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@dtconroe,
In your first post today, you used the words "callable" and "non-callable" to mean the opposite of what they are commonly used for in the CD / bond land. Seems like everyone understood what you are trying to convey but it made your post…
Thanks msf! I have a CD in my IRA account maturing in a few days. I am tempted to reinvest it in 2 year callable CD, treating it like a 6 month noncallable CD. If it is called, I think I will still be able to get a 4% replacement callable CD, and…
The biggest problem with CDs and annuities is that most hold them while giving up good opportunities in bondland. I can trade my funds any day.
Vanguard 10 years estimates (https://advisors.vanguard.com/insights/article/series/market-perspectives)
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All the bluster of what Trump and Musk say, before inauguration is not something that means much to me. Both of them make a lot of noise, but even strong Trump supporters don't take their statements literally--"that is just Trump" being Trump. Rea…
I thought I would revisit the option of Callable CDs, what Banks are communicating about CD rates, and the merits of including them in your CD investment selections. At Schwab, major banks are offering long term callable CDs (18 month, 2 year, 3 ye…
On that note, since FD is invested solely in 'bonds', he can freely take on some risk if he chooses. For someone with exposure to equities, it may be that s/he does not wish to take any additional risk on the bond side. With a baseline of 60% in e…
msf: "It is true that RPHIX did not return more than 4% before 2023. I suggest that a better way of looking at it is how much it outperformed cash. According to Portfolio Visualizer, it usually beat cash by 3/4% or more, with larger margins coming i…
When I say left behind I meant that when rates go down, CD/MM just pay less, other bond funds(munis,mbs,special) would make a lot more on the way down.
FD, I know you have never invested in CDs and do not ever expect you to invest in them in the fu…
Although this thread is about CDs, the bond oef RPHIX keeps getting mentioned as a viable alternative. I was a bond oef, momentum investor before I sold all my bond oefs in 2020. RPHIX produced a consistent TR of 1% to 3% almost every year befor…
I have considered Treasury based MM funds, but am choosing to use a more "diversified" MM fund at Schwab, where they will use some high quality corporates, and other Government offerings besides treasuries. I qualified for SNAXX in 2020 in my IRA a…
4.3% nonCallable Cds have virtually disappeared for now. Doubtful they will reappear anytime soon. I had a Bank CD mature, and I decided to reinvest it back into a 12month CD at the same bank, at 4%. Schwab brokerage CDs do not look very attracti…
Lots of articles coming out about a very small rate cut in December, but possibly more of a flat environment in 2025. Floating Rate Bond OEFs tend to do well in a relatively flat environment, so it is a category to keep an eye on. I am a retired f…
I'm using SUTTX at Schwab as a holding operation, waiting to see what our shiny new and improved administration winds up doing re inflationary possibilities.
Using a MM fund at Schwab seems like a viable option. When my CDs mature, I will likely pl…
... I also moved a large percentage of my "taxable" Schwab account, in 2023, to CDs in a local Bank account--those Bank Account CDs can be sold before maturity, with a less "painful" early redemption fee. Also, with all of my Schwab brokerage acco…
@dtconroe : For someone that uses CD's as much as you do, I would have thought that your ladder would have reached out a few more years.
Different strokes for different folks, Derf
Hi Derf, no I have not made a long term c…
Just for clarification, I fully understand the illiquidity issues of CDs, especially when bought through a brokerage like Schwab. To cope with that illiquidity, I set up a short duration ladder at Schwab for the brokerage CDs--that is why I have 1/…
I have not mentioned MMs, where I have been holding a large chunk of my maturing CDs. I have chosen to use the highest yielding MMs at Schwab, which holds a broad range of investing categories, including US and foreign government and corporate sour…
Good point, Old Joe, that's why I am putting some of the proceeds of any maturing CDs into bond OEFs like CBLDX, DHEAX, ICMUX and RCTIX.
I am also putting money into two low risk market neutral funds like QQMNX (SD=7.2%) and JMNAX (SD=4.4%), and H…
@dtconroe- good to hear from you again. We are in exactly the same situation as you describe. I recently bought a long-term Deutsche Bank bond at 5.75%, callable in two years (that MikeM found) from Schwab. However as msf mentions hoping for a call …
I would say a solid money center bank callable bonds, callable Agency bonds, PAAA, and RPHIX are all good choices. Instead of either / or, you can split between them.
I owned very low risk bond oefs for many years. RPHIX was a long term holding, a…
Not everyone's cup of tea, but I have been getting added yield by buying "callable" bonds where the "next call date" is a year or 2 out there. I'm making the assumption a 5, 10 or even 20 year cooperate or gov. agency bond will be called at first ca…
So good to hear from you @dtconroe. Was concerned about your absence. You have so much to offer when it comes to fixed income investing.
Re ” … or jumping back into the more active investing options “
A couple years older here and never been th…
Over the years, I have chosen varying ways of taking my RMDs, at differing ways. When I was heavily using a Bond OEF strategy, I chose to take my RMDs on a monthly basis, from the monthly and predictable PIMIX monthly dividends. A few years ago, PI…
JPMorgan callables are sucker bait. They will be called, and as soon as possible.
I reserve the term "sucker bait" for introductory high yield bank CDs that automatically roll over to some lower rate before you can get out. Even if you get a free t…
I have noticed MM rates at Schwab have started declining again--not major drops but it seems every 7 days, the rates have reset and dropped a bit. Who knows what the Feds will do, but no doubt there is increasing pressure on them to cut rates.
Just took a look at available CDs at Schwab. There has been a huge reduction of CD offerings over the past few weeks. I would say the "Compelling" period has passed for now, and there are only a handful off offerings for any term over 6 months. L…
When I moved to Schwab from Fidelity, Schwab was matching "cash incentives" offers, from competing brokerages. They matched an E-trade offer for me.
Did they match the terms of the offer or just the amount? Merrill requires one to maintain the b…
@msf,
The Merrill cash bonus offer looks better than anything I have seen elsewhere. I did not see the program end date if there is one.
I would be interested in an ACAT transfer from Fidelity IRA to Merrill IRA. I checked a few Fidelity funds…
I also posted this as a separate subject, but since we're looking at CDs here I thought that I'd ask here also-
I'm wondering if any of you folks have a preferred site for checking bank safety ratings for use in buying CDs?
Thanks!
https://www.depo…
I use: https://www.depositaccounts.com/banks/health.aspx
Go to this website, and click on "Banks", and it will give you a bunch of information about specific banks, including Bank Ratings.
The nature of free/competitive market is that NOTHING stays at top forever. Well, maybe, Fido HSA that has ranked #1 in over a half-dozen years that I have been watching.
Brokerages have their pros and cons. I can say this because I have accounts a…
There are institutional share classes and institutional investors. Schwab has designated more funds as accessible only to institutional investors / advisory platform; some of these funds are accessible to retail at Fido but the institutional share c…
I don't know much about the Vanguard Brokerage, except for what I read. I know it traditionally is such a low fee brokerage, that you get some benefits for more of a "passive" based approach to investing, especially buy and hold long term investing…
At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.
SWVXX is not currently paying 5.27%--it resets every 7 days, and is currently paying 5.16%. Its rate has been dropping for about the past 2 months. …
At Schwab $1.00 minimum. SWVXX 1 YEAR +5.27. Their prime money market, should be similar to VMRXX.
SWVXX is not currently paying 5.27%--it resets every 7 days, and is currently paying 5.16%. Its rate has been dropping for about the past 2 months. …
Any investor with $3,000 can BUY VMRXX paying 5.29%.
Looks like a Vanguard Money Market Fund--I can't get it at Schwab, where all my brokerage assets are located. I can get a comparable fund, with that interest rate, at Schwab with a $1million cash…
Stillers: "I find nothing compelling about a 1-yr CP CD rate of 5.45% when VMRXX is paying 5.29%. On a $100K investment, the difference over the 12-months is ($5,450-$5,290 or) $160 IF the MMkt rate holds steady for the full period. That piddly diff…
