colton Loween (160), Mounds View’s Ethan Swenson (172), Farmington’s Cole Han-Lindemyer (189), Mounds View’s Quin Morgan (215), Lakeville North’s Antonio Menard (215), Forest Lake’s Mark Rendl (285), Stillwater’s Cito Tuttle (285)

GIRLS INDIVIDUALS

(those ranked in the top three of their respective weight classes by The Guillotine)

One-class tournament

Apple Valley’s Hanah Schuster (112), Simley’s Charli Raymond (118), Apple Valley’s Andrea Quinones (124), Rosemount’s Kamdyn Saulter (124), Eastview’s Riley Myers (130), Centennial’s Nora Akpan (130), Apple Valley’s Cassy Gonzales (136), Stillwater’s Audrey Rogotzke (142), Hastings’ Skylar Little Soldier (148), Apple Valley’s Esperanza Calvillo (148), Roseville’s Alyzabeth Hiler (155), Apple Valley’s Grace Alagbo (170), Forest Lake’s Nas’Jarae White (170), Eastview’s Elsie Olson (170), Apple Valley’s Gloriann Vigniavo (190), Humboldt’s Brantajia Loggins (190)

Q. As a single woman in my late 70s with no children or grandchildren, I worry. Who will be there for me when I need someone – particularly if I need care? Also, as the years go by, I am increasingly uncomfortable when friends go to great lengths to tell stories about their children and share their photos. I am happy for them but feel like an outsider. Any suggestions? G.T.

Solo aging is an often overlooked topic. The term refers to singles or couples without children or other family support. AARP designates 50 as the qualifying age. The concern about care in later life is based on reality. Among those age 65 and older, 70 percent will need care at some point. However, 30 percent are unlikely to need care. Unfortunately, it is nearly impossible to determine which percentage will apply to which individual. 

I recently had the opportunity to speak with Sara Zeff Geber, author of “Essential Retirement Planning for Solo Agers: A Retirement and Aging Roadmap for Single and Childless Adults” (Mango, 2018). She advocates to “plan, form and maintain a community that becomes one’s support network.” And geography matters. Social networks evolve around where one lives. In our mobile society, families often live far away. Those in our network can help with a trip to the grocery store, a ride to an appointment, or assist with technology. See the Village movement as a support network in later life: https://www.vtvnetwork.org/

The other important task is to create directives. This gives someone the decision-making power to ensure that we live our future-older lives the way we want particularly if unwilling or unable to make decisions for ourselves. 

An advanced directive is a legal document that provides instructions for medical care that goes into effect if persons cannot communicate their wishes. The second legal document is a durable power of attorney that gives a person authority to manage one’s financial affairs and healthcare if unable (or unwilling) to manage them.

Geber says solo agers “often bury their heads in the sand” when an attorney asks for the names of individuals that will be named in the legal documents. She suggests considering a niece or nephew or a son or daughter of family-like friends and cultivating these relationships early on. 

Then there is the decision of where to live. Economics matter. Those with the financial resources might consider moving into a community that assures them care for the rest of their lives. These are called Continuing Care Communities that offer options for independent living, assisted living and memory care. Costs are based on amenities, floor plan, contract type, and location. 

Affordable options continue to be developed. One example is the 2Life Communities in the Boston area. Their communities are aimed at lower– and middle-income boomers, all designed with the belief that everyone deserves to live a life of stability, purpose, and connection. 

Shared housing is another option. Think of “The Golden Girls.” You might ask someone to share your home or consider moving into someone else’s home. Silvernest is a matching service that can facilitate an arrangement anywhere in the country. 

Another option is creating an ADU, which are legal auxiliary dwelling units on a property with an existing home. Then there is co-housing, “an intentional, collaborative neighborhood that combines private homes with shared indoor and outdoor spaces designed to support an active and interdependent community.” 

Geber writes a warning in a Forbes article about “The Cost of Denial,” stating: “Without good planning and foresight, one cardiac incident, one moment of disorientation that leads to a fall, one cancer diagnosis (and so much more) can lead to months or even years of being shuttled around from one unpleasant nursing home to the next, possibly even being rendered a ward of the court. No one wants that!

Empowerment is key. Each of us, with or without children, wants to have some control over how we live our later years. We need to exercise that power, taking the initiative and assuming the responsibility. 

A final comment about feeling like an outsider. As one solo ager said to me, “I feel outside the cultural norm. It seems normal to have a dog, kids or a partner, but not to be a solo ager.” Perhaps all of us can be more sensitive to the fact we are not all the same and realize that some may not be able to relate to grandchild experiences. At the same time, solo agers can seek out those with similar life circumstances. 

Thank you, G.T., for your good question. Stay well and know small acts of kindness can change the world.

Helen Dennis is a nationally recognized leader on issues of aging and the new retirement with academic, corporate and nonprofit experience. Contact Helen with your questions and comments at Helendenn@gmail.com. Visit Helen at HelenMdennis.com and follow her on facebook.com/SuccessfulAgingCommunity

For the first time since September, Chicago Bears coach Matt Eberflus will have a separate defensive coordinator on his staff.

The Bears announced Saturday that they hired Buffalo Bills assistant head coach and defensive line coach Eric Washington to be their new DC. Washington previously coached with the Bears from 2008-10 under Lovie Smith and served as the defensive line coach in 2010 with defensive coordinator Rod Marinelli, an Eberflus mentor.

Washington coached the Bills defensive line since 2020 and was promoted to senior defensive assistant in 2022 and assistant head coach in 2023. He has two years of defensive coordinator experience with the Carolina Panthers in 2018-19 under Ron Rivera. Before that, he coached the Panthers defensive line for seven seasons.

The Bills defense ranked in the top 10 in multiple categories in 2023, including total yards and passing yards allowed per game, sack rate, interception rate and points allowed per game.

Washington is considered a strong teacher and leader who is detailed in his focus on fundamentals and will be able to help the coaching staff schematically, a source said.

“He is a great communicator with elite leadership skills and he will enhance our current defensive staff,” Eberflus said in a statement Saturday. “His track record speaks for itself with coordinator experience as well as expertise in the area of defensive line.”

Eberflus did not fill the defensive coordinator position in September when Alan Williams resigned for what sources told the Tribune was conduct-related reasons, though Eberflus did add senior defensive analyst Phil Snow to help scout opponents. Eberflus took over play calling, and with the help of the addition of defensive end Montez Sweat, helped the defense turn around from a rough start.

Eberflus said this month that he still was determining whether he would continue to call plays after bringing in a coordinator, but NFL Network reported Saturday that the expectation is Eberflus will remain in that role.

“It’s something I’ve stated I love to do,” Eberflus said this month. “But as we talk to these candidates, we’re going to keep everything open right now.”

Washington will help ease the load for Eberflus, who noted during the season he was working later nights to fill both roles. Eberflus said he was looking for a coordinator with high character who was a strong motivator. He wanted someone who could lead the defensive room while Eberflus addresses other areas of the team.

“My family and I are beyond excited to be returning to the Chicago Bears,” Washington said in a statement. “It is humbling to have the opportunity to contribute to one of the most esteemed sports organizations in the world.”

While the Bears fired five offensive coaches — including coordinator Luke Getsy — when their 7-10 season ended, Eberflus opted to keep the defensive staff intact. Washington joins a group that includes cornerbacks coach/defensive passing game coordinator Jon Hoke, defensive line coach Travis Smith, linebackers coach Dave Borgonzi and safeties coach Andre Curtis.

The Bears finished 12th with 324.2 yards allowed per game and had the top-ranked rushing defense, allowing just 86.4 yards per game on the ground. They also finished with a league-best 3.57% interception rate after totaling 22 interceptions to go with six fumble-recovery takeaways.

Their passing defense, ranked 25th with 237.8 yards allowed per game, and their league-worst 4.86% sack rate need improvement.

Washington joins what the Bears hope is an ascending group. He played tight end at Grambling State and also coached defensive line at Northwestern (2004-07) and Ohio (2001-03).

The Bears reportedly interviewed at least three other coaches to join their defensive staff: former Green Bay Packers defensive coordinator Joe Barry, Tennessee Titans assistant head coach/defensive line Terrell Williams and Titans defensive pass game coordinator Chris Harris.

Washington will be the Bears’ third major hire since the season ended. They have announced the