Taxable account portfolio

[eboats]

Thanks everybody for the super helpful suggestions!

 

[Bigdawg]

Its not market timing. Equities are high risk investments right now with the current path of interest rates, that has been promised to continue for the short term at least. Do you think you have ANY investment product that will return 5% GUARANTEED for at least the next year? Pigs get fat, hogs get slaughtered. When the feds cut rates some time in the future, equities will benefit, until then, as an income investor, Ill wait.

LOL, sure you're not a market timer. Look at the highlighted words in your post.

 

[Northforker]

Keep this in mind, we are experiencing a rapid rise in interest rates and likely will see rates we haven't seen since Reagns first term 40 years ago. I distinctly remember driving my financially astute granny to the bank so she could cash in and reinvest cash in fixed income cd's that were yielding double digit returns while equities were languishing and losing. Im not saying anyone can time the market, but I am saying that history is important and macro economic trends tend to repeat themselves over time. I am also saying that paying attention to a wise old granny is more valuable than listening to someone who is amassing their wealth through book sales. Listening to Jamie Dimon is more valuable than talking heads on CNBC. When interest rates are higher than distribution rates for blue chip etf's and mutual funds or individual stocks with long standing streaks of dividend payouts, it is prudent to rebalance a portfolio to achieve equal or greater income at a lower risk level. Now if you dont need the income for perhaps decades, or you are going to live 40 more years, its probably is good to play the long game and invest in those aforementioned equity instruments and let it ride without looking at it very often. Many of us pay the bills from the dividends and distributions every month which is much more present day investing perspective. Happy investing!

 

[Northforker]

LOL, sure you're not a market timer. Look at the highlighted words in your post.

Rebalancing a portfolio to achieve identical or better income from the same invested dollars is not market timing. Do you understand the difference between passive and active management? If you are invested in a stock thst pays a 2.6% dividend and fixed income products pay 1.25%, where do you put your money? Conversely, if that fixed income product is paying 5% are you going to ride that stock down 60% while getting a 2.6% payout in the name of Bogle?

 

[Northforker]

https://seekingalpha.com/article/4550889-legendary-investor-warns-of-a-decades-long-bear-market-spy?

 

[VanWinkle]

The OP wants to park $200k cash NOW for for maybe as long as 5 years. Fixed income products with ZERO risk that the downtrending and extremely volatile equity and bond markets are experiencing is a no brainer. I am not exiting equities at this time, but Im not dripping anything either and I am selling higher risk lower div yielding positions, thats s no brainer too. Why do you insist upon making straightforward answers so mysterious? BTW, Im in year 4 of FIRE and my.portfolio is larger now than my retirement date, i live on dividends and interest. Ill stick with my strategy.

Everybody has a portfolio that is higher than 4 years ago, unless they spent more than they made. The time OP wants to have this money invested is the real question. In the short term, your answer is fine. Long term he is likely guaranteed to do better in a total market fund. Your strategy is just that, yours. It doesn't mean it's the best or the worst.

 

[GaryInCO]

Right now, or next week to be more accurate, Id pick the shortest duration CD paying monthly over 4.75% and let it ride for now.

Where do you find CDs like that -- that you TRUST?

https://www.investopedia.com/best-cd-rates-4770214 says the national *average* APY is less than 0.83% at all durations, but the "highest available APY" runs as high as 4.55%. But most of the higher-returning CDs are at no-name banks or credit unions.

I even looked at "jumbo" CD rates ($100k minimum), but those are under 4.0%.

CapitolOne seems to have very high rates. That seems very suspicious -- how can they offer rates 2-3x higher than other vendors?

Is there any benefit to buying a CD vs Tbills?

I've never bought a CD. By nature I'm a pretty aggressive investor -- I used to run a $10M commodity fund -- but lately my aggressive nature is not serving me well. It may be time to park some funds in something safe. 4-5% is not much of a return but it's better than -20% YTD with SPY.

 

[youbet]

It may be time to park some funds in something safe. 4-5% is not much of a return but it's better than -20% YTD with SPY.

But will SPY recover more than 4 - 5% during the next year? I’m betting it will, but only time will tell.

 

[Northforker]

Where do you find CDs like that -- that you TRUST?

https://www.investopedia.com/best-cd-rates-4770214 says the national *average* APY is less than 0.83% at all durations, but the "highest available APY" runs as high as 4.55%. But most of the higher-returning CDs are at no-name banks or credit unions.

I even looked at "jumbo" CD rates ($100k minimum), but those are under 4.0%.

CapitolOne seems to have very high rates. That seems very suspicious -- how can they offer rates 2-3x higher than other vendors?

Is there any benefit to buying a CD vs Tbills?





I've never bought a CD. By nature I'm a pretty aggressive investor -- I used to run a $10M commodity fund -- but lately my aggressive nature is not serving me well. It may be time to park some funds in something safe. 4-5% is not much of a return but it's better than -20% YTD with SPY.

Fidelity has 3 year cd's paying 5% right now.

Here is a partial list of their current offerings


TEXAS EXCHANGE BANK 3.850 MONTHLY 02/15/2023 No 3.850 Yes 11/15/2022 894 CP SFP
FDIC SO
SKY 3 MO


STURGIS BANK & TRUST 3.800 MONTHLY 02/16/2023 No 3.800 Yes 11/16/2022 1,253 CP SFP
FDIC SO
SKY 3 MO


TRUXTON TRUST COMPANY 3.850 MONTHLY 02/17/2023 No 3.850 Yes 11/18/2022 480 CP SFP
FDIC SO 3 MO


BANK OF TIOGA 3.800 MONTHLY 02/23/2023 No 3.800 Yes 11/23/2022 3,125 CP SFP
FDIC SO 3 MO


GATEWAY BANK 4.100 MONTHLY 03/16/2023 No 4.100 Yes 11/16/2022 55 CP SFP
FDIC SO 4 MO


FIRST CREDIT BANK 4.300 MONTHLY 05/18/2023 No 4.300 Yes 11/18/2022 839 CP SFP
FDIC SO 6 MO


MODERN BANK, NA 4.350 MONTHLY 06/12/2023 No 4.350 Yes 11/10/2022 89 CP SFP
FDIC SO 7 MO


BELL BANK 4.400 MONTHLY 07/10/2023 No 4.400 Yes 11/10/2022 5 CP SFP
FDIC SO 8 MO


UBS BANK USA 4.500 MONTHLY 11/08/2023 Yes 4.500 Yes 11/09/2022 5 CP SFP
FDIC SO 1 YR


TCM BANK NA 4.500 MONTHLY 11/17/2023 No 4.500 Yes 11/18/2022 19 CP SFP
FDIC SO 1 YR


TRANSPORTATION ALLIANCE BANK 4.500 MONTHLY 12/15/2023 No 4.500 Yes 11/16/2022 741 CP SFP
FDIC SO 13 MO


BANK OF COMMERCE 4.650 MONTHLY 02/09/2024 No 4.650 Yes 11/09/2022 12 CP SFP
FDIC SO 15 MO


WELLS FARGO BANK NA 4.800 MONTHLY 05/14/2024 No 4.800 Yes 11/14/2022 44,393 CP SFP
FDIC SO 18 MO


TRADITION CAPITAL BANK 4.600 MONTHLY 05/16/2024 No 4.600 Yes 11/16/2022 620 CP SFP
FDIC SO 18 MO


WELLS FARGO BANK NA 4.900 MONTHLY 11/14/2024 No 4.900 Yes 11/14/2022 28,620 CP SFP
FDIC SO 2 YR


TRADITION CAPITAL BANK 4.800 MONTHLY 11/15/2024 No 4.800 No 11/16/2022 1,198 SFP FDIC
SO 2 YR


FIRST CREDIT BANK 4.900 MONTHLY 11/18/2024 No 4.900 No 11/18/2022 2,993 SFP FDIC
SO 2 YR


EAGLEBANK 4.800 MONTHLY 11/18/2024 No 4.800 Yes 11/18/2022 2,526 CP SFP
FDIC SO 2 YR


SOUTH ATLANTIC BANK 4.700 MONTHLY 05/09/2025 No 4.700 No 11/10/2022 500 SFP FDIC
SO 30 MO


TRADITION CAPITAL BANK 4.800 MONTHLY 05/16/2025 No 4.800 No 11/16/2022 480 SFP FDIC
SO 30 MO


SOUTH ATLANTIC BANK 4.800 MONTHLY 11/10/2025 No 4.800 No 11/10/2022 499 SFP FDIC
SO 3 YR


FARMERS STATE BANK 5.000 MONTHLY 11/14/2025 No 5.000 No 11/14/2022 608 SFP FDIC
SO 3 YR


TRADITION CAPITAL BANK 4.850 MONTHLY 11/14/2025 No 4.850 No 11/16/2022 91 SFP FDIC
SO 3 YR


FRONTIER BANK 4.950 MONTHLY 11/24/2025 No 4.950 No 11/23/2022 73 SFP FDIC
SO 3 YR


TRADITION CAPITAL BANK 4.900 MONTHLY 05/15/2026 No 4.900 No 11/16/2022 490 SFP FDIC
SO 42 MO


CELTIC BANK 4.800 MONTHLY 11/30/2026 No 4.800 Yes 11/30/2022 414 CP SFP
FDIC SO
SKY 4 YR


FIRST NATIONAL BANK AMERICA 4.950 MONTHLY 11/10/2027 No 4.950 No 11/10/2022 8 SFP FDIC
SO 5 YR


SOUTH ATLANTIC BANK 4.900 MONTHLY 11/10/2027 No 4.900 No 11/10/2022 663 SFP FDIC
SO 5 YR


FIRST NATIONAL BANK AMERICA 5.100 MONTHLY 11/15/2028 No 5.100 No 11/14/2022 548 SFP FDIC
SO 6 YR


CELTIC BANK 5.100 MONTHLY 11/20/2028 No 5.100 No 11/18/2022 3,560 SFP FDIC
SO SKY 6 YR


FIRST NATIONAL BANK AMERICA 5.100 MONTHLY 11/14/2029 No 5.100 No 11/14/2022 1,705 SFP FDIC
SO 7 YR


CELTIC BANK 5.200 MONTHLY 11/18/2030 No 5.200 No 11/18/2022 3,617 SFP FDIC
SO SKY 8 YR


FIRST NATIONAL BANK AMERICA 5.150 MONTHLY 11/14/2031 No 5.150 No 11/14/2022 1,375 SFP FDIC
SO 9 YR


FIRST NATIONAL BANK AMERICA 5.150 MONTHLY 11/15/2032 No 5.150 No 11/14/2022 2,882 SFP FDIC
SO 10 YR


JONESBORO STATE BANK 5.300 MONTHLY 11/16/2032 No 5.300 No 11/16/2022 1,827 SFP FDIC
SO SKY 10 YR


CELTIC BANK 5.300 MONTHLY 11/16/2033 No 5.300 No 11/16/2022 1,639 SFP FDIC
SO SKY 11 YR


JONESBORO STATE BANK 5.500 MONTHLY 11/16/2037 No 5.500 No 11/16/2022 3,812 SFP FDIC
SO SKY 15 YR


FIRST NATIONAL BANK AMERICA 5.250 MONTHLY 11/16/2037 No 5.250 No 11/14/2022 2,185 SFP FDIC
SO 15 YR


JP MORGAN CHASE Step-up QUARTERLY 05/15/2024 No 4.500 No 11/15/2022 867 SFP FDIC
SO 18 MO


POPULAR BANK 4.750 QUARTERLY 11/07/2024 No 4.750 Yes 11/09/2022 511 CP SFP
FDIC SO
SKY 2 YR


POPULAR BANK 4.800 QUARTERLY 11/06/2025 No 4.800 Yes 11/09/2022 1,647 CP SFP
FDIC SO
SKY 3 YR


BMO HARRIS BANK NA 5.000 QUARTERLY 11/21/2025 No 5.000 No 11/21/2022 1,651 SFP FDIC
SO 3 YR


JP MORGAN CHASE 4.750 SEMIANNUAL 11/22/2023 No 4.750 No 11/22/2022 3,562 SFP FDIC
SO 1 YR


BANK OZK 4.350 SEMIANNUAL 02/12/2024 No 4.350 Yes 11/10/2022 4,950 CP SFP
FDIC SO
SKY 15 MO


CUSTOMERS BANK 4.800 SEMIANNUAL 02/14/2024 No 4.800 Yes 11/14/2022 4,222 CP SFP
FDIC SO 15 MO


KEYBANK NA 4.650 SEMIANNUAL 02/14/2024 No 4.650 Yes 11/14/2022 24,272 CP SFP
FDIC SO
SKY 15 MO


COMMUNITY RESOURCE BANK 4.700 SEMIANNUAL 02/16/2024 No 4.700 Yes 11/16/2022 1,108 CP SFP
FDIC SO 15 MO


MERCHANTS COMMERCIAL BK, ST. THO 4.600 SEMIANNUAL 05/08/2024 No 4.600 Yes 11/08/2022 2,636 CP SFP
FDIC SO 18 MO


PACIFIC WESTERN BANK 4.750 SEMIANNUAL 05/10/2024 No 4.750 Yes 11/10/2022 1,727 CP SFP
FDIC SO 18 MO


LCA BANK CORPORATION 4.700 SEMIANNUAL 05/14/2024 No 4.700 Yes 11/14/2022 476 CP SFP
FDIC SO
SKY 18 MO


FIRST-CITIZENS BK AND TR CO 4.750 SEMIANNUAL 05/15/2024 No 4.750 Yes 11/15/2022 4,850 CP SFP
FDIC SO 18 MO


DISCOVER BANK 4.800 SEMIANNUAL 05/15/2024 No 4.800 Yes 11/15/2022 1,003 CP SFP
FDIC SO 18 MO


NORTHERN BANK & TRUST COMPANY 4.750 SEMIANNUAL 08/15/2024 No 4.750 Yes 11/15/2022 4,201 CP SFP
FDIC SO 21 MO


ALLY BANK 4.850 SEMIANNUAL 11/08/2024 No 4.850 No 11/10/2022 3,589 SFP FDIC
SO 2 YR


MORGAN STANLEY PRIVATE BANK 4.750 SEMIANNUAL 11/12/2024 No 4.750 Yes 11/10/2022 4,194 CP SFP
FDIC SO 2 YR


AMERICAN EXPRESS NATL BK 4.850 SEMIANNUAL 11/12/2024 No 4.850 Yes 11/09/2022 11,617 CP SFP
FDIC SO 2 YR


SYNCHRONY BANK 4.850 SEMIANNUAL 11/12/2024 No 4.850 Yes 11/10/2022 4,145 CP SFP
FDIC SO
SKY 2 YR


CAPITAL ONE BANK NA 4.850 SEMIANNUAL 11/12/2024 No 4.850 Yes 11/09/2022 3,434 CP SFP
FDIC SO 2 YR


BMW BANK NA 4.750 SEMIANNUAL 11/12/2024 No 4.750 Yes 11/10/2022 1,500 CP SFP
FDIC SO
SKY 2 YR


CITY NATIONAL BANK 4.800 SEMIANNUAL 11/12/2024 No 4.800 Yes 11/09/2022 7,384 CP SFP
FDIC SO 2 YR


MORGAN STANLEY BANK 4.750 SEMIANNUAL 11/12/2024 No 4.750 Yes 11/10/2022 5,490 CP SFP
FDIC SO 2 YR


DISCOVER BANK 4.900 SEMIANNUAL 11/15/2024 No 4.900 Yes 11/15/2022 10,976 CP SFP
FDIC SO 2 YR


BARCLAYS BANK 4.900 SEMIANNUAL 11/18/2024 No 4.900 Yes 11/16/2022 69 CP SFP
FDIC SO 2 YR


BMW BANK NA 4.800 SEMIANNUAL 05/12/2025 No 4.800 Yes 11/10/2022 845 CP SFP
FDIC SO
SKY 30 MO


BMW BANK NA 4.800 SEMIANNUAL 11/10/2025 No 4.800 Yes 11/10/2022 1,130 CP SFP
FDIC SO
SKY 3 YR


CAPITAL ONE BANK NA 4.900 SEMIANNUAL 11/10/2025 No 4.900 Yes 11/09/2022 6,187 CP SFP
FDIC SO 3 YR


AMERICAN EXPRESS NATL BK 4.900 SEMIANNUAL 11/10/2025 No 4.900 Yes 11/09/2022 13,010 CP SFP
FDIC SO 3 YR


ALLY BANK 4.800 SEMIANNUAL 11/10/2025 No 4.800 Yes 11/10/2022 2,787 CP SFP
FDIC SO 3 YR


ALLY BANK 5.100 SEMIANNUAL 11/10/2025 No 5.100 No 11/10/2022 12,411 SFP FDIC
SO 3 YR


SYNCHRONY BANK 4.850 SEMIANNUAL 11/10/2025 No 4.850 Yes 11/10/2022 1,809 CP SFP
FDIC SO
SKY 3 YR


CITY NATIONAL BANK 4.850 SEMIANNUAL 11/10/2025 No 4.850 Yes 11/09/2022 7,891 CP SFP
FDIC SO 3 YR


BARCLAYS BANK 4.950 SEMIANNUAL 11/17/2025 No 4.950 Yes 11/16/2022 1 CP SFP
FDIC SO 3 YR


CAPITAL ONE BANK NA 4.950 SEMIANNUAL 11/09/2026 No 4.950 Yes 11/09/2022 10,785 CP SFP
FDIC SO 4 YR


DISCOVER BANK 4.950 SEMIANNUAL 11/16/2026 No 4.950 Yes 11/15/2022 251 CP SFP
FDIC SO 4 YR


CAPITAL ONE BANK NA 5.000 SEMIANNUAL 11/09/2027 No 5.000 Yes 11/09/2022 8,370 CP SFP
FDIC SO 5 YR


DISCOVER BANK 5.000 SEMIANNUAL 11/15/2027 No 5.000 Yes 11/15/2022 5,109 CP SFP
FDIC SO 5 YR

 

[Chuckanut]

Where do you find CDs like that -- that you TRUST?

https://www.investopedia.com/best-cd-rates-4770214 says the national *average* APY is less than 0.83% at all durations, but the "highest available APY" runs as high as 4.55%. But most of the higher-returning CDs are at no-name banks or credit unions.

I looked at some interest rate sites recommended by a supposed expert on senior citizen wealth management. Apparently these sites mostly deal with CDs offered by big banks to walk-in customers. Most of the rates were under 3%.

As we know these big banks often offer their walk-in customers much lower rates than the brokered CDs they offer through places like Schwab, Fidelity, etc.

I got a 4.6% CD for 18 months a few weeks back. And a two year 5% CD just last week (though this one is callable, a bit of a risk. ) All are FDIC insured and offered through Schwab and/or Fidelity.

If you don't have an account with Schwab or Fidelity find the closest office, go in and open an account. I am sure they will be happy to take your money and show you how to buy your first 4%+ CD.

 

[GaryInCO]

Thanks, I just discovered Fidelity's listings before I came back here. I see 6-month non-callable CDs for 4.3% or so, 1-year for 4.5-4.7%, 2-year for 4.8-4.9%, etc.

Secondary market seems a bit lower.

But will SPY recover more than 4 - 5% during the next year? I’m betting it will, but only time will tell.

There's a good chance, though the economic fundamentals don't look promising. But I already have a sizeable chunk in SPY. In the current conditions that's already more than I'm comfortable with.