So which is safer?

[Art G]

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

 

[Purron]

Given the choices and 6 month time frame, I would go with 5 CDs.

 

[Art G]

I read somewhere that Indymac bank depleted about 20% of FDIC reserves. Do you still go with the CD's?

 

[CybrMike]

Cash in the mattress. Never Fails.

 

[Hamlet]

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 read somewhere that Indymac bank depleted about 20% of FDIC reserves. Do you still go with the CD's?

 

[FANOFJESUS]

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.

 

[DblDoc]

CD's - mindful of the $100,000 FDIC limit.

DD

 

[RonBoyd]

If I had only six months to live, I would feel safest in Las Vegas.

 

[FinanceDude]

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..........

 

[ziggy29]

Six CDs -- not five -- since if you put $100K into each of them, the interest would kick you over the limit.

 

[Art G]

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.....

 

[Art G]

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.

 

[Bestwifeever]

Art, which one do you think would be the best vehicle to park the $500K for six months, and why?

 

[Art G]

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.

 

[FinanceDude]

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..........

 

[TN_INVEST]

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.

 

[Ed_The_Gypsy]

Maybe I will buy that 5-year TIP next time.