The system is broken and the Federal Reserve is the root cause.
I have CDs spaced out over the next few years, but with the rates so low where else can you put safe money and get a descent return ?
Thinking about some short term bond funds ?
No idea of current rates, but you could look into SPDAs (Single Premium Deferred Annuity.) Years ago, I beat current CD rates with a SPDA. The SPDA had a short term (3 years.) IIRC, I beat CDs by 1%. Penalties for early withdrawal were fairly severe as I recall, so caution advised. Just a thought so YMMV.
Is that same as MYGA (multi year guaranteed annuity)? I will consider these products when the time comes to replace my maturing CDs.
There is no such thing as safe money with a decent return. There is safe money with a "decend" return i.e. you will slowly loose to inflation.
You might put some cash into a fund like Vanguard Short Term Investment Grade (VFSUX). Some modest risk but has a short duration (2 years) so money put in for that time should probably keep up with inflation. I own some of this. No guarantees.
https://investor.vanguard.com/mutual-funds/profile/overview/vfsux
This. For a long time I kept some cash in a fund like that, but I basically abandoned that and how just have equity and bond funds and when I need money I look at where I think I should rebalance.
Is that same as MYGA (multi year guaranteed annuity)? I will consider these products when the time comes to replace my maturing CDs.
Is that same as MYGA (multi year guaranteed annuity)? I will consider these products when the time comes to replace my maturing CDs.
You should also check out any state insurance for these products, as they are not FDIC insured like CD's.
Additionally, the higher yielding MYGA's will typically have lower rated credit ratings.
Yes, IMO it’s all about protecting the credit markets (cheap credit!) which protects the stock market.Methinks they want to mitigate against the Stock Market taking a dump. That effects a lot of folks here. (Not me) I am one of the poor saver shmucks being taken advantage of. Well at least in mid 2021 I will be.
Good idea to check on these as Dtail suggests. Also check to see if they are considered to be in the "pool" (for want of a better technical term) that insurance companies use to pay claims on other insurance instruments when insurance companies occasionally DO go out of business. As always, YMMV.
Until I looked up interest rates, I forgot about that wild ride. Very whee-ish.Yes, IMO it’s all about protecting the credit markets (cheap credit!) which protects the stock market.
Personally, I’m not sweating super low interest rates for a couple of years.
I have 200k coming due, thinking about leaving 100k at 1% (hurts to even write that). So I will loose $1,000
Then move the other 100k to T. Rowe Price Bond funds
most in TRBUX ultra short and a small amount in PRNSX global