Financial advisors are fucking idiots. What I wrote at the Wall Street Journal on 4/30/2016.

This is why the "experts" are worse than useless.

"How attractive are Goldman’s rates? At 1.05% for a savings account and 2% for a five-year CD, they are quite competitive."

JNJ - annual dividend yield 2.86%

KO - annual dividend yield 3.12%

PM - annual dividend yield 4.16%

T - annual dividend yield 4.94%

All 4 of these Dividend Aristocrats increase the dividend every year, as they all have for at least the past 25 years.

There are several other rock-solid safe Dividend Aristocrats.

The idea is hold for life, never care if the stock market goes up or down, and watch the dividend income grow, and grow even faster if the dividends are reinvested (for free at Charles Schwab).

http://blogs.wsj.com/moneybeat/2016/04/29/take-a-hint-from-goldman-squeeze-more-out-of-your-cash/

Someone complained. My response:

"If a stock with a 3% dividend is down 5%, you're still taking a loss."

Very true but notice I said "hold for life, never care if the stock market goes up or down."

I want the stock market to crash. Then my reinvested dividends can buy more shares.

I only have a capital loss if I sell. I'm never going to sell.

From a google search: "The key point is that capital losses are losses only after you sell them."

Of course if someone is just looking for a place to park their cash for 5 years and then use it to buy a new house or new car, then "2% for a five-year CD" is a good idea.