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Old 05-12-2020, 01:34 PM   #441
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Were any family members Veterans?
My daughter was in the Army reserves for 6 years. After her 6 months of training she was never called up to active duty.
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Old 05-12-2020, 01:55 PM   #442
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My daughter was in the Army reserves for 6 years. After her 6 months of training she was never called up to active duty.
Sounds like you are eligible.
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Old 05-14-2020, 03:19 AM   #443
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Is there a way to join Navy Federal if one hasn't been in the service and has no family members currently in the service?
i dont think they really check...
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Old 05-14-2020, 05:02 AM   #444
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I just slipped in under the wire with 1.45%.

Today, I opened a 1 year CD with Marcus for 1.6%.

I have some 2.5% CDs floating around. I dread having to reinvest it later this year.
Yeah. I was so proud of the five year CD ladder that I finally managed to finish last year with a blended yield of 3.25%. This year's rung matures in June. One option I have is to throw those proceeds into the GTE add on CD opened last year rather than establishing a new 5 year CD at the best prevailing rate that I can find. Not sure which course we'll follow. The whole idea of a rolling 5 year ladder is to smooth out the return while maintaining the ladder. I don't really want to stray from that plan. We'll see what the actual numbers look like when the time comes.
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Old 05-14-2020, 05:05 AM   #445
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Unless you are using the proceeds from a ladder, I'm not sure a ladder makes sense... IOW, if you are just rolling the proceeds of the ladder over then I'd add it to the GTE CD.
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Old 05-14-2020, 05:38 AM   #446
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Unless you are using the proceeds from a ladder, I'm not sure a ladder makes sense... IOW, if you are just rolling the proceeds of the ladder over then I'd add it to the GTE CD.

I agree.
In “normal times” you get more yield by going out 5 yrs vs shorter terms and that is why the ladder makes sense. Currently there is almost no premium for going out 5 yrs. I buy whatever maturity seems to be the best value. My add-on CDs are far superior to anything currently available. My CD ladder is lumpy. I use about a third for expense and roll the rest into my add-on CD.
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Old 05-14-2020, 05:43 AM   #447
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Unless you are using the proceeds from a ladder, I'm not sure a ladder makes sense... IOW, if you are just rolling the proceeds of the ladder over then I'd add it to the GTE CD.
No, proceeds are not used for anything. Just another piece of our fixed income portfolio, ultrasafe, and with rates last year in the 3's, I was racing to establish it, with a high blended rate, rather than keeping the money all in short term CD's. The ladder concept includes the advantage that you only need to look for a new home for 20% of the money each year and during normal times usually rates at the long end offer the highest rates. So this approach should generate a dividend stream that does not fluctuate much from year to year. (I know you know this PB). If I throw the 2020 maturity into the 2023 CD(it was a 4 year CD when I purchased it), then I'll have to invest 40% of the ladder in 2023, and be subject to the prevailing rates at the time, kind of contrary to the original principle.
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Old 05-14-2020, 05:44 AM   #448
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I agree.
In “normal times” you get more yield by going out 5 yrs vs shorter terms and that is why the ladder makes sense. Currently there is almost no premium for going out 5 yrs. I buy whatever maturity seems to be the best value. My add-on CDs are far superior to anything currently available. My CD ladder is lumpy. I use about a third for expense and roll the rest into my add-on CD.
Yes. I wish I had more add ons. I only have the one at this point.
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Old 05-14-2020, 06:15 AM   #449
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No, proceeds are not used for anything. Just another piece of our fixed income portfolio, ultrasafe, and with rates last year in the 3's, I was racing to establish it, with a high blended rate, rather than keeping the money all in short term CD's. The ladder concept includes the advantage that you only need to look for a new home for 20% of the money each year and during normal times usually rates at the long end offer the highest rates. So this approach should generate a dividend stream that does not fluctuate much from year to year. (I know you know this PB). If I throw the 2020 maturity into the 2023 CD(it was a 4 year CD when I purchased it), then I'll have to invest 40% of the ladder in 2023, and be subject to the prevailing rates at the time, kind of contrary to the original principle.
For my fixed income in CDs I just go out as far as I need to to get a juicy good rate... it seems that the sweet spot tends to be 5 years more ofter than not. The good part is that I only have to looks for a new home every 5 years... the bad part is reinvestment risk. When the 3% 5-year PenFed CDs matured in Dec 2018 I had to park the money for about 6 months before I foudn some other CDs that I liked and they happened to be 5-year CDs.
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Old 05-14-2020, 07:04 AM   #450
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Looks like we avoided negative rates. For the moment anyway...........
Will see what things look like mid 2022 when about 1/2 of mine expire / and go from there.
Hate to lower my 3.40% average .........But here we are....
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Old 05-14-2020, 10:52 AM   #451
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American Express Bank high yield savings goes to 1.3% from 1.5% effective today, 5/14.

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Old 05-16-2020, 09:35 AM   #452
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How about the Capital One Performance Savings Account?

https://www.capitalone.com/score500/[/URL]

If you factor in the cash bonus the effective interest rate comes out to 2.5%. I haven't seen any other savings accounts with rates anywhere near that. I read the disclosure and don't see any catches. Looks like all you have to do is maintain the balance in whatever tier you're in for 90 days to get the bonus.
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Old 05-16-2020, 10:04 AM   #453
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How about the Capital One Performance Savings Account?

https://www.capitalone.com/score500/[/URL]

If you factor in the cash bonus the effective interest rate comes out to 2.5%. I haven't seen any other savings accounts with rates anywhere near that. I read the disclosure and don't see any catches. Looks like all you have to do is maintain the balance in whatever tier you're in for 90 days to get the bonus.
The catch that applies to many folks here is "If you have or had an open savings and/or money market account (excluding CDs, IRA savings accounts and Kids Savings accounts) as a primary or secondary account holder with Capital One on or after January 1, 2016, you're ineligible for the bonus. "

I took advantage of a similar bonus offer in late 2015 so I'm not eligible for his offer.
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Old 05-16-2020, 10:05 AM   #454
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How about the Capital One Performance Savings Account?

https://www.capitalone.com/score500/

If you factor in the cash bonus the effective interest rate comes out to 2.5%. I haven't seen any other savings accounts with rates anywhere near that. I read the disclosure and don't see any catches. Looks like all you have to do is maintain the balance in whatever tier you're in for 90 days to get the bonus.
There are no catches - Capital One is good when it comes to bonus offers. Also be aware, your balance just needs to be maintained through the 90 day period. On day 91, you can move the money out, regardless if they credit the bonus immediately (which in the past they have done very quickly), or up to 60 days later.

The effective interest rate is 5.5% over the bonus period. You're collecting 1% in 3 months, which is 4% effective. Then add on the 1.5% yield for the account and you have 5.5%. You get 2.5% if you leave the money there for a year and collect the amount shown in their chart. Still very good overall, assuming they keep the account at 1.5%, which is unlikely - it will continue heading lower.

Put your money in, leave it there for the 90 days, pull it out, and put it towards a different bank promo offer. Churn through the offers to compound the high effective rate the bonuses produce.
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Old 05-19-2020, 02:21 PM   #455
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I looked at the local banks and credit unions last week. On Friday I plunked down a chunk of change at a credit union for 1.5% 18 month CD. I felt like I was investing poorly at that rate, but we had the 'extra' in cash and wanted to do something with it. I checked the rate at the same credit union and the same terms today. It went down to 1.25%. So now I feel a little better. But around here, even going out to 3 or 5 years doesn't get anything much better.
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Old 05-20-2020, 06:37 AM   #456
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I looked at the local banks and credit unions last week. On Friday I plunked down a chunk of change at a credit union for 1.5% 18 month CD. I felt like I was investing poorly at that rate, but we had the 'extra' in cash and wanted to do something with it. I checked the rate at the same credit union and the same terms today. It went down to 1.25%. So now I feel a little better. But around here, even going out to 3 or 5 years doesn't get anything much better.
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What looks Meh today will look great after awhile.
Well, maybe not great, but at least not so awful. It's just how things are working lately and the sweet spot has shrunk from 2-3 years to 12-18 months.
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Old 05-20-2020, 10:29 AM   #457
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Well, It looks like a got a new CD at CMG Bank at 1.54% for 13 months, with one penalty-free withdrawal during the term (funding in process). They are about 20 basis points lower for that same product now.

These rates keep going down, can only hope to lock more CD's to stem the tide.
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Old 05-20-2020, 09:01 PM   #458
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No, I had money in 3 month T-bills. I stopped the reinvestment last week before they came due.
Sorry, I had you confused with another forum member....Helena. I wanted to compare variable rate CDs/MM accounts.
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Old 05-21-2020, 06:56 AM   #459
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Ginnie Maes are government backed secure, and pay over 2%, many are approximate payout of 3-5 years. Wouldn't this be a better option than a CD?

Thanks, Rich
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Old 05-21-2020, 08:11 AM   #460
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Ginnie Maes are government backed secure, and pay over 2%, many are approximate payout of 3-5 years. Wouldn't this be a better option than a CD?

Thanks, Rich
Google "negative convexity."
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