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Matter Creator
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CD/treasury alternatives due to fed rate cuts
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by BHamTallMan »
Is there something on the “very secure” facet of the investing spectrum that may present related returns? I’ve different cash in index funds, however this money is particularly earmarked for a house.
Thanks for any perception.
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Re: CD/treasury alternatives due to fed rate cuts
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by retired@50 »
BHamTallMan wrote: ↑Fri Aug 30, 2024 2:31 pm
I’ve a superb chunk of cash sat apart for a money house buy when the time is true. The ~5% curiosity from CDs and quick time period treasuries has been very nice, however I believe these days are numbered with the fed saying it can start price cuts.Is there something on the “very secure” facet of the investing spectrum that may present related returns? I’ve different cash in index funds, however this money is particularly earmarked for a house.
Thanks for any perception.
I would proceed to make use of CDs and quick time period treasury merchandise, or cash market funds. With a price lower, these choices will nonetheless present 4.75% to five% relying on the dimensions of the lower.
I am presently incomes 5.26% on my cash market fund (VMFXX) at Vanguard, and I believe that price will fall by both 25 or 50 foundation factors, relying on the dimensions of a price lower.
Regards,
“All of us could be higher buyers if we simply made fewer choices.” – Daniel Kahneman
Re: CD/treasury alternatives due to fed rate cuts
Not as secure as a treasury, CD, cash market, or excessive yield financial savings account. All of which might be anticipated to shift downward if and when the fed cuts charges. If you understand the house buy will not be till a sure date, you possibly can lock in a price on a treasury or CD till that point.
Steve
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Re: CD/treasury alternatives due to fed rate cuts
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by DracoMagister »
I imply I’ve at all times heard CD, and cash markets for funds you wish to use in 3 years or much less. may put some in excessive rated bond funds if you’re extra like 5 years out. It’s unlucky, I’ve been ready years for rates of interest to choose again as much as what they had been once I was a child (they usually nonetheless have not made it all the way down to the money accounts but), however whereas some cuts are coming I doubt we’ll see something just like the close to zero charges that now we have suffered/loved for a lot of the final decade. I’m not the Fed although so what do I do know.
All I can say is that in case you want it secure (and it sounds such as you do) then I might stick with MM, CDs and really quick time period treasuries. The yield could go down, however you will not lose cash. It simply will not work as arduous as bond or shares will when and in the event that they enter a price reducing cycle. If you understand when you’ll begin critically home searching discover some CD’s out at that period and lock within the present charges.
“A superb plan, violently executed now, is best than an ideal plan subsequent week.” ― George Patton
Re: CD/treasury alternatives due to fed rate cuts
BHamTallMan wrote: ↑Fri Aug 30, 2024 2:31 pm
I’ve a superb chunk of cash sat apart for a money house buy when the time is true. The ~5% curiosity from CDs and quick time period treasuries has been very nice, however I believe these days are numbered with the fed saying it can start price cuts.Is there something on the “very secure” facet of the investing spectrum that may present related returns? I’ve different cash in index funds, however this money is particularly earmarked for a house.
Thanks for any perception.
I might additionally prefer to preserve getting 5%.
My plan is to go together with one of the best accessible with FDIC/NCUA CDs or treasuries. Cash market funds are OK, however I keep underneath $1K in these accounts.
Is there the rest that is “very secure?” Not for me.
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Re: CD/treasury alternatives due to fed rate cuts
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by Johm221122 »
BHamTallMan wrote: ↑Fri Aug 30, 2024 2:31 pm
I’ve a superb chunk of cash sat apart for a money house buy when the time is true. The ~5% curiosity from CDs and quick time period treasuries has been very nice, however I believe these days are numbered with the fed saying it can start price cuts.Thanks for any perception.
When the time is true is somewhat broad however I purchased a 3 month CD on Constancy in the present day (does it settle to the ninth I imagine) at 4.95%