Digital Nomad
Dryer sheet wannabe
At age 61 it seems illogical to have most of my money in the stock market and I got burned by Bond Funds- sold all earlier in the year- so I have lots of money in Money Market Funds and higher yield savings accounts earning 2-3%.
Now I see CALLABLE Brokered CDs on the Ameritrade Website for as much as 5%. Callable CDs pay much more interest than non-callable options. The trouble is if interest rates fall they will be called and I won't have the money earning 5% interest anymore.
But if they are not called I win by having a guaranteed 5% interest for years going forward. And even if they are called sometime in the future I had earned a higher level of return from today to the call date than any other guaranteed income option.
What do you think of my logic and would you buy a callable CD if you wanted some of your money outside the stock market?
Now I see CALLABLE Brokered CDs on the Ameritrade Website for as much as 5%. Callable CDs pay much more interest than non-callable options. The trouble is if interest rates fall they will be called and I won't have the money earning 5% interest anymore.
But if they are not called I win by having a guaranteed 5% interest for years going forward. And even if they are called sometime in the future I had earned a higher level of return from today to the call date than any other guaranteed income option.
What do you think of my logic and would you buy a callable CD if you wanted some of your money outside the stock market?
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