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where to park some money?
11-02-2018, 05:45 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: dubuque
Posts: 1,174
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where to park some money?
I have a sizable cd coming due the first of december. I was considering parking this money in a savings or 12 month cd. I think the cd rates are going to climb for a while, but don't know how long to wait before getting a long term cd. my question is what would you do with it? use short term cd, use the no penalty for withdrawal cd, high yield savings, or just go with todays long term 5 year rates? do you think the cd rates will increase another point in the next twelve months or stay flat? thanks
frank
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11-02-2018, 05:52 AM
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#2
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,371
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VMMXX.... liquid, safe and currently pays 2.2%
https://investor.vanguard.com/mutual.../profile/VMMXX
I'm doing the same thing... parked in VMMXX waiting for CD rates to increase.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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11-02-2018, 07:06 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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The yield curve sort of flattens out after two years so I am moving mostly to brokered CDs at around the two year mark. Bought some yesterday ~3.05%
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11-02-2018, 07:18 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Posts: 1,166
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Ditto on VMMXX. Good yield @ ~2.2%. Not FDIC insured, but has never "broken the buck" (far as I know).
I'm in the same boat as you - have some CDs maturing and am expecting rates to inch up slightly (.1 - .25) after the next Fed raise in Dec. 2-yr brokered CDs @ 3.05 look to be the sweet spot at this point - decent yield but not locking in "too" long. I'm personally not going out beyond 2 year maturity at this point as we have at least 1 and as many as 5 rate increases coming over the next 13 months..I did buy some 3-yr earlier this year and am now regretting as I have one at 2.8%. Oh well..
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11-02-2018, 07:32 AM
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#5
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Recycles dryer sheets
Join Date: May 2013
Posts: 327
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Perfect timing - was wondering where to stash a slug of EE Bonds that matured yesterday. Thanks for excellent advice!
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11-02-2018, 07:34 AM
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#6
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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Ally Bank has a 2.1% no penalty CD for 11 months. If the rates go up in the near future, they'll increase the rate. No new deposits to it allowed, but there is no penalty for withdrawals.
They did have a $1,000 bonus for new customers bringing in substantial deposits, but it expired. Ally seems to often to have sales promos going on.
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11-02-2018, 07:58 AM
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#7
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Recycles dryer sheets
Join Date: May 2012
Posts: 90
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T Bills/Treasury MMF maybe better if you have high state tax like NY, Ca.
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11-02-2018, 08:04 AM
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#8
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Recycles dryer sheets
Join Date: Mar 2018
Location: CONUS
Posts: 187
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 Quote:
Originally Posted by RetireSoon
Ditto on VMMXX. Good yield @ ~2.2%. Not FDIC insured, but has never "broken the buck" (far as I know).
I'm in the same boat as you - have some CDs maturing and am expecting rates to inch up slightly (.1 - .25) after the next Fed raise in Dec. 2-yr brokered CDs @ 3.05 look to be the sweet spot at this point - decent yield but not locking in "too" long. I'm personally not going out beyond 2 year maturity at this point as we have at least 1 and as many as 5 rate increases coming over the next 13 months..I did buy some 3-yr earlier this year and am now regretting as I have one at 2.8%. Oh well..
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Not to one up you, RetireSoon, but I have a 4-year CD that matures in 2020 with an APY of...1.98%.  If only I could yell at my younger, dumber self!
__________________
W*rking hard, enjoying life.
Target: RE at 42 in '28 but subject to change because life be like that sometimes
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11-02-2018, 08:29 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jan 2008
Posts: 1,671
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Quote:
Originally Posted by hlfo718
T Bills/Treasury MMF maybe better if you have high state tax like NY, Ca.
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Yes; if subject to state tax, treasury notes are competitive with CDs and don't have all the liquidity fuss that CDs have. Once you get a sizeable amount, there is almost no substitute for treasuries.
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where to park some money?
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11-02-2018, 09:44 AM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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where to park some money?
Deleted
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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where to park some money?
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11-02-2018, 09:49 AM
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#11
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,327
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where to park some money?
Quote:
Originally Posted by TDub
Not to one up you, RetireSoon, but I have a 4-year CD that matures in 2020 with an APY of...1.98%. If only I could yell at my younger, dumber self! |
Why don’t you sell it. I just cashed in a CD with only 8 months left to maturity. I use the early withdrawal penalty calculator on deposit accounts.com to assess the penalty.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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11-02-2018, 09:58 AM
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#12
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gone traveling
Join Date: Feb 2012
Posts: 148
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2.15% apy
Here are two FDIC options....
CIT Bank 2.15% money market (called "savings builder") &
Goldman Sachs Bank aka Marcus 2.15% 13 month no penalty CD
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11-02-2018, 11:21 AM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2008
Location: NC
Posts: 21,304
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Quote:
Originally Posted by pb4uski
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I just put some money in VMMXX. Nice to see some return there where there was none. A few years ago I took all my cash out of VMMXX and opened an Ally account paying 1% when VMMXX was essentially zero. Now they’re comparable returns.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57
Target AA: 50% equity funds / 45% bonds / 5% cash
Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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11-02-2018, 01:09 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: dubuque
Posts: 1,174
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all good ideas. I have about 30 days before my cd matures. maybe something better will show up by then, otherwise the no penalty cd's look pretty good.
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11-02-2018, 01:20 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Aug 2012
Posts: 1,862
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Quote:
Originally Posted by pb4uski
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Tritto on VMMXX. That's my bucket for 'down' years.
__________________
FIRE Class of 2018 @ 61
Old men and women sit in the shade of trees they planted long ago
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11-02-2018, 05:27 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 2,873
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Another +1 for VMMXX.
I’m in the process of moving all my high yields savings back to this fund.
__________________
Eat, Drink and Be Merry.
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11-03-2018, 03:18 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,795
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Quote:
Originally Posted by jebmke
The yield curve sort of flattens out after two years so I am moving mostly to brokered CDs at around the two year mark. Bought some yesterday ~3.05%
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Yeah, IMO, the sweet spot on CD's is 2-3 years. Not enough bonus to go 5 or more.
Park your cash with Ally and check out their no penalty CD.
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11-03-2018, 06:30 AM
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#18
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,884
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If you plan on putting the money in a CD at some point, just buy a 2-3 year CD now. Nobody knows if CD rates will be higher in 6-12 months or lower.
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11-03-2018, 07:23 AM
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#19
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,723
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I have a whopper (Post Tax i.e. Cash) CD maturing in December from PenFED. Trying to decide what I want to do. 1 year at the highest I can get, 3 year MYGA (Tax Deferred) or just MM for now.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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11-03-2018, 11:05 AM
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#20
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Recycles dryer sheets
Join Date: May 2015
Location: NorCal
Posts: 333
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I just purchased some 6 month zero coupon Treasuries yielding 2.49% on Fidelity's website (no State tax). It doesn't make sense to buy 12 month CDs unless it paid close to 3% or 18 month CDs unless it was paying over 3.25%. IMHO.
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