Originally Posted by OAG
The few I have maturing this year will be put right back into CD's albeit shorter terms at the best rates I can find (like 6 months at 3% APY or 18 months at 4.35% APY - at Navy FCU). I also have a HELOC I could be paying down but as long as the rate remains at 2.75% interest that is not a priority.
I also ladder CD's. I have one due in over 2 years, I believe at that time rates will creep a bit up. I think your plan is good. I would lean towards the 4.35 if that is good enough for you. Maybe go a little further out if I can.
Almost 3 years ago, I locked in some at 5.6, going 5-7 years out. The banker tried to talk me out of it. He thought I was nuts going so far out and missing on other opportunities such as bonds and equities. I decided that I would rather be safe than make an extra few more points in the market. At the time the market to me was a head game, up and down, should I? Shouldn't I? Don't like head games, rather take less and sleep at nights, head is messed up enough
I figured it would cover my needs, since it supplements my pension and SS doesnt kick in until 6 more years. So 4.35 doesn't look bad to me, yes the market may make a dramatic comeback, despite what is said today, but I prefer to sleep, don't need the rollar coaster anymore.
You'll never get the best rate, but get one that you can live with.