Buying a CD at Vanguard in my RO IRA (1st time doing this)

[Graybeard]

Quote:

Originally Posted by RunningBum For the OP's question, I don't think it matters if it's a ROllover traditional IRA or a ROth.

I say RO IRA cuz I never understood what a traditional IRA is, I think I made too much to contribute to one. IIRC some IRAs are pre-tax and after tax? I just say RO IRA as the money was rolled over from my 401k.

[RunningBum]

Quote:

Originally Posted by Graybeard I say RO IRA cuz I never understood what a traditional IRA is, I think I made too much to contribute to one. IIRC some IRAs are pre-tax and after tax? I just say RO IRA as the money was rolled over from my 401k.

Just a suggestion, don't use abbreviations that nobody else uses. Spelling out "rollover" really wouldn't take that much of your time would it? But you make everyone reading this take time to figure out what you're saying.

[pb4uski]

Sorry Graybeard... I didn't mean to raise such a fuss.

[disneysteve]

Quote:

Originally Posted by Graybeard I say RO IRA cuz I never understood what a traditional IRA is, I think I made too much to contribute to one. IIRC some IRAs are pre-tax and after tax? I just say RO IRA as the money was rolled over from my 401k.

I don’t think there’s a commonly accepted abbreviation. On my spreadsheet, I’ve always used r/o, but that’s no better or worse than RO. I just need some way to distinguish it from my other IRAs.

[latexman]

If in doubt, spell it out.

[Graybeard]

Quote:

Originally Posted by RunningBum Just a suggestion, don't use abbreviations that nobody else uses. Spelling out "rollover" really wouldn't take that much of your time would it? But you make everyone reading this take time to figure out what you're saying.

Honestly, I thought RO IRA was very obvious and that other people use it too. I do hate it when people use an acronym and don't define it first. Sorry, didn't mean to create a fuss.

[sengsational]

No fuss. Everyone was nice. BTW, it was obvious to me what you meant.

I'm glad you got your broker offered CD. You got went longer than I thought you were going to. And pretty big too, at $100K. Discover Bank doesn't rank in the top tier for safety, but it's OK, and of course it's FDIC insured.

[Graybeard]

Quote:

Originally Posted by sengsational No fuss. Everyone was nice. BTW, it was obvious to me what you meant. I'm glad you got your broker offered CD. You got went longer than I thought you were going to. And pretty big too, at $100K. Discover Bank doesn't rank in the top tier for safety, but it's OK, and of course it's FDIC insured.

Thanks. I actually bought 2 CDs, 1 around 9 am for $75k was Discover Bank and another around 10 pm for $50k I forget the bank. The FDIC insurance makes it feel like a safe purchase. I like to keep a fair amount in reserve in my IRA in case a good buy comes along. I only have $120k left but there are T bills that will mature over the coming weeks and months.

Looking at the T bill indictive yield at Vanguard, I will not be buying any this week for sure, maybe next week depending how rates move based upon the Fed meeting next week. I did see a couple of 5.30%+ CDs tonight but those may go up depending upon the Fed meeting.

One idea I heard today was the Fed may pause for 1 or 2 meetings and based upon where inflation is they may start to rise again so 5.5% or 6% Fed Funds rate may still happen and that's when I'd want to deploy some of that remaining cash in the IRA.

[sengsational]

^ Sounds like a solid plan to me. One can never know for sure, but it's certainly easier to define a range with fixed income instruments over equities, which can do anything at any time.