Just how low are interest rates? Ben Eisen puts it all in context in the Wall Street Journal’s MoneyBeat:
In the U.S., it will take 107 years to double your money if you invest in a typical one-year Certificate of Deposit.
In Germany, rates are so low that it will take 1,387 years for your money to double.
In Japan, you better be patient. Your savings will need 6,932 years to double.
We’ve been advising investors for years that some assets they consider “safe” are far from being that. An investment that loses money once taxes and inflation are taken into account—or that doesn’t grow fast enough to keep you ahead of inflation—is not safe. Consider instead reallocating your CD money to a diversified portfolio of stocks and bonds to create an income stream that grows over time and preserves your purchasing power.