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2 yr cds. 2.85%

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  • 2 yr cds. 2.85%

    Would you buy or wait till rates go higher

  • #2
    If you want a cash equivalent , I would go for it.

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    • #3
      Nope.

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      • #4
        What’s your after tax, inflation-adjusted return? Yeah, that’s just losing a little less money than stashing cash in the mattress.

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        • #5
          2.85% is better than watching it in a bank account

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          • #6
            I am considering also. Might do shorter duration

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            • #7
              I love these questions.

              "Quick, everyone peer into their crystal ball and tell us what you see!"

              Without knowing the future, these sorts of questions are impossible to answer. I'd make a written plan and follow it. If your plan indicates you should now put money into CDs, I would do so. If it doesn't, then I wouldn't. It's that simple. Yes, if rates go up a bunch in a month, you might regret it. But they might not go up for 6 months or they might not go up or they might not go down, in which cases, you'd be really glad you bought now.

              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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              • #8
                I look at it if you have extra money sitting in a bank account, some interest is better than none. It is pretty easy to get out of a CD if you need to, basically losing accumulated interest.

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                • #9
                  this is a CD through Vanguard. Of course its liquid but I have 265k sitting in the MM fund

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                  • #10
                    uh lemme see give up liquidity 2 years for like minus 10% real return no thank you

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                    • #11
                      Cds are not illiquid!!!

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                      • #12
                        Originally posted by The White Coat Investor View Post

                        Without knowing the future, these sorts of questions are impossible to answer. I'd make a written plan and follow it. If your plan indicates you should now put money into CDs, I would do so. If it doesn't, then I wouldn't. It's that simple.
                        How many plans have a statement about when do use a CD? Do you go over that in your course? Maybe you do. I understand the "Do what your written plan says" mentality. But what if your plan doesn't say anything about what to do in this situation? Then what?

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                        • #13
                          Originally posted by JWeb View Post

                          How many plans have a statement about when do use a CD? Do you go over that in your course? Maybe you do. I understand the "Do what your written plan says" mentality. But what if your plan doesn't say anything about what to do in this situation? Then what?
                          the assumption is someone is changing their plan or didn't have a plan in the first place. if they already had a plan they wouldn't be sitting around with cash thinking about buying a CD

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                          • #14
                            Originally posted by jacoavlu View Post

                            the assumption is someone is changing their plan or didn't have a plan in the first place. if they already had a plan they wouldn't be sitting around with cash thinking about buying a CD
                            That is an excellent point.

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                            • #15
                              Originally posted by JWeb View Post

                              How many plans have a statement about when do use a CD? Do you go over that in your course? Maybe you do. I understand the "Do what your written plan says" mentality. But what if your plan doesn't say anything about what to do in this situation? Then what?
                              Sit down. Think about it rationally. And add it to your plan. Then follow your plan. You think this is the only time in your life this will happen? Probably not.
                              Helping those who wear the white coat get a fair shake on Wall Street since 2011

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