Anyone Notice the DOW?

[Kinnakeet]

You can do the same thing by buying high yield CDs (5-6%). No account or broker fees.

How does that work?

 

[Sneakers]

How does that work?

Check with your local bank. They probably offer CDs, check the interest rates Check other local banks and compare rates and length of term. give the teller money and wait for the term length, anywhere from 6 months to 6 or more years. The longer the term, the better the rate.

In my case, I have a broker anyway, so I just ask him to find good buys anywhere in the country, and he transfers money from my accounts. In this case, he takes a cut, but it's ok by me.

 

[Clem72]

Check with your local bank. They probably offer CDs, check the interest rates Check other local banks and compare rates and length of term. give the teller money and wait for the term length, anywhere from 6 months to 6 or more years. The longer the term, the better the rate.

In my case, I have a broker anyway, so I just ask him to find good buys anywhere in the country, and he transfers money from my accounts. In this case, he takes a cut, but it's ok by me.

CD's have been much higher in the 9-12 month range than the 12+ month range for a while. If you are looking for long term growth of savings and considering CDs, your broker should clue you in to annuities which pay a couple percent better and are just as safe (FDIC insured, etc.)

 

[Kinnakeet]

Check with your local bank. They probably offer CDs, check the interest rates Check other local banks and compare rates and length of term. give the teller money and wait for the term length, anywhere from 6 months to 6 or more years. The longer the term, the better the rate.

In my case, I have a broker anyway, so I just ask him to find good buys anywhere in the country, and he transfers money from my accounts. In this case, he takes a cut, but it's ok by me.

So if I give them 20,000 how much will I get in 6 years?

 

[Hessian]

So if I give them 20,000 how much will I get in 6 years?

The problem: After your modest 5.5% interest compounded...you pay income tax which depends on your Gross Income.
Alternative would be an Tax free municipal bond... OR an ETF Index fund which ought to get you 7.5-9% a year (on average).
Then check if you also earn dividends & capital gains.
I have LONG invested in PRDGX and more recently BSPSX...both perform quite comparably with the DOW or S & P 500.
(and the returns are sooo much better than CDs.

 

[Hessian]

So if I give them 20,000 how much will I get in 6 years?

5.5% interest: 7800 profit. (CD)
7.5% interest with annual dividend: 11500 profit (Index fund)

 

[Clem72]

The problem: After your modest 5.5% interest compounded...you pay income tax which depends on your Gross Income.
Alternative would be an Tax free municipal bond... OR an ETF Index fund which ought to get you 7.5-9% a year (on average).
Then check if you also earn dividends & capital gains.
I have LONG invested in PRDGX and more recently BSPSX...both perform quite comparably with the DOW or S & P 500.
(and the returns are sooo much better than CDs.

PRDGX expense ratio is 2/3rds of it's yield and while it roughly tracks the S&P500 it doesn't follow the breakouts closely so even in this last year you would have missed out on 9% vs SPY/VOO and in the last 5 years you lose more than 30%. This included all reinvestments.