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Old 01-13-2023, 08:10 PM   #61
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Old 01-13-2023, 08:13 PM   #62
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Just signed up for a 15 month, 5% CD at Pasadena FCU. Deal ends January 31st.
Nice!
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Old 01-15-2023, 08:12 AM   #63
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Ally increases rates (for those not following the Ally thread):
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Old 01-15-2023, 08:46 AM   #64
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This may have been asked and answered in last years thread (I forget, heck I may have asked it ) but I'm curious if how a "brokered" CD pays it's earned interest affects your decision on which ones to buy?

If you buy a brokered CD (any denomination) does it matter to you if it pays monthly, quarterly, semi-annually, annually or at maturity? Since the interest isn't compounded, does it matter to you when you get the interest payments? I've got a mixed bag of CD's, but I must admit, I like seeing a bunch of payments hit my balance each month.
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Old 01-15-2023, 08:49 AM   #65
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Total return investor here, don’t care about timing of cash flow from my investments, so doesn’t matter much to me. Less often slightly preferred but wouldn’t matter on purchase decision.
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Old 01-15-2023, 09:31 AM   #66
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Old 01-15-2023, 09:34 AM   #67
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This may have been asked and answered in last years thread (I forget, heck I may have asked it ) but I'm curious if how a "brokered" CD pays it's earned interest affects your decision on which ones to buy?

If you buy a brokered CD (any denomination) does it matter to you if it pays monthly, quarterly, semi-annually, annually or at maturity? Since the interest isn't compounded, does it matter to you when you get the interest payments? I've got a mixed bag of CD's, but I must admit, I like seeing a bunch of payments hit my balance each month.
I don't like brokered CDs because I want the interest at maturity to fund my annual need.
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Old 01-15-2023, 11:43 AM   #68
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Total return investor here, donít care about timing of cash flow from my investments, so doesnít matter much to me. Less often slightly preferred but wouldnít matter on purchase decision.
+1. I keep at least a year of spending in a MM or online savings account so I don't much care whether interest is paid monthly, quarterly, annually or whenever. I like brokered CDs because I don't have to have accounts at numerous financial institutions in order to get a decent yield.
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Old 01-15-2023, 11:52 AM   #69
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+1. I keep at least a year of spending in a MM or online savings account so I don't much care whether interest is paid monthly, quarterly, annually or whenever. I like brokered CDs because I don't have to have accounts at numerous financial institutions in order to get a decent yield.
My bold. This is a good point.
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Old 01-15-2023, 11:56 AM   #70
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Just waiting for the elusive 5% brokered CD.
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Old 01-15-2023, 12:05 PM   #71
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Total return investor here, don’t care about timing of cash flow from my investments, so doesn’t matter much to me. Less often slightly preferred but wouldn’t matter on purchase decision.
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+1. I keep at least a year of spending in a MM or online savings account so I don't much care whether interest is paid monthly, quarterly, annually or whenever. I like brokered CDs because I don't have to have accounts at numerous financial institutions in order to get a decent yield.
But, but, but. Just for grins let's say you had 1m invested in several 5 year CD's at 4.5% that all pay out at maturity. That will get you 225k in interest all at once in five years. Or if you opt'd for 1m in 5 yr CD's that paid annually, you could get 45k in interest a year to either withdraw and/or invest in something else along the way.

OTOH if you can tie up 1m for 5 years, maybe it doesn't matter that much when you get your money.
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Old 01-15-2023, 12:25 PM   #72
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But, but, but. Just for grins let's say you had 1m invested in several 5 year CD's at 4.5% that all pay out at maturity. That will get you 225k in interest all at once in five years. Or if you opt'd for 1m in 5 yr CD's that paid annually, you could get 45k in interest a year to either withdraw and/or invest in something else along the way.

OTOH if you can tie up 1m for 5 years, maybe it doesn't matter that much when you get your money.
It "think" that I could manage my income by gains trading the brokered CDs... selling them and buying them right back... no restrictions on buying back assets with a gain recognized.

The benefit is that I can manage it but with bank CDs I'm getting 4.5% in income whether I want it that year or not.
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Old 01-15-2023, 01:08 PM   #73
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But, but, but. Just for grins let's say you had 1m invested in several 5 year CD's at 4.5% that all pay out at maturity. That will get you 225k in interest all at once in five years. Or if you opt'd for 1m in 5 yr CD's that paid annually, you could get 45k in interest a year to either withdraw and/or invest in something else along the way.

OTOH if you can tie up 1m for 5 years, maybe it doesn't matter that much when you get your money.
Doesn’t matter. Anything that has a 5 year maturity is considered a long term investment. Other more liquid assets will be pulled from to satisfy annual withdrawals. Most of my investments are highly liquid.

I don’t look for cash flow from my investments. Any income generated stays in the investment pile until the start of the following year. Withdrawal and rebalancing are done together.

BTW I believe CDs are required by law to pay out at least annually so that you pay tax on the accumulated interest. For example, if I buy a 13 month or 18 month CD that doesn’t pay out until maturity I still get the accumulated interest paid to me on Dec 31 and the remainder when it matures the following year.
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Old 01-15-2023, 05:01 PM   #74
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Yup.
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How often do brokered CDs pay interest?

The issuing bank determines when it will pay interest on the brokered CD. Generally, interest is paid at maturities of one year or less. Sometimes banks pay interest monthly. For maturities beyond one year, banks may pay interest semiannually, quarterly, or monthly.
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Old 01-16-2023, 09:54 AM   #75
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Speaking of brokered CDs, I want to add a Fidelity Brokerage Link to my 401K, in order to buy some CDs. I want to get some $$ out of my stable value fund in the 401K and move it into CDs. I looked at the verbiage from my 401K website about Fidelity and it says there in no annual fee for the brokerage account, but there may be fees taken from certain buys. For example, one dollar per thousand on the purchase of a CD. Is the process of adding the Fidelity brokerage link pretty straight forward? Is there really a fee to the user, or is that $1 per thousand fee absorbed by a third party? Thanks
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Old 01-16-2023, 11:18 AM   #76
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I buy CD's in my Fidelity Cash Management account which is linked to my banks and credit unions and have not paid any commissions. I only buy new issues though.
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Old 01-16-2023, 11:35 AM   #77
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Speaking of brokered CDs, I want to add a Fidelity Brokerage Link to my 401K, in order to buy some CDs. I want to get some $$ out of my stable value fund in the 401K and move it into CDs. I looked at the verbiage from my 401K website about Fidelity and it says there in no annual fee for the brokerage account, but there may be fees taken from certain buys. For example, one dollar per thousand on the purchase of a CD. Is the process of adding the Fidelity brokerage link pretty straight forward? Is there really a fee to the user, or is that $1 per thousand fee absorbed by a third party? Thanks
This seemed to be a brokerage account within your 401k, which may not be the same as Fidelity general account. For example, my 401k has a brokerage account, which has a restriction on no more than 50% of total 401k balance and also fees for T bill as well as $20 maintenance fee per quarter, but I can place new CD order with phone for free. So read your 401k brokerage fee schedule or call them for clarification. One benefit for sure is even their MM default is way better than SV within 401k.
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Old 01-16-2023, 01:00 PM   #78
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Speaking of brokered CDs, I want to add a Fidelity Brokerage Link to my 401K, in order to buy some CDs. I want to get some $$ out of my stable value fund in the 401K and move it into CDs. I looked at the verbiage from my 401K website about Fidelity and it says there in no annual fee for the brokerage account, but there may be fees taken from certain buys. For example, one dollar per thousand on the purchase of a CD. Is the process of adding the Fidelity brokerage link pretty straight forward? Is there really a fee to the user, or is that $1 per thousand fee absorbed by a third party? Thanks


That sounds complicated. Have you looked into simply opening a Fidelity Rollover IRA and transferring funds from the 401k? The 401k Summary Plan Description will detail if you can transfer funds to an IRA. I have funded many CDs, stocks, and bonds this way. Iíve also transferred out of Fidelity 401k to fund credit union IRA certificates and MYGAs.
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Old 01-16-2023, 02:40 PM   #79
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Speaking of brokered CDs, I want to add a Fidelity Brokerage Link to my 401K, in order to buy some CDs. I want to get some $$ out of my stable value fund in the 401K and move it into CDs. I looked at the verbiage from my 401K website about Fidelity and it says there in no annual fee for the brokerage account, but there may be fees taken from certain buys. For example, one dollar per thousand on the purchase of a CD. Is the process of adding the Fidelity brokerage link pretty straight forward? Is there really a fee to the user, or is that $1 per thousand fee absorbed by a third party? Thanks
Double check the verbiage again and read it closely/slowly. Does it simply say $1/$1000 on CD purchases, or something like "$1/CD for secondary market CD purchases"? For all Fidelity accounts at Fidelity, new issue CDs have no fees, secondary market is $1/CD. I would be surprised if they charged it for all CD purchases simply because it's through the 401k account, but I suppose it's possible.
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Old 01-17-2023, 10:44 AM   #80
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