paging finance and investment wizards

[angiebaby]

We'd like to take advantage of the interest rates and turn our cash into treasuries and/or CDs. We currently have an account with TD Ameritrade that will be transferring automatically in September to a Schwab account. The guys at my local (Missoula) Schwab and I were going to try to initiate the transfer sooner, but there are issues because our account is in a trust, and we don't have the documents here in Arizona. They eventually suggested I just wait until it automatically switches over. TD (and Schwab, I assume) are brokerages for these things, and it's a little complicated for my mind to understand. I'd rather just keep it simple.

So, my question to those who are smarter than me on this subject . . . Where is the best place to purchase CDs and/or short-term treasuries? I feel ignorant for having to ask this, but here I am. I purchased a small one for one of the kids 20 years ago. Is that the best way? Just walk into my bank? FWIW, I bank at a regional bank.

 

[TimeBandit]

I bought some 6 month treasuries through my Schwab account. No fees, super easy.

 

[angiebaby]

I bought some 6 month treasuries through my Schwab account. No fees, super easy.

Yeah. That's not real helpful That's what I've been trying to do for two days. I can't get a Schwab account until September. Thanks, though.

 

[bowtiejunkie]

Yeah. That's not real helpful That's what I've been trying to do for two days. Thanks, though.

I thought TD Ameritrade has added the CDs for purchase? You have to log in via internet browser not mobile. I could be wrong.

 

[caribbean20]

You can easily buy Treasuries and CDs in Fidelity, Schwab and other brokers. I use both.

In Schwab, at the top of the screen, click on “Research.” Then choose “Research Tools” from the pop up. Then choose “Bonds, CDs, & Fixed Income” and the whole world opens up to you.

A little cumbersome but easy peasy after you figure it out. Shoot me a PM if you want to chat. Many of us are new to this “fixed income” game now that rates are back to being reasonable.

 

[TCHB]

I bought some 6 month treasuries through my Schwab account. No fees, super easy.

The web site is very easy to navigate and purchase CDs or Treasury Bonds. If you are note sure call the help number. They are very good at guiding you.

 

[mjc]

I have been buying brokered CD's on a 3 month ladder. Have been getting 4.5 % or more.

 

[angiebaby]

You can easily buy Treasuries and CDs in Fidelity, Schwab and other brokers. I use both.

In Schwab, at the top of the screen, click on “Research.” Then choose “Research Tools” from the pop up. Then choose “Bonds, CDs, & Fixed Income” and the whole world opens up to you.

A little cumbersome but easy peasy after you figure it out. Shoot me a PM if you want to chat. Many of us are new to this “fixed income” game now that rates are back to being reasonable.

I don't have a Schwab account at the moment. I found it on Ameritrade, but it's pretty complicated to me. What is "callable" and "non-callable?" What are the penalties for deciding I need the $$ before maturity date? What does "Secondary" mean? I just want to put some money in an account or investment that will accrue interest for a year or two until we can purchase some more real estate.

 

[riverroyal]

You can let me hold some of the cash if you like.

 

[angiebaby]

Ameritrade lists a huge variety of banks. Should I bother researching these banks that I've never heard of?

 

[LargeOrangeFont]

I don't have a Schwab account at the moment. I found it on Ameritrade, but it's pretty complicated to me. What is "callable" and "non-callable?" What are the penalties for deciding I need the $$ before maturity date? What does "Secondary" mean? I just want to put some money in an account or investment that will accrue interest for a year or two until we can purchase some more real estate.

It’s called Speed Car deposits.

 

[angiebaby]

You can let me hold some of the cash if you like.

You're a giver. I'll slip it in the glove box of your Can-Am. Thanks so much!

 

[riverroyal]

I have zero financial knowledge. Which is why I go to havasu.

 

[RandyH]

My TD account just flipped over to Schwab. Time to reload a new App. I don't like how Schwab combines all funds to one name. I manage my fatherinlaws educational trusts for his grand kids and it's all mushed together. I requested otherwise but nope.

 

[angiebaby]

It’s called Speed Car deposits.

I do not have as much faith in race car drivers as you do. I've spent most of my adult life around them and know that the vast majority of them are completely full of crap. Not all, of course, but the vast majority.

 

[angiebaby]

My TD account just flipped over to Schwab. Time to reload a new App. I don't like how Schwab combines all funds to one name. I manage my fatherinlaws educational trusts for his grand kids and it's all mushed together. I requested otherwise but nope.

That's a bummer. I just opened an account on the Schwab site today and it pretty much said, "Welcome! We'll see you in September. There is nothing for you to do before then. Have a good day!" I can't get any rate information, or open a second account or anything. So that's when I came here. To the all-knowing RDP.

 

[angiebaby]

I have zero financial knowledge. Which is why I go to havasu.

That makes two of us, my friend. And explains why I live in a rolling trailer.

 

[caribbean20]

I don't have a Schwab account at the moment. I found it on Ameritrade, but it's pretty complicated to me. What is "callable" and "non-callable?" What are the penalties for deciding I need the $$ before maturity date? What does "Secondary" mean? I just want to put some money in an account or investment that will accrue interest for a year or two until we can purchase some more real estate.

All right, here ya go.

Callable vs. non-callable. If the security is callable, the issuer can pay off the the security before its scheduled due date. Issuers do this sometimes if there are big changes to market conditions. As an investor, not that big of deal, you get paid off early and you have to reinvest. If the security is non-callable, it’s just as the name implies, the issuer can not extinguish the security until maturity.

Stand by for more.

 

[TimeBandit]

Yeah. That's not real helpful That's what I've been trying to do for two days. I can't get a Schwab account until September. Thanks, though.

It sounds like you have "trust" issues keeping the money out of a Schwab account.

If you had a Schwab account I could walk you through the purchase process of treasury bonds, so will the nice people in the branch.

I've never purchased CD's, my specialty is losing my ass in the stock market via my 401K!

 

[LargeOrangeFont]

I do not have as much faith in race car drivers as you do. I've spent most of my adult life around them and know that the vast majority of them are completely full of crap. Not all, of course, but the vast majority.

Faith? This isn’t church

I’d put more faith in Speed than the Fed at this point. . You lost yields on the CDs the treasuries just waiting these last couple weeks.

 

[caribbean20]

I don't have a Schwab account at the moment. I found it on Ameritrade, but it's pretty complicated to me. What is "callable" and "non-callable?" What are the penalties for deciding I need the $$ before maturity date? What does "Secondary" mean? I just want to put some money in an account or investment that will accrue interest for a year or two until we can purchase some more real estate.

Secondary. I’m this context, it means the security is trading in a market after the initial issuance. You probably see this relating to Treasuries. You can buy Treasuries direct from the government on a site called Treasury Direct (the site sucks, but that’s just my opinion).

You can also buy Treasuries in the Secondary market which is where most people buy. These are the Treasuries bought and sold at the brokers, e.g., Schwab. Treasuries are the most liquid market on planet earth. Very easy to buy and sell. I buy 3-month and 6-month Treasuries and just hold to maturity. The cash just reappears in your account at maturity.

Also remember money market funds are yielding around 4.5%. You can sell at any time and you don’t have to worry about a penalty for selling early, like on a CD. For a puny difference of a half point of yield, I just stick with money market funds and Treasuries vs. CDs.

 

[riverroyal]

If a person was to dump say 500 week into 'xyz' what's the best thing right now?

Not to high jack Angie's thread. Just got me thinking

 

[LuauLounge]

Blackjack table?

 

[angiebaby]

If a person was to dump say 500 week into 'xyz' what's the best thing right now?

Not to high jack Angie's thread. Just got me thinking

I think it's a great question. Maybe we need an "Investing for Dummies" thread.

 

[boatnam2]

Still a good time to get 4.5 %, it was better a few weeks ago before the bank blow ups, I do zero coupon through fidelity, really simple and you can stay somewhat liquid with a ladder set up. Hit up diamond nest egg on you tube, she will explain it all, way to deep for me but good info. Not really a CD man myself but if i was i would buy them the same way through fidelity, about 5.15% right now. I leave some in money market also with fidelity currently about 4.24%

 

[LargeOrangeFont]

If a person was to dump say 500 week into 'xyz' what's the best thing right now?

Not to high jack Angie's thread. Just got me thinking

How much risk do you want?

 

[530RL]

Here is a video on how to do it. Or call their help desk and they will walk you through it.

They will have a bond section and you can pick which duration you want.

Easy Peasy.

 

[CLdrinker]

I would make $3490 in 3 months at $25k buy?
View attachment 1210902

Say what?

 

[Ace in the Hole]

So, my question to those who are smarter than me on this subject . . . Where is the best place to purchase CDs and/or short-term treasuries? I feel ignorant for having to ask this, but here I am. I purchased a small one for one of the kids 20 years ago. Is that the best way? Just walk into my bank? FWIW, I bank at a regional bank.

I primarily bank at glacier..I know that is up by you.... But AMEX has dived deeper into banking vs cc etc. They are offering some great rates on that stuff (CD's etc) right now. I have a referral code if you get interested..

 

[boatnam2]

If you don't want a secondary t-bill through a broker, you can use treasury direct, its kind of a pain in the ass with log in and such, i would rather pay a few extra pennies through fidelity.

 

[rivermobster]

We'd like to take advantage of the interest rates and turn our cash into treasuries and/or CDs. We currently have an account with TD Ameritrade that will be transferring automatically in September to a Schwab account. The guys at my local (Missoula) Schwab and I were going to try to initiate the transfer sooner, but there are issues because our account is in a trust, and we don't have the documents here in Arizona. They eventually suggested I just wait until it automatically switches over. TD (and Schwab, I assume) are brokerages for these things, and it's a little complicated for my mind to understand. I'd rather just keep it simple.

So, my question to those who are smarter than me on this subject . . . Where is the best place to purchase CDs and/or short-term treasuries? I feel ignorant for having to ask this, but here I am. I purchased a small one for one of the kids 20 years ago. Is that the best way? Just walk into my bank? FWIW, I bank at a regional bank.

I'm ignorant on all this as well.

So that's why I have a guy in AZ who handles all my investments. He's done well by me so far.

He does have a 250k min investment thing going on though.

So if you're ok with that, shoot me a PM, and I can put you in touch him.

 

[boatnam2]

25k x 1% is $250 x 4 is $1000 so 1 year t-bill at 4% is about 1000 bucks.

 

[LargeOrangeFont]

25k x 1% is $250 x 4 is $1000 so 1 year t-bill at 4% is about 1000 bucks.

This.

 

[TimeBandit]

I would make $3490 in 3 months at $25k buy?
View attachment 1210902

more like $318.68

 

[Done-it-again]

I would make $3490 in 3 months at $25k buy?
View attachment 1210902

I don’t think so!

 

[Orange Juice]

IMHO, open an account at: https://www.treasurydirect.gov/
You can buy 4, 8, 13, 26, 52 week, plus 2-10 year, and 20 &30 year, bills, notes, and bonds.

2 year treasuries pay interest every 6 months, etc…. 4.2-4.8%. You set up your new account, to automatically deposit interest into your checking account. I recommend a new checking account, and only use it for your treasuries. It‘s nice to see those monthly interest payments showing up.

Im using a method to help establish monthly cash flow. I’ve set mine up to mature just before I pay my property taxes, and income taxes. After those two bills were setup to pay themselves, I started setting up monthly interest payments.

example:

- setup a treasury account tomorrow, and link it to your checking account.

If you’re lucky, you buy a treasury paying 4-5%.

If you decide on a 1yr treasury, and it pays 5% interest ( rates vary):

$100 = $5 year
$1000 = $50 year
$10,000 = $500 year
$100,000 = $5000 year
$1M = $50,000 year

Buy one every month, for years, and you‘ll have extra/needed monthly income for life.

You‘ll notice the inverted yield curve.
Basically this means, pay attention to yield, and how long your Principle is tied up. You don’t want to tie up your hard cash longer, for no further incentive.

 

[snafu]

www.depositaccounts.com , I use this site for checking CD rates locally and nationally.

 

[adam909]

Im a td user as well. They have offices that you can go into and talk to someone.. Might be your best bet to fully understand how to do it

 

[DrunkenSailor]

There are multiple money market accounts that are offering rates in the 4's and 5's. Treasuries are not the sure bet they were in 2022. The market is turbulent.

 

[badgas]

There are multiple money market accounts that are offering rates in the 4's and 5's. Treasuries are not the sure bet they were in 2022. The market is turbulent.

I use CIT bank for my high yeild saving account ( emergecy fund ) it was at 4.5% last time I checked.

 

[EmpirE231]

Currently you can open a savings / money market account @ betterment with a 4% interest rate and FDIC insured up to 2M.

It’s not treasuries, etc…but that account can be setup in about 5 minutes. And you can yank the money whenever you need it.

 

[angiebaby]

I primarily bank at glacier..I know that is up by you.... But AMEX has dived deeper into banking vs cc etc. They are offering some great rates on that stuff (CD's etc) right now. I have a referral code if you get interested..

I bank at Glacier also. I will look into AMEX. I don't really feel comfortable buying them from a bank I've never heard of through the brokerage.

 

[angiebaby]

Im a td user as well. They have offices that you can go into and talk to someone.. Might be your best bet to fully understand how to do it

Yes. That is why I originally got a Scottrade account, specifically because they had an office in Reno. Then Ameritrade purchased Scottrade and the only office in Nevada was in Las Vegas. I was planning on switching to Schwab before the merger was announced, so that worked out. They have an office in Missoula (we moved from Reno to Western Montana, but winter in Havasu). In Havasu, the nearest Ameritrade office is Vegas. In Montana, it is 7 hours away from us in Billings. So, I'm happy for the switch, but sad I have to wait until September. When I get home in May, I will go into the store to see if we can initiate it sooner by closing the TD account entirely and then just opening a new one.

The information shared so far has been helpful. Thanks everyone.

 

[angiebaby]

There are multiple money market accounts that are offering rates in the 4's and 5's. Treasuries are not the sure bet they were in 2022. The market is turbulent.

But they aren't variable rates, right? If I purchase one, the rate remains the rate for the term of the treasury, right?

 

[Ace in the Hole]

I bank at Glacier also. I will look into AMEX. I don't really feel comfortable buying them from a bank I've never heard of through the brokerage.

Both AMEX and Goldman Sachs have a 12 mo 4.5% CD offering right now. I just looked on my portal.

 

[2Driver]

I can buy a treasury faster on Schwab than I can order a pizza.

 

[DrunkenSailor]

But they aren't variable rates, right? If I purchase one, the rate remains the rate for the term of the treasury, right?

If you hold to maturity. You can also buy futures and short them. Depends on what you want to buy.

 

[gqchris]

Ally Bank for my CD's and I used AMEX for a high yield savings thats pretty attractive. Noone really beats ALLY except for one no name place but not worth the risk in my opinion.