Ridiculous CD rates - where now

[retired1]

What is a DYIA? What company was it with? 3.45% for 5 years sounds pretty good.

Sorry I meant MYGA (not DYIA). MYGA stands for "Multi Year Guaranteed Annuity" (CD like product from Insurance Company). I got it from here: https://www.stantheannuityman.com/myga-rates

Note It's as good as the strength of the insurance company. I opened only a small amount ($10K) to test it out. This is my first MYGA

 

[bobbee25]

I have transferred IRAs and Roth IRAs numerous times.
1 rollover a year or as many transfers as you want.


For a transfer just notify the receiving facility, they will have you fill out a transfer form, specify the CD date maturity date. If you are new to this facility you will also fill out an IRA account form.

 

[catotx]

Sorry I meant MYGA (not DYIA). MYGA stands for "Multi Year Guaranteed Annuity" (CD like product from Insurance Company). I got it from here: https://www.stantheannuityman.com/myga-rates

Note It's as good as the strength of the insurance company. I opened only a small amount ($10K) to test it out. This is my first MYGA

I have bought a few MYGAs in the past few months, the latest being Americo's 5-yr MYGA at 3.2%. Americo is rated A by AM Best.

Another caveat about MYGAs is their punishing early withdrawal penalties. Buy a MYGA only if you are certain you won't need the entire sum of money until its maturity.

 

[jazz4cash]

While it’s true the early withdrawal penalties (aka surrender charges and market value adjustments) are generally severe for MYGA products, most of the ones I’ve reviewed permit 10% withdrawals per year without penalty. That’s actually better than a CD.

 

[Dtail]

Sorry I meant MYGA (not DYIA). MYGA stands for "Multi Year Guaranteed Annuity" (CD like product from Insurance Company). I got it from here: https://www.stantheannuityman.com/myga-rates

Note It's as good as the strength of the insurance company. I opened only a small amount ($10K) to test it out. This is my first MYGA

Yup comes down to the credit rating. Your yield appears to be fairly high.

 

[retired1]

I have bought a few MYGAs in the past few months, the latest being Americo's 5-yr MYGA at 3.2%. Americo is rated A by AM Best.

Another caveat about MYGAs is their punishing early withdrawal penalties. Buy a MYGA only if you are certain you won't need the entire sum of money until its maturity.

Yes Agreed. This is first MYGA I hesitantly (has word Annuity in it) bought.
Whether MYGA or CD, once I open them I forget about them until I get a reminder at Maturity. Just like CDs, you've to shop for best rates for MYGA. Let me know which site you use for MYGA rates.

 

[ShokWaveRider]

I would stick with A and above rating for the insurance companies. There have been a lot of insurance claims lately.

I use this one for rates.

https://www.immediateannuities.com/deferred-annuities/

 

[catotx]

Yes Agreed. This is first MYGA I hesitantly (has word Annuity in it) bought.
Whether MYGA or CD, once I open them I forget about them until I get a reminder at Maturity. Just like CDs, you've to shop for best rates for MYGA. Let me know which site you use for MYGA rates.

I use Blueprint Income https://www.blueprintincome.com/fixed-annuities

 

[retired1]

I use Blueprint Income https://www.blueprintincome.com/fixed-annuities

Thank you! My MYGA was opened with Upstream Life (B++). Keeping fingers crossed

 

[jazz4cash]

I like that blueprint income site. One thing I never considered is the withdrawal policy for MYGAs wrt RMDs. I many the permit 10% withdrawals on the anniversary date, some that permit accumulated interest to be withdrawn, and at least one so far allows RMD withdrawals w/o penalty. I'll need to study that some more but I'm a long ways from RMDs.

 

[usafmd]

I've had all of my corporate bonds called in over the last year, with only Treasuries and Muni's left. Instead of "fighting the Fed," I've ramped up my index option trading with the goal of producing a bond-like yield with good success. It's not extremely risky, but the learning curve is very steep.

 

[kevink]

VBIRX (ETF equivalent BSV) may be worth considering. Short (1-3 duration), 70% U.S. Government bonds 30% corporates and has never had a losing year (not to say it couldn't happen in the future). So far it's the least risky bond fund I've found with a positive real return.

 

[Montecfo]

We have CD's @ ~4% till August 2021.

Oh you just stop bragging right now..



I just rescued some of my CD cash today- it needs a new home so it is going to one of these three spots

1. .90% savings account at CFG bank
2. Bonus surfing with TD bank and others
3. My fave ST bond funds and similar

And I have a bunch more that will need to be rescued in Dec.

 

[bigadventure]

My banker called me and suggested ClarkCapital Management group. Ccmg.com navigator multi strategy 25-75. The average annualized return is 6.8%. He claims its totally liquid. Fees though 1.23%

What do you all think?

 

[REWahoo]

My banker called me and suggested ClarkCapital Management group. Ccmg.com navigator multi strategy 25-75. The average annualized return is 6.8%. He claims its totally liquid. Fees though 1.23%

What do you all think?

I think your banker will get a nice slice of that 1.23% if you say yes.

I also think 6.8% in today’s environment sounds too good to be true - and if it sounds too good to be true...

 

[dixter]

Just now scanned Fidelity for individual bonds... coupon rates... not hard to make money here... and there are no fees to pay anyone...

Apple - 4.65%
Apple - 4.50%
Ford - 9.98%
Ford -8.9%
Microsoft - 5.3%
At&T - 9.45%
At&T - 8.75%
GE-7.5%

you want tax free muni bonds... coupons at 5%... your pick...

 

[Rosedala]

There’s a thread where members report current rates for CDs and other similar options, here https://www.early-retirement.org/fo...-2020-please-post-updates-here-101376-19.html

A great site for CD/Savings etc. rates and analyses of banks and credit unions is depositaccounts.com. Good luck!

 

[Rosedala]

We have CD's @ ~4% till August 2021.

Hey....4% is GREAT! And so is your clever quote!

 

[pb4uski]

Oh you just stop bragging right now..



I just rescued some of my CD cash today- it needs a new home so it is going to one of these three spots

1. .90% savings account at CFG bank
2. Bonus surfing with TD bank and others
3. My fave ST bond funds and similar

And I have a bunch more that will need to be rescued in Dec.

I've been putting some cash into baby bonds... specifically AGO.PRB... Baa2/A rated and 6.51% yield also PBC... Baa3/BBB- ratedand 6.63% yield.... not CDs but I'm accepting some credit risk in exchange for attractive yield.

 

[pb4uski]

I think your banker will get a nice slice of that 1.23% if you say yes.

I also think 6.8% in today’s environment sounds too good to be true - and if it sounds too good to be true...

It's not a guaranteed 6.8%... 6.8% is the 5 year gross total return but fees are 3% according to this factsheet: https://www.ccmg.com/Public/_pdf/_current/Factsheet-Navigator_MultiStrategy_25-75.pdf

I would invest in SWAN before that 25/75 product.... but both are far away from being CDs or even close to CDs.

 

[bigadventure]

Correct about the 3%, but they were giving me a discount to 1.23%.

 

[jazz4cash]

Just now scanned Fidelity for individual bonds... coupon rates... not hard to make money here... and there are no fees to pay anyone...

Apple - 4.65%
Apple - 4.50%
Ford - 9.98%
Ford -8.9%
Microsoft - 5.3%
At&T - 9.45%
At&T - 8.75%
GE-7.5%

you want tax free muni bonds... coupons at 5%... your pick...

Yah the coupons are great but what do the yields say? I see an Apple 4.65 coupon for 25yrs and the yield is 2.5. I am not ready to go that long for that low, at least not yet.

 

[dixter]

Yah the coupons are great but what do the yields say? I see an Apple 4.65 coupon for 25yrs and the yield is 2.5. I am not ready to go that long for that low, at least not yet.

you do know that you don't have to buy a bond for its yield at maturity right?

for example... you buy a bond that pays out 9% coupons for 30yrs... you keep the bond for say 20yrs and you collect the 9% coupon each year for the 20yrs and then you just sell the bond like you would a stock... you don't care what the yield to maturity is cause you won't own the bond at maturity...
You get the 9% each year and they don't charge you anything to have it year to year... and if you buy it today and don't like it or need the money next week you just sell it back and get your money back...

 

[pb4uski]

dixter... have you ever bought a bond?

In the example that you cite you don't get 9% on your investment... if the yield is lower than the coupon you pay a premium so your return is the yield to maturity unless interest rates change.

 

[dixter]

I have bought and sold several bonds over my life span... and if you pay attention then ALL bonds vary in value... what you say is true MOST of the time.... not allways, there are other factors that affect a bonds price.... I have seen many bonds that actually go up in face value even when the interest rates go up also.... if a bond is selling above prime value ( $1000 at prime ) then that only affects the yield when you sell the bond or it matures, it never ever affects the yield while you hold the bond and collect the coupons... an example of not caring about the yield return... you are say 62 yrs old, you determine that you want a bond to pay out until after you die... so you think... 35 yrs would be a good life span, that puts you at 97 yrs old when you hope to last too... so you buy a bond that matures at 40 yrs... you collect the 9% coupon for your life span and when the bond matures 40 yrs latter who ever you gave your bond to when you died will get $1000/bond at its maturity... and yes... this exact example is available today.. right now... I'll take the 9% coupon for 35+ years over a .05% bank any day... and guess what... I don't even need to worry about the yield.. ever