I have a CD coming due this week right at $250k. I have someone offering a Pacific Life Annuity paying 3% for 10 years. Basically you get your money back and the interest after ten years and are taxed on the money the year the product matures. Also looking at 5 -10 year cd's which I could find (brokered) at 3% last week but have been dropping to about 2.85% since.
Have a 10 year CD ladder right now. Anyone have any other suggestions?
Will not have to touch this chunk of money for a least the next ten years.
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The Mountain America CU is one of the highest 5yr CD in US offer but it is only for locals. Other top CDs are around 2.3% what at current inflation (2.7% at Feb2017) is negative rate. In regard to annuity at 3% you get some risk of higher than 3% inflation within 10 years as well. I also have a maturing 5years CD and not sure how to reinvest it.
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Another CD substitute would be a target maturity bond fund like BSCQ, which currently yields 3.39% to maturity in 2026. Some interest rate risk if not held to maturity... I have the shorter duration versions but they have longer ones.
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