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So which is safer?
Old 07-24-2008, 01:27 PM   #1
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So which is safer?

You have $500k, you have a 6 month time period......Do you feel safest in
A) 5 CD's
B) Government agency
C) Money Market
D) GE corporate bond
E) Any of the above
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Old 07-24-2008, 01:44 PM   #2
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Given the choices and 6 month time frame, I would go with 5 CDs.
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Old 07-24-2008, 01:52 PM   #3
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I read somewhere that Indymac bank depleted about 20% of FDIC reserves. Do you still go with the CD's?
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Old 07-24-2008, 03:09 PM   #4
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Old 07-24-2008, 03:18 PM   #5
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If FDIC defaults, there are no options but guns, gold, and gasoline that will be any good.

The other options on your poll will be just as worthless as your CDs.

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I read somewhere that Indymac bank depleted about 20% of FDIC reserves. Do you still go with the CD's?
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Old 07-24-2008, 04:58 PM   #6
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Well I would say the one that is paying the highest if you are only going out six money. Over many many years that would be another story.
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Old 07-24-2008, 05:07 PM   #7
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CD's - mindful of the $100,000 FDIC limit.

DD
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Old 07-25-2008, 07:11 AM   #8
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If I had only six months to live, I would feel safest in Las Vegas.
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Old 07-25-2008, 09:08 AM   #9
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Quote:
Originally Posted by Art G View Post
You have $500k, you have a 6 month time period......Do you feel safest in
A) 5 CD's
B) Government agency
C) Money Market
D) GE corporate bond
E) Any of the above
Well, I'd go with 6 month Treasuries, but that's just me........nice that you didn't include those..........

IndyMac has sucked about 12% of FDIC's total "bank" out, so FDIC may be the most underfunded it's been in a long time..........
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Old 07-25-2008, 09:20 AM   #10
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Six CDs -- not five -- since if you put $100K into each of them, the interest would kick you over the limit.
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Old 07-25-2008, 12:54 PM   #11
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Quote:
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If FDIC defaults, there are no options but guns, gold, and gasoline that will be any good.

The other options on your poll will be just as worthless as your CDs.

I think the last time I heard that quote was in reference to $3 per gallon gasoline.
If I had a dollar for every time I've heard that comment in reference to something that eventually came true.....
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Old 07-25-2008, 12:54 PM   #12
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Six CDs -- not five -- since if you put $100K into each of them, the interest would kick you over the limit.
Actually, it would be moot. If the CD goes under, the interest stops on that day.
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Old 07-25-2008, 01:02 PM   #13
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Art, which one do you think would be the best vehicle to park the $500K for six months, and why?
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Old 07-25-2008, 01:39 PM   #14
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I'm waiting til the money comes in to compare rates. It shouldn't even take a second thought over buying any of the above, and yet it is. GE may be the safest of the bunch. I wouldn't expect money market to fall any further than say .99 on the dollar worst case. I've got an Indymac bank that is sitting in limbo currently. No interest earning and I can't get to the money. I'm also considering 7 day remarketed preferreds.
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Old 07-25-2008, 01:48 PM   #15
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I'm waiting til the money comes in to compare rates. It shouldn't even take a second thought over buying any of the above, and yet it is. GE may be the safest of the bunch. I wouldn't expect money market to fall any further than say .99 on the dollar worst case. I've got an Indymac bank that is sitting in limbo currently. No interest earning and I can't get to the money. I'm also considering 7 day remarketed preferreds.
There's always 7-day put bonds..........
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Old 07-28-2008, 09:17 PM   #16
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Six CDs -- not five -- since if you put $100K into each of them, the interest would kick you over the limit.
Bingo!
Use at least 6 CDs.
Don't forget to insure your interest.
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Old 07-28-2008, 10:47 PM   #17
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Maybe I will buy that 5-year TIP next time.
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