Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 09-21-2022, 10:56 AM   #1721
Full time employment: Posting here.
erkevin's Avatar
 
Join Date: Oct 2014
Location: Tennesee
Posts: 557
I appreciate the calls to break CDs that are "dogs". I just dumped a Marcus CD. I will re-coup the interest penalty in about a month moving to a 4% CD.
erkevin 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 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 09-21-2022, 06:57 PM   #1722
Recycles dryer sheets
Henry Lili's Avatar
 
Join Date: Oct 2009
Posts: 217
Quote:
Originally Posted by DallasGuy View Post
I have accounts at several banks as well. I keep a spreadsheet of CD's with maturity dates and have it sorted by maturity date so I can easily see what will be maturing soon....and then setup an email reminder sent to me a few days before something matures. Once a CD matures, I zero it out on the spreadsheet and add a new row for the new CD. That helps me alot.
Same. With a countdown spreadsheet date timer.
Henry Lili is offline   Reply With Quote
Old 09-21-2022, 07:19 PM   #1723
Recycles dryer sheets
 
Join Date: May 2011
Posts: 476
Quote:
Originally Posted by jldavid47 View Post
I saw that and passed. I just am not comfortable going out that far in time.
I certainly understand which is why I didn't buy much. I kept waffling on whether to do it as clearly, particularly after today's Fed meeting, rates are going to go up at least another point if not more.

I'm going to start building a year ladder in a couple of weeks to allow today's hike to start working.
11522914 is offline   Reply With Quote
Old 09-21-2022, 07:20 PM   #1724
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2016
Posts: 5,729
Fidelity has a fixed income analysis tool. So if you have brokered CDs, bonds, etc, they are all tracked by maturity and call date with email notifications as well as rolling up your total income by month and year. Very valuable tool.
COcheesehead is offline   Reply With Quote
Old 09-21-2022, 08:58 PM   #1725
Confused about dryer sheets
 
Join Date: Mar 2021
Location: Seattle
Posts: 3
Quote:
Originally Posted by Spock View Post
Personally I stay away from the "Bank of India" and "Bank of China" brokered CDs of foreign owned banks. Yes they are FDIC insured. For now. I'm laddering out 10 years and the global landscape can change in a month. With the way the world is polarizing today's friend is tomorrows enemy with assets frozen (or seized) and the 'IC' in BRICS countries are playing games with which side they are going to chose. All bets are off when China lands in Taiwan as the administration edicts ways to inflict economic punishment on whatever related entities it can reach. Revoking a banks FDIC status because "it has ties to the CCP" or some such is just a stroke of an executive pen.
For me an extra 0.1% is not worth the 'what if' on longer term plans.


If you see a CD offered by State Bank of India it is backed by the Govt of India, Schwab brokers them. In other words it is not a private bank.
I would not invest in a private bank in India.
Seattleite is offline   Reply With Quote
Old 09-21-2022, 09:15 PM   #1726
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 32,914
Quote:
Originally Posted by COcheesehead View Post
Fidelity has a fixed income analysis tool. So if you have brokered CDs, bonds, etc, they are all tracked by maturity and call date with email notifications as well as rolling up your total income by month and year. Very valuable tool.
Nice, I should check that out!
__________________
Retired since summer 1999.
audreyh1 is offline   Reply With Quote
Old 09-22-2022, 08:20 AM   #1727
Full time employment: Posting here.
erkevin's Avatar
 
Join Date: Oct 2014
Location: Tennesee
Posts: 557
Marcus savings up to 2.15%
erkevin is offline   Reply With Quote
Old 09-22-2022, 08:47 AM   #1728
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 8,037
Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade.

I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.
__________________
I don't know how to act my age since I've never been this old before.
Car-Guy is offline   Reply With Quote
Old 09-22-2022, 08:57 AM   #1729
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,708
Quote:
Originally Posted by Seattleite View Post
If you see a CD offered by State Bank of India it is backed by the Govt of India, Schwab brokers them. In other words it is not a private bank.
I would not invest in a private bank in India.
I just double checked at Schwab, both State bank of India and Bank of China brokered CD's are FDIC insured. Now, you can debate how safe the FDIC insurance is if the SHTF, but they ARE showing up on the FDIC list of Schwab offerings. (or perhaps SOME of the CD's offered are not FDIC insured, but the ones I checked were).
brucethebroker is offline   Reply With Quote
Old 09-22-2022, 09:12 AM   #1730
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 6,267
Quote:
Originally Posted by Car-Guy View Post
Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade.

I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.
Why when 2 year treasuries are 4.xx%
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 09-22-2022, 09:16 AM   #1731
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 8,037
^^^^^
Because I think in less than two years rates will be well over 5% maybe 6+.
__________________
I don't know how to act my age since I've never been this old before.
Car-Guy is offline   Reply With Quote
Old 09-22-2022, 09:19 AM   #1732
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 6,267
Quote:
Originally Posted by Car-Guy View Post
^^^^^
Because I think in two years rates will be well over 5% maybe 6+.
My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 09-22-2022, 09:23 AM   #1733
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 8,037
Quote:
Originally Posted by ShokWaveRider View Post
My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.
Sounds like we are in agreement.
__________________
I don't know how to act my age since I've never been this old before.
Car-Guy is offline   Reply With Quote
Old 09-22-2022, 09:54 AM   #1734
Recycles dryer sheets
 
Join Date: Apr 2015
Posts: 393
Some of you forget about the magic of paying early penalty fees! Many times you're still money ahead on these 5 year rates when you end up having to pay get out of of them.

It's funny, I've had CD's all my life and I've never spent more then 2 seconds thinking about early penalty rates or policies. Now it's the first thing I look at.
Drake3287 is offline   Reply With Quote
Old 09-22-2022, 09:57 AM   #1735
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 8,037
Quote:
Originally Posted by Drake3287 View Post
Some of you forget about the magic of paying early penalty fees! Many times you're still money ahead on these 5 year rates when you end up having to pay get out of of them.

It's funny, I've had CD's all my life and I've never spent more then 2 seconds thinking about early penalty rates or policies. Now it's the first thing I look at.


Me too, but then again, I've never cashed out early...
__________________
I don't know how to act my age since I've never been this old before.
Car-Guy is offline   Reply With Quote
Old 09-22-2022, 11:06 AM   #1736
Recycles dryer sheets
 
Join Date: May 2011
Posts: 476
Quote:
Originally Posted by ShokWaveRider View Post
My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.
I guess that could be said of tying up money in the stock market right now.
11522914 is offline   Reply With Quote
Old 09-22-2022, 12:43 PM   #1737
Thinks s/he gets paid by the post
 
Join Date: Feb 2007
Location: Upstate
Posts: 2,320
Quote:
Originally Posted by Car-Guy View Post
Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade.

I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.
The way rates have been rising, six-months is too long!
(I've been mostly buying six-month T-Bills.) Three months ago (so half way through a six-month T-Bill), the rate was about 2.41%. Today 3.904%. A six month T-Bill maturing now (i.e. purchased 6 months ago) had a yield of 0.95%. Ouch. I made my first 6-month purchase less than a month ago (8/23/22) @ 3.22%. So quite the jump since then.
copyright1997reloaded is offline   Reply With Quote
Old 09-22-2022, 12:50 PM   #1738
Thinks s/he gets paid by the post
Dash man's Avatar
 
Join Date: Mar 2013
Location: Limerick
Posts: 4,796
I just put some in for Mondayís 13-week T-Bill auction. Early next year I think Iíll start reaching out for more longer term rates.
Dash man is offline   Reply With Quote
Old 09-22-2022, 12:52 PM   #1739
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: 32,368
Quote:
Originally Posted by Car-Guy View Post
Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade.

I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.
If I'm going for 5 years I would opt for a 5.25% agency bond over a 4.3% CD. Agency bond is callable, but for an extra 95 bps you are getting well compensated for the call risk IMO.
__________________
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
pb4uski is offline   Reply With Quote
Old 09-22-2022, 12:58 PM   #1740
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Location: Citizen of Texas
Posts: 8,037
Quote:
Originally Posted by copyright1997reloaded View Post
The way rates have been rising, six-months is too long!
(I've been mostly buying six-month T-Bills.) Three months ago (so half way through a six-month T-Bill), the rate was about 2.41%. Today 3.904%. A six month T-Bill maturing now (i.e. purchased 6 months ago) had a yield of 0.95%. Ouch. I made my first 6-month purchase less than a month ago (8/23/22) @ 3.22%. So quite the jump since then.
Well I've been sitting on a lot of cash far to long that's doing nothing... So I've already missed a lot. It's always a bit of a crap shoot but it's time to get in (for me). Sure, I think it's going to keep going up but I don't want to miss another 3, 6 or 9 mo's of getting nothing. So I'm going in shorter term(s) now and probably longer term(s) when these mature. But don't follow me... I'm lost!
__________________
I don't know how to act my age since I've never been this old before.
Car-Guy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 4 (0 members and 4 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


» Quick Links

 
All times are GMT -6. The time now is 05:44 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2022, vBulletin Solutions, Inc.