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Old 09-13-2023, 06:50 PM   #1741
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Perhaps. You could always skew the ladder to the first few years and then methodically extend it is early rungs mature.

That is what I ended up doing... not necessarily intentionally.. but my ladder s skewed to the early years and as maturities occur I am backfilling some rungs.
Thanks for thinking of me pb, as I am presently extending short duration bonds at maturity in the 6-18 month window.
Soon I would like to go for longer duration bonds or cds in my IRA.
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Old 09-14-2023, 11:02 AM   #1742
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1yr non callable CD's hit 5.5% today at Schwab.
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Old 09-14-2023, 02:57 PM   #1743
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The short term CD rates are great. It's a bit disappointing that with Treasury rates taking up slightly, we haven't seen much movement in these mid to longer term CDs.

But maybe it will happen yet.
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Old 09-14-2023, 03:41 PM   #1744
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The short term CD rates are great. It's a bit disappointing that with Treasury rates taking up slightly, we haven't seen much movement in these mid to longer term CDs.

But maybe it will happen yet.
It is a bit frustrating. Hopefully the 7 trillion+ in Treasuries maturing over the next year will help move long term Treasury rates higher and CD rates to follow.
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Old 09-14-2023, 03:45 PM   #1745
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In a TAXABLE account, are a 1 yr CD returns (Yield) -

still taxed as ordinary income ? as it is not a stock per se

OR

does the long term cap gains rate of 15%(for me) apply as it is a year long investment ?
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Old 09-14-2023, 03:49 PM   #1746
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In a TAXABLE account, are a 1 yr CD returns (Yield) -

still taxed as ordinary income ? as it is not a stock per se

OR

does the long term cap gains rate of 15%(for me) apply as it is a year long investment ?
This is taxed as ordinary income.

Edit to add - the yields on tax exempt munis are quite low. Unless one is paying high marginal state and federal tax rates, they really don’t make much sense now. This is (IIRC) quite a change from a few years ago.
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Old 09-15-2023, 01:25 PM   #1747
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RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...
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Old 09-15-2023, 01:34 PM   #1748
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RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...
I haven't experienced that issue yet but agree it would irritate me too.

I also reinvest as soon as I receive them.
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Old 09-15-2023, 01:37 PM   #1749
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^^^^^
Well I have about 20 active CD's now. Most of them pay monthly so lot's of opportunity for them to miss payments by a few days.

I've got another one "pending" payment from earlier this week.

I wonder what would happen if I was late on a loan or credit card payment?
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Old 09-15-2023, 01:42 PM   #1750
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^^^^^
Well I have about 20 active CD's now. Most of them pay monthly so lot's of opportunity for them to miss payments by a few days.

I've got another one "pending" payment this week.
Just start charging them a $35 late interest payment fee. They would do the same to you. [emoji6]

I wonder if you could complain to the CFPB.
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Old 09-15-2023, 01:49 PM   #1751
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Just start charging them a $35 late interest payment fee. They would do the same to you. [emoji6]

I wonder if you could complain to the CFPB.
I wish I could.


Schwab tells me the contracts they have with these banks, gives the banks some "wiggle" room. (Funny, they never pay early) Well IMO, they should say payments are due to me "somewhere around X date" and not on X date specifically if that's they way they operate.
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Old 09-15-2023, 02:09 PM   #1752
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That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?
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Old 09-15-2023, 02:17 PM   #1753
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That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..
That's true, but I know that going in and can decide to buy or not.
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Old 09-15-2023, 02:26 PM   #1754
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Aren't treasuries more timely?
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Old 09-15-2023, 02:32 PM   #1755
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I don't buy treasuries (directly) so I don't know for sure. But I'm sure there are others here that will know.
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Old 09-15-2023, 02:35 PM   #1756
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That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?
At Schwab I just buy it and let it show a negative cash balance. Then I sell my SWVXX 1 day prior to the settlement date. A little bit of a pain but at least I keep earning interest right on up to the settlement date.
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Old 09-15-2023, 02:42 PM   #1757
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RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...

My father used to refer to such people as chiselers. The name comes from the old days when coins were made of real gold or silver. Unethical people would use a chisel to scrape a bit of gold off of each coin, not enough to be noticed. Eventually, they could melt it down into something worth real money.

That is the reason coins have those serrated edges. So you can identify a coin that had been chiseled.
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Old 09-15-2023, 02:46 PM   #1758
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RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...
So I looked a little deeper and found this one particular bank (1st Carolina) has only paid me on time "once" since I bought a CD from them. They have always been a day or more late with their payments to me, so far.

Float?
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Old 09-15-2023, 04:14 PM   #1759
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That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?
I donít worry about it because at Fidelity my money continues earning a decent MM rate until the CD s issued.

Treasury bills settle/issue within a few days to a week from auction. Other treasuries can take a bit longer. Regardless your funds donít leave the account until the settle/issue date so mine continue to earn MM interest.
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Old 09-15-2023, 04:25 PM   #1760
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I donít worry about it because at Fidelity my money continues earning a decent MM rate until the CD s issued.

Treasury bills settle/issue within a few days to a week from auction. Other treasuries can take a bit longer. Regardless your funds donít leave the account until the settle/issue date so mine continue to earn MM interest.
Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it
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