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Old 05-08-2022, 05:23 PM   #341
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Understand that, but could be a one shot yield upswing for a somewhat limited timetable.
Agreed !!
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Old 05-08-2022, 05:28 PM   #342
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Agreed !!
I am not familiar with the Vanguard site, but am very familiar with Fidelity and their site.
It is logical and very easy to use. Their brokered CD rates are very competitive, as having access to many corporations.
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Old 05-08-2022, 05:32 PM   #343
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They might back off the rate hikes even if inflation is still high, if the economy is faltering badly enough, no ?


Usually inflation is not a problem if the economy is faltering. It’s possible…stagflation.
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Old 05-08-2022, 05:37 PM   #344
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Inflation is always a problem. So, hopefully they'll keep ramping up those rates to deal with it.
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Old 05-08-2022, 06:03 PM   #345
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Per Deposit Accounts, Department of Commerce FCU has some attractive rates. Membership is now open to all per Deposit Accounts. 12-23 month CD's at 2.12 percent. 48 month at 2.99.
Wow, how are they so high?


Are they reliable or like some banks which offered high rates but I think the FDIC had to take them over?


Seems like one of the best-regarded is Alliant FCU in Chicago.

Their rates are good, but not quite as good, 1.24% for 12-17 months, 1.74 for 18-23 months. Their 60 months is 2.23%.

https://www.alliantcreditunion.org/b...tificate#rates
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Old 05-09-2022, 05:11 PM   #346
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Wow, how are they so high?


Are they reliable or like some banks which offered high rates but I think the FDIC had to take them over?


Seems like one of the best-regarded is Alliant FCU in Chicago.

Their rates are good, but not quite as good, 1.24% for 12-17 months, 1.74 for 18-23 months. Their 60 months is 2.23%.

https://www.alliantcreditunion.org/b...tificate#rates
Why wouldn’t you just buy Treasuries? Safer, more liquid, and higher rates right now.

1 yr =1.99%
2 yr = 2.61%
5 yr= 2.99%.

https://www.barchart.com/economy/interest-rates
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Old 05-09-2022, 06:02 PM   #347
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They might back off the rate hikes even if inflation is still high, if the economy is faltering badly enough, no ?
The fed is far behind the curve. And will probably continue lowering rates when most think it's over. Just to make sure they don't screw up again...Like last year. Printing, 0%, and giving it away.

Most banks and credit unions are flush with cash. They will wait till they need cash to raise rates to realistic levels. Making bank with huge spreads. By that time brokered CD's will be dropping and things cross over in favor of credit unions.
As Brokered CD's are forward looking in both directions.

"In the long-term, the United States Fed Funds Rate is projected to trend around 3.25 percent in 2023 and 3.50 percent in 2024, according to our econometric models." And here we are today at .75%
We have a long way to go. And the fed is just getting started.

Last week Brokered CD's have been about 3% on 2, 3, 4 yr and 3.20% on 5 yr. And are holding there for now.
Waiting a bit, then will start loading up around 3.5%

Just my take on things. Could 100% right. Or wrong. lol lol
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Old 05-09-2022, 07:03 PM   #348
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Thanks. Yes, someone upthread mentioned Commerce FCU with 2.99% for 48 month CD. Might have to go that route.

I was just hoping to not have to set up yet another account, ha ha. Already have several.
You can avoid another account by just buying a 4 year brokered at your broker and you'll get more than 2.99%... 3.10% for the 3-year and 3.35% for the 5-year.
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Old 05-09-2022, 07:09 PM   #349
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Why wouldn’t you just buy Treasuries? Safer, more liquid, and higher rates right now.

1 yr =1.99%
2 yr = 2.61%
5 yr= 2.99%.

https://www.barchart.com/economy/interest-rates
That's certainly tempting. Unfortunately, I know nothing about purchasing treasuries. I better get to work. Thanks for the link.
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Old 05-10-2022, 02:34 AM   #350
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Typo:
The fed is far behind the curve. And will probably continue "lowering" rates when most think it's over. Should have been "raising" rates...
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Old 05-10-2022, 03:50 AM   #351
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Ally is way behind. Three month Treasury is now 1%.
+1
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Old 05-10-2022, 06:47 AM   #352
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+1
I will pull my money out of Ally if they don't raise their rates soon. Twice a pittance is still a pittance, but I don't like to reward uncompetitive behavior.
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Old 05-10-2022, 06:51 AM   #353
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I will pull my money out of Ally if they don't raise their rates soon. Twice a pittance is still a pittance, but I don't like to reward uncompetitive behavior.
Same with Ally last month.
Also am moving 431k from Navy. Sad about that... too
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Old 05-10-2022, 08:20 AM   #354
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That's certainly tempting. Unfortunately, I know nothing about purchasing treasuries. I better get to work. Thanks for the link.
The 2.99% 5 year treasury is intriguing. I already have a TreasuryDirect account for my I-Bonds, so maybe it will be easy buy a treasury bond. Thanks, gcgang.
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Old 05-10-2022, 08:30 AM   #355
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6 year MYGA is fetching 4.3% today. A- Rated AM Best. Not too shabby. I am waiting till the next hike in June to see if it is worth pulling the trigger. Good if you do not need more than 10% a year of your investment, as after the first year you can get that every year penalty free.

As 10 year SPIA are only paying 2.63% right now, you can basically set up your own SPIA instead of paying an Agent to do so for you to get less return. No Brainer Really.

Check Blueprint Income (Recommended/Endorsed by AARP)

https://www.blueprintincome.com/
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Old 05-10-2022, 10:19 AM   #356
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For years I have been buying CD through online banking as their rates were relatively higher than regular banks and credit unions. But ever since Administrator guided me to this thread and others last month, I have learned tones. I bought I-bond and treasury bond which I have been stayed away due to not understand enough and scared to step foot in. It's such a revelation that there are so many knowledges here that supporting one another, good feelings.
Some of you have introduced Fido CDs as their rates are pretty good, I have other investments in Fido and like the idea to put the money in one pot. But I don't understand some criteria in Fido CD, such as "call protected yes or no", I read some online, protected yes or no can be good or bad that depends on how the rates shifting upward or downward, although Fido has most in protected yes. Honestly I am still confused. Can anyone explaining to me? Thank you!
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Old 05-10-2022, 10:25 AM   #357
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6 year MYGA is fetching 4.3% today. A- Rated AM Best. Not too shabby. I am waiting till the next hike in June to see if it is worth pulling the trigger. Good if you do not need more than 10% a year of your investment, as after the first year you can get that every year penalty free.

As 10 year SPIA are only paying 2.63% right now, you can basically set up your own SPIA instead of paying an Agent to do so for you to get less return. No Brainer Really.

Check Blueprint Income (Recommended/Endorsed by AARP)

https://www.blueprintincome.com/

How do you look at return on SPIA. For instance if I put in a 10 year fixed, and for simplicity $100,000, it returns a monthly payment of $961 at immediateannuities.com . So, $961 a month, is $11,532 per year for ten years or $115,320. Given $100,000 was my principal I am receiving extra $15,320 over 10 years or roughly a 1.5% return? Am I not thinking correctly?
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Old 05-10-2022, 10:29 AM   #358
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Also, one more thing.
MYGA is an annuity. My understanding of annuity is that once you past away, the annuity/money is gone. One of my relatives put 401k in annuity and he past away suddenly, entire 35 years 401k is gone. it was hardening.
Why would some people here advocating annuity? I would appreciate some comments and its possible that my interpretation of annuity is not complete.
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Old 05-10-2022, 12:04 PM   #359
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from what I understand you can take the annuity with the stipulation that whatever is left when you die goes to your beneficiary.
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Old 05-10-2022, 01:27 PM   #360
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Also, one more thing.
MYGA is an annuity. My understanding of annuity is that once you past away, the annuity/money is gone. One of my relatives put 401k in annuity and he past away suddenly, entire 35 years 401k is gone. it was hardening.
Why would some people here advocating annuity? I would appreciate some comments and its possible that my interpretation of annuity is not complete.
Not a MYGA, you are thinking Life SPIA. Just look at a MYGA exactly like a CD but with the interest being deferred until you cash it in.
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