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But we've been saying this for 5 years. Many of the long term CDs are 2.3% - 3.25% right now, if the Fed raises rates within the next 5 - 10 years, I doubt that it will be anything significant to where it's even noticeable. They are going to have to begin raising rates, but it's just not going to be anything major, significant, or noteworthy. I don't even think the US Government can afford it due to how much damn DEBT they've issued.
But we'll see.........nobody here has a crystal ball. I can't say FOR SURE that Stocks won't do as good as they've done going forward as they've done in the Past, and you guys can't say that Fixed Income is going to be crushed by Inflation/Higher Rates because again....we don't know.
Slap a portion of your monies in Stocks and a portion in Fixed Income....that's all you can do.
is fixed income include CDs and savings account too?
We use a Discover savings account for our emergency savings, but that's it. They have good customer service, but we only have X amount of dollars in there and it doesn't get touched.
From my understanding CDs are a waste of time right now and for the foreseeable future. There are mutual funds that get double/triple the rates and are very safe.
Can you get mutual funds through discover? Is discover a good place to open a savings account?
Quote:
Originally Posted by Mattks
We use a Discover savings account for our emergency savings, but that's it. They have good customer service, but we only have X amount of dollars in there and it doesn't get touched.
From my understanding CDs are a waste of time right now and for the foreseeable future. There are mutual funds that get double/triple the rates and are very safe.
We use a Discover savings account for our emergency savings, but that's it. They have good customer service, but we only have X amount of dollars in there and it doesn't get touched.
From my understanding CDs are a waste of time right now and for the foreseeable future. There are mutual funds that get double/triple the rates and are very safe.
your understanding is incorrect . there are zero investments that are paying double and triple today that are safe .
it takes risk and or volatility to get anything better then cd rates .
those investments that are giving you the opportunity to gain more are longer term investments . shorter term money belongs in cd's , money markets and bank accounts .
you have to match the investments to the time frames you will want the money
Last edited by mathjak107; 06-09-2016 at 04:37 AM..
your understanding is incorrect . there are zero investments that are paying double and triple today that are safe .
it takes risk and or volatility to get anything better then cd rates .
those investments that are giving you the opportunity to gain more are longer term investments . shorter term money belongs in cd's , money markets and bank accounts .
you have to match the investments to the time frames you will want the money
I'd add that laddered CDs are OK for an emergency fund. Worst case, you lose the interest on one of them and never put the principal at risk. The only problem with that is that if you're chasing interest rates with promotional rates, a lot of banks will roll you over to a much lower rate CD. If you don't stay on top of it, you can lose out.
i use fidelity for my cd's . i can trade them on the secondary market like bonds if i want to or need to .
we keep all our spending money for this year laddered in cd's as well as next years held in reserve . if we need more in any month i click and can sell some.
we run from 3 to 18 months as of right now .
i use fidelity for my cd's . i can trade them on the secondary market like bonds if i want to or need to .
we keep all our spending money for this year laddered in cd's as well as next years held in reserve . if we need more in any month i click and can sell some.
we run from 3 to 18 months as of right now .
Fidelity is fine except that it pays a bit less interest than you can get at a few of the internet banks.
A 1 year CD at Fidelity pays 0.75% interest according to their web site. I didn't look hard for other Fidelity CD products. I get 1% on my Ally Bank savings account. As I understand your burn rate, you could make a few hundred extra bucks interest every year with a few mouse clicks. I suppose that's lost in the noise compared to a large investment portfolio but it's free money.
My needs are different from yours. I have some of my emergency fund laddered to do a bit better than that 1%. Ally pays 1.55% APR on a 3 year CD and 1.30% APR in a 2 year and the 2 year has a 2-time re-adjust feature if interest rates go up. I use those products but I'm guarding against 3+ years of unemployment, not spending down my portfolio in retirement.
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