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Old 12-28-2013, 10:05 AM   #21
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Oh, Master Po, I see, but should not one keep a few years of emergency expenses in a readily available for. You taught me that many years ago.
If one can afford both, that is your reward for being frugal and wise.
But, often the bunny has only one carrot to eat when the rooster crows at noon. So, he must protect the carrot.

In other words, some people don't have enough money to do both, so they will put emergency money into the CD's to get more interest, and yet keep their losses to a minimum should they have to withdraw some of it.

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Old 12-28-2013, 10:18 AM   #22
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Originally Posted by Chuckanut View Post
If one can afford both, that is your reward for being frugal and wise.
But, often the bunny has only one carrot to eat when the rooster crows at noon. So, he must protect the carrot.

In other words, some people don't have enough money to do both, so they will put emergency money into the CD's to get more interest, and yet keep their losses to a minimum should they have to withdraw some of it.

\
In that case Master Po, I agree. My advice, as was your years ago, is to choose the Frugal and Wise route, advice I continue to offer to whose who care to listen. Living within one's means is also a fruitful path to follow.
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Old 12-28-2013, 11:58 AM   #23
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Their not inefficient, their keeping the float on your money for as long as the law allows. This is a well known pratice in the financial industry. Keep after them just in case.
MRG
+1...yes...they try to get all the float they can....
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Old 12-28-2013, 01:07 PM   #24
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In that case Master Po, I agree. My advice, as was your years ago, is to choose the Frugal and Wise route, advice I continue to offer to whose who care to listen. Living within one's means is also a fruitful path to follow.
Ah... true enlightenment!
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Old 12-28-2013, 05:15 PM   #25
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Are the credit union CDs also insured up to $250k per account? If not for the other reasons listed, I might have set up 2 CDs for 250k each, titled differently so as to keep coverage for all funds.

But I might be out of date in my limits here.
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Old 12-28-2013, 05:24 PM   #26
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Are the credit union CDs also insured up to $250k per account?
Yes. The NCUA insurance coverage is essentially the same as FDIC coverage for banks.
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Old 12-28-2013, 05:56 PM   #27
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Well, it looks like PenFed has had my $100K for 6 days now (days from when I saw the deduction from my Schwab account). I'll give them the weekend but by Tuesday, if it is not showing as available in my already opened IRA, I will be calling them.

Last year I had a $50K CD with Ally @ 2.4% that I had since it was offered. This was in my taxable account. We ended up buying a newer house this Fall (somewhat unplanned purchase) and had not sold the other home so funds to buy the newer one, paying cash, were just short by ~$15K. I had to break the Ally CD and even though the penalty was two months interest, I was not happy to do that.

So you never know what can come up. I believe I will by a set of $10K 3%'ers in the IRA so if the need is there to pick up a higher rate, I will not have to liquidate the whole mess.
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Old 12-28-2013, 05:57 PM   #28
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So you never know what can come up. I believe I will by a set of $10K 3%'ers in the IRA so if the need is there to pick up a higher rate, I will not have to liquidate the whole mess.
Doesn't PenFed offer partial early withdrawals from IRA CD's if you are over 59 1/2? I thought I saw that somewhere.
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Old 12-28-2013, 06:02 PM   #29
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Doesn't PenFed offer partial early withdrawals from IRA CD's if you are over 59 1/2? I thought I saw that somewhere.
Honestly, I don't know but will be looking into that, thanks.
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Old 12-28-2013, 06:37 PM   #30
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Well, it looks like PenFed has had my $100K for 6 days now (days from when I saw the deduction from my Schwab account).
My funds were transferred from Vanguard on 12/20 and my CD's showed up yesterday (12/27) with a 12/23 effective date.
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