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I am looking to retire early in 2 years. I am 60. I was divorced one year ago, finally got my retirement allocation and 50% pension at $1k/mos. My SS, hopefully will pay $2k/mos in 2 years. The retirement fund is $41k, I have started this approach. I am a low risk investor, simply looking for max gain, thus the CD ladder. Money markets and index, correct if I am wrong, do not guarantee return. Please speak to those Baby Boomers who do not have massive retirement savings and thanks.
First year of investing I got 13 cents in dividends. 3 years later I was at $160. Keep the snowball rolling. Returns get bigger the more u put in over time
However, I’m using a no penalty noncallable CD ladder since last February. I’ve purchased many low increment amounts of CDs, so that I have to cash in I can do so without penalty for early withdrawal. I’m using my high rate CD like a high yield savings account, and still keeping some of my money in cash. as well, it’s a bet that I’m making that could go against me, but I am also investing in longer-term CD rates with some of my money, even though it’s a slightly lower rate. I have invested in five year CD rate at 5% back in June 2023. If rates go down, then I should be in a good position with that five year 5% CD rate. Then, if I have to cash in that five year or 5% CD rate on multiple CD at 5%, then my cash will be earning high yield, even if my high yield savings interest rate reduces if the feds cut rates in 2024.
So I just pulled from my savings to pay $7k in credit debt. I was saving for a home that I was unsure when i was going to buy. I just opened a bank acct and see it has a 13 month 5.35% CD rate. Will this be smart to open? Idk anything about CDs. This will be my first if i follow through
You first want to eliminate any debt that you have, before thinking of a CD. Next steps would be save an emergency fund, and down payment for a house. Get a house (very reasonably priced) and then start your savings and investments.
Nope, all of your money is then deposited back into the account of your choosing ,, plus interest of course ! Or if you want to you can just have them roll it over for an agreed upon amount of time
@thedude9140 you seem to very knowledgeable about the subject. If i put in $1,000 for 12 months at a 5.05% annual percentage yield, is that worth it? Im new to this and would like to grow my savings but i dont know enough about the math to know if it will be worth it
you need to keep your spread sheet updated because when its time to cash out ,lets say a 1 year cd, if you let the collection date laps the bank will roll it over to another year, meaning if you pull out after 14 months you'll get slapped with a penalty ..you have little windows of a week or 2 to collect OR wait another whole year...
If you feel like it'll work for you then you should do it. Make sure you have a solid cash allocation strategy so that you don't have too much tied up in CDs.
Same here but I have mine in a 18 months because that 100k is just sitting in a saving account and I’m not using it to buy anything in the next five years so just putting it in CD to make some extra income while it just sitting.
What happens if i lock in the cd for like 12 months...but after 12 months i dont pull it out cam i leave it so it cam renew at the same rate? Lets say i put 50k in a 12 mo cd at 5%. After 12mo can i leave it so it can renew or is automatically put back into my account?
Question I had a 9 month CD for $250K that just matured with my local bank. I now want to either do another 9 Mo or 1 year but just learned about teer CD's. I have a Fidelity account with the $250 K sitting there. right now they have a 4 teer ladder at 5.30%for a year. I like the Idea of 1/4 return in 3 months Or I could do a 1 year Cd at 5.40%. If I did a ladder and keep the first 3 months and do the same to the 1 year what would my return be. I know the 1 year is the best return but was thinking of trying the ladder if making decent money. I'm in my 70's so that is one reason I don't invest and I do have a 104K with Fidelity I take from monthly for living expenses. Thanks for some opinion on this.
I think you should do what makes sense but if it’s a matter of 0.1-0.5% difference, I don’t think I want to move it, but that’s just me. Also, keep in mind that the FDIC limit is $250K per person or $500K per joint account. If you’re exceeding the FDIC limit then considering moving some of your money to another bank. Really well done on your savings ✌️
I turn 70 in the October and am thinking of more CD ladders plus there are instruments called MYGA's that pay similar rates as CD's but compound the interest over time unlike CD's. You can also take up to 10% (Some Policies) out of the MYGA for whatever Happy Investing
I would only do a 9 mo. or 1 yr CD the way things are and there paying 5.20 to 5.25% average.. If you do a ladder for the same time you will lose on the total interest return and a 2 year cd tops right now is 5.05%. So do you reall see the return as good in a 1 yr ladder verses a 1 yr Cd. I don't think so.
Do you have any videos for people just starting out with a small amount? 😅 I have 50k sitting in my savings and not too many current expenses. Could I put 30k of that in a 5 month CD and be okay? How do people with small nest eggs get started in building their wealth?
If you’re trying to build your wealth, the CDs alone will not cut it. I have many retirement investment videos you can check out on my channel. The CDs are great for long term cash savings to buy other assets
Then I would probably have to go with something that is going to be in the short term is what you would need!? But I dont know you and what you’re financial situation is ?! 14:25 14:25
Im in northern California paying $1,100 for 2 cars with Esurance, $250,000 property damage limit each, both are yr 2000, 1st car is a Honda Accord liability only, no mileage limit, 2nd car a yr 2000 beautiful E55 with 112,000 miles, full coverage, but i have to keep the mileage under 5,000 a yr on the Mercedes for a discount, i only drive it about 4,000 miles a yr anyways, before i drive a Nissan maxima into the Ground with 385,000 miles and now im gonna drive that honda into the Ground.
Hey, key notes: 1. guaranteed income - no worries about a stock market crash 2. compound interest - at least for my bank, every month the money tacks onto the top of the CD and that is rolled into the compounding amount. so actually an 18 MO CD will net around 760k It doesn't look THAT glamorous if you're used to the stock market which has rallied a crazy amount the last few years; but its a nice way to both hedge and make money at the same time. for example, I have around 8 months worth of a rainy day fund in my account, with a 6 month CD locked in. this way worst case scenario i have a nice fund coming that is also an investment, that won't be lowered by a stock drop in price
@@sall7029 🤯👀 I had no idea. No wonder why the banker was trying to discourage me from adding beneficiaries. I added 2 though 💃🏾💃🏾 She also tried to get me to put my money into a 1.5% money market account, rather than a 4.75% CD....
You didn't answer the question of WHY 2024 is the BEST year. Too much explanation of what a CD ladder is, pros and cons. Change the title or answer the question.
Late to the call, but the rates are tied to the federal reserves interest rates; and the Feds interest rates are really high compared to the last 20 years. Steven Powell (fed leader) has been saying he will drop it down by the end of 2024, So the high CD loans may drop in turn
Call a bank institute call in for a CD to be cashed out before its maturity rate date for example: 18 months DC the bank call/caliber- the standard reached by date
I'm really glad I found your channel...great information in a format that is understandable. PS I've banked with Ally for 10+ years and have no desire to bank elsewhere😁
i can only speak on the credit union I use (Community America) but yes you can open multiple accounts within the same institution. I have a few for different purposes like a checking and various savings accounts specifically for discretionary spending and an emergency fund etc.
Join my private membership group by visiting www.youtube.com/@firepsychat, and get your free financial independence resources at www.firepsychat.com/contact.
I’m with Navy Federal and they have excellent rates on CDs
What’s the rates?
@@tywrellepickens 4% or higher.
Search Navy Federal CD rates online. They update their rates every Monday for the upcoming week. Good luck :)
true, I opened one earlier this year at nearly 5% but their savings rate sucks!
I need to get adopted
I am looking to retire early in 2 years. I am 60. I was divorced one year ago, finally got my retirement allocation and 50% pension at $1k/mos. My SS, hopefully will pay $2k/mos in 2 years. The retirement fund is $41k, I have started this approach. I am a low risk investor, simply looking for max gain, thus the CD ladder. Money markets and index, correct if I am wrong, do not guarantee return. Please speak to those Baby Boomers who do not have massive retirement savings and thanks.
I'm sure your information is great, but I wish you'd use smaller dollar amounts; this is dam depressing.
Right. Someone mentioned it and I thought I'd look into it but he's got a lot of money invested
Lmao !
😂don’t be depressed, just get your money up
First year of investing I got 13 cents in dividends. 3 years later I was at $160. Keep the snowball rolling. Returns get bigger the more u put in over time
@@auntihooha lmfao seriously 😐 😂 😂 😭
Thank you for the video. I used the CIT Bank calculator. It was spot on. Thanks again.
Fantastic information!! Thank you. 😺
Good stuff 👌‼️
However, I’m using a no penalty noncallable CD ladder since last February. I’ve purchased many low increment amounts of CDs, so that I have to cash in I can do so without penalty for early withdrawal. I’m using my high rate CD like a high yield savings account, and still keeping some of my money in cash. as well, it’s a bet that I’m making that could go against me, but I am also investing in longer-term CD rates with some of my money, even though it’s a slightly lower rate. I have invested in five year CD rate at 5% back in June 2023. If rates go down, then I should be in a good position with that five year 5% CD rate. Then, if I have to cash in that five year or 5% CD rate on multiple CD at 5%, then my cash will be earning high yield, even if my high yield savings interest rate reduces if the feds cut rates in 2024.
I’m saving money to save money to buy a house in cash
I put 61k in a cd for 5 years and will have 75k by then. That’s crazy!
Sure is you should get way more than that
so just a 14K return over the 5 year span ?
dude that’s nothing. 5 years with 61k you should make like 20-30k in returns.
Under HORRABLE HARRIS your investment will just keep up with the inflation rates,,, sad but true, trump 2024
Great video!
Thanks!
Thanks for sharing
Breanna Ports
Are the jewel boxes included?
So I just pulled from my savings to pay $7k in credit debt. I was saving for a home that I was unsure when i was going to buy. I just opened a bank acct and see it has a 13 month 5.35% CD rate. Will this be smart to open? Idk anything about CDs. This will be my first if i follow through
You first want to eliminate any debt that you have, before thinking of a CD. Next steps would be save an emergency fund, and down payment for a house. Get a house (very reasonably priced) and then start your savings and investments.
I see my bank got 5% for 7 months
@@wellspring7700 will you be my prayer buddy
Sucks finding out you don't have enough income to invest into even an emergency fund. This is going to be hard.
One question, what happens after the time expires? Do they force you to take your money out?
Nope, all of your money is then deposited back into the account of your choosing ,, plus interest of course !
Or if you want to you can just have them roll it over for an agreed upon amount of time
@@thedude9140 thank you
@thedude9140 you seem to very knowledgeable about the subject. If i put in $1,000 for 12 months at a 5.05% annual percentage yield, is that worth it? Im new to this and would like to grow my savings but i dont know enough about the math to know if it will be worth it
you need to keep your spread sheet updated because when its time to cash out ,lets say a 1 year cd, if you let the collection date laps the bank will roll it over to another year, meaning if you pull out after 14 months you'll get slapped with a penalty ..you have little windows of a week or 2 to collect OR wait another whole year...
Great video! Thank you for the info. Will I have to pay taxes on this?
yes. once it matures
Make 5% pay 12% in taxes ….
Winning not
take care of student loans before buying CD's? Guess I'm never investing lol
Actually what we need in savings need money’s… I out half money in cd and half in savings
Bring back the gold standard.
That’s why people don’t like CDs no more
If I have over 100k in savings and I want to make money while it sits, would a 5 months cd @4.65% be a good idea to make a few grand in 5 months?
If you feel like it'll work for you then you should do it. Make sure you have a solid cash allocation strategy so that you don't have too much tied up in CDs.
Same here but I have mine in a 18 months because that 100k is just sitting in a saving account and I’m not using it to buy anything in the next five years so just putting it in CD to make some extra income while it just sitting.
Capitol
Doing a high yield savings account. CapitolOne has 4.65% APU paid monthly and no minimum
@AquaBloomStumdio more than 100k will be risky to invest?
Are CD rates locked in if the interest rates drop……….
What happens if i lock in the cd for like 12 months...but after 12 months i dont pull it out cam i leave it so it cam renew at the same rate? Lets say i put 50k in a 12 mo cd at 5%. After 12mo can i leave it so it can renew or is automatically put back into my account?
Question I had a 9 month CD for $250K that just matured with my local bank. I now want to either do another 9 Mo or 1 year but just learned about teer CD's. I have a Fidelity account with the $250 K sitting there. right now they have a 4 teer ladder at 5.30%for a year. I like the Idea of 1/4 return in 3 months Or I could do a 1 year Cd at 5.40%. If I did a ladder and keep the first 3 months and do the same to the 1 year what would my return be. I know the 1 year is the best return but was thinking of trying the ladder if making decent money. I'm in my 70's so that is one reason I don't invest and I do have a 104K with Fidelity I take from monthly for living expenses. Thanks for some opinion on this.
I think you should do what makes sense but if it’s a matter of 0.1-0.5% difference, I don’t think I want to move it, but that’s just me. Also, keep in mind that the FDIC limit is $250K per person or $500K per joint account. If you’re exceeding the FDIC limit then considering moving some of your money to another bank. Really well done on your savings ✌️
I turn 70 in the October and am thinking of more CD ladders plus there are instruments called MYGA's that pay similar rates as CD's but compound the interest over time unlike CD's. You can also take up to 10% (Some Policies) out of the MYGA for whatever Happy Investing
I would only do a 9 mo. or 1 yr CD the way things are and there paying 5.20 to 5.25% average.. If you do a ladder for the same time you will lose on the total interest return and a 2 year cd tops right now is 5.05%. So do you reall see the return as good in a 1 yr ladder verses a 1 yr Cd. I don't think so.
How much money is safe to invest on a cd?
best to do the ladder cd's, like a 9 month for a couple G's , a 12 month, 15 month and so on, that way you get a nice little chunk every 3 months ,
My bank has 13 month at 5% rate is worth it ?
I think 5% is pretty good. It's about what I'm shooting for this year.
Question can someone use a convenience check to open a cd account? Thanks
Do you have any videos for people just starting out with a small amount? 😅 I have 50k sitting in my savings and not too many current expenses. Could I put 30k of that in a 5 month CD and be okay? How do people with small nest eggs get started in building their wealth?
If you’re trying to build your wealth, the CDs alone will not cut it. I have many retirement investment videos you can check out on my channel. The CDs are great for long term cash savings to buy other assets
Do CDs compound?
No you can't earn interest on top of interest but with Roth IRA'S you can!
I have like 3 thousand cash thats free money just to do anything with. How can i maximize this to make the most money off it
Keep saving, You're doing good.
Cd at 5 % on fidelity or invest in VTI or VOO. Cd is rsk free but other options offer higher yeild but with greater risk.
What if i'm living off my emergency savings right now but want to put some towards investments?
Then I would probably have to go with something that is going to be in the short term is what you would need!? But I dont know you and what you’re financial situation is ?! 14:25 14:25
almost too much information
Can you first talked about the subject and then talk about the rest of your.
Is CD earning is taxable for retirees?
If you're paying $3,000 p/year for car insurance, I'd find another insurer! 🤣
Im in northern California paying $1,100 for 2 cars with Esurance, $250,000 property damage limit each, both are yr 2000, 1st car is a Honda Accord liability only, no mileage limit, 2nd car a yr 2000 beautiful E55 with 112,000 miles, full coverage, but i have to keep the mileage under 5,000 a yr on the Mercedes for a discount, i only drive it about 4,000 miles a yr anyways, before i drive a Nissan maxima into the Ground with 385,000 miles and now im gonna drive that honda into the Ground.
Depends on what car he has
Depends, for a Corvette it is probably about right lol.
@@TropicShade Im paying $5400 lol
@@LondonLoves I'm sure his wife drives a nice car.
So you are telling me if you put up 10k liquid its only 700 dollars for 18 months or did i miss something?
Hey, key notes:
1. guaranteed income - no worries about a stock market crash
2. compound interest - at least for my bank, every month the money tacks onto the top of the CD and that is rolled into the compounding amount. so actually an 18 MO CD will net around 760k
It doesn't look THAT glamorous if you're used to the stock market which has rallied a crazy amount the last few years; but its a nice way to both hedge and make money at the same time. for example, I have around 8 months worth of a rainy day fund in my account, with a 6 month CD locked in. this way worst case scenario i have a nice fund coming that is also an investment, that won't be lowered by a stock drop in price
It’s $250k (but just toss a beneficiary on your cd doubles to $500k).
@@sall7029 🤯👀 I had no idea. No wonder why the banker was trying to discourage me from adding beneficiaries. I added 2 though 💃🏾💃🏾 She also tried to get me to put my money into a 1.5% money market account, rather than a 4.75% CD....
You didn't answer the question of WHY 2024 is the BEST year. Too much explanation of what a CD ladder is, pros and cons. Change the title or answer the question.
Late to the call, but the rates are tied to the federal reserves interest rates; and the Feds interest rates are really high compared to the last 20 years. Steven Powell (fed leader) has been saying he will drop it down by the end of 2024, So the high CD loans may drop in turn
"There's a good chance that the fed will cut interest rates 6-9 months from now" 🤣
He is right
@@Havana1975xx no, no he was not.
Yeah this is a great thing for rich people.
I'm not rich.
Are there additional fees if I purchase the cd at the investment physical branch location versus online?
No
Call a bank institute call in for a CD to be cashed out before its maturity rate date for example: 18 months DC the bank call/caliber- the standard reached by date
Treasuries are much better imho
I'm really glad I found your channel...great information in a format that is understandable. PS I've banked with Ally for 10+ years and have no desire to bank elsewhere😁
if you put someone else on the account your fdic doubles
What? How have I never h heard that before? Really, it's per person??
/me opens yet another new tab "hey google...." 😅
I'm prase ing the name
Do ppl typically use different banks for all these savings accounts? Or can you open multiple savings accounts under one bank ?
i can only speak on the credit union I use (Community America) but yes you can open multiple accounts within the same institution. I have a few for different purposes like a checking and various savings accounts specifically for discretionary spending and an emergency fund etc.
Amazing!! Thank you ❤
I use samsung notes to keep track of the dates every 3, 6 and 9 months.
Great video, thanks.