tag:blogger.com,1999:blog-775967109474059335.post9154876155144358232..comments2023-11-13T00:52:34.306-08:00Comments on Kevin On Investing: Mountain America Credit Union 5-Year CDUnknownnoreply@blogger.comBlogger8125tag:blogger.com,1999:blog-775967109474059335.post-66883088163101778422014-04-09T22:57:08.715-07:002014-04-09T22:57:08.715-07:00Thanks, Kevin. Seems the situation hasn't chan...Thanks, Kevin. Seems the situation hasn't changed that much for IRA accounts. Only one credit union offers better rates than MACU--Melrose, which has poor reviews and super harsh early withdrawl penalties.spencer selbyhttps://www.blogger.com/profile/10742860641570126013noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-56532034184987978472014-04-09T14:38:01.231-07:002014-04-09T14:38:01.231-07:00Spencer, the best CDs change all the time. When lo...Spencer, the best CDs change all the time. When looking for a CD, I use www.depositaccounts.com.Kevinhttps://www.blogger.com/profile/03576910288369216955noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-7159737043916019932014-04-09T14:11:35.598-07:002014-04-09T14:11:35.598-07:00Hi Kevin
I ran across yr excellent blog searching ...Hi Kevin<br />I ran across yr excellent blog searching good CD rates. I am wondering if MACU is still the best place to buy a 5 year IRA CD, if this is still what you recommend for that.spencer selbyhttps://www.blogger.com/profile/10742860641570126013noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-41378930329226687382013-06-08T14:29:12.814-07:002013-06-08T14:29:12.814-07:00Thanks Reub. You've got it!Thanks Reub. You've got it!Kevinhttps://www.blogger.com/profile/03576910288369216955noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-19300213920313753962013-06-08T13:53:39.517-07:002013-06-08T13:53:39.517-07:00Thank you for your sage advice, Kevin! That is one...Thank you for your sage advice, Kevin! That is one aspect of the Harry Browne Permanent Portfolio strategy with which I disagree, namely, that a treasury bill or fund of treasury bills such as SHV is superior to an FDIC-insured CD. You're getting less interest and are subject to some interest rate risk. Keep up the good work!Reubnoreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-56962647684717455312013-05-14T06:21:10.414-07:002013-05-14T06:21:10.414-07:00Thanks KevinThanks Kevincwradiohttps://www.blogger.com/profile/07078342415609033971noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-23934433917724230702013-05-13T13:39:14.811-07:002013-05-13T13:39:14.811-07:00cwradio,
It really doesn't take much time to ...cwradio,<br /><br />It really doesn't take much time to transfer money from your existing account(s) to a bank or credit union. For me, the minimal amount of time is well worth it.<br /><br />I haven't yet closed a CD and transferred back to a brokerage or mutual fund account, since it hasn't yet made sense. I assume it won't be much more difficult than going from brokerage to bank/CU. I think the only thing that will make it a bit more complicated is that you'll have to follow the bank or CUs process to do the early withdrawal from the CD. Of course there's always the risk that the bank/CU will disallow the early withdrawal, but my working assumption is that that won't happen.<br /><br />However, I do think it's prudent to keep some of your fixed income in bond funds or even money market accounts at your brokerage or mutual fund company for purposes of rebalancing. I wouldn't want to mess around with breaking a CD to rebalance, unless the drop in stocks was quite large.<br /><br />Other than lower rates, a significant issue with brokered CDs is that they have the same interest-rate risk as a bond, whereas the interest-rate risk of a non-brokered CD is limited to the early withdrawal penalty (EWP), which for the MACU CD is 180 days of interest, or about 1%. You could lose much more than this on a 5-year brokered CD if you wanted to sell it before maturity.<br /><br />Hope this answers all of your questions,<br /><br />KevinKevinhttps://www.blogger.com/profile/03576910288369216955noreply@blogger.comtag:blogger.com,1999:blog-775967109474059335.post-72895799555895472992013-05-13T06:44:25.381-07:002013-05-13T06:44:25.381-07:00Hi Kevin
Good idea.
I know the CDs that you can bu...Hi Kevin<br />Good idea.<br />I know the CDs that you can buy at a brokerage accounts don’t pay nearly as well as the best CDs sold directly by banks and credit unions. Since interest rates are so low is it worth all the time to do the transfer to the bank?<br />How hard is it to close the CD at a bank and transfer the money back to a brokerage account?<br />Do you see any other problems with a brokerage CD, except the low interest rate? Thanks Paul<br />cwradiohttps://www.blogger.com/profile/07078342415609033971noreply@blogger.com