I Have $550K Maturing End Of May With Ally Bank 5 Year Cds. What Would You Do?

John Sears | Mar 16, 2016 | 67 posts since 2015

1. Put it into 3 different banks at okay 5 year rates to cover fully FDIC protection and wait it out at least a year (next January?). Even if the 5 year rate is poor, in 14-15 mos. it will be stronger than the prevailing 1 year CD.

2. Put it into 3 strong Savings and/or MM accounts and wait it out until things get btter (next January?)

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Answers

Barabbas | Apr 27, 2016 | 9 posts since 2016

Nobody can time interest rates. Also, I would consider diversifying, especially if this is the majority of your wealth. Put something towards equities. If you don't have an IRA, open one with Vanguard (mutually owned, no dividends to pay to shareholders) and invest in a target date fund.

Xuim | Mar 19, 2016 | 1 posts since 2016

Might hold off until June FOMC, though if the signs are pointing to devaluation I'd get gold

Barabbas | Apr 27, 2016 | 9 posts since 2016

Gold is such a losers bet, I have no idea why anyone would ever consider it. What's the point of buying and holding a shiny metal that yields nothing, is expensive to buy and liquidate, and actually costs money to store and insure? Don't give me crap that it outperforms whatever asset class during whatever cherry picked time period. A well-diversified passively indexed mutual fund actually yields, counters inflation, and outperforms gold over almost any time period. Think of it this way, during a credit crisis everyone sells everything, right? INCLUDING GOLD! Gold is heavily correlated to equities, with underperformance.

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