Gyroscopic Investing

@ dualstow
Thanks for boglehead thread. After reading about 4 week transfer it is probably not worth hassle for me after all.

No problem, but remember your mileage may vary. Looks like some buyers of the CD were luckier than others, and some have a hunger for yield that pushes through all the red tape.

You're all aware that a CD bought for an IRA is likely to be a brokerage CD, right? And that a brokerage CD has to be sold on the secondary market if you want to cash it in early, so that you are taking on the same interest rate risk with it that would get with any other bond?

The point of the barbell scheme is that the cash half should remain liquid, and with minimal interest rate risk. I would not, in an IRA, take on the interest rate risk of a 7 year bond, unless intermediate bonds were part of my investing strategy (like the Desert portfolio). It doesn't seem worthwhile for a 3% return.

Not sure this is available as a brokerage CD though. It doesn't come up at Fidelity. You'd probably have to open an IRA at the credit union in order to get the CD. Seems like a big hoop to jump through for not a lot of reward. You can get 2.8% 10 year brokerage CDs at Fidelity.

You're all aware that a CD bought for an IRA is likely to be a brokerage CD, right?

I don't know much about CDs, much less brokerage ones, but if this comes with info about an early withdrawal penalty, it's probably not a brokerage one, right?

Well, I think this offering might have started out as a for-IRA CD (possibly brokerage) once upon a time, and now also exists as a regular one.

LP with gold, I like it.

Hey, rocking chairs and cats are both eternally underrated.

I would replace the needles and yarn, though. https://youtu.be/LS-ErOKpO4E

Lots of threads about this in times past. Treasuries are absolutely safer. They are what back up CDs, after all, and the FDIC guarantee can really only work for small/limited bank defaults. This is reflected in the higher interest rates of CDs. Ain't no free lunch.

The closest thing to a free lunch is US savings bonds. I Bonds have blown away CDs in recent years. They win in interest rate, safety, and tax advantage. The current I Bond pays 2.76%, but that's state and local tax free, and tax-deferred for 30 years. Yes, rates have been in the toilet for the past year or so, but that's not a big deal over time. If you're in the market for a CD, take a look at those first.

Unless I'm reading things wrong... it looks like the rates are down to 2.2% APY... hope some were able to nab that 3% APY.