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Old 04-12-2019, 04:00 PM   #361
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actually, stuff like that is used quite often in setting assumptions for financial modeling (which is the topic of this thread btw) - and you can make way more than a cup of coffee if you are well versed in it
You can model inflation in any year you like. We can all do it by just saying 2%.

With a basically flat yield curve what is the difference in the x-year treasury yield minus the x-year tips yield telling you today about inflation 10, 20, and 30 years from now? Is it believable? Will it be accurate? Doubtful.

I thought the topic of the thread was Best CD & MM Rates.
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Old 04-12-2019, 04:40 PM   #362
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You can model inflation in any year you like. We can all do it by just saying 2%.

With a basically flat yield curve what is the difference in the x-year treasury yield minus the x-year tips yield telling you today about inflation 10, 20, and 30 years from now? Is it believable? Will it be accurate? Doubtful.

I thought the topic of the thread was Best CD & MM Rates.
They tell you how the market has priced inflation over those periods. We can all cavalierly use a 2% assumption but it is nice to be able to tie that to a forward looking best estimate.
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Old 04-12-2019, 04:42 PM   #363
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Best CD & MM Rates Thread 2019 - Please post updates here
Old 04-12-2019, 05:24 PM   #364
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Best CD & MM Rates Thread 2019 - Please post updates here

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Thanks. I think it makes sense especially for the education purpose I have in mind which will allow the appreciation to be 100% tax free...hopefully.


I Bond interest is tax free if used for education purposes? I did not know that? I knew that was true for savings bonds but didnít realize it was also available for I bonds. I presume it has to be used for the educational expenses of the owner of the I bond as opposed to a child or a grandchild?
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Old 04-12-2019, 05:35 PM   #365
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I Bond interest is tax free if used for education purposes? I did not know that? I knew that was true for savings bonds but didnít realize it was also available for I bonds. I presume it has to be used for the educational expenses of the owner of the I bond as opposed to a child or a grandchild?
Be sure to understand all the requirements:
https://www.treasurydirect.gov/indiv..._education.htm

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The savings bond education tax exclusion permits qualified taxpayers to exclude from their gross income all or part of the interest paid upon the redemption of eligible Series EE and I Bonds issued after 1989, when the bond owner pays qualified higher education expenses at an eligible institution.
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Old 04-12-2019, 05:44 PM   #366
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Itís just a diversification play. I own some IBonds as well as MM funds, short-term CDs, and intermediate CDs and sometimes treasuries. My initial IBond purchase from 2003 is paying 1.1% plus inflation so currently paying 3.32%. Iím definitely holding onto that one until 2033.

.

Audrey are you sure about your current yield? We have a slug that we purchased in 2005 with a FR of 1% and our current yield is 3.3316%. Your yield should be higher according to my math.
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Old 04-12-2019, 05:48 PM   #367
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Audrey are you sure about your current yield? We have a slug that we purchased in 2005 with a FR of 1% and our current yield is 3.3316%. Your yield should be higher according to my math.
Should be 3.43%. Thanks.
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Old 04-12-2019, 06:47 PM   #368
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I Bond interest is tax free if used for education purposes? I did not know that? I knew that was true for savings bonds but didn’t realize it was also available for I bonds. I presume it has to be used for the educational expenses of the owner of the I bond as opposed to a child or a grandchild?
Looked this up for our situation.

The tax exclusion on Series EE and I savings bonds doesn’t apply unless the grandchild is your dependent
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Old 04-13-2019, 06:03 AM   #369
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1 year CD rates at credit unions and banks are quite a bit higher than the brokered CDs offered through Fidelity and I assume other brokerages.

Currently you can get around 1 year CDs in the 2.80% - 2.86% APR range. Andrews still has an 8 month 2.86% APR CD available - limit one per customer. Ally is offering a 15 month 2.80% CD special - although you may have to hunt for it. Synchrony is offering a standard 12 month 2.80% CD. Interestingly, at several of these institutions the 12 month rate exceeds longer maturities.

Meanwhile, the 9 month to 18 month CDs offered through Fidelity are stuck at 2.4%.
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Old 04-13-2019, 06:09 AM   #370
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Meanwhile, the 9 month to 18 month CDs offered through Fidelity are stuck at 2.4%.
MM Rates basically.
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Old 04-13-2019, 07:06 AM   #371
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MM Rates basically.
A batch of 9 month CDs at 2.45% popped up a few days ago on Fidelity and Merrill. I picked up a few in my Merrill account. The Fidelity ones were gone by the next morning. Then another batch showed up yesterday late afternoon - they were all taken within an hour. There were still some of these left at Merrill at the market close yesterday.

I have to be proactive early this week and look to sell some of my longer term municipal bonds as the prices have gotten out of hand - yield to maturity on them has gotten too low and so I have to sell and take profits instead of the yield over the remaining life. Long term rates may have gotten too low relative to how the economy is performing. Fed may have no choice but to raise rates come September or December.
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Old 04-13-2019, 04:31 PM   #372
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University FCU certificate

One of my short term CDs matured yesterday so I wired it (for free) right away to open a 5 year certificate at University Federal CU at 3.40% APY. While I am disappointed with the lower rates of the past 2 months, I wanted to lock this money with a decent rate. They do have a decent EWP of 6 months for their long term certificates. They have easy membership for all.
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Old 04-14-2019, 10:59 AM   #373
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Navy Federal CU CD
6 months - 3.0 APY
17 months - 3.25%

it might be worthwhile to open an IRA account with them.
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Old 04-14-2019, 11:38 AM   #374
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Navy Federal CU CD
6 months - 3.0 APY
17 months - 3.25%
Does Navy Federal have a membership option for non-military folks? I didn't see anything on their website.
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Old 04-14-2019, 12:46 PM   #375
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Does Navy Federal have a membership option for non-military folks? I didn't see anything on their website.
Nope!
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Old 04-14-2019, 02:38 PM   #376
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I was able to join Navy Fed and I"m not a veteran. You just need a family member to have been one to get membership.
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Old 04-14-2019, 03:26 PM   #377
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On NavyFed, I read somewhere the 3.75% 40 month IRA CD will go away after tomorrow, 4.15.19. Don't know if true, but heads up. No idea on the 3.25 or the 3%.
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Old 04-14-2019, 05:54 PM   #378
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On NavyFed, I read somewhere the 3.75% 40 month IRA CD will go away after tomorrow, 4.15.19. Don't know if true, but heads up. No idea on the 3.25 or the 3%.


That 40 month CD has an add-on feature so you can lock the rate before it expires if you wish for $50 and add funds later. It does have a 150k max. I use it to hold maturing funds from other CDs.
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Old 04-16-2019, 07:01 AM   #379
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DW Opened a 5 year IRA at Space Coast CU Yesterday @ 3.85%. That is my IRA and DW's locked for another 5 years at 3.8% & 3.85% Respectively, as PenFed were no longer competitive. We can change where the interest goes at any time but choose to compound it for now as we do not need the money and do not anticipate needing it. I will be 70 when mine matures and DW will be 65.

The ONLY annoying part is they pay interest daily, but only post quarterly... I like to do my financial statements monthly. Oh Well.... Still deserves a:
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Old 04-16-2019, 08:39 AM   #380
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DW Opened a 5 year IRA at Space Coast CU Yesterday @ 3.85%.
Nice!
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