Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 11-26-2008, 07:35 PM   #21
Thinks s/he gets paid by the post
Gotadimple's Avatar
Join Date: Feb 2007
Posts: 2,235
Originally Posted by cardude View Post
Also, the credit union current money market rates are 2.39% for 100k, or 2.69 for over 350K. Are these money market funds guranteed 100K as well? Why would you put 350K in their money market if it was not guaranteed?

I've got 670K total cash I need to do something with, and I want it safe.

Be careful here! You are only covered up to 250,000 (or $100,000 when the levels revert) per account -- so if you have deposit accounts at the credit union in your name, they only cover you for the total of accounts up to $100k or $250k currently. See the NCUA website for further details.

That means you need to split your investment among several institutions. The simplest way to do that is through your broker, that way as the CDs mature you can direct new investments. Through your credit union (or if you were to identify a few banks with reasonable rates that you wanted to do business with) you need to liquidate the investment during a grace period or they will rollover at the current rate.

See for banks with current rates.

-- Rita
Only got A dimple, would have preferred 2!
Gotadimple is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-27-2008, 11:03 AM   #22
Recycles dryer sheets
SteveL's Avatar
Join Date: Aug 2005
Posts: 380
Buying FDIC guaranteed CD's from troubled institutions is a way to boost your yield. As long as you are under the limit ($100k or whatever) you are safe. I got some great deals via Schwab on Indymac CD's last year. Brokered CD's are a quick way for an institution to get a lot of bucks in a hurry. I read somewhere that these can be a sign of trouble to regulators.
One of my friends has someone manage his money. They put him into very "safe" Fannie and Freddie preferred, and Lehman bonds.
SteveL is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Brokered CD's with Ameritrade and Scottrade summer2007 FIRE and Money 3 10-11-2008 01:51 AM
Brokered CD's summer2007 FIRE and Money 13 07-15-2008 12:05 PM
Brokerage fees? A854321 FIRE and Money 24 08-10-2007 06:47 AM
Do you use just one brokerage firm? ksr Life after FIRE 23 06-10-2007 06:07 AM
Brokerage accounts RE2Boys FIRE and Money 23 05-03-2007 01:25 PM

» Quick Links

All times are GMT -6. The time now is 02:29 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.