Finding More Confidence In Fixed Rates Of Return

A closer look at fixed-rate opportunities that can help bring greater confidence to your financial future

Thursday Aug. 6th, 2026

Kurt Kern, APMA®, CRPC® | Financial Advisor & Managing Partner of River Prairie Wealth Partners

In today’s environment, many individuals and families are looking for ways to grow their money while helping reduce uncertainty. Market fluctuations can make it difficult to feel confident about short- and long-term goals, especially when those goals include retirement income, major purchases, or simply preserving what you have worked hard to build.

The good news is that there are solutions designed to provide a measure of stability through fixed rates of return. When used as part of a thoughtful financial strategy, these tools can help bring balance and clarity to your overall plan.

RETHINKING THE ROLE OF CASH

Cash is often viewed as something set aside for emergencies or short-term needs. However, it can play a more strategic role. Government securities money market funds offer one way to put cash to work while maintaining a high level of stability and liquidity.

Money market funds invest primarily in short-term U.S. government securities, which are generally considered among the most stable fixed-income investments. They aim to provide a competitive yield while preserving principal and allowing ready access to funds. While not FDIC or NCUA insured like banks or credit unions, they invest in similar vehicles as money market savings accounts yet tend to yield higher interest.

UNDERSTANDING BROKERED CDS

For those seeking a balance between stability and return, brokered certificates of deposit (CDs) can be an attractive option. Unlike traditional bank CDs, brokered CDs are typically limited inventories of certificates not advertised to the general retail customer and purchased in a brokerage account. They can provide access to a wider range of issuers, terms, and interest rates and because they’re issued by banks, they typically remain insured by FDIC.*

One distinguishing feature is their flexibility. Brokered CDs can often be bought and sold in the secondary market, which may provide liquidity before maturity—although values may fluctuate based on interest rate changes. Note that a secondary market is not guaranteed, and brokered CD’s may be sold at a loss. They can also be structured in ladders, allowing investors to stagger maturities and help manage interest rate risk over time.

Ameriprise Financial Services, LLC is not a FDIC-insured bank; FDIC insurance only covers the insolvency of FDIC-insured banks.

Certain conditions must be satisfied for pass-through FDIC insurance coverage to apply.

EXPLORING SHORT-TERM BOND FUNDS

Short-term bond funds invest in bonds with relatively short maturities, typically ranging from one to five years.

Because of their shorter duration, they generally experience less price volatility than intermediate- or long-term bond funds while often providing higher income potential than cash or money market investments.

These funds can be a useful option for investors seeking a balance between stability, liquidity, and yield, but unlike bank accounts, money market funds, or Treasury bills, their value can fluctuate and they are not guaranteed against loss of principal.

A PERSONALIZED APPROACH MATTERS

While cash alternatives and other fixed-income investments can play an important role in preserving capital and providing income, investors should be aware of their limitations. Over time, inflation can erode purchasing power, meaning that even positive returns may not keep pace with rising costs.
Fixed-income investments are also subject to interest rate risk, where rising rates can cause bond prices to decline. Additionally, maintaining too much in conservative investments may result in opportunity cost, as investors could miss participation in periods of strong equity market growth.
For this reason, cash and fixed-income investments are often most effective when aligned with a specific liquidity need, time horizon, or risk-management objective rather than serving as a long-term growth strategy. A financial advisor can help evaluate your overall financial picture, including your liquidity needs, emergency reserves, upcoming expenses, tax situation, and investment objectives.

If you are wondering how to position your cash, preserve your savings, or create more predictable income, this may be a good time to take a fresh look. With the right approach, fixed product solutions can help bring greater confidence to your financial future.

*Although Brokered Certificates of Deposit are FDIC insured up to the applicable limits; currently $250,000 per depositor, per insured bank, for each ownership category, the FDIC insurance applies only to the principal investment and will not apply to any amount paid over par value, if applicable.

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Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

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