Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 01-17-2017, 08:12 PM   #21
Thinks s/he gets paid by the post
GalaxyBoy's Avatar
 
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,256
Quote:
Originally Posted by travelover View Post
OP here. Looks like PenFed at 1.41 % APR for 15 months would be perfect. Not much, but better than losing it to inflation.
Sounds like a winner! Sounds like more than "not much" these days.

To those of us of a certain age it really doesn't sound like much compared to the days when a 1-year CD was paying 11% or more. Then again, my first car loan back then was 17.5%, which included a 2% discount from the bank because my dear old Dad co-signed for me.
GalaxyBoy 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 01-17-2017, 09:25 PM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 6,083
Quote:
Originally Posted by travelover View Post
OP here. Looks like PenFed at 1.41 % APR for 15 months would be perfect. Not much, but better than losing it to inflation.


Runner up is NASA FCU with 1.35 apy for 15 mos.
__________________
...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 01-17-2017, 10:46 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 5,703
This might work:

https://www.fatwallet.com/forums/fin...ssage=19761379
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is online now   Reply With Quote
Old 01-18-2017, 12:47 AM   #24
Recycles dryer sheets
 
Join Date: Apr 2005
Location: Seattle
Posts: 188
Going against the flow, you could put it in a fund whose performance correlates well with the housing market where you're planning to buy. If the housing market goes up 10% but you only get 1.5% in a money market account, you'll feel pretty annoyed. If the housing market goes down 10% and your money also goes down 10% well, you can still buy the same house as you would today.

So maybe VGSLX? I haven't checked how closely those actually correlate to housing markets...
nuisance is offline   Reply With Quote
Old 01-18-2017, 07:37 AM   #25
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: 30,460
When we sold our house in 2005, our plan was to full time RV for at least 5 years, so it seemed best to invest the house sale funds in a diversified portfolio, to grow while we traveled. I chose OAKBX which turned out to be a huge stroke of luck, because it wasn't hit nearly as hard in 2008 as other funds. By the time we bought a new place in 2010, our "house fund" had appreciated quite nicely, so it worked out well. Whereas the housing market - not so good.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 01-18-2017, 07:51 AM   #26
Thinks s/he gets paid by the post
 
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 4,973
Quote:
Originally Posted by Hyperborea View Post
You don't have to put it into different institutions if you don't want to. FDIC will cover multiple accounts in the same institution if you title them right. You could put half in your name and half in your spouse's name. Other options include adding a payable on death, joint accounts, etc. A married couple could use various combinations to put well over a million into one institution FDIC insured.

https://www.fdic.gov/deposit/deposit...s-english.html
Credit unions. NCUA is better for insurance. Name 3 Beneficiaries and you can get $1.25m Insurance. the CU will advise how to do the title.
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
ShokWaveRider is offline   Reply With Quote
Old 01-18-2017, 09:58 AM   #27
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: 30,090
One thing you might consider is going with a longer term CDs and breaking it and paying the early withdrawal penalty. For example if your choice is between a 1.5% CD for a year or a 3% long term CD with a 6 month then you might be better off with the longer term CD and the early withdrawal penalty... especially if your plans change and you end up leaving the money invested for a bit longer than you think.
__________________
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
pb4uski is online now   Reply With Quote
Old 01-18-2017, 06:45 PM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 13,264
Well it seemed easy enough, but somehow I tripped an alarm when I tried to apply on-line for an account at PenFed and they said I needed to send them a notarized copy of my SS card, notarized utility bill with my new address and a notarized copy of my drivers license. Tonight, they said this was still not good enough as the SS card looks very old (it is, I got it when I was 14 ) and the address on my license did not match the utility bill. Of course they don't, the whole purpose of the utility bill is to prove I live there now.

I did a quick search here and see that Nords tangled with these same Keystone Kops back in 2015. If the rate wasn't so good, I'd tell them to stick it.
travelover is offline   Reply With Quote
Old 01-18-2017, 08:35 PM   #29
Thinks s/he gets paid by the post
Just_Steve's Avatar
 
Join Date: Apr 2016
Location: Dutchess County
Posts: 1,600
Quote:
Originally Posted by euro View Post
Thanks Hyperborea - you are right and I stand corrected!

Only a single joint account would be required for 400K, according to the FDIC website. I was told differently by an employee at SACU, but maybe they didn't have it right, or maybe each bank can have more restrictive rules than the FDIC itself?

PS: the FDIC link you provided is dead for some reason
Could be because credit union accounts are NOT FDIC insured?
That should have been the first answer to your question.

https://www.ncua.gov/legal/guidesetc...suredfunds.pdf

^The correct answer to your credit union question.^
Just_Steve is offline   Reply With Quote
Old 01-19-2017, 12:54 AM   #30
Thinks s/he gets paid by the post
 
Join Date: Dec 2010
Location: Midwest
Posts: 1,664
Quote:
Originally Posted by audreyh1 View Post
When we sold our house in 2005, our plan was to full time RV for at least 5 years, so it seemed best to invest the house sale funds in a diversified portfolio, to grow while we traveled. I chose OAKBX which turned out to be a huge stroke of luck, because it wasn't hit nearly as hard in 2008 as other funds. By the time we bought a new place in 2010, our "house fund" had appreciated quite nicely, so it worked out well. Whereas the housing market - not so good.
More $ AND cheaper house prices?? Nice timing!
brucethebroker is offline   Reply With Quote
Old 01-21-2017, 12:14 PM   #31
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,798
Quote:
Originally Posted by travelover View Post
I did a quick search here and see that Nords tangled with these same Keystone Kops back in 2015. If the rate wasn't so good, I'd tell them to stick it.
Once you give them your money, or try to get it back, the customer service will only get worse.

Not worth the difference in the rates...
__________________
*

Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."

I don't spend much time here— please send a PM.
Nords is offline   Reply With Quote
Old 01-21-2017, 05:50 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 13,264
Quote:
Originally Posted by Nords View Post
Once you give them your money, or try to get it back, the customer service will only get worse.

Not worth the difference in the rates...
Thanks for the warning. I did decide on a 12 month instead of a 15 month CD in order to give me time to pry my money back loose from them when it is time to buy a new house.
travelover is offline   Reply With Quote
Old 01-21-2017, 07:17 PM   #33
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: 30,460
You can set up a CD to automatically transfer to your checking or savings at PenFed as soon as it matures. No problems there so far for me.

Many other banks make you contact them to arrange for CDs NOT to reinvest when they mature which is a pain.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 01-22-2017, 06:56 AM   #34
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 13,264
Quote:
Originally Posted by audreyh1 View Post
You can set up a CD to automatically transfer to your checking or savings at PenFed as soon as it matures. No problems there so far for me.

Many other banks make you contact them to arrange for CDs NOT to reinvest when they mature which is a pain.
Thanks, I'll make sure I arrange that transfer as the maturity approaches. I did make sure it did not automatically reinvest.
travelover is offline   Reply With Quote
Old 01-22-2017, 08:22 AM   #35
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: 30,460
Quote:
Originally Posted by travelover View Post
Thanks, I'll make sure I arrange that transfer as the maturity approaches. I did make sure it did not automatically reinvest.
You've already selected where they will deposit the funds once it matures, then. BTW they allow the selection of whether to reinvest or not to be made online anytime during life of the CD.

I have mine deposited in my PenFed checking account, and then once the funds are deposited I use another institution such as Fidelity to pull the funds. I haven't encountered problems pulling funds via ACH from my other institutions.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 01-24-2017, 05:23 PM   #36
Recycles dryer sheets
RHONDAVE's Avatar
 
Join Date: Mar 2016
Location: Goodyear
Posts: 72
We just parked $500K in Everbank @1.35 for 1 year as we search for new spec homes in Phoenix for cash.
RHONDAVE is offline   Reply With Quote
Old 01-25-2017, 05:24 AM   #37
Recycles dryer sheets
 
Join Date: Feb 2015
Posts: 291
Quote:
Originally Posted by travelover View Post
I think I know the answer to this, but before I do something stupid, like put it all on red, I thought I'd ask.

We just sold our house and have a check for about $400K. Plan is to rent for the next 12 to 16 months*, then buy a new home for cash.

The obvious answer is to park it in a CD at some place like Ally. Any other creative alternatives? It kills me to be paying $1700 a month for rent and earning 1% on my money.



* We'll be buying in a new state and want to try it out before buying
Trust me...it would kill you that much more if you invested the $400k in an investment that lost 20% over the next year. Especially when you will need all or most of it for a new home.

Don't get greedy. Take the 1% and be happy.
MrLoco is offline   Reply With Quote
Old 01-25-2017, 06:09 AM   #38
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,327
Quote:
Originally Posted by copyright1997reloaded View Post
May I also suggest you place it in multiple institutions? This eliminates the 250,000 cap on FDIC insurance and also the hassle factor (delay) if there were to be a limit. In addition, if you did have to break a CD for some reason (e.g. you find a buy that you can't resist so you decide to cash out enough for a down payment), you won't be penalized on the entire investment.
Since it presumably is joint money you can get 750k in a limit easily by titleing 3 different accouts a with payable on death to B, B with payable on death to A, and A &B you also could do A alone and B alone going to 1.25 million that way alone.
meierlde is offline   Reply With Quote
Old 01-25-2017, 07:41 AM   #39
Recycles dryer sheets
 
Join Date: Jul 2013
Posts: 346
Quote:
Originally Posted by RHONDAVE View Post
We just parked $500K in Everbank @1.35 for 1 year as we search for new spec homes in Phoenix for cash.
We are in the process of doing the same. However, it is a surprisingly long process to open an account. One would think this could be done immediately and I wire the funds in. However, three days have now passed and my account is not yet opened.
phil1ben is offline   Reply With Quote
Old 01-25-2017, 07:44 AM   #40
Thinks s/he gets paid by the post
jollystomper's Avatar
 
Join Date: Apr 2012
Posts: 3,868
Quote:
Originally Posted by MrLoco View Post
Trust me...it would kill you that much more if you invested the $400k in an investment that lost 20% over the next year. Especially when you will need all or most of it for a new home.

Don't get greedy. Take the 1% and be happy.
+1

Heck, I have enough in cash earning 1% so that we are not forced to sell any investments between the time I retire and the time we plan to take SS... the peace of mind is worth more than the potential risk.
__________________
FIREd date: June 26, 2018 - wwwwwwhat a rush!
jollystomper 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
Scrambling to get by on $400K/Yr in NYC NW-Bound FIRE and Money 73 04-10-2009 09:39 AM
Park Model RV's Al Life after FIRE 3 04-02-2005 02:34 PM
National Park Visit today................ Cut-Throat Life after FIRE 9 03-11-2005 12:11 PM
Best Place To Park Some Cash rsboone FIRE and Money 15 09-09-2004 09:55 AM
Best place to park cash for 1-?? months cute fuzzy bunny FIRE and Money 61 01-04-2004 07:20 AM

» Quick Links

 
All times are GMT -6. The time now is 12:01 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.