Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
Old 10-15-2020, 05:58 PM   #801
Recycles dryer sheets
 
Join Date: Oct 2020
Location: Sugar Land
Posts: 89
I guess I will stay on the VIO Bank bandwagon for now LOL.
F.I.R.E User is online now  
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 Early-Retirement.org 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 10-22-2020, 03:58 PM   #802
Thinks s/he gets paid by the post
gcgang's Avatar
 
Join Date: Sep 2012
Posts: 1,330
Ok all you CD ladderers.

Iíve used my IRA as fixed income, primarily 5 year laddering CDs. They are maturing and the rates my online broker offers range from 0.05% 0-1 year, up to 0.40% for 5 years.

Should I stick with the strategy, going 3-5 years to pick up a measly 35 basis points, or put in in insured 3month CD vs keep in brokerage cash, or totally abandon my strategy and take more risk?

Iím not interested in splitting the IRa into multiple accounts by transferring part of it to another custodian, especially if the yield pickup would only be a percent or so.
__________________
In theory, there's no difference between theory and practice. In practice, there is. YB
gcgang is offline  
Old 10-22-2020, 04:01 PM   #803
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 7,948
Quote:
Originally Posted by gcgang View Post
Ok all you CD ladderers.

Iíve used my IRA as fixed income, primarily 5 year laddering CDs. They are maturing and the rates my online broker offers range from 0.05% 0-1 year, up to 0.40% for 5 years.

Should I stick with the strategy, going 3-5 years to pick up a measly 35 basis points, or put in in insured 3month CD vs keep in brokerage cash, or totally abandon my strategy and take more risk?

Iím not interested in splitting the IRa into multiple accounts by transferring part of it to another custodian, especially if the yield pickup would only be a percent or so.
For my parents, I substituted a MYGA for their one portion of the Cd ladder which came due this year. The main negative risk of more severe early withdrawal penalties and credit risk (AA) is minimal.
__________________
TGIM
Dtail is offline  
Old 10-22-2020, 04:06 PM   #804
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 10,875
Quote:
Originally Posted by gcgang View Post
Ok all you CD ladderers.

Iíve used my IRA as fixed income, primarily 5 year laddering CDs. They are maturing and the rates my online broker offers range from 0.05% 0-1 year, up to 0.40% for 5 years.

Should I stick with the strategy, going 3-5 years to pick up a measly 35 basis points, or put in in insured 3month CD vs keep in brokerage cash, or totally abandon my strategy and take more risk?

Iím not interested in splitting the IRa into multiple accounts by transferring part of it to another custodian, especially if the yield pickup would only be a percent or so.
I can't see tying up any money in CDs at such low rates. What kind of rate can you get with a money market or savings account? How about a short term bond fund, or TIPs?

I guess CDs aren't that bad as long as you can get out of them if rates start to rise. Forfeiting some interest is trivial at these rates.
RunningBum is offline  
Old 10-22-2020, 04:34 PM   #805
Thinks s/he gets paid by the post
gcgang's Avatar
 
Join Date: Sep 2012
Posts: 1,330
Quote:
Originally Posted by Dtail View Post
For my parents, I substituted a MYGA for their one portion of the Cd ladder which came due this year. The main negative risk of more severe early withdrawal penalties and credit risk (AA) is minimal.
What is a MYGA?
__________________
In theory, there's no difference between theory and practice. In practice, there is. YB
gcgang is offline  
Old 10-22-2020, 04:38 PM   #806
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,129
Multi-Year Guaranteed Annuity.... similar to a CD but issued by an insurance company so no FDIC insurance and surrender charges rather than early withdrawal penalties.
__________________
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...target 65/35/0 AA TBD
pb4uski is offline  
Old 10-22-2020, 04:39 PM   #807
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 7,948
Quote:
Originally Posted by gcgang View Post
What is a MYGA?
It is a multi year guaranteed annuity. See the below link and we can discuss more.

https://www.blueprintincome.com/fixe...tRating=A%252B
__________________
TGIM
Dtail is offline  
Old 10-23-2020, 12:18 PM   #808
Thinks s/he gets paid by the post
Gotadimple's Avatar
 
Join Date: Feb 2007
Posts: 2,180
Hi-Yield Savings Accounts at Internet Banks offer higher rates than CDs at the same banks. B&M banks offer Money Market Accounts (which are NOT funds) at higher interest rates than their savings accounts - again CD rates are below the Money Market Account.

In some cases (YMMV), High Yield Savings Accounts are better than short-term bond funds. Both yields can change - so plan carefully.
__________________
Only got A dimple, would have preferred 2!
Gotadimple is offline  
Old 10-24-2020, 03:45 AM   #809
Thinks s/he gets paid by the post
gcgang's Avatar
 
Join Date: Sep 2012
Posts: 1,330
Quote:
Originally Posted by Dtail View Post
It is a multi year guaranteed annuity. See the below link and we can discuss more.

https://www.blueprintincome.com/fixe...tRating=A%252B
Nice link. Thanks, but no thanks. 1-2% more than nothing not worth the risk, illiquidity and hassle to me.

Just did a Roth conversion. I doubt Iíll ever touch that money, so maybe Iíll invest it like my 20 year old daughter, the eventual beneficiary, should.

As other CDs mature, maybe some less stock correlated stuff like gold, REITs, EM debt...nah, probably end up w short term CDs at 0.01%.
__________________
In theory, there's no difference between theory and practice. In practice, there is. YB
gcgang is offline  
Old 10-24-2020, 05:57 AM   #810
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,129
^^^ You might want to consider preferred stocks. See https://www.early-retirement.org/for...77428-137.html

Over the past couple years I put together a small (~13% of my portfolio) mostly investment grade preferred stock portfolio that yields almost 6%... familiar names... Bank of America, Mellon Bank, Duke Energy, Hartford, J.P. Morgan Chase, MetLife, PG&E, Wells Fargo and some others.
__________________
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...target 65/35/0 AA TBD
pb4uski is offline  
Old 10-24-2020, 10:11 AM   #811
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Chuckanut's Avatar
 
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 12,070
I checked out the MYGA site. Nothing available in my state. I even lowered quality to B+ and tried different terms. Nothing.
__________________
The worst decisions are usually made in times of anger and impatience.
Chuckanut is offline  
Old 10-24-2020, 04:40 PM   #812
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,809
Quote:
Originally Posted by Chuckanut View Post
I checked out the MYGA site. Nothing available in my state. I even lowered quality to B+ and tried different terms. Nothing.
Which site did you try? Hard to imagine you live in a state that does not offer these products. The sites I know of include Blueprint Income, immediateannuities.com, Stan The Annuity Man. Fidelity and Vanguard also offer MYGA products. Another one is Gainbridge (which is a direct distribution product from Guggenheim)
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline  
Depressing Capital One rates
Old 11-01-2020, 07:32 AM   #813
Full time employment: Posting here.
cbo111's Avatar
 
Join Date: May 2014
Posts: 734
Depressing Capital One rates

Wow, I just had a $60K CD mature that was earning 4%. I browsed the current rates and found their 5-year CD is now paying .4%!
These are truly "coffee can/under the mattress" equivalent rates. I noticed their MM rate is currently also .4%. I really don't feel comfortable moving it to equities. What to do?
cbo111 is offline  
Old 11-01-2020, 07:40 AM   #814
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 3,175
Quote:
Originally Posted by cbo111 View Post
Wow, I just had a $60K CD mature that was earning 4%. I browsed the current rates and found their 5-year CD is now paying .4%!

These are truly "coffee can/under the mattress" equivalent rates. I noticed their MM rate is currently also .4%. I really don't feel comfortable moving it to equities. What to do?


Ally Bank and Synchrony Bank each have Savings accounts at 0.6%. Thatís about the best you can do and be FDIC insured.
Dash man is offline  
Old 11-01-2020, 07:49 AM   #815
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 10,875
Quote:
Originally Posted by cbo111 View Post
Wow, I just had a $60K CD mature that was earning 4%. I browsed the current rates and found their 5-year CD is now paying .4%!
These are truly "coffee can/under the mattress" equivalent rates. I noticed their MM rate is currently also .4%. I really don't feel comfortable moving it to equities. What to do?
Congratulate yourself for locking in that favorable rate for the last 5 years, then deal with the reality of lower rates today. Assuming your goal for cash was to reduce volatility and have cash available, I wouldn't take on more risk trying for a higher return. I also wouldn't lock into a low rate for a long time unless it's really cheap to break the commitment.

Maybe you can find a transfer bonus somewhere to help a little with your return.
RunningBum is offline  
Old 11-01-2020, 08:36 AM   #816
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,129
Quote:
Originally Posted by cbo111 View Post
Wow, I just had a $60K CD mature that was earning 4%. I browsed the current rates and found their 5-year CD is now paying .4%!
These are truly "coffee can/under the mattress" equivalent rates. I noticed their MM rate is currently also .4%. I really don't feel comfortable moving it to equities. What to do?
How much risk are you willing to take?

As someone mentioned, online savings accounts are now paying ~0.6%. They are 100% FDIC insured so not credit risk and no interest rate risk and outstanding liquidity. Bad thing is that they could go lower over time, even lower than that 0.4% CD.

If you qualify to join Navy Federal, their 12 month CD is ~0.8% and 5-year is ~1.2%... add another 0.05% for more than $100k. Or alternatively, they have 12-24 month add-on CDs that are 0.7% to 0.8%.

If you're willing to take some credit risk, you have things like Dominion Energy Reliabiity Investment account (1.5%-1.7% depending on your balance) or Toyota Motor Credit IncomeDriver Notes (2.0%)... these have some credit risk but no interest rate risk and good liquidity.

Next would be baby-bonds and preferred stocks. These are a little work to research, have some market risk and interest rate risk, but yield ~5-6% for low investment grade credits. My current favorite baby bond is AGO.PRB which is rated A by S&P and currently yields 6.4%. YMMV.
__________________
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...target 65/35/0 AA TBD
pb4uski is offline  
Old 11-01-2020, 09:21 AM   #817
Recycles dryer sheets
 
Join Date: Apr 2019
Location: Omaha
Posts: 57
How about a Multi Year Guarantee Annuity? I've been looking for a place to replace some CD's that have matured and have found these to be a possible answer. Depending on the company, many are paying over 2%. Since I'm only in the research phase and have not purchased any, does anyone else have a view on these MYGA's, pro or con?
Oilcan is online now  
Old 11-01-2020, 09:35 AM   #818
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,129
MYGAs were mentioned and commented on in another recent thread: https://www.early-retirement.org/for...ow-105555.html
__________________
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...target 65/35/0 AA TBD
pb4uski is offline  
Old 11-01-2020, 10:04 AM   #819
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jan 2018
Location: Tampa
Posts: 7,948
Quote:
Originally Posted by pb4uski View Post
MYGAs were mentioned and commented on in another recent thread: https://www.early-retirement.org/for...ow-105555.html
Not to mention it is mentioned about 11 posts up in this thread.
__________________
TGIM
Dtail is offline  
Old 11-01-2020, 11:02 AM   #820
gone traveling
 
Join Date: Sep 2020
Posts: 113
Quote:
Originally Posted by Dash man View Post
Ally Bank and Synchrony Bank each have Savings accounts at 0.6%. Thatís about the best you can do and be FDIC insured.
And SFGIdirect.com at 0.67%. A credit union that I trust - FAST ACH transfers and the limit is a million. No teasing interest rates or other games. The only drawback is that you can link only one external account, and it's done via a Secure Messaging message plus some proof that you own that external account.
smihaila is offline  
Closed Thread


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
Best CD & MM Rates Thread 2019 - Please post updates here almost there FIRE and Money 929 01-01-2020 11:09 AM
Noticed more people holding signs "need work or food" rayinpenn Other topics 3 05-03-2015 02:51 PM

» Quick Links

 
All times are GMT -6. The time now is 10:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.