Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Fixed Income Options
Old 08-14-2008, 05:54 PM   #1
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Fixed Income Options

I'm about to roll over a CD and am less than thrilled with the nominal 4% for a 2 year CD. Does anyone have a non-mutual fund suggestion for "safe" fixed income. I want to know when the fixed income principle will be returned with a "guaranteed" amount. This would be very safe money.

I'm not interested in preferreds or mutual funds. This is the ultra-safe bucket.

I'm considering TIPS and just eating the low interest rate CD. I just thought I'd see what other people may have stumbled across.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-14-2008, 06:01 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
OOh, ooh! I know, I know! Pay off your mortgage! Then refinance in the future to get your money back.
__________________

__________________
LOL! is offline   Reply With Quote
Old 08-14-2008, 06:10 PM   #3
Administrator
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 38,846
Quote:
Originally Posted by 2B View Post
I'm about to roll over a CD and am less than thrilled with the nominal 4% for a 2 year CD. Does anyone have a non-mutual fund suggestion for "safe" fixed income. I want to know when the fixed income principle will be returned with a "guaranteed" amount. This would be very safe money.

I'm not interested in preferreds or mutual funds. This is the ultra-safe bucket.

I'm considering TIPS and just eating the low interest rate CD. I just thought I'd see what other people may have stumbled across.
It's a good question. I am not very thrilled with most bonds lately, but I have heard that municipal bonds are good.

I wouldn't want to invest in any long term CD's right now. I also wouldn't want to invest in gold.. Thorny problem. I have mine in MM (which isn't paying well) and bond funds right now (some of which seem to be worse). I have a little time to read and learn while they sit there losing ground with respect to inflation.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities.

- - H. Melville, 1851
W2R is offline   Reply With Quote
Old 08-14-2008, 07:40 PM   #4
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 206
There are several FDIC savings accounts that are in the 3.5% range. Safe as a CD - almost the same interest and liquidity to move when the interest rates increase (as they must)
__________________
I'm trying to find myself.* Have you seen me anywhere today?
Mysto is offline   Reply With Quote
Old 08-14-2008, 08:07 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 5,459
Quote:
Originally Posted by 2B View Post
I'm about to roll over a CD and am less than thrilled with the nominal 4% for a 2 year CD. Does anyone have a non-mutual fund suggestion for "safe" fixed income. I want to know when the fixed income principle will be returned with a "guaranteed" amount. This would be very safe money.

I'm not interested in preferreds or mutual funds. This is the ultra-safe bucket.

I'm considering TIPS and just eating the low interest rate CD. I just thought I'd see what other people may have stumbled across.
here's a 5 year cd at 5.28%: Bank Deals - Best Rates and Deals
__________________
calmloki is offline   Reply With Quote
Old 08-14-2008, 09:38 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Munis. Buy a GO bond ad go back to sleep until maturity.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 08-14-2008, 09:48 PM   #7
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Annuity?

__________________
Marquette is offline   Reply With Quote
Old 08-14-2008, 09:53 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
I think I'd rather go back to the 'pay off the mortgage' portion of the program.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 08-14-2008, 10:40 PM   #9
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 184
Quote:
Originally Posted by 2B View Post
I just thought I'd see what other people may have stumbled across.
4.25% APY 6 mo. CD, FDIC, at a bank under US Comptroller letter to raise their capitol. Ads seem to be in local paper & last about 2 weeks. Seem to be restricted to local residents.
__________________
HpRyder is offline   Reply With Quote
Old 08-15-2008, 01:01 AM   #10
Thinks s/he gets paid by the post
 
Join Date: May 2008
Posts: 3,421
Quote:
Originally Posted by brewer12345 View Post
Munis. Buy a GO bond ad go back to sleep until maturity.
Buying bonds directly or bond funds?

What are the yields and maturities?
__________________
explanade is offline   Reply With Quote
Old 08-15-2008, 08:10 AM   #11
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
I neglected to say that this is in my IRA so munis and paying off the mortgage aren't viable options.

Many years ago I thought paying off the mortgage was a good idea (about 14% at the time). Unfortunately, I lost my job and suddenly had 3 months of living expenses including unemployment outside of my home equity. Since the biggest employer in town was laying people off in droves, home prices plummetted. I luckily got a new job quickly and the new employer did a home buy at my original purchase price.

Ever since then, having at least 1 year of living expenses readily available in an after tax account has been a basic feature of my financial planning.

I suspect that I'll get the short term CD and keep on with my original plan.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 08-15-2008, 09:49 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by explanade View Post
Buying bonds directly or bond funds?

What are the yields and maturities?
If you want a specified sum at a particular time, single bond is the way to go. Yield depends on maturity and issuer, but they compare quite favorably with treasuries and CDs if you are in the 25% or higher bracket.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 08-15-2008, 01:13 PM   #13
Full time employment: Posting here.
CitricAcid's Avatar
 
Join Date: May 2008
Posts: 546
Muni bonds or short-term cash CDs (6 month CD). As others have stated, with interest rates and inflation in the state that they are now, once the election date is over, interest rates may finally start to rise, hurting bond prices. Would not lock in long-term to that!
__________________
CitricAcid is offline   Reply With Quote
Old 08-15-2008, 03:27 PM   #14
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Quote:
Originally Posted by CitricAcid View Post
Muni bonds or short-term cash CDs (6 month CD). As others have stated, with interest rates and inflation in the state that they are now, once the election date is over, interest rates may finally start to rise, hurting bond prices. Would not lock in long-term to that!
That's why I want to stay reasonably short. I don't think that interest rates will go up before the election no matter what. If the banking mess calms down with inflation where it is, I expect a quick 2% increase in the fed funds. More could easily follow.

I bought a 4.25% CD that matures in Dec 2009. I didn't want to go out 4 years for 5%.
__________________

__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fixed Income alternative RockOn FIRE and Money 7 03-04-2008 11:22 AM
Fixed Income Allocations Jax FIRE and Money 4 10-19-2004 08:22 AM
Fixed Income Portfolio Help DFW_M5 FIRE and Money 4 01-12-2004 03:53 PM
More On Fixed Income ShokWaveRider FIRE and Money 2 01-12-2004 03:21 PM
Fixed Income Choices airstyle FIRE and Money 2 01-04-2004 11:23 AM

 

 
All times are GMT -6. The time now is 07:16 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.