Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 11-01-2020, 12:04 PM   #161
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
OldShooter's Avatar
 
Join Date: Mar 2017
Location: City
Posts: 6,535
Quote:
Originally Posted by Rosedala View Post
Many years ago I had a few CD type annuities at great interest. I'm ready, like you, for more but I'm afraid that my money availability now is not enough for these?: around $29K? Anyway another reason I didn't do it yet is I lost my nerve and can't decide which insurance rate to get. Have you found a good one? If so would you maybe let me know which? In December 1 I'll have a CD maturity of $40K and wonder if I should wait and find a MYGA for Dec.?Thank you in anticipation.
FWIW I was in a quarterly review meeting with one non-profit's FA on Tuesday and we were talking about trying these. FA said that in their checking/past week or so, the MYGA rates quoted for over $100K started to decline vs smaller amounts. (!) I have not checked this out personally but it probably says that careful reading is important. We/nonprofit may buy a couple at $100K and see how things go. The state insurance guarantee funds are a definite plus when looking at an unfamiliar asset. DW and I have some TIPS maturing in January and I think we are headed the MYGA route too, probably also $100K. We'll see.
__________________
Ignoramus et ignorabimus
OldShooter is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 11-01-2020, 12:41 PM   #162
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,826
Quote:
Originally Posted by Rosedala View Post
Many years ago I had a few CD type annuities at great interest. I'm ready, like you, for more but I'm afraid that my money availability now is not enough for these?: around $29K? Anyway another reason I didn't do it yet is I lost my nerve and can't decide which insurance rate to get. Have you found a good one? If so would you maybe let me know which? In December 1 I'll have a CD maturity of $40K and wonder if I should wait and find a MYGA for Dec.?Thank you in anticipation.
Yup, the MYGA products are also sometimes called CD-type annuities. I expect to be trying one of these products early next year. My comfort level is B rating or better for a fairly tiny allocation. The three sites I track are Blueprint Income, Stan The Annuity Man ( Annuity Steakhouse) and immediate annuities.com. Another direct distributor is Gainbridge which is a division of Guggenheim. After signing up with some sites, I get advance notice before rates decline sometimes. With regard to Old Shooter's comment, I seem to recall some products are only offered to individuals and not institutions. Blueprint Income is esp. informative. There are many options with minimums less than 29k.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 11-01-2020, 01:16 PM   #163
Recycles dryer sheets
 
Join Date: Oct 2017
Location: New York, NY
Posts: 175
Quote:
Originally Posted by jazz4cash View Post
Thatís a reasonable assessment. Itís the same ballpark, but better seats. Iím simply repeating what Iíve read many times. Hereís an example excerpt albeitís 6 yrs old.....


So how do MYGs and bank CDs stack up against each other? To start, let's acknowledge the conventional wisdom holding that MYGs are generally the better choice because they offer higher rates and certain tax advantages. But is that the final verdict?

The entire article which favors CDs due to simplicity of the product is below. It discusses the MYGA tax deferral which seems significant to me but Iím not sure I trust their analysis....

https://www.marketwatch.com/story/co...ers-2014-03-28
The CD-type annuities are very simple, just the same as a CD. The only thing one has to worry about is the reliability of the insurance issuing it. I didn't have a chance yet to explore them at this time, but hopefully I will soon and if I'm lucky to find the right insurance I'll probably get one.
Rosedala is offline   Reply With Quote
Old 11-01-2020, 01:20 PM   #164
Recycles dryer sheets
 
Join Date: Oct 2017
Location: New York, NY
Posts: 175
Quote:
Originally Posted by jazz4cash View Post
Yup, the MYGA products are also sometimes called CD-type annuities. I expect to be trying one of these products early next year. My comfort level is B rating or better for a fairly tiny allocation. The three sites I track are Blueprint Income, Stan The Annuity Man ( Annuity Steakhouse) and immediate annuities.com. Another direct distributor is Gainbridge which is a division of Guggenheim. After signing up with some sites, I get advance notice before rates decline sometimes. With regard to Old Shooter's comment, I seem to recall some products are only offered to individuals and not institutions. Blueprint Income is esp. informative. There are many options with minimums less than 29k.
Thanks so much for your suggestions which I'll try soon.
Rosedala is offline   Reply With Quote
Old 11-01-2020, 01:45 PM   #165
Recycles dryer sheets
 
Join Date: Oct 2017
Location: New York, NY
Posts: 175
Quote:
Originally Posted by jazz4cash View Post
Yes. Good points wrt lack of FDIC and being familiar with individual state guarantee association limits. I don’t worry much about limits or credit ratings since I just have fairly small sums at risk in this type of product. I will diversify, ladder, and stay short/intermediate to mitigate risk.

As far as verifying if a particular investment is part of a pool, I’d be surprised if one could get any benefit of protection from the state guaranty assoc without being in the pool. In that case the provider’s credit rating would be critical.
Would you kindly explain to me what this "pool" is about? Though I used to have a few CD type annuities I never heard this word. Does it mean that some states may not cover some insurance companies in case of bankruptcy or something? Anticipating my thanks.
Rosedala is offline   Reply With Quote
Old 11-01-2020, 02:02 PM   #166
Recycles dryer sheets
 
Join Date: Oct 2017
Location: New York, NY
Posts: 175
Quote:
Originally Posted by John Galt III View Post
I added $100K to my PenFed 5 year cd's in 2019, so I have 3.5 % until 2024. Woohoo !
Hi, do you mean you are allowed to add money to a CD already in place? That's wonderful! What did you have to do in order to add the money? I'd love to do it with some CDs I have now.....
Rosedala is offline   Reply With Quote
Old 11-01-2020, 06:13 PM   #167
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,180
Add-on CDs are pretty rare for obvious reasons... the only ones that I know of currently issued are the Navy Federal EasyStart CDs... you give up a little rate... currently 0.1%... compared to a non-add-on CD but to me the add-on feature is well worth it (I got in late so mine is only 1.35%).

A lot of us got in on some 5-year 3% GTE Financial CDs in 2019 but those are no longer offered.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Old 11-01-2020, 09:17 PM   #168
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
calmloki's Avatar
 
Join Date: Jan 2007
Location: Independence
Posts: 6,638
Quote:
Originally Posted by pb4uski View Post
Add-on CDs are pretty rare for obvious reasons... the only ones that I know of currently issued are the Navy Federal EasyStart CDs... you give up a little rate... currently 0.1%... compared to a non-add-on CD but to me the add-on feature is well worth it (I got in late so mine is only 1.35%).

A lot of us got in on some 5-year 3% GTE Financial CDs in 2019 but those are no longer offered.
And thank you again for opening my eyes to the addon CDs at NFCU. Called GTE a while ago and they claim one can go past the 250k on that addon (assuming you have an account that you feel lucky on or have more than $250 in NFCU insurance because of titling).
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
calmloki is online now   Reply With Quote
Old 11-02-2020, 12:23 PM   #169
Recycles dryer sheets
 
Join Date: Sep 2013
Posts: 97
Quote:
Originally Posted by kjpliny View Post
The system is broken and the Federal Reserve is the root cause.
Bingo! We have a winner. The savers, especially the elderly, are being punished to prop up the "economy" corporations and stock market speculators. As well as the governments runaway borrowing at all levels.

Grandma used to get a nice little extra income from her CD's at the bank. Her savings were used to finance home building and businesses in the community. Now it's all turned on its head.

It's all going to come undone one day.
upset264 is offline   Reply With Quote
Old 11-02-2020, 01:18 PM   #170
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,826
Quote:
Originally Posted by Rosedala View Post
Would you kindly explain to me what this "pool" is about? Though I used to have a few CD type annuities I never heard this word. Does it mean that some states may not cover some insurance companies in case of bankruptcy or something? Anticipating my thanks.


Another poster used the term ďpoolĒ which I assumed to be a reference to the State Guaranty Association. This works as a substitute for FDIC coverage.

From Investopedia.....

A state guaranty fund is administered by a U.S. state to protect policyholders in the event that an insurance company defaults on benefit payments or becomes insolvent. The fund only protects beneficiaries of insurance companies that are licensed to sell insurance products in that state.Jan 13, 2020
www.investopedia.com õ terms õ sta...
State Guaranty Fund Definition - Investopedia
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 11-02-2020, 01:25 PM   #171
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,826
Quote:
Originally Posted by pb4uski View Post
Add-on CDs are pretty rare for obvious reasons... the only ones that I know of currently issued are the Navy Federal EasyStart CDs... you give up a little rate... currently 0.1%... compared to a non-add-on CD but to me the add-on feature is well worth it (I got in late so mine is only 1.35%).

A lot of us got in on some 5-year 3% GTE Financial CDs in 2019 but those are no longer offered.


Yeah Add-on feature is sweet and way under appreciated. FWIW Navy Federal used to open up many of their CDs for add-on around the first quarter of the year. It was generally not advertised. Sometimes an add-on option will appear on their website on the CD Summary list but other times I just call and ask.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 11-02-2020, 01:49 PM   #172
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Car-Guy's Avatar
 
Join Date: Aug 2013
Posts: 5,871
I've given up on CD's... My local bank had some of the best rates I could find anywhere until the last year or so... Now their 48 mo CD's are down to 1.05%.... Not enough to bother with so I moved it all to my brokerage accounts... When it's not invested in "something" I sweep it into short term (overnight) bond funds which is better than nothing (but not by much)

Still getting 3.25% on fixed income investments from my 401k money with my old employer...... Not bad, IMO, for today's markets. Make enough on that to pay most of my living expenses year to year.
__________________
A smart man only believes half of what he hears and reads, a wise man knows which half to believe.
Car-Guy is offline   Reply With Quote
Old 11-02-2020, 03:38 PM   #173
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,180
Quote:
Originally Posted by jazz4cash View Post
Yeah Add-on feature is sweet and way under appreciated. FWIW Navy Federal used to open up many of their CDs for add-on around the first quarter of the year. It was generally not advertised. Sometimes an add-on option will appear on their website on the CD Summary list but other times I just call and ask.
Good point... I took advantage of that once... I just happened to call and ask if my CD was an add on and while it was not, there was a short window where they were allowing add ons. Ca-ching!
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
bonds
Old 12-14-2020, 07:10 AM   #174
Recycles dryer sheets
 
Join Date: Apr 2004
Posts: 124
bonds

How safe are short and intermediate bonds, when it looks like the interest rates may go up, sell them ?
bobbee25 is offline   Reply With Quote
Old 12-14-2020, 07:56 AM   #175
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 29,180
Quote:
Originally Posted by bobbee25 View Post
How safe are short and intermediate bonds, when it looks like the interest rates may go up, sell them ?
If you plan to hold them to maturity, then no worries.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.

Retired Jan 2012 at age 56...target 65/35/0 AA TBD
pb4uski is online now   Reply With Quote
Old 12-14-2020, 08:02 AM   #176
Recycles dryer sheets
 
Join Date: Apr 2004
Posts: 124
I was thinking of bond funds
bobbee25 is offline   Reply With Quote
Old 12-14-2020, 08:09 AM   #177
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 5,826
If interest rates go up the value of bonds and bond funds will go down. I donít think youíd want to sell after rates rise. A fund might mitigate the effect of rising rates.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is online now   Reply With Quote
Old 12-14-2020, 08:10 AM   #178
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 29,159
Bond funds are not a substitute for CDs. Don’t take on more risk to chase yield.

And it’s almost impossible to anticipate interest rate changes. Nobody knows.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 12-14-2020, 08:52 AM   #179
Recycles dryer sheets
 
Join Date: Aug 2015
Posts: 447
Quote:
Originally Posted by audreyh1 View Post
Bond funds are not a substitute for CDs. Donít take on more risk to chase yield.

And itís almost impossible to anticipate interest rate changes. Nobody knows.
+1
VFK57 is offline   Reply With Quote
Old 12-14-2020, 09:26 AM   #180
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RunningBum's Avatar
 
Join Date: Jun 2007
Posts: 10,890
Quote:
Originally Posted by bobbee25 View Post
How safe are short and intermediate bonds, when it looks like the interest rates may go up, sell them ?
Define safe. Bonds have a risk of default. It's usually very low, but if things go really really bad, it may not be so low. All other investments will probably get whacked too. In normal times, a bond fund will give you the protection of numbers to minimize the effect of a few defaults. Investing in individual bonds, you need to do a little research and try to diversify as best you can. I'd bet most of the individual bond investors here have never had one of their bonds default.

If you're just talking about losing money, yeah, bond funds will lose money as rates rise, but the yield will go up as well. You can avoid loss on individual bonds by holding to maturity, but that locks you into that low rate.

You talk about selling if interest rates "may go up". Not so easy to predict, and what are you going to invest in when you do sell? And when do you know that they have stopped going up to get back in?
RunningBum is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
ridiculous songs to play while house cleaning Martha Other topics 42 05-30-2011 03:26 PM
Ridiculous retirement advice programs steelyman Other topics 33 04-14-2011 10:27 PM
Penfed closing costs on a refi...Ridiculous JohnDoe FIRE and Money 8 12-19-2008 11:16 PM
Doomsday talk ridiculous, be of good heart haha FIRE and Money 13 09-22-2008 08:35 AM
Ridiculous sprinkler repair cute fuzzy bunny Other topics 6 04-14-2007 01:42 PM

» Quick Links

 
All times are GMT -6. The time now is 02:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.