If you've been looking for a way to secure your financial future and decided to work with a financial coach, the money management tips you'll learn can be invaluable. A financial coach can teach you a lot of money management tips to not only secure the money that you do have but also to increase your wealth through proper investments. One such investment that your coach may suggest is certificates of deposit, widely known as CD's. Here are a few things that you need to know about this type of money management and habit coaching tool.

Why Invest In CD's?

The first thing your financial coach will tell you about CD's is what makes them such a good investment. These investments give you a guaranteed return over the CD's vesting period, so you know exactly how much you will be earning. This is ideal when you are trying to grow your portfolio to a specific level, and you want a safe means to do so as compared to stocks or similar unpredictable investments.

Despite their simplicity, there are a few things that your financial coach should tell you as you prepare to invest in your CD's. 

What Role Does The Federal Reserve Play?

Every couple of months, the Federal Reserve announces an interest rate review. Sometimes that review results in adjustments to the current federal interest rates, while other times, the interest rate stays the same.

If you are considering investing in CDs, take some time to monitor the Federal Reserve's interest rate trends. This keeps you informed of the current interest status of investments such

as CDs. 

Neglecting this could leave you buying CDs that lock you into a current rate when the rates have been climbing consistently. Watching and identifying that trend may allow you to hold off on your investments until you can get a better interest rate for your CDs or encourage you to buy now before the rates drop again in the next review.

Do You Understand The Financial Commitment?

When you invest in CDs, it's important that you fully understand the commitment that you are making before you do it. Remember that, if you buy a five-year CD, you lock in today's interest rate for the next five years. That means that, if rates go down, you're still guaranteed that return. However, it also means, should rates go up, you don't get the benefit of that increase for the full five-year span of that CD. Consider repeated shorter investment periods so that you can monitor investment rates and maximize your investment.

Working with a financial coach and learning money management techniques can help secure your financial future. Talk with a coach today about CD's and other investment tools.