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CD or Money Market
#9037697
04/23/24 04:47 PM
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Joined: Oct 2008
Posts: 15,202
Tbar
OP
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OP
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I'm looking at either a new issue CD(5.35%) or a Money Market(5.03%).
At this moment in time would you lock in the rate or stay liquid in the money market?
Make America Great Again
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Re: CD or Money Market
[Re: Tbar]
#9037700
04/23/24 04:54 PM
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Joined: Dec 2008
Posts: 1,598
thegrouse
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I like flexibility and liquidity. YMMV, depends on your risk tolerance and if you may need the money.
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Re: CD or Money Market
[Re: Tbar]
#9037709
04/23/24 05:10 PM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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I'm looking at either a new issue CD(5.35%) or a Money Market(5.03%).
At this moment in time would you lock in the rate or stay liquid in the money market?
Lock in I have noticed the better CD rates are getting shorter time period, like only 8 months. Problem is you can't lock in very long at anything over 5% Either one is a good just depends your and how long you want to tie up cash The experts keep saying interest rates cuts are coming, but that still hasn't happened. Just a few months ago they were saying 3 interest rate cuts were coming in 2024, you see that hasn't happened yet.
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Re: CD or Money Market
[Re: Tbar]
#9037722
04/23/24 05:30 PM
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Joined: Nov 2018
Posts: 1,540
fishdfly
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Be very careful with CD's
I received an unsolicited post card from Edward Jones in the mail yesterday. Interest rate for 3-mo was 5.3, 6-mo 5.3 and 1-yr was 5.09. I was interested
Read the very tiny fine print. If Cds are sold prior to maturity, the investor can loose principal value and a bunch of other garbage. Yields quoted are net of all commissions.
Nope.
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Re: CD or Money Market
[Re: Tbar]
#9037724
04/23/24 05:34 PM
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Joined: Apr 2013
Posts: 8,528
freerange
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Living in good times right now when either choice looks good. Others comments are right on and you likely know that. Your possible need for the money is one factor and trying to anticipate rate changes is separate. No one knows but an informed “guess” should be better than a coin flip. I pay a guy to make those type decisions for me.
At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR Keep your gratitude higher than your expectations. RWH
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Re: CD or Money Market
[Re: DannyB]
#9037733
04/23/24 06:01 PM
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Joined: Jan 2009
Posts: 19,287
Judd
#1 Creedmoor Fan
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Treasury Direct's website takes some getting used to It's horrible...I used it to buy some series I bonds and it almost not worth it. But I did eventually figure it out and it's been well worth the hassle.
Don't let your ears hear what your eyes didn't see, and don't let your mouth say what your heart doesn't feel
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Re: CD or Money Market
[Re: Tbar]
#9037742
04/23/24 06:14 PM
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Joined: Dec 2009
Posts: 9,862
The Dude Abides
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Why not both...diversify?
I am still looking for the perfect apron, one with reinforced knee areas would be perfect.
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Re: CD or Money Market
[Re: fishdfly]
#9037744
04/23/24 06:14 PM
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Joined: Mar 2010
Posts: 12,306
ntxtrapper
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Be very careful with CD's
I received an unsolicited post card from Edward Jones in the mail yesterday. Interest rate for 3-mo was 5.3, 6-mo 5.3 and 1-yr was 5.09. I was interested
Read the very tiny fine print. If Cds are sold prior to maturity, the investor can loose principal value and a bunch of other garbage. Yields quoted are net of all commissions.
Nope. That's Edward Jones for you. Go to an actual real bank and CD's are great. I just had one mature and got 18K for doing nothing.
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Re: CD or Money Market
[Re: Tbar]
#9037746
04/23/24 06:22 PM
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Joined: Jun 2015
Posts: 18,784
Roll-Tide
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This reminded me to renew mine. Think I’m going Texas Capital Bank, 5 percent.
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Re: CD or Money Market
[Re: Tbar]
#9037753
04/23/24 06:26 PM
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Joined: Jun 2007
Posts: 1,890
blanked
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access
Last edited by blanked; 04/23/24 06:30 PM.
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Re: CD or Money Market
[Re: blanked]
#9037770
04/23/24 07:11 PM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Incorrect They have CD up to 5 years
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Re: CD or Money Market
[Re: The Dude Abides]
#9037771
04/23/24 07:12 PM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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Why not both...diversify?
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Re: CD or Money Market
[Re: blanked]
#9037775
04/23/24 07:16 PM
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Joined: Nov 2014
Posts: 7,789
Mr. T.
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I?
Cabin rental in Pagosa Springs, Co. Sleeps 10, If interested please PM me.
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Re: CD or Money Market
[Re: Mr. T.]
#9037779
04/23/24 07:22 PM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I? Yep
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Re: CD or Money Market
[Re: Tbar]
#9037785
04/23/24 07:43 PM
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Joined: Jul 2019
Posts: 2,352
rolyat.nosaj
Veteran Tracker
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Posts: 2,352 |
Robinhood money market account at 5.25% for first 3 months, then it goes to 5%
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Re: CD or Money Market
[Re: RedRanger]
#9037786
04/23/24 07:43 PM
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Joined: Jan 2013
Posts: 2,819
Gringo Bling
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Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I?
Yep The 5% in your example is the APY, which is annualized. So 9 months is 75% of a year. That means you would earn ~75% of the annualized 5% rate. Say you started with $10,000. At the end of 9 months, you'd get 9/12 * 5.0% * $10,000 = $375 in interest plus your initial deposit of $10,000.
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Re: CD or Money Market
[Re: RedRanger]
#9037789
04/23/24 07:53 PM
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Joined: Dec 2011
Posts: 14,297
Ramsey
Pepe' Le Pew
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I'm looking at either a new issue CD(5.35%) or a Money Market(5.03%).
At this moment in time would you lock in the rate or stay liquid in the money market?
Lock in I have noticed the better CD rates are getting shorter time period, like only 8 months. Problem is you can't lock in very long at anything over 5% Either one is a good just depends your and how long you want to tie up cash The experts keep saying interest rates cuts are coming, but that still hasn't happened. Just a few months ago they were saying 3 interest rate cuts were coming in 2024, you see that hasn't happened yet. Those same experts predicted a recession last year. Talking heads. I would listen to RedRanger before CNBC!!
Big Beckett!!
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Re: CD or Money Market
[Re: Tbar]
#9037804
04/23/24 08:39 PM
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Joined: Jan 2024
Posts: 126
Mr. 806
Woodsman
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Woodsman
Joined: Jan 2024
Posts: 126 |
CD for us these days. Keep a few Benjamins in a Money Market as well for easy access. 5.25% is easy money in my opinion if you have cash to sit on for a bit.
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Re: CD or Money Market
[Re: Tbar]
#9037838
04/23/24 09:52 PM
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Joined: Jul 2023
Posts: 189
Mistereeee
Woodsman
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Woodsman
Joined: Jul 2023
Posts: 189 |
That is a great rate on the money market, but it can change very quickly.
I am recommending one year CD's for my clients, even though our 90 day CD's have a higher rate.
Happy to answer any questions anyone might have! I manage a branch of a Texas-based bank in Austin.
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Re: CD or Money Market
[Re: Tbar]
#9037845
04/23/24 10:01 PM
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Joined: Oct 2008
Posts: 16,833
68rustbucket
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I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days.
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Re: CD or Money Market
[Re: Tbar]
#9037850
04/23/24 10:05 PM
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Joined: Jul 2013
Posts: 6,063
tlk
THF Trophy Hunter
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I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.
For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.
I have placed some of my long term money into several 5 year fixed annuities at 6%.
You can't fix stupid
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Re: CD or Money Market
[Re: 68rustbucket]
#9037852
04/23/24 10:08 PM
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Joined: Jun 2015
Posts: 18,784
Roll-Tide
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I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days. Is there a 10k limit on t bills. ?
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Re: CD or Money Market
[Re: Roll-Tide]
#9037871
04/23/24 10:51 PM
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Joined: Sep 2004
Posts: 10,861
DannyB
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I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days. Is there a 10k limit on t bills. ? There is no limit that I'm aware of. I've been buying some here and there for years. A few of them are auto-renewing every week. I don't understand why anyone would mess with CDs or money market funds when these 30-Day T-Bills are getting about 5.5% with no time commitment beyond 30 days. I have a family member that had money market funds frozen during the 2008 financial chaos. They got their money, but they had to wait. Here are some money market fun times: https://www.gao.gov/products/gao-23-105535
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Re: CD or Money Market
[Re: Roll-Tide]
#9037875
04/23/24 10:57 PM
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Joined: Oct 2008
Posts: 16,833
68rustbucket
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I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days. Is there a 10k limit on t bills. ? There is in an I bond, but I’ve put more than that in a 13 week T-bill recently. Another plus is you don’t have to physically go to the bank and fill out a bunch of paper, like when I bought a couple CDs last year. It can be handled on the Treasury website.
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Re: CD or Money Market
[Re: 68rustbucket]
#9037886
04/23/24 11:10 PM
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Joined: Jul 2013
Posts: 6,063
tlk
THF Trophy Hunter
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Joined: Jul 2013
Posts: 6,063 |
I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days. Is there a 10k limit on t bills. ? There is in an I bond, but I’ve put more than that in a 13 week T-bill recently. Another plus is you don’t have to physically go to the bank and fill out a bunch of paper, like when I bought a couple CDs last year. It can be handled on the Treasury website. you can do a CD online with a simple application - I bonds have a 10k limit - Tbills no limit
You can't fix stupid
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Re: CD or Money Market
[Re: tlk]
#9037887
04/23/24 11:11 PM
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Joined: Oct 2008
Posts: 16,833
68rustbucket
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I’ve had good luck with T-Bills on the Treasury Direct site. Have some 4, 13, and 52 week issued. The 4 week I have them renew automatically, in case I’ll need it for some reason. Paying around 5.25% these days. Is there a 10k limit on t bills. ? There is in an I bond, but I’ve put more than that in a 13 week T-bill recently. Another plus is you don’t have to physically go to the bank and fill out a bunch of paper, like when I bought a couple CDs last year. It can be handled on the Treasury website. you can do a CD online with a simple application - I bonds have a 10k limit - Tbills no limit No CD online with Frost Bank.
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Re: CD or Money Market
[Re: Mr. T.]
#9037892
04/23/24 11:20 PM
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Joined: Jun 2007
Posts: 1,890
blanked
Pro Tracker
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I? No. That 5% rate is an APR rate. Meaning annual percentage rate. So you will get less than the 5% APR after 9 months. Read the fine print to confirm. Or ask the bank specifically what rate you will receive since you didnt have a full 12 month agreement. Also you need to be aware the agreement can be cancelled by the bank if the rate goes down during your contract. You have the option to lock in another rate if that should happen but the new lock in rate will be less than the 5% they advertised . Called Put Options
Last edited by blanked; 04/23/24 11:32 PM.
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Re: CD or Money Market
[Re: Tbar]
#9038013
04/24/24 09:47 AM
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Joined: Jul 2013
Posts: 6,063
tlk
THF Trophy Hunter
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There is in an I bond, but I’ve put more than that in a 13 week T-bill recently. Another plus is you don’t have to physically go to the bank and fill out a bunch of paper, like when I bought a couple CDs last year. It can be handled on the Treasury website.[/quote]
you can do a CD online with a simple application - I bonds have a 10k limit - Tbills no limit[/quote] No CD online with Frost Bank.[/quote]
I was referring to online banks - Capital One, Marcus, Fidelity etc. have good rates and very simple online application
You can't fix stupid
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Re: CD or Money Market
[Re: Gringo Bling]
#9038021
04/24/24 10:17 AM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I?
Yep The 5% in your example is the APY, which is annualized. So 9 months is 75% of a year. That means you would earn ~75% of the annualized 5% rate. Say you started with $10,000. At the end of 9 months, you'd get 9/12 * 5.0% * $10,000 = $375 in interest plus your initial deposit of $10,000. Same difference, you can try to explain it all you want. It's still 5% per year, whether you go 1 month or 5 years.
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Re: CD or Money Market
[Re: tlk]
#9038022
04/24/24 10:19 AM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.
For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.
I have placed some of my long term money into several 5 year fixed annuities at 6%. Link please to this fixed annuity paying in the 6% range.
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Re: CD or Money Market
[Re: blanked]
#9038023
04/24/24 10:23 AM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I? No. That 5% rate is an APR rate. Meaning annual percentage rate. So you will get less than the 5% APR after 9 months. Read the fine print to confirm. Or ask the bank specifically what rate you will receive since you didnt have a full 12 month agreement. Also you need to be aware the agreement can be cancelled by the bank if the rate goes down during your contract. You have the option to lock in another rate if that should happen but the new lock in rate will be less than the 5% they advertised . Called Put Options Of course the 5% is the annual rate. Banks can't cancel a CD term if rates go down, where did you get that from. You are paid the gauranteed percentage rate you sign up for.
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Re: CD or Money Market
[Re: RedRanger]
#9038024
04/24/24 10:31 AM
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Joined: Jul 2013
Posts: 6,063
tlk
THF Trophy Hunter
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I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.
For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.
I have placed some of my long term money into several 5 year fixed annuities at 6%. Link please to this fixed annuity paying in the 6% range. https://www.annuity.org/annuities/rates/I have an Atlantic Coast fixed annuity
Last edited by tlk; 04/24/24 10:32 AM.
You can't fix stupid
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Re: CD or Money Market
[Re: Tbar]
#9038025
04/24/24 10:36 AM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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Re: CD or Money Market
[Re: RedRanger]
#9038040
04/24/24 11:57 AM
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Joined: Jun 2007
Posts: 1,890
blanked
Pro Tracker
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All CDs fully mature in 12 months despite claiming its a 6 or 9 month CD.
Consider laddered CDs. Every 3 months open a new CD so they mature at different times giving you access Please explain. If I buy a 9 month at 5% CD, I get 5% for nine months and my money at the end of nine months......don't I? No. That 5% rate is an APR rate. Meaning annual percentage rate. So you will get less than the 5% APR after 9 months. Read the fine print to confirm. Or ask the bank specifically what rate you will receive since you didnt have a full 12 month agreement. Also you need to be aware the agreement can be cancelled by the bank if the rate goes down during your contract. You have the option to lock in another rate if that should happen but the new lock in rate will be less than the 5% they advertised . Called Put Options Of course the 5% is the annual rate. Banks can't cancel a CD term if rates go down, where did you get that from. You are paid the gauranteed percentage rate you sign up for. Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
Last edited by blanked; 04/24/24 12:10 PM.
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Re: CD or Money Market
[Re: Tbar]
#9038045
04/24/24 12:18 PM
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Joined: Jun 2006
Posts: 8,357
Dave Davidson
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5% is a good rate. However, none of it makes sense when the real rate of inflation is greater than 5%.
Without a sense of urgency, nothing ever happens.
Boy, if I say "sic em", you'd better look for something to bite. Sam Shelley, Rancher Muleshoe Texas 1892-1985 RIP
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Re: CD or Money Market
[Re: tlk]
#9038055
04/24/24 01:04 PM
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Joined: Sep 2004
Posts: 10,861
DannyB
THF Celebrity
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I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.
For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.
I have placed some of my long term money into several 5 year fixed annuities at 6%. Link please to this fixed annuity paying in the 6% range. https://www.annuity.org/annuities/rates/I have an Atlantic Coast fixed annuity Good grief man, couldn't you find a weaker rated insurance company. You might as well have put your funds in Micky Mouse Life Insurance Company of Argentina. Rating (Rating Category): Affiliation Code: B++ u (Good) g (Group) Outlook (or Implication): Negative Action: Under Review Effective Date: February 23, 2024 Initial Rating Date: June 30, 1976Annuities have their place. However, I wouldn't put a dime in anything but the strongest like Northwestern Mutual, New York Life, etc.
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Re: CD or Money Market
[Re: blanked]
#9038081
04/24/24 01:58 PM
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Joined: Jul 2023
Posts: 189
Mistereeee
Woodsman
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Woodsman
Joined: Jul 2023
Posts: 189 |
[/quote]
Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
[/quote]
Worked in banking for over 20 years, at every bank you've ever heard of and some you haven't... Never seen a bank cancel a CD when rates went down.
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Re: CD or Money Market
[Re: Tbar]
#9038114
04/24/24 03:37 PM
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Joined: Jan 2007
Posts: 15,533
reeltexan
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Between those two, obviously the CD.
"If we ever forget that we are One Nation Under God, then we will be a nation gone under." Ronald Reagan
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Re: CD or Money Market
[Re: Tbar]
#9038119
04/24/24 03:57 PM
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Joined: Oct 2008
Posts: 15,202
Tbar
OP
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OP
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Posts: 15,202 |
I appreciate the input.
I had looked at a 2 year treasury and a 2 year JPM new issue, callable CD and the CD had a higher rate.
I was comparing those to the liquid money market which wasn't that far behind.
I don't need the money. My decision is do I lock in the rate as the fed keeps saying they are going to cut in the future or keep it liquid in case a better opportunity comes up. Ie - higher inflation drive up rates.
Make America Great Again
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Re: CD or Money Market
[Re: Tbar]
#9038130
04/24/24 04:41 PM
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Joined: Apr 2013
Posts: 8,528
freerange
THF Trophy Hunter
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Joined: Apr 2013
Posts: 8,528 |
I appreciate the input.
I had looked at a 2 year treasury and a 2 year JPM new issue, callable CD and the CD had a higher rate.
I was comparing those to the liquid money market which wasn't that far behind.
I don't need the money. My decision is do I lock in the rate as the fed keeps saying they are going to cut in the future or keep it liquid in case a better opportunity comes up. Ie - higher inflation drive up rates. A more specific question, so good for you on that. The more general question brought in some good info for all, so that had value. Hopefully the experts can offer more than a flip of the coin answer. I can’t. I’m always hedging my bet so I have some of both.
Last edited by freerange; 04/24/24 04:42 PM.
At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR Keep your gratitude higher than your expectations. RWH
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Re: CD or Money Market
[Re: DannyB]
#9038288
04/25/24 01:44 AM
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Joined: Jul 2013
Posts: 6,063
tlk
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I will take 5% with no risk all day long. As others have said if you have other access to money then locking in a CD for a year or two is good stuff IMO.
For money you are willing to lock up for longer a multi year fixed annuity is paying in the 6% range and that rate is guaranteed either 3 or 5 years (your choice) and all of the earnings are tax deferred until you withdraw it. No fees other than a penalty if you withdraw more than 10% in a single year.
I have placed some of my long term money into several 5 year fixed annuities at 6%. Link please to this fixed annuity paying in the 6% range. https://www.annuity.org/annuities/rates/I have an Atlantic Coast fixed annuity Good grief man, couldn't you find a weaker rated insurance company. You might as well have put your funds in Micky Mouse Life Insurance Company of Argentina. Rating (Rating Category): Affiliation Code: B++ u (Good) g (Group) Outlook (or Implication): Negative Action: Under Review Effective Date: February 23, 2024 Initial Rating Date: June 30, 1976Annuities have their place. However, I wouldn't put a dime in anything but the strongest like Northwestern Mutual, New York Life, etc. Sir I do not need you preaching to me and your smart [censored] remarks - I bought my annuity two years ago and AC was well rated. The very recent downgrade in their rating is news to me that just came out in the last two months - and by the way Texas has a guarantee fund for up to $250.000 to protect consumers. My post did not tell others to buy their annuities - I simply stated that I had one of their annuities - chill out
You can't fix stupid
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Re: CD or Money Market
[Re: blanked]
#9038333
04/25/24 10:48 AM
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Joined: Sep 2004
Posts: 12,428
RedRanger
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Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
Wrong again You must be looking at some oddball CD Legit Banks like Capital One or Bank OZK don't have silly stuff like that, you can go read thier CD Disclousure.
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Re: CD or Money Market
[Re: tlk]
#9038355
04/25/24 01:16 PM
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Joined: Sep 2004
Posts: 10,861
DannyB
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Sir I do not need you preaching to me and your smart [censored] remarks - I bought my annuity two years ago and AC was well rated. The very recent downgrade in their rating is news to me that just came out in the last two months - and by the way Texas has a guarantee fund for up to $250.000 to protect consumers. My post did not tell others to buy their annuities - I simply stated that I had one of their annuities - chill out [/quote]
I'll just refer you to the Age vs. humor thread. I'm in my upper 60's and I guess humor is one of the perks of age. You ended that post with chill out. Hmmm.........
I think annuities are great for several reasons, the best being liability protection. If TX law hasn't changed in recent years an annuity is shielded from litigation.
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Re: CD or Money Market
[Re: blanked]
#9038374
04/25/24 02:06 PM
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Joined: Jan 2013
Posts: 2,819
Gringo Bling
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Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
Like Red Ranger has pointed out, you are wrong. Fixed-rate CDs have rates that remain unchanged until maturity.
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Re: CD or Money Market
[Re: Gringo Bling]
#9038618
04/25/24 10:44 PM
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Joined: Jun 2007
Posts: 1,890
blanked
Pro Tracker
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Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
Like Red Ranger has pointed out, you are wrong. Fixed-rate CDs have rates that remain unchanged until maturity. Read. As i have been saying the higher CD rates can be terminated. Callable CDs pay more than fix rate which i have been calling locked in rates Callable CDs work similarly although there’s one key difference: they carry a call feature. This means that banks can terminate the CD before it matures. Banks usually have to wait a defined period of time before they’re able to call a CD. If a bank does call your CD, you get to keep the principal (or the amount you initially invested) and the interest payments you’ve accrued up until the date it was called. You won’t get the remainder of interest you would have earned had the CD reached maturity.
Last edited by blanked; 04/25/24 10:51 PM.
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Re: CD or Money Market
[Re: Mistereeee]
#9038683
04/26/24 12:55 AM
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Joined: Mar 2010
Posts: 12,306
ntxtrapper
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Again the locked in rate that’s guaranteed is a lower rate. Not the advertised rate. They cancel CDs all the time if the rates go down.
Worked in banking for over 20 years, at every bank you've ever heard of and some you haven't... Never seen a bank cancel a CD when rates went down.
That makes me wonder if it happens with any frequency.
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Re: CD or Money Market
[Re: Tbar]
#9038702
04/26/24 01:52 AM
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Joined: Jan 2014
Posts: 1,441
BDB
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I have a question for the experts. We have an extra business account with Bank of palestine (America) We opened it as a secondary account to our normal Chase business account ( these 2 locations are across the street from another on Town East Bld in mesquite, where we use to live) So we NEVER use that account...it has close to 10k just sitting there, not growing, not going down, I wonder if they think were dead lol, its been 10 years at least when we opened it, threw a little money in it as a backup account.
What would the experts do with it? We don't need it .....yet
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Re: CD or Money Market
[Re: Tbar]
#9038712
04/26/24 02:14 AM
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Joined: Jun 2015
Posts: 18,784
Roll-Tide
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I need to Check into this more. But in my Fidelity 401k I went very conservative.
Does Fidelity offer CD type interest of something similar to 5 percent?
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Re: CD or Money Market
[Re: BDB]
#9038713
04/26/24 02:14 AM
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Joined: Jan 2008
Posts: 9,362
scot
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I have a question for the experts. We have an extra business account with Bank of palestine (America) We opened it as a secondary account to our normal Chase business account ( these 2 locations are across the street from another on Town East Bld in mesquite, where we use to live) So we NEVER use that account...it has close to 10k just sitting there, not growing, not going down, I wonder if they think were dead lol, its been 10 years at least when we opened it, threw a little money in it as a backup account.
What would the experts do with it? We don't need it .....yet Not an expert but stayed in a holiday inn once. When you say don’t need it, this year? The next 5 years? 10+ years? The answer could be Money Market at Vanguard or other brokerage making 5.3% totally liquid but will change as federal rates change. 1-3 years, a CD is attractive if you can lock in guaranteed over 5. If you have 5-10 years you need to be in a total market stock fund. People are real excited about 5% guaranteed, however the whole market is up 30% the past year. If you can accept the risk you can expect 7-10% returns annually if you don’t sell when it has a down turn.
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Re: CD or Money Market
[Re: Roll-Tide]
#9038723
04/26/24 02:33 AM
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Joined: Sep 2004
Posts: 10,861
DannyB
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I need to Check into this more. But in my Fidelity 401k I went very conservative.
Does Fidelity offer CD type interest of something similar to 5 percent? I think at Fidelity there are some rules regarding qualified funds (IRAs) vs. regular investment account cash. The symbol SPAXX is an IRA money market that is 4.95 today, but was about 5% not long ago. The regular account cash symbol is FZFXX, which is a money market at 4.94 today, and about 5% not long ago. I’m not sure some more time spent on the phone with them might fish around and get about a tenth or so better. I briefly had one of these accounts in T-Bills, but it wasn’t as easy to keep up with as Treasury Direct. That says a lot, considering how tricky Treasury Direct’s website is. If any of you try Treasury Direct put a sign on your computer that says DO NOT HIT THE BACK BUTTON. If you do you get to log back in and start over. Logging in is a process, which is OK with me now for it’s triple jeopardy security. If anybody ever gets your funds out of that place they are good hackers.
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Re: CD or Money Market
[Re: BDB]
#9038725
04/26/24 02:36 AM
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Joined: Jun 2007
Posts: 1,890
blanked
Pro Tracker
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Joined: Jun 2007
Posts: 1,890 |
I have a question for the experts. We have an extra business account with Bank of palestine (America) We opened it as a secondary account to our normal Chase business account ( these 2 locations are across the street from another on Town East Bld in mesquite, where we use to live) So we NEVER use that account...it has close to 10k just sitting there, not growing, not going down, I wonder if they think were dead lol, its been 10 years at least when we opened it, threw a little money in it as a backup account.
What would the experts do with it? We don't need it .....yet Put it in a S&P 500 tracking ETF like SPY or mutual fund if you dont need it for 5 or more years. Also what scot said a total market fund like VTI or VTSAX CDs in 401ks are designed for active retirees or within a few years of retiring
Last edited by blanked; 04/26/24 02:48 AM.
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Re: CD or Money Market
[Re: scot]
#9038889
04/26/24 03:30 PM
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Joined: Apr 2013
Posts: 8,528
freerange
THF Trophy Hunter
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Joined: Apr 2013
Posts: 8,528 |
I have a question for the experts. We have an extra business account with Bank of palestine (America) We opened it as a secondary account to our normal Chase business account ( these 2 locations are across the street from another on Town East Bld in mesquite, where we use to live) So we NEVER use that account...it has close to 10k just sitting there, not growing, not going down, I wonder if they think were dead lol, its been 10 years at least when we opened it, threw a little money in it as a backup account.
What would the experts do with it? We don't need it .....yet Not an expert but stayed in a holiday inn once. When you say don’t need it, this year? The next 5 years? 10+ years? The answer could be Money Market at Vanguard or other brokerage making 5.3% totally liquid but will change as federal rates change. 1-3 years, a CD is attractive if you can lock in guaranteed over 5. If you have 5-10 years you need to be in a total market stock fund. People are real excited about 5% guaranteed, however the whole market is up 30% the past year. If you can accept the risk you can expect 7-10% returns annually if you don’t sell when it has a down turn. ^^^^ I like this post.
At some point in life its time to quit chasing the pot of gold and just enjoy the rainbow. FR Keep your gratitude higher than your expectations. RWH
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Re: CD or Money Market
[Re: Tbar]
#9039079
04/26/24 10:24 PM
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Joined: Jan 2012
Posts: 29,167
TXHOGSLAYER
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Joined: Jan 2012
Posts: 29,167 |
If I didn't need it for 5 years or more, the least I would do would be an index fund. S&P has averaged 7.7% over the last 60 years.
NVIDIA stock up 116 bucks a share since last Friday
LETS GO BRANDON
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Re: CD or Money Market
[Re: Roll-Tide]
#9039092
04/26/24 11:14 PM
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Joined: Jun 2007
Posts: 1,890
blanked
Pro Tracker
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I need to Check into this more. But in my Fidelity 401k I went very conservative.
Does Fidelity offer CD type interest of something similar to 5 percent? Fidelity has a specific department called Brokerage Link. In brokerage link you will have access to everything not just fidelity stuff. Its self directed but they can help you purchase what you are looking for
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