Thank you for your excellent presentation. Question: Is there a menu option to determine if a brokered CD in Vanguard is callable? This is really crucial information. There is another convoluted advanced option that seems to be no longer available. It was much more difficult to navigate but gave more bank info. including callable/non-callable. Vanguard's UI can at times, be so hard to navigate!
When a certificate of deposit (CD) reaches its maturity date, there are a few possible outcomes for the funds: Automatic Renewal: In some cases, if you do not take any action upon CD maturity, the financial institution may automatically renew the CD for another term of the same duration. The renewed CD will typically earn interest at the prevailing rate for that term. If the CD is automatically renewed, you will receive a notification outlining the new terms and conditions. Rollover to a Different CD: Instead of automatic renewal, you may have the option to roll over the funds into a different CD with a different term or interest rate. This allows you to choose a new CD that aligns with your current financial goals and prevailing market conditions. If this option is available, you will typically receive instructions on how to make the selection. Cash Distribution: If you do not wish to renew or roll over the funds, you can request a cash distribution of the CD principal and any accrued interest. This means the funds will be returned to your designated account, and you will have access to the money. However, keep in mind that if you withdraw funds from a CD before the maturity date, you may be subject to early withdrawal penalties.
When a CD matures, you have several options: - Put it into a new CD with a different rate or different term. - Let it renew with the same term and add or withdraw funds. - Cash it in.
My brokered cds at vanguard did not return the expected and stated interest at maturity. Both were bought at 4.9% but at maturity I got far less. Why is that? Rates haven’t gone up that much.
Hey off topic, but I will be getting a Settlement soon and don’t know what to do. I have a financial Adviser, but everything looks to good to be true like example saying, if I invest $600,00 in 5 years that can be 1.0000.00 ? Also he wants me to buy 2 different structured settlements? One that starts now and one that starts later in 2051 . Any advice ?
Without knowing your individual situation and what you are investing in, we cannot comment sorry. Also for compliance reasons, we are unable to provide financial or investment advice. If you are interested in hiring a new financial advisor, feel free to set up a discovery call here - districtcapitalmanagement.com/schedule-call/
When selecting the Vanguard account, does it have to be a MMA? And do I need to sell mutual funds and place the money into the MMA in order to make the purchase? Or do I just select my IRA Mutual Funds and Vanguard automatically sells funds to purchase the CDs? Then the CD interest is automatically placed into my MMA? And what does the Vanguard MMA interest rate have to do with the brokered CD rate? No one seems to illustrate this in their videos. Can you explain this from the Smart Asset site: 'interest doesn’t compound within the Vanguard CD. Instead, it will compound based on the rates affiliated with your linked Vanguard MMA. Depending on your savings goals, this could have a significantly negative impact.'
Skip Ahead Here!
0:00 - How to buy brokered CDs in Vanguard
0:27 - Step-by-step process
2:57 - Do you want to buy brokered CDs in Fidelity instead?
Thank you for your excellent presentation. Question: Is there a menu option to determine if a brokered CD in Vanguard is callable? This is really crucial information. There is another convoluted advanced option that seems to be no longer available. It was much more difficult to navigate but gave more bank info. including callable/non-callable. Vanguard's UI can at times, be so hard to navigate!
What happens to the funds at maturity? Are there fees to transfer the funds or receive a check?
When a certificate of deposit (CD) reaches its maturity date, there are a few possible outcomes for the funds:
Automatic Renewal: In some cases, if you do not take any action upon CD maturity, the financial institution may automatically renew the CD for another term of the same duration. The renewed CD will typically earn interest at the prevailing rate for that term. If the CD is automatically renewed, you will receive a notification outlining the new terms and conditions.
Rollover to a Different CD: Instead of automatic renewal, you may have the option to roll over the funds into a different CD with a different term or interest rate. This allows you to choose a new CD that aligns with your current financial goals and prevailing market conditions. If this option is available, you will typically receive instructions on how to make the selection.
Cash Distribution: If you do not wish to renew or roll over the funds, you can request a cash distribution of the CD principal and any accrued interest. This means the funds will be returned to your designated account, and you will have access to the money. However, keep in mind that if you withdraw funds from a CD before the maturity date, you may be subject to early withdrawal penalties.
How do comissions work for brokered cds? How do I know the anount of comissions for the brokered cd I am purchasing?
Are you going to purchase brokered CDs this year?
Do you have to do anything when the cd matures? Does the money just go back into the money market account?
When a CD matures, you have several options:
- Put it into a new CD with a different rate or different term.
- Let it renew with the same term and add or withdraw funds.
- Cash it in.
My brokered cds at vanguard did not return the expected and stated interest at maturity. Both were bought at 4.9% but at maturity I got far less. Why is that? Rates haven’t gone up that much.
Hey off topic, but I will be getting a Settlement soon and don’t know what to do. I have a financial Adviser, but everything looks to good to be true like example saying, if I invest $600,00 in 5 years that can be 1.0000.00 ? Also he wants me to buy 2 different structured settlements? One that starts now and one that starts later in 2051 . Any advice ?
If it looks too good to be true, it probably is.
Without knowing your individual situation and what you are investing in, we cannot comment sorry. Also for compliance reasons, we are unable to provide financial or investment advice. If you are interested in hiring a new financial advisor, feel free to set up a discovery call here - districtcapitalmanagement.com/schedule-call/
When selecting the Vanguard account, does it have to be a MMA? And do I need to sell mutual funds and place the money into the MMA in order to make the purchase? Or do I just select my IRA Mutual Funds and Vanguard automatically sells funds to purchase the CDs? Then the CD interest is automatically placed into my MMA? And what does the Vanguard MMA interest rate have to do with the brokered CD rate? No one seems to illustrate this in their videos. Can you explain this from the Smart Asset site: 'interest doesn’t compound within the Vanguard CD. Instead, it will compound based on the rates affiliated with your linked Vanguard MMA. Depending on your savings goals, this could have a significantly negative impact.'
I have a question please. If I buy let say $1000 CD for 3 months, do I get paid 4.25% of the $1000 or just a prorate based on the 4.25%???