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money market or cd
Old 12-02-2018, 09:14 AM   #1
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money market or cd

I have a sizable cd coming due at Penfed on Dec. 5. trying to decide whether to go for cd or money market to park funds for a while to see if cd rates go up. I can get 2.10 or 2.25 in money markets for 12 months. Do you think I should lock in now with cd or park in money market?
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Old 12-02-2018, 09:19 AM   #2
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I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.
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Old 12-02-2018, 09:20 AM   #3
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I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.
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Old 12-02-2018, 09:20 AM   #4
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I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.
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Old 12-02-2018, 09:30 AM   #5
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I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.
Why bother with a CD when Vanguard Prime Money Market is paying 2.32 and likely to continue to creep upward?
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Old 12-02-2018, 09:41 AM   #6
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can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?
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Old 12-02-2018, 09:48 AM   #7
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The VG Prime MM looks good or several of the online banks have no-penalty CDs at >2%
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Old 12-02-2018, 09:49 AM   #8
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Was going to do a 1-5 cd ladder at connexus at end of year when 5yr penfed cd's are up but now a little disappointed that the 5yr at connexus went down from 4% to 3.5%. Might just park it somewhere for a while.
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Old 12-02-2018, 09:52 AM   #9
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Discover Bank premium savings is paying 2%.
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Old 12-02-2018, 09:52 AM   #10
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I am going to look for a six to eight month CD after the December rate hike.
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Old 12-02-2018, 10:00 AM   #11
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Why bother with a CD when Vanguard Prime Money Market is paying 2.32 and likely to continue to creep upward?
Where there is the .16 e/r....just saying
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Old 12-02-2018, 10:05 AM   #12
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can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?
It is a MM you can take it out whenever you like.
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Old 12-02-2018, 10:12 AM   #13
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Where there is the .16 e/r....just saying

The yield is after expenses.
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Old 12-02-2018, 10:14 AM   #14
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Ignore - VMMXX earnings are reported as ordinary dividends and taxable.
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Old 12-02-2018, 10:16 AM   #15
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can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?

Vanguard’s MM fund compounds interest daily.
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Old 12-02-2018, 10:22 AM   #16
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can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?
Best to go to the site and understand the investment, find answers.

https://investor.vanguard.com/mutual...overview/vmmxx

I hold two Vanguard tax-free MMFs. I have checks for both, and can set up automatic withdrawals.
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Old 12-02-2018, 10:26 AM   #17
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[QUOTE=target2019;2150478I hold two Vanguard tax-free MMFs. I have checks for both, and can set up automatic withdrawals.[/QUOTE]

Does their income go towards MAGI for ACA Purposes?
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Old 12-02-2018, 10:42 AM   #18
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Does their income go towards MAGI for ACA Purposes?
The interest/dividends from our Vanguard muni MMFs went on line 8b.
I am covered by spouse's health insurance, and not really up on all the ACA questions.
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Old 12-02-2018, 10:44 AM   #19
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Does their income go towards MAGI for ACA Purposes?
Yes, tax free interest is on of the things added back to AGI to get MAGI.
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Old 12-02-2018, 10:45 AM   #20
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I am going to look for a six to eight month CD after the December rate hike.
Treasuries are probably a better bet for that time frame.
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