Comments on: Grabbing the Last of the 5.65 APY CDs http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/ A premiere personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sat, 21 Nov 2009 16:42:00 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Rev http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122155 Rev Tue, 06 Nov 2007 16:21:30 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122155 I think Tom may have cruised on over something that I kept seeing "my emergency funds". I persnoally am not risk averse but an emergency fund is not meant to be invested it should be in CDs or a High Yield MMA. I think Tom may have cruised on over something that I kept seeing “my emergency funds”. I persnoally am not risk averse but an emergency fund is not meant to be invested it should be in CDs or a High Yield MMA.

]]> By: ChrisCD http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122092 ChrisCD Mon, 05 Nov 2007 14:51:42 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122092 CDs are good for preservation of principal. If funds are for expenses that one will have over the next 5 years, CDs are a legitimate investment vehicle. In addition, one has to determine their risk tolerance. One commentor noted buying Bershire shares. As I understand it, those shares are quite pricey and out of reach for most investors. If you are not risk tolerant and/or in the later stages of life, CDs again are legitimate. CDs are good for preservation of principal. If funds are for expenses that one will have over the next 5 years, CDs are a legitimate investment vehicle.

In addition, one has to determine their risk tolerance. One commentor noted buying Bershire shares. As I understand it, those shares are quite pricey and out of reach for most investors. If you are not risk tolerant and/or in the later stages of life, CDs again are legitimate.

]]> By: thomas http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122078 thomas Mon, 05 Nov 2007 08:01:08 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122078 pretty decent rate. I don't think the interest rates will jump back up in a year, but who am I to predict their crazy nature. For those who might be nervous because this deal is Countrywide don't be. The CDs are FDIC insured and you will not lose your money. pretty decent rate. I don’t think the interest rates will jump back up in a year, but who am I to predict their crazy nature.

For those who might be nervous because this deal is Countrywide don’t be. The CDs are FDIC insured and you will not lose your money.

]]> By: » Weekly Roundup - Better Comments Edition @ fivecentnickel.com http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122064 » Weekly Roundup - Better Comments Edition @ fivecentnickel.com Mon, 05 Nov 2007 02:36:55 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122064 [...] talked about grabbing the last of the high rate CDs. I just wish I would’ve acted faster when PenFed recently offered CDs paying 6% [...] [...] talked about grabbing the last of the high rate CDs. I just wish I would’ve acted faster when PenFed recently offered CDs paying 6% [...]

]]> By: kitty http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122059 kitty Sun, 04 Nov 2007 23:11:49 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122059 Tom, It all depends on how soon you might need the money. If you know you wouldn't need these money for 10 years or so and wouldn't care if there is a stock market crash in the meantime, then stock market is great. But if you might need the money in the next couple of years, you really should keep it closer. Stocks don't grow consistently. It may take years to get back what you lost. Lots of technology stocks, for example, are still well below their internet bubble heights. Also, consider that layoffs and stock market crashes often happen at the same time. You don't want to be forced to sell because you need the money when the market is at its bottom. I have some money in stocks and some in CDs. Given that I am a little older, my allocation may be somewhat conservative, but even if you are young it may make sense to have at least a small percentage of your savings safe. Tom,
It all depends on how soon you might need the money. If you know you wouldn’t need these money for 10 years or so and wouldn’t care if there is a stock market crash in the meantime, then stock market is great.

But if you might need the money in the next couple of years, you really should keep it closer. Stocks don’t grow consistently. It may take years to get back what you lost. Lots of technology stocks, for example, are still well below their internet bubble heights.

Also, consider that layoffs and stock market crashes often happen at the same time. You don’t want to be forced to sell because you need the money when the market is at its bottom.

I have some money in stocks and some in CDs. Given that I am a little older, my allocation may be somewhat conservative, but even if you are young it may make sense to have at least a small percentage of your savings safe.

]]> By: Roundup for week of 28 October 2007: Fall Back edition at Mighty Bargain Hunter http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122020 Roundup for week of 28 October 2007: Fall Back edition at Mighty Bargain Hunter Sun, 04 Nov 2007 06:03:47 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-122020 [...] Consumerism Commentary talks about grabbing the last of the great high-yield CDs. [...] [...] Consumerism Commentary talks about grabbing the last of the great high-yield CDs. [...]

]]> By: » Roundup: I Get My News From Halo 3 Online Play on Blueprint for Financial Prosperity http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121983 » Roundup: I Get My News From Halo 3 Online Play on Blueprint for Financial Prosperity Sat, 03 Nov 2007 12:28:22 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121983 [...] Flexo just put a bunch of his savings into a Countrywide 5.65% APY CD. [...] [...] Flexo just put a bunch of his savings into a Countrywide 5.65% APY CD. [...]

]]> By: Sasha http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121950 Sasha Fri, 02 Nov 2007 16:52:36 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121950 Jon, Yes, I just checked and saw it's at 5.40, so I'm glad I applied when I did. At least I know my nervousness was justified. Patrick, Thanks for your feedback - you definitely seem to understand where I'm coming from here. Jon,

Yes, I just checked and saw it’s at 5.40, so I’m glad I applied when I did. At least I know my nervousness was justified.

Patrick,

Thanks for your feedback – you definitely seem to understand where I’m coming from here.

]]> By: Sasha http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121949 Sasha Fri, 02 Nov 2007 16:34:15 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121949 Tom, I'm glad to hear your perspective. I agree that most people wouldn't even consider relying on a savings account rate of return for anything. I'm not the world's savviest investor, but am very risk-averse, so that's where I feel most comfortable placing my emergency funds, but I do plan to diversify more into stocks and funds once I understand enough not to make giant mistakes. I'm treading carefully. Tom,

I’m glad to hear your perspective. I agree that most people wouldn’t even consider relying on a savings account rate of return for anything. I’m not the world’s savviest investor, but am very risk-averse, so that’s where I feel most comfortable placing my emergency funds, but I do plan to diversify more into stocks and funds once I understand enough not to make giant mistakes. I’m treading carefully.

]]> By: Jon http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121938 Jon Fri, 02 Nov 2007 14:40:40 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121938 well, it's down to 5.40%, but that's still a bit better than 4.XX or passbook at 0.25%! re:tom- You've made some good moves, but also dealt with some higher risk than some people are comfortable with. Your returns could have easily gone the other way. I'm not attacking you, just the comparison of apples to kumquats... A CD is a lower risk vehicle than options. Some out there might actually argue that options aren't investments at all, and are, like the rest of the stock market, merely speculation. well, it’s down to 5.40%, but that’s still a bit better than 4.XX or passbook at 0.25%!

re:tom-
You’ve made some good moves, but also dealt with some higher risk than some people are comfortable with. Your returns could have easily gone the other way. I’m not attacking you, just the comparison of apples to kumquats…
A CD is a lower risk vehicle than options.
Some out there might actually argue that options aren’t investments at all, and are, like the rest of the stock market, merely speculation.

]]> By: Patrick http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121931 Patrick Fri, 02 Nov 2007 10:32:45 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121931 I think it is a wise move to use the CDs for your situation. You are dealing with an indeterminate time period and don't know when you will need the money. That sounds very smart to me. I just bought some CD's for my wife and I, and I built a 5 yr CD ladder because we have cash above our emergency funds, but we are anticipating possible life changes in the next few years. Since we don't know when we will need the money, it makes more sense to go with a guaranteed CD, vs. buying equities. The rates we got weren't 5.65%, but I felt the were competitive and they are with our main financial institution which is convenient. (We also didn't drop 10k into a single CD). I think you did a great job. I think it is a wise move to use the CDs for your situation. You are dealing with an indeterminate time period and don’t know when you will need the money. That sounds very smart to me.

I just bought some CD’s for my wife and I, and I built a 5 yr CD ladder because we have cash above our emergency funds, but we are anticipating possible life changes in the next few years. Since we don’t know when we will need the money, it makes more sense to go with a guaranteed CD, vs. buying equities.

The rates we got weren’t 5.65%, but I felt the were competitive and they are with our main financial institution which is convenient. (We also didn’t drop 10k into a single CD).

I think you did a great job.

]]> By: Tom http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121920 Tom Fri, 02 Nov 2007 07:18:18 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121920 Oh man, I come off as arrogant and stuff and then I misspell due. Sorry! Oh man, I come off as arrogant and stuff and then I misspell due. Sorry!

]]> By: Tom http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121919 Tom Fri, 02 Nov 2007 07:17:52 +0000 http://www.consumerismcommentary.com/2007/11/01/grabbing-the-last-of-the-565-apy-cds/#comment-121919 I disagree with your usage of CDs. I actually had quite a sum in CDs until I reached a certain age, and now that they're coming do, I'm putting them in the stock market. I played with options for a bit and almost doubled what I put in, and I'm taking another 75k cd and putting it into 20 shares of berkshire hathaway class B. With a growth of 26% in the last year and 78% over the last 5, I believe I'm gonna do a lot better than I would if I had just renewed the CD. Banks are for those with poor investment plans. I disagree with your usage of CDs. I actually had quite a sum in CDs until I reached a certain age, and now that they’re coming do, I’m putting them in the stock market. I played with options for a bit and almost doubled what I put in, and I’m taking another 75k cd and putting it into 20 shares of berkshire hathaway class B. With a growth of 26% in the last year and 78% over the last 5, I believe I’m gonna do a lot better than I would if I had just renewed the CD.

Banks are for those with poor investment plans.

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