
10-16-2022, 10:00 AM
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Sage
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Join Date: Aug 2009
Location: NJ, NM, SC, PA, DC, MD, VA, NY, CA, ID and finally FL.
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Quote:
Originally Posted by retiredguy123
I don't consider it a problem for bond funds to not have a maturity or end date. You can buy and sell shares at any time. I use bond index funds for the bond portion of my portfolio. It is split between a short term bond index fund (average maturity of about 3 years) and an intermediate term bond index fund (average maturity of about 8 years).
I don't like CDs because it is much easier to invest in a bond fund, usually with a higher yield. I use "Penfed.org" as a gauge of current interest rates. They are always competitive. Their current CD rates are:
TERM and APY
6 Month, 1.70%
12 Month, 3.15%
15 Month, 3.20%
18 Month, 3.40%
2 Year, 3.50%
3 Year, 3.60%
4 Year, 3.50%
5 Year, 3.60%
I don't know where you can get 3.3% for 6 months or 4.2% for 12 months, unless there is some risk or deposit limit involved. Can you name the company that provides these rates?
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Just checked. My Schwab account trade platform shows one year T-bills at 4.58%.
After getting a huge capital gain in May I put 30% of it in stocks a little at a time. When 9 month T-bills topped 3% I put the rest there. That is the best I could do at the time. Stocks scare me right now.
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