Charles Schwab??

[doublewide]

OK, I know that Rich’s biz is investing/financial advising so I don’t want to step on toes here.

Husband and I have looked at Rich’s firm’s site and from what we can tell it’s way too advanced for us. We’re really simple people who just want to park our bucks in an FDIC insured CD for the next couple of years to weather the market/economy “cleansing” that we think we’re in for.

To that end we’ve been looking at CD rates. As I’m sure you all know, they suck. Our money had been at B of A in a 4.5% CD but that matured a couple months ago and now it’s at 2.75%.

We’ve checked around and the only place we’ve found higher rates is at Schwab but from what we can glean from the site we would have to open an account with them, then buy another banks CDs from someone (?) and if at anytime prior to the maturity of the CD we wanted out money we’d have to “sell” our CD possibly at a loss if interest rates have risen from that at which we bought ours. I looked up “Brokered CD” at Wiki and I think that’s what Schwab is doing.

My question to you all is…what would you do???

Sounds to me like at Schwab our money would be FDIC insured up to the usual limits but it also sounds like we’d be paying fees for transactions and risking losing money if we needed our money back prior to maturity.
Although, we don’t anticipate needing this money except in case of an earth shattering emergency, we live well within husband’s salary and have a savings account linked to our checking for things like paying our Federal and State Taxes – which we just did last Saturday – OUCH!

Bottom line…if you had roughly 150K that you just needed to grow in a safe account for the next couple of years what would you do?

All suggestions appriciated.

Thanks,
Doublewide

[cr]

I typically find better rates (on guaranteed returns) at Credit Unions. They usually have at least slightly better rates and usually less fees if any at all. Check for promotional CD’s with them too.

You have to be able to qualify for membership obviously, but some require only that you live in the same city.

Some people here may tell you index funds, but that all depends on what you expect the market to do.

[cr]

I typically find better rates (on guaranteed returns) at Credit Unions. They usually have at least slightly better rates and usually less fees if any at all. Check for promotional CD’s with them too.

You have to be able to qualify for membership obviously, but some require only that you live in the same city.

Some people here may tell you index funds, but that all depends on what you expect the market to do.

[cr]

I typically find better rates (on guaranteed returns) at Credit Unions. They usually have at least slightly better rates and usually less fees if any at all. Check for promotional CD’s with them too.

You have to be able to qualify for membership obviously, but some require only that you live in the same city.

Some people here may tell you index funds, but that all depends on what you expect the market to do.

[cr]

I typically find better rates (on guaranteed returns) at Credit Unions. They usually have at least slightly better rates and usually less fees if any at all. Check for promotional CD’s with them too.

You have to be able to qualify for membership obviously, but some require only that you live in the same city.

Some people here may tell you index funds, but that all depends on what you expect the market to do.

[cr]

I typically find better rates (on guaranteed returns) at Credit Unions. They usually have at least slightly better rates and usually less fees if any at all. Check for promotional CD’s with them too.

You have to be able to qualify for membership obviously, but some require only that you live in the same city.

Some people here may tell you index funds, but that all depends on what you expect the market to do.

[sheilawellington]

$150K in two years. I would put about $50K in each of:

– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust

If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.

May I ask: Why two years?

[sheilawellington]

$150K in two years. I would put about $50K in each of:

– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust

If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.

May I ask: Why two years?

[sheilawellington]

$150K in two years. I would put about $50K in each of:

– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust

If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.

May I ask: Why two years?

[sheilawellington]

$150K in two years. I would put about $50K in each of:

– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust

If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.

May I ask: Why two years?

[sheilawellington]

$150K in two years. I would put about $50K in each of:

– Countryfried Bank CD (pays 4.2% and is FDIC insured)
– FXE (Euro ETF, pays over 3.5%)
– A high-dividend stock, like Pfizer or Hugoton Royalty Trust

If you feel more risk-averse, increase the first and reduce the third. Do the opposite if you feel more adventurous. You can also replace the third option with Vanguard’s 500 Index fund. The FXE is to protect you in case the housing bailout and further interest rate cuts put the exchange rate at $2.5 per euro by 2010. If the euro stays flat, at least you’ll earn a dividend.

May I ask: Why two years?

[doublewide]

Coop: Thanks for the lead on the Credit Unions. I’ll have to check them out and see what we’d have to do to join. Maybe there’s one that likes Biologists and stay at home moms. :>)

Sheila: Good idea on Countryfried. I suppose as long as the money is under the FDIC limits we’re o.k. even if the bank falls to bits…something to think about.
The husband has been trying to figure out how to get interest paid in British Pounds..he’s even jokingly thought of diverting to the UK from his next trip to Norway to open an account at The Bank of Scotland…maybe your FXE idea will work for him. It does make sense and the dividend is more than any CD I can get right now.

There’s nothing magical about two years. We just want to be ultra conservative while we wait and see how the US economy shakes out after a new Prez enters office, the possiblity of ending the war in Iraq (if Obama wins and sticks to his promises), the housing drama, etc.
Also, I may be back at work by then since our daughter will be a Sophmore in High School, so my income could be invested more agressivly or offset a more agressive investment plan for our current “nest egg” of 150K. We’re really just trying to lay low waiting to see where the chips fall, we’ve not got the stomach for the agressive stuff right now while things are so hairy.

Doublewide

[doublewide]

Coop: Thanks for the lead on the Credit Unions. I’ll have to check them out and see what we’d have to do to join. Maybe there’s one that likes Biologists and stay at home moms. :>)

Sheila: Good idea on Countryfried. I suppose as long as the money is under the FDIC limits we’re o.k. even if the bank falls to bits…something to think about.
The husband has been trying to figure out how to get interest paid in British Pounds..he’s even jokingly thought of diverting to the UK from his next trip to Norway to open an account at The Bank of Scotland…maybe your FXE idea will work for him. It does make sense and the dividend is more than any CD I can get right now.

There’s nothing magical about two years. We just want to be ultra conservative while we wait and see how the US economy shakes out after a new Prez enters office, the possiblity of ending the war in Iraq (if Obama wins and sticks to his promises), the housing drama, etc.
Also, I may be back at work by then since our daughter will be a Sophmore in High School, so my income could be invested more agressivly or offset a more agressive investment plan for our current “nest egg” of 150K. We’re really just trying to lay low waiting to see where the chips fall, we’ve not got the stomach for the agressive stuff right now while things are so hairy.

Doublewide

[doublewide]

Coop: Thanks for the lead on the Credit Unions. I’ll have to check them out and see what we’d have to do to join. Maybe there’s one that likes Biologists and stay at home moms. :>)

Sheila: Good idea on Countryfried. I suppose as long as the money is under the FDIC limits we’re o.k. even if the bank falls to bits…something to think about.
The husband has been trying to figure out how to get interest paid in British Pounds..he’s even jokingly thought of diverting to the UK from his next trip to Norway to open an account at The Bank of Scotland…maybe your FXE idea will work for him. It does make sense and the dividend is more than any CD I can get right now.

There’s nothing magical about two years. We just want to be ultra conservative while we wait and see how the US economy shakes out after a new Prez enters office, the possiblity of ending the war in Iraq (if Obama wins and sticks to his promises), the housing drama, etc.
Also, I may be back at work by then since our daughter will be a Sophmore in High School, so my income could be invested more agressivly or offset a more agressive investment plan for our current “nest egg” of 150K. We’re really just trying to lay low waiting to see where the chips fall, we’ve not got the stomach for the agressive stuff right now while things are so hairy.

Doublewide

[doublewide]

Coop: Thanks for the lead on the Credit Unions. I’ll have to check them out and see what we’d have to do to join. Maybe there’s one that likes Biologists and stay at home moms. :>)

Sheila: Good idea on Countryfried. I suppose as long as the money is under the FDIC limits we’re o.k. even if the bank falls to bits…something to think about.
The husband has been trying to figure out how to get interest paid in British Pounds..he’s even jokingly thought of diverting to the UK from his next trip to Norway to open an account at The Bank of Scotland…maybe your FXE idea will work for him. It does make sense and the dividend is more than any CD I can get right now.

There’s nothing magical about two years. We just want to be ultra conservative while we wait and see how the US economy shakes out after a new Prez enters office, the possiblity of ending the war in Iraq (if Obama wins and sticks to his promises), the housing drama, etc.
Also, I may be back at work by then since our daughter will be a Sophmore in High School, so my income could be invested more agressivly or offset a more agressive investment plan for our current “nest egg” of 150K. We’re really just trying to lay low waiting to see where the chips fall, we’ve not got the stomach for the agressive stuff right now while things are so hairy.

Doublewide

[Author]

Posts