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Old 05-07-2015, 08:37 PM   #41
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Will have to reinvest CD's maturing next year. (7yr@ 4%). Funny, 6 years ago, Financial Advisors, were saying, DO NOT GO LONG. Do not buy long term CD's.

Advice, was, interest rates will rise shortly, So buy short term. Did not
take there advice. Here it is 6 years later. Interest rates are lower, and
still have not gone up. Actually, have fallen.

How are other's handling this situation?
I don't thinks rates are going to go anywhere fast. Been buying brokered cd's 10 years , Goldman Sachs 3.1 percent. Interest paid in cash account , using that to buy other CDs as time move forward.
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Old 05-08-2015, 11:35 AM   #42
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How are other's handling this situation?
We keep two years' expenses (net after all other income) in cash-- the first year of cash is in a money market account and the second year of cash is in three-year CDs. "Three-year" CDs because if we need to break into them, the early-redemption penalty is only six months instead of one year.

My pension income is reliable enough that I don't feel the need to keep much of our portfolio in cash. (Two years is good enough to get through most bear markets.) Since we don't keep a lot in cash, we don't have to chase yield.
Chasing yield - Military Guide

That's the real danger with trying to maximize the interest on cash: the higher interest is always accompanied by higher risk. However the purpose of cash is liquidity and buying stuff at a discount, so it's acceptable to lose a little each year to inflation when you can negotiate a 10%-20% discount for cash.
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Old 05-10-2015, 10:11 PM   #43
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We've only had local CD's. Are the cd's such as through Synchrony and other online banks safe to purchase or such as buying a cd in a bank on the other side of the country from us? Basically just make sure they are FDIC insured??
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Old 05-10-2015, 10:20 PM   #44
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We've only had local CD's. Are the cd's such as through Synchrony and other online banks safe to purchase or such as buying a cd in a bank on the other side of the country from us? Basically just make sure they are FDIC insured??
FDIC insured is FDIC insured. Just make sure you read the fine print on surrender penalties, etc. That goes for local banks and internet.
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Old 05-11-2015, 05:39 AM   #45
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We've only had local CD's. Are the cd's such as through Synchrony and other online banks safe to purchase or such as buying a cd in a bank on the other side of the country from us? Basically just make sure they are FDIC insured??

Yes, they are FDIC insured. Synchrony Bank used to be known a GE Capital Retail Bank and have been around a while. You can set up ACH transfers with other banks to move your money around. They're customer service has been very good.
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