Invest in CDs now or wait?

[THE PILGRIM]

Those oppose to keeping cash on hand. How much actual cash will you have after you pay Federal and State Taxes and Income Tax when your CD's reach maturity or you withdraw from your stocks and bonds and/or you need the money when the market is down?

More than you will have keeping cash.
Cash - You are losing almost 1% a month in buying power.
PS I have cash on hand. But it's a small percentage of my net worth.
Also have some Gold and Silver.
When you are fortunate enough to have money, it's a struggle to maintain your buying power.
If you ain't got much money, you got different problems.
Down South of here they say - Plata O Plomo.
I got both.

 

[Spurdann]

I have a serious distrust of anything I can't hold. I am long in tangibles and cash.

 

[schutz5]

Rates will go up.
A high yield saving account is a good hold over.
Ladder concept is smart with staggered maturity dates.
Personally I am not shopping for stock deals until next year.
The poop will hit the fan!

P.S try to keep away from ESG big banks!

 

[llowry61]

If you are uncomfortable with the market and want a safe place to park the cash, laddering CD's is a tried and time-tested strategy. To answer the question you asked, my guess would be that rates on cd's will rise but if you are laddering the point or two increase will get picked up in your future purchases. Pigs get fat hogs get slaughtered. I am thinking about taking my cash and buying 1 year cd's for x amount each month for a year. Once you hit 12 months you can dollar cost average back into the market roll the cd over at the new rates available or cash out and take the interest. Better than just letting a pile of cash sit for the bank to make money by making loans with your savings account.

 

[ggibson511960]

Yeah, stocks. I'm 70 next birthday and I ain't betting on making it. I plan to live forever and so far I'm right. Question of time before I'm wrong. I've been wrong on money just about always. But I did live through the "Peanut Farmer Debacle of the '70's and remember 12% CD's. '90's got them close to 8%. I figure 6% in the near future, who knows when the bubble pops. They ain't sold a new house around here in months and there are thousands available. Current management makes the Peanut Farmer look like a nuclear sub commander. Oh, yeah........ Joe

Rumor has it that the Peanut Farmer Naval Academy graduate never qualified for an operational watch on a nuke boat. Went on to manage the world's largest economy for four years. Insight into possible reasons for current baby formula shortage.

 

[chief38]

When I retired 13 years ago I was very heavy into triple tax free muni bonds. At that time most of what I had was between 4.75% and 6%. About 9 years after that many of them were called and I was forced to invest in the market (which I dislike) but wanted to earn more than the 1.5% bonds were offering. Just last week I've stared buying bonds again. Just yesterday I got a bunch at just over 5%. Considering they are triple tax free that is equivalent to about 7.5% taxable. I can live with that.

I am sure they will increase in the coming weeks but how much - no one knows! Personally I like Muni's and sleep a lot better with a good portfolio of them vs the manipulated markets. Still, I do believe that not putting all your eggs in one basket is prudent.

Just bought I bonds for the Mrs. and I too. 9.62% is not terrible even though it's taxable.

 

[OLDSTER]

I'm waiting to buy some CDs. Feds are supposed to meet in two weeks to up the int. again. I can buy 18 month CDs now at 3.10%, but waiting a month should up the rate to about 3.75-4.0 %. Also, as "chief38" posted, Treasury "I" bonds are a pretty good and safe investment also; limited to $10,000 per individual.

 

[Bald1]

In times of trouble I'd INVEST heavy in expensive Bourbon and CHEAP women…….. I'd probably squander the rest

 

[ladder13]

The time to invest in cash and/or CD's was about a year ago.

If I could look into a "leaders" accounts, that's what I would see.

 

[cougar14]

Rumor has it that the Peanut Farmer Naval Academy graduate never qualified for an operational watch on a nuke boat. Went on to manage the world's largest economy for four years. Insight into possible reasons for current baby formula shortage.

True, but for this reason. His father died, and he requested a hardship discharge to go home and take over the family business. Request granted.

 

[JohnHL]

P.S try to keep away from CSG big banks!

If I could look into a "leaders" accounts, that's what I would see.

Pardon my financial ignorance, but what are "CSG big banks" and "leaders" accounts?

John?

 

[ggibson511960]

True, but for this reason. His father died, and he requested a hardship discharge to go home and take over the family business. Request granted.

Inconvenient historical facts didn't stop the Peanut Farmer in Chief from falsely claiming to be a nuclear engineer. State professional engineering boards don't recognize non-accredited Naval Academy degrees as equivalent to accredited engineering degrees, worthy though a Naval Academy degree may be for leadership. You can't legally call yourself a nuclear engineer without professional registration. The Peanut Farmer could have obtained registration by working in the nuclear engineering field for a period of time, passing an Engineer in Training Exam, passing a professional engineering exam, and completing an application with recommendations from other registered engineers. Not even close. This is major thread topic drift, but relevant to the claimed qualifications of politicians to manage our economy.

 

[Faulkner]

The best way to double your money is to fold it in half and put it back in your pocket. Cash will always be there. Can't say the same about dividends and interest.

The financial term for that is lazy money. Your money should be working for you, not laying around.

 

[GypsmJim]

In times of trouble I'd INVEST heavy in expensive Bourbon and CHEAP women…….. I'd probably squander the rest

Well, that one way to do it. Personally, I like cheap beer and classy women.

 

[GypsmJim]

The time to invest in cash and/or CD's was about a year ago.

If I could look into a "leaders" accounts, that's what I would see.

That wasn't my experience. A year ago I had an account come due and the CD rates simply sucked. Last month I got one for 6 %.

 

[HOUSTON RICK]

Long term I still believe in direct stock purchasing (usually dividend reinvestment plans - low or no fee) even at retirement age. Stick with what you know - no crypto currencies for me - CD and money market funds when high for short term parking of money. Have happily had many of the same stocks for 40 years.

 

[tops]

I think land is the best investment. I can always use it to grow something to eat. The only stock I want is livestock and it can be used for food. Gold is not any good if you don't have food. Larry

 

[ladder13]

That wasn't my experience. A year ago I had an account come due and the CD rates simply sucked. Last month I got one for 6 %.

Point being the S&P and Dow were down 15-18% in the previous year. Being in a 0.1% CD would have been better than that.

Best I see currently is ~3.25-3.50%

 

[schutz5]

Pardon my financial ignorance, but what are "CSG big banks" and "leaders" accounts?

John?

Hi John,sorry for the typo.
ESG stands for environmental social governance.
Also be alert about banks that may get " bail ins".

 

[JohnHL]

Hi John,sorry for the typo.
ESG stands for environmental social governance.
Also be alert about banks that may get " bail ins".

Thanks for the clarification, schutz5.

I had a feeling that is what you meant, but I've learned (the hard way) it's best not to assume.

But now I wonder, what are "bail ins"?

John?