Better rates than a CD ?

[AK]

Is there any relatively safe investment that makes a better rate than a CD?

I am getting .4 %.

I don't think that is even better than the inflation rate.

Thanks.

[Ed Pawlowski]

That is actually a good rate. I have one coming due next month and the rate today is .2%, down from the 2.84 I bought in at. I have a Money Market account that used to pay a modest rate and last month I made 11 cents on it.

[Big Brother]

Toyota Driver Notes and GM Right Notes..

Now paying 1.5%

[hubops]

If you throw $ 2. million their way - you can get 1.5 % ..

John T.

[Anonymous]

One thing I've found is an annuity called an SPDA (Single Premium Deferred Annuity). It acts much like a CD except interest is deferred.

I got it thru my bank's brokerage dept. 5 years ago at 1.85%. It's coming due soon, and I'm told I may be able to get 2.1% on a renewal called a "Sec 1035 exchange". That way the interest stays deferred. It's not FDIC insured as it's not held by the bank, but a highly rated insurance co.

As always, YMMV

[Ralph Mowery]

The rates for anything other than the stock market have been a joke for many years.

If the CD is not paying 5% or more it is a waste of time and money to fool with them.

I would just invest in a good mutual fund and let it go at that. They may go up and down,but over a long time they go up.

It seems bad,but I have watched my IRA that is in mutual funds go up and down in one day as much as I made in 2 months when working. Overall they have made more than 10 % average per year in the last few years. Some much more.

[Retirednoguilt]

If you're fortunate to be able to deposit larger sums, and qualify for membership in a credit union, many credit unions offer both regular and "Jumbo" money market savings accounts (MMSA) that equal or beat your

0.4%. Many times the rate on the regular MMSAs escalates as the total deposited meets a higher balance threshold. Right now, my credit union pays 0.5% on "Jumbo" MMSAs, which require a minimum deposit of $100K. You can make a certain number of withdrawals each month from a MMSA without penalty, as opposed to what happens if you cash in a CD prematurely. Just as with bank account deposit protection from the FDIC, you get credit union deposit protection from the National Credit Union Association (NCUA). I believe both follow the same policies for maximum deposit amounts that are insured.

[Dean Hoffman]

I checked the inflation rate a few days ago. One source put it at 1.6%. It's been years since I had money in the old government bond. EE? You might want to look at balanced index funds. I've had some of my money in one of Vanguard's but that particular one is closed to new investors. It has 60% of the money in stocks, 40% in bonds. An article here about others.

Consumer Reports years ago claimed it's better to get an index fund that just tracks a group of stocks and/or bonds. Doing that cuts out the hot shot stock picker who might make a fortune one year then go t*ts up the next.

[Ralph Mowery]

Right now my credit union is paying .5% on most CDs and some other accounts. I would not even crank up the car and go to them to set it up at that rate.

The checking and money market accounts psy some interist but I only keep a small ammount in them. Usually enought to pay off things like the property tax, insurance and a few other things that may come due during the year that are around 1 to 2 thousand dollars. I do keep 2 or 3 thousand in the money market as 'mad money' incase I find something I want to buy.

In about a week or less I can get the money out of the IRA or some stock that I am playing with if I need money to cover some unexpected expense.

[invalid unparseable]

Lot depends on your age and tolerance for risk.

You are not going to get any interest rates anywhere near inflation rate and I think inflation is much higher than quoted. Government plays games in trying to show inflation rate is low such as if price of beef spikes then people will eat chicken so they say inflation in meat prices did not go up.

I think index funds are probably the best bet for balanced safety/risk.

[Ralph Mowery]

The government plays games with most everything. One year to determin how much SS will go up they use one set of numbers and the next year they use another depending on which one will give the lowest rate.

[Tekkie©]

On Fri, 16 Apr 2021 07:11:41 -0700 (PDT), AK posted for all of us to digest...

You might think about getting a financial advisor. I have one and he is not only my money guy but also my goto guy. If I have a problem I call him and he handles it or gives me advice.

I recall there was an earlier discussion IRT this topic.

The inflation rate is higher than being touted. Look at gasoline, lumber, food. Utilities are petitioning for rate increases.

[gfretwell]

Buy a dividend paying stock. XOM is returning an 8.4% yield with a pretty good up side potential on the price. People are not going to stop buying oil any time soon.

[Scott Lurndal]

Have you actually read their (Exxon Mobile) annual report? Have you followed the production curves on EIA?

[Wade Garrett]

Best strategy is to diversity your retirement funds: Some in the stocks/mutual funds, some in bonds, some in FDIC-insured cash account.

Best case is you have enough cash to weather the market going into the crapper for an extended time and bonds going upside down.

I'm working on convincing my wife we should move some out retirement funds into tangible assets- Porsche 911 Carrera, top-of-the-line F-150

4WD, 42 foot ketch, matched pair of engraved English shotguns.

[Dean Hoffman]

Add this to your list.

>

[Neill Massello]

Depending on the term, that's a very good rate. US Treasury yields aren't competitive with that until you get to 3 years or more.

CPI has been 2.6% for the past 12 months.

Most CDs and other low-risk investments have provided very low returns, often at or below the inflation rate, since the 2008 financial crisis. It's called "financial repression".

If you want a low-risk inflation hedge, the simplest and best is (IMHO) the I Series Savings Bond, although it provides only partial protection from inflation.

If you are willing to take on risk to get a higher yield, you might consider a dividend stock mutual fund. For example, Vanguard's Equity Income Fund is currently yielding 2.4%.

But be aware that the stock market has been *very* "exuberant" for the past year, and many stock market analysts are nervous ? even more nervous than usual.

[gfretwell]

I just cash the dividend checks and watch the price go up. When it starts going the other way I will think about dumping it. I wouldn't have it as the only egg in my basket but it is not a bad oil play so far. In the mean time, throw the OP a bone on another stock with a decent yield.

[gfretwell]

The shotguns are probably the only ones you are not going to lose a lot of money on.

[Scott Lurndal]

PEP TD T