If you’re in a high income tax bracket, you should be looking at municipal bonds (or municipal bond mutual funds) as a potential substitute for CDs. CDs are not tax-efficient, whereas munis are. You should run a side-by-side comparison between the two before investing one way or the other. In many cases, municipal bonds (or muni bond funds) with a stated yields less than a CD produce significantly more net returns after tax considerations.
A CD is NOT an investment. The TAX MAN and the INFLATION MAN will destroy your interest and part of your principle. Similar to an immediate Annuity. It is a place to park money until you find a better use for it. Money market would work better for short term
makes no much sense to me lets say you have 15,000 dollars you lock them out at 2% for 12 months one year later you get 300 out of that investment. I can invest that money in tool and get way more than that in a year.
Best thing in the market. Use 3 to 6 month intervals. User friendly and you can pull a cd secure line of credit with no credit check, 2 – 3% simple interest plus cd interest for repayment. If you use this to pay off small debt it will increase cash flow and a win win.
That’s why you need to put the minimum in a CD at the highest rate I will month my two credit union I can get a CD for $500 for nine months CD 4 1/2% interest rate and if it goes up next month I put up Another 500 bucks every month so you have a CD come and do every month so when it goes up, you get better interest rate goes down you get a lower interest rate you gain more money ha ha
I have 25K in a Marcus no penalty CD that's paying 4%. I can pull my money out with no penalty. Is a money market or brokerage account better than that?
I'd rather have CD's than see the money rot in my savings account at least. Right now my bank has 6 month CDs for 4.5%. And the percentage goes down from there, ending with 2.7% for 5 years. IDK how that works ha ha. I have money just sitting in my savings account. 4.5 is better than .5 percent.
What i don't like about cds is that they rarely are any better than a hys. So unless you have an absurd amount of money… There's no real difference. And if you have that much.. why on earth aren't you in the stock market? (Ignoring retired people).
Today i get 4.8% in about hys. The highest cd i found was 5%. Im sure theres ones slightly higher. But still. 100k difference is $200. With your more likely 20k emergency fund.. we are talking 10s of dollars here. Just skip going to McDonald's a couple times. My point is making better purchasing decisions has a greater power over how much money you have in the bank than a cd does. On the downstroke of rate decline maybe makes sense. But still. Not impressed with cd rates.
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
Lock your CD(s) at ~5% for 12 months. Reevaluate at the end of that period if you want to reinvest it all of that or a portion of into a new ~5% CD for ano5her 12 months.
And if inflation is 8% and your investments are down 17% your in a worse position. A 401k gives an average 5-8% return, if you can get a CD for 5.5% risk free, you won. The S&P is only up because of a few companies performance. The rest of the 400 companies are all screwed.
I went from $4/month to $1,500/month on CDs. With no financial advisor stealing my money. The best thing you people can do is fire your financial adviser. They are ALL crooks.
Brian: I purchased two brokered CDs (4yr and 5yr) at 5.10 and 5.05% around 11/15/23. Rates across the board dropped a couple days later (after Fed no new hike news) to 4.70 and 4.65% appx BUT the value of each of the CDs in my account have shown LOSSES every day since and I am REALLY confused as to how this is possible? Seems like since I have a Cd with a higher rate than current is offered with everything else equal that the value to the market should be increasing? Please help me out here. Thanks!
I'm looking at 6 month CD's for 5.05%. I have plenty of currency for emergencies. I put money into a CD for 6 months at 5% and then put it into another CD for the remainder of the year, I've effectively made 10% off that money for the year. Am I missing something?
If the USA would stop electing those who want limits on FREE SPEECH, drilling for oil, and your right to physically protect yourself, we probably would not have the runaway inflation you talk about SO CASUALLY.
44 comments
I routinely invest in a 7 month CD at 4% and higher…….No risk and the withdrawal is minimal. It's very liquid if I need it.
If you’re in a high income tax bracket, you should be looking at municipal bonds (or municipal bond mutual funds) as a potential substitute for CDs. CDs are not tax-efficient, whereas munis are. You should run a side-by-side comparison between the two before investing one way or the other. In many cases, municipal bonds (or muni bond funds) with a stated yields less than a CD produce significantly more net returns after tax considerations.
Forebright online bank pays 4% savings no jumping through hola hoop
Gainbridge is paying over 5%
I remember my grandparents back in the 90s had cds paying 10-11%
A CD is NOT an investment. The TAX MAN and the INFLATION MAN will destroy your interest and part of your principle. Similar to an immediate Annuity. It is a place to park money until you find a better use for it. Money market would work better for short term
Two years from retirement. I'm 90% invested in CDs, laddered out ten years, paying an effective overall rate of 4.5%. I'm good with that.
makes no much sense to me lets say you have 15,000 dollars you lock them out at 2% for 12 months one year later you get 300 out of that investment.
I can invest that money in tool and get way more than that in a year.
Here it is two years later and this video is useless.
How much should you invest in a cd if you only have like 13k in your account?
How much should you invest in a cd if you only have like 13k in your account?
Why would I get a CD tieing money up for 12-18 months when I have a savings account with Capital One earning over 4% interest?
Best thing in the market. Use 3 to 6 month intervals. User friendly and you can pull a cd secure line of credit with no credit check, 2 – 3% simple interest plus cd interest for repayment. If you use this to pay off small debt it will increase cash flow and a win win.
Fidelity offers 1 month CD on variuos financials. Cash is not tied long. Rate is 4.5%
That’s why you need to put the minimum in a CD at the highest rate I will month my two credit union I can get a CD for $500 for nine months CD 4 1/2% interest rate and if it goes up next month I put up Another 500 bucks every month so you have a CD come and do every month so when it goes up, you get better interest rate goes down you get a lower interest rate you gain more money ha ha
I have 25K in a Marcus no penalty CD that's paying 4%. I can pull my money out with no penalty. Is a money market or brokerage account better than that?
I'd rather have CD's than see the money rot in my savings account at least. Right now my bank has 6 month CDs for 4.5%. And the percentage goes down from there, ending with 2.7% for 5 years. IDK how that works ha ha. I have money just sitting in my savings account. 4.5 is better than .5 percent.
What i don't like about cds is that they rarely are any better than a hys. So unless you have an absurd amount of money… There's no real difference. And if you have that much.. why on earth aren't you in the stock market? (Ignoring retired people).
Today i get 4.8% in about hys. The highest cd i found was 5%. Im sure theres ones slightly higher. But still. 100k difference is $200. With your more likely 20k emergency fund.. we are talking 10s of dollars here. Just skip going to McDonald's a couple times. My point is making better purchasing decisions has a greater power over how much money you have in the bank than a cd does. On the downstroke of rate decline maybe makes sense. But still. Not impressed with cd rates.
Are CD investment on the short term of 3-6 months a good short run investment? I just put $100 in at 4.5% for 3 months. Was this a good move?
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.
AMEX 4%
Straight to the point. Thank You 👍🏽
Williams Thomas Clark Mark Jackson Jeffrey
They are apples and oranges……cd ladders are excellent for sleeping well at night…
If you don't need access to your money right away, a CD might be a good savings tool for you in 2024 while average interest rates remain high.
I got a Marcus savings account and I was referred by a friend and referred a friend of mine so I’m getting a plus 1% bonus (5.4 %) for 6 months
Lock your CD(s) at ~5% for 12 months. Reevaluate at the end of that period if you want to reinvest it all of that or a portion of into a new ~5% CD for ano5her 12 months.
I got a CD in the early 1980s as a child, I like to see that return now.
And if inflation is 8% and your investments are down 17% your in a worse position. A 401k gives an average 5-8% return, if you can get a CD for 5.5% risk free, you won. The S&P is only up because of a few companies performance. The rest of the 400 companies are all screwed.
My current credit union is offering a high yield savings for 5% min $500 and max $10,000 and CD's are 4.75% 12 mos or 5% 11mos.
I went from $4/month to $1,500/month on CDs. With no financial advisor stealing my money. The best thing you people can do is fire your financial adviser. They are ALL crooks.
Compact disc……. Great investment !!!! 😂😎😂
currently cd are like 5.35% for a year, and money market give like 4.4%
would you pay off 403b loan @ 9% or personal loan @ 9% first? Balance is roughly the same.
What about short-term CD like 2 months
Brian: I purchased two brokered CDs (4yr and 5yr) at 5.10 and 5.05% around 11/15/23. Rates across the board dropped a couple days later (after Fed no new hike news) to 4.70 and 4.65% appx BUT the value of each of the CDs in my account have shown LOSSES every day since and I am REALLY confused as to how this is possible? Seems like since I have a Cd with a higher rate than current is offered with everything else equal that the value to the market should be increasing? Please help me out here. Thanks!
Now, the answer is now
5+% now
I'm looking at 6 month CD's for 5.05%. I have plenty of currency for emergencies. I put money into a CD for 6 months at 5% and then put it into another CD for the remainder of the year, I've effectively made 10% off that money for the year. Am I missing something?
Dave app and sofi offer 4% APY
If the USA would stop electing those who want limits on FREE SPEECH, drilling for oil, and your right to physically protect yourself, we probably would not have the runaway inflation you talk about SO CASUALLY.
What do you do when inflation is 2 times higher than any type of savings/CDs…
Y’all were spot on.
Came here from the future to say locking in a 3.5% interest rate in a CD was not a good idea six months ago.