Experiences,Recomendations investing in CD,s Online

[michael langman]

Good information on the password managers Paul and Jim. I will check out the ones you have mentioned. Thankyou.

Interesting about the index funds Bill. If we were younger I would be thinking like you, but my wife is going to be 73 this year. We are looking at cd's at this time in our lives.

[Andrew Joiner]

I had your same concerns with online investing 25 years ago. I'm less trusting than most people, so I did a lot of research on security and still do.
The best part about CD's online security wise is the only way to get at the cash is to close the CD. The banks will only mail a check to the address you gave when opening the CD. Way more secure than credit or debit cards.
CD ladders are a good idea. Eventually you have no penalty access to your cash on a regular basis. I'd get the highest rate CD with the lowest early withdrawal penalty.
Often Credit Unions have the best rates. They are insured by NCUA very much like a banks FDIC iinsurance.
Get familiar with depositaccounts dot com rates survey. They are the best unbiased source for info. Many of the "bank account rates" websites put sponsored banks up first.
Do your own research, and good luck.

[michael langman]

Some really good things I didn't know Andrew. About the only mailing to my address. That does make a lot of sense. I will check out deposit accounts. Much appreciated. Michael.

[Bill Dufour]

Age 73, go with the CD not stocks. With the present president I think the market could tank at any time with Tarriffs etc. You might consider bonds which can be tax free income. CD interest will be taxable income if that matters to you.
It is very odd to reach an age where you have to consider how much longer will I and my wife live. I no longer consider lifetime guarantee to be any better then say a twenty year guarantee. I still have a lifetime guarantee Montgomery Wards socket that split.
Bill D.
PS:" US bond rate for two year bond is 2.752% no state or federal taxes, no risk.

three month bond 2.146%

[Michael Weber]

This is a copy and paste of different financial instruments available interest rates on the Vanguard Mutual Fund website you may find useful. As Bill Dufour points out short term treasuries seem to be attractive. Okay that didn't copy over correctly. Move the line with the years over one column to the right to find the correct interest rate. Or go here https://personal.vanguard.com/us/FixedIncomeHome

Quick search CDs Treasuries Agencies Municipals Corporates

As of 09/13/2018 10:34 a.m., ET New Issue CDs Yield 1 month 3 month 6 month 9 month 1 year 18 month 2 year 3 year 5 year 7 year 10 year New Issue CDs 1.85% 2.00% 2.15% 2.20% 2.45% 2.55% 2.90% 3.10% 3.35% 3.40% 3.45% Other securities Yield 1 year 2 year 3 year 5 year 7 year 10 year 20 year 30 year Treasuries 2.54% 2.75% 2.82% 2.87% 2.93% 2.96% 3.08% 3.11% Agencies 2.59% 2.95% 3.06% 3.37% 3.63% 3.86% 4.21% 4.30% Municipals (AAA) 1.86% 2.03% 2.14% 2.33% 2.69% 3.02% 3.77% 3.77% Municipals (AA) 1.92% 2.07% 2.40% 2.71% 3.00% 3.29% 3.88% 4.00% Municipals (A) 1.92% 2.24% 2.34% 2.74% 3.34% 3.49% 4.20% 4.13% Municipals (BBB) 2.15% 2.91% 3.23% 3.71% 4.08% 4.30% 4.46% 4.27% Corporates (AAA) 2.50% 2.69% 2.94% 3.14% 3.37% 3.52% 3.91% 3.92% Corporates (AA) 2.74% 3.31% 3.39% 3.60% 3.86% 4.04% 4.26% 4.41% Corporates (A) 2.81% 3.36% 3.55% 3.94% 4.30% 4.57% 5.25% 4.70% Corporates (BBB) 3.04% 3.87% 4.22% 4.97% 6.58% 6.29% 7.20% 7.33%

[michael langman]

Montgomery Wards is going back a few years Bill! And Treasury Bonds being interest free had slipped my mind.
I appreciate the chart Michael. Gives me some perspective on whats out there. Thanks Guys.

[Jim Becker]

One of the advantages of the bond-based funds is that you have more ready access to the money if the need arrises whereas actual Certificates of Deposit have a lot more rules for that often include penalties for early withdrawal. The one year yield in that chart Bill provided isn't too shabby compared to many "safe" investments these days.

[Nicholas Lawrence]

Age 73, go with the CD not stocks. With the present president I think the market could tank at any time with Tarriffs etc. You might consider bonds which can be tax free income. CD interest will be taxable income if that matters to you.

The market could crash at any time with any president, change of presidents, change of control of the house or senate, or change in policies by the federal reserve. Markets are too complex to be timed in a predictable way, as demonstrated by Paul Krugman predicting on election night the market would crash and never recover.

You certainly want to think about your time horizon. One other option, I have not seen mentioned is treasury inflation protected securities. They are variable yield, with a guaranteed rate over inflation.

If you are thinking about something other than an FDIC insured cd, and do not understand it, you should probably talk to a licensed financial advisor, rather than well meaning friends of uncertainqualification on the Internet. Vanguard, fidelity, similar companies will have people on staff who can offer advice. Taxes are important, but so are fees, including those incurred when you buy and sell.

[Andrew Joiner]

Age 73, go with the CD not stocks. With the present president I think the market could tank at any time with Tarriffs etc. You might consider bonds which can be tax free income. CD interest will be taxable income if that matters to you.
It is very odd to reach an age where you have to consider how much longer will I and my wife live. I no longer consider lifetime guarantee to be any better then say a twenty year guarantee. I still have a lifetime guarantee Montgomery Wards socket that split.
Bill D.
PS:" US bond rate for two year bond is 2.752% no state or federal taxes, no risk.

three month bond 2.146%

Bill do you mean treasury bonds? Treasury Bonds are exempt from income taxation at the state and local level, but is fully taxable on your federal income tax return.

Many investment sites will look at average CD rates at US banks when comparing investments. That's why many people think CD's aren't so good. Depending on your state and tax bracket a CD ladder can beat Bonds. If you invest in the highest rate CD's available nationwide you can usually get higher rates than Bonds with a simple CD ladder.

[michael langman]

I thought the interest rates looked pretty good too Jim.
After perusing the topic, " buying treasury bonds", I told my wife we should probably go talk to a financial adviser that can help us set up a bond account and hopefully put her savings to work helping us increase our income. Every little bit helps these days.

[Bill Dufour]

I always thoughts government bonds were tax exempt. Maybe this is just from the jurisdiction that issues the bond. like state bonds for state taxes and federal bonds from federal taxes. Ask the person selling the bonds to you they will know for sure and laws may have changed about taxes with Trumps tax bill.
Bill

[Dave Lehnert]

A lot of good info so far.
When looking for CD rates don't forget to check places like insurance co. State Farm has a 36 month 2.60 Apy. Around here you can just go to a local agent to open one.

[michael langman]

Thanks Dave, we should have a State Farm in our area.
My wife just received a call from her credit union, and they said she had some wonderful news for her. They must have decided to up their rates.

[Jim Becker]

Always remember to consider risk around the institution you buy from suddenly going away when buying things like "CD"s. Banks and Credit Unions generally have coverage, but not all other concerns do. The fine print matters in that respect...

[Larry Frank]

I get my investment information from my financial advisor who has created a balanced portfolio that has done quite well and minimized risk. He has never recommended CDs. I guess I would rather get my information that way than a forum on woodworking. But, to each their own.