JohnnyBGoode
Recycles dryer sheets
Hi All -
I have a good portion of my "fixed income" portion of my overall 75/25 Asset Allocation invested in CDs, which have offered a nice return over the last several years. About $500K of them are coming due over the next 8 weeks or so, and I have to decide what to do with the money. The CDs are at Ally Bank, which I like because the CD rates are competitive and the website is stellar. However, as we know, CD rates are falling/flat, and everything is pretty much 4% or less.
We have all our other assets managed at Fidelity. I was looking at the yields on different fixed-income investments and it seems like Treasuries offered through Fidelity would be a good option. Not only are the returns slightly better than CDs, but living in CA, the fact they aren't subject to state income tax is a bonus. I'm thinking of purchasing some at various maturities from 1 to 5 years. This approach seems as safe as an FDIC-insured CD and the net return will be better. Am I missing anything?
Note - We have a healthy cash reserve and don't expect I will need the money over the next 5 years.
Thanks!
I have a good portion of my "fixed income" portion of my overall 75/25 Asset Allocation invested in CDs, which have offered a nice return over the last several years. About $500K of them are coming due over the next 8 weeks or so, and I have to decide what to do with the money. The CDs are at Ally Bank, which I like because the CD rates are competitive and the website is stellar. However, as we know, CD rates are falling/flat, and everything is pretty much 4% or less.
We have all our other assets managed at Fidelity. I was looking at the yields on different fixed-income investments and it seems like Treasuries offered through Fidelity would be a good option. Not only are the returns slightly better than CDs, but living in CA, the fact they aren't subject to state income tax is a bonus. I'm thinking of purchasing some at various maturities from 1 to 5 years. This approach seems as safe as an FDIC-insured CD and the net return will be better. Am I missing anything?
Note - We have a healthy cash reserve and don't expect I will need the money over the next 5 years.
Thanks!