Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 65 and my husband 68 we are both retired with over $3 million in net worth, with a maximized fdic insurance and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income
generally,,investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Regina Louise Collaro) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance.She is quite popular for her services so you might have heard of her. She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I’ll advise you do get a good Investment advisor for yourself.
@@skoopqueenI value your recommendations.. It's challenging to locate a trustworthy person. I could really use your investment advisor after seeing how much money you've made through investing. If you don't mind revealing her information, that is.
@@skoopqueenPersonally, I'm blessed and realizing I'm not the only one working with Regina Louise Collaro. I will consider myself lucky. I've been able to feed and make a living through her advice and great work. For such a person as Regina, I owe her gratitude, support and endless prayers as it is not easy to gain access to such a competent and reliable adviser who isn't just wise but has all it takes to handle an investment and is good at what she does.😊
I currently have 2 CDs in my fidelity ROTH IRA. When I look at my positions why does the rate change daily on the CDs? Does that affect how much I get at maturity?
The value will change daily in response to movements in interest rates. But, as long as you hold to maturity, this has no impact. I created a separate video addressing this: ruclips.net/video/_EQmTX3_RmI/видео.html.
The yield is assuming you hold for 12 months correct since APY annualized. So if a 6 month cd is paying 4%. Does that mean you will only get 2% at maturity?
Yes, compounding is better than not compounding. Brokered CDs pay interest at various intervals depending on the instrument you choose. Some pay annually. Some pay semi-annually. Some pay monthly, etc. The interest is paid into your brokerage account which you is up to you to reinvest.
Good question. Remember, interest rates are almost always quoted on an annualized basis. So on a 3-month CD, the interest rate is 4.6%/4 = 1.15%. Therefore, a 3-mo CD yielding 4.6% (annualized) would pay out $1,011.50 at maturity.
It pays to use this method if you are really computer savvy. If you are in your mid 80" like I am I suggest that you look up the rates paid by several banks on the internet to understand which ones you would like to buy. Then call Fidelity and ask them to do the work for you if he picks one that you looked at. They are supposed to look out for your benefit. Trust but verify!
I assume the CD doesn't show up in your Fidelity account until after settlement date? Bought a CD last week and everything is still pending with settlement date another full week out. What's to stop one from cancelling the pending CD and buying another one if rates go up? Or, conversely, the issuer cancelling the CD if rates go down while waiting for settlement date. New to brokered CDs, obviously. Good video.
With respect to cancelling a pending order, that's a good question. This is right off Fidelity's website: "Attempts to cancel, or cancel and replace, open orders are performed on a best-effort basis. There is no guarantee that an open order can be canceled, or canceled and replaced, either in whole or in part." Thanks for the question madcow! :D
@@TedErhartCFP Great Video. So what are the better options for putting cash in your brokerage account? With a bank account linked to the brokerage account, can you simply transfer cash to the brokerage account, purchase a money market fund, initiate cash management, or some other means? Do you have a video on this?
@@d3bjohn If you electronically deposit funds to Fidelity, they'll automatically go into the Fidelity sweep account (money market) you chose at account opening. Most likely will be SPAXX or FDRXX. These were most recently yielding around 4.5%.
@@TedErhartCFP Thanks. The Action in the transfer window (wish I could post a picture) are to "Transfer cash and buy a Fidelity mutual fund". I can either select an "Existing fund" from those that I already have or create a "New Fidelity Fund". It doesn't seem that the funds will sweep into an account automatically, though I do have FDRXX as one of the fund choices that I can select. I must have chosen FDRXX when I set up the brokerage account, many years ago. Presumably I could then Buy the brokered CDs using funds from the FDRXX fund, or from a new fund (e.g. SPAXX) if I choose that option.
On the right when it shows quantity offered of 5 or 10 or 200 What is that ? Is that a limit of cds . If there’s 10 for available does this mean $10,000. Limit ? Fidelity decimal usage or lack of is confusing
Remember, rates are quoted on an annualized basis. So your actual return on a 6 month CD will be the stated yield divided by 2. On a 3 month CD, it would be divided by 4.
@@TedErhartCFP Thanks. One more situation here and maybe you can link me to one or two of your videos. My MMA is 0.8% (Capital One 360). Right now their APY is 3.3% for a savings account. Sounds like a no-brainer but what are the hidden pitfalls to going to a savings account?
@@jsteve2 I'm a big fan of the online high-yield accounts including Capital One. I personally use Ally.com. They're all similar. No real downsides accept they typically limit the amount of transactions per month.
CDs and treasurys will automically pay out into cash (within your brokerage account) at maturity unless you've told Fidelity to automatically reinvest.
Hi...I have a question about the CD interest. I recently bought a 5-year Fidelity CD that says it pays interest monthly. I know I have to leave my principal amount in there for 5 years but what about the interest? How is the interest paid exactly? Can I receive CD interest payments on a monthly basis (such as into my core/brokerage/cash account)? Or, is both the principal and interest unavailable to me for the full 5 years? Thanks!
No fees for brokered CDs or treasurys if you buy them online. I believe there is a nominal fee if you call in and have a rep make the purchase for you.
Thanks for the video. Silly question, but could I purchase a CD using my Roth IRA at Fidelity? I have been putting money in my IRA for a few years now but have not invested it into anything yet.
Great starter tutorial! Is it better to choose a CD that pays out monthly? I assume there's no downside to this, that you get the total 4.5 (for example) yield, just paid out monthly instead of at maturity. Also, once the maturity date is up, and you do not auto roll, is that $1000 principal plus yield back in your Fidelity account ready to buy another CD of your choice? How does that work?
I think it's a matter of preference with respect to interest frequency. When CD matures, cash ends up back in your brokerage account and it's your decision what to do next.
@@mikem6796 As long as you buy a fixed rate issue (and most are), your rate is fixed until maturity. CP is "call protection." It is a feature that says the issuing bank can't pay you back before maturity. A bank would want to "call" a CD in early if interest rates fell sharply.
@@MichaelCTruth Interest rates are almost always quoted on an annualized basis. But some CDs will pay the interest monthly or semi-annually. Further, if you buy a 3-year CD that is quoted at 4.78%, that is the annualized rate you will earn. Hope that helps.
Related video: Can I lose money on brokered CDs? ruclips.net/video/_EQmTX3_RmI/видео.html
Big ups to everyone working effortlessly trying to earn a living while building wealth. I’m 65 and my husband 68 we are both retired with over $3 million in net worth, with a maximized fdic insurance and no debts. Currently living smart and frugal with our money. Saving and investing lifestyle made it possible for us this early even till now we earn monthly through passive income
What did you invest in
generally,,investing requires higher knowledge. For this reason, It's important to have a solid support structure (financial consultant) to guide you through especially in asset picking. I operate with (Regina Louise Collaro) an investment advisor who partners with a licensed wealth management firm. For the record, the experience has been the best for my finance.She is quite popular for her services so you might have heard of her.
She made me financially stable investing through her help, now I earn on a monthly basis through her passive income strategy... So I’ll advise you do get a good Investment advisor for yourself.
@@skoopqueenI value your recommendations.. It's challenging to locate a trustworthy person. I could really use your investment advisor after seeing how much money you've made through investing. If you don't mind revealing her information, that is.
Sure martin . you can check her online for more info. She can work with anyone
@@skoopqueenPersonally, I'm blessed and realizing I'm not the only one working with Regina Louise Collaro. I will consider myself lucky. I've been able to feed and make a living through her advice and great work. For such a person as Regina, I owe her gratitude, support and endless prayers as it is not easy to gain access to such a competent and reliable adviser who isn't just wise but has all it takes to handle an investment and is good at what she does.😊
Excellent! Fast and clear!
Great video as a refresher for something I don't do too often. Thanks!
Thanks, this is exactly what I was looking for. I did subscribed to your channel.
Awesome, thank you!
Thanks for your help
Great video!!
Thanks for showing how to do this! This is very useful! 👍
Thank you.
thank you this is super helpful!
Are there any fees or cost for the purchase? Fidelity must make a commission on the sale?
Can you do a video on buying IntraFi network CDs, and if the option is available thru Fidelity?
very well spoken and informative thank you sir
Nice Video, thank you
Thanks!
Great! Can you do one on buying T-Bills at Fidelity? The auction process is a little confusing to me.
Pretty straight forward!
I currently have 2 CDs in my fidelity ROTH IRA. When I look at my positions why does the rate change daily on the CDs? Does that affect how much I get at maturity?
The value will change daily in response to movements in interest rates. But, as long as you hold to maturity, this has no impact. I created a separate video addressing this: ruclips.net/video/_EQmTX3_RmI/видео.html.
🎉🎉🎉
Thumbs up !
Does the order have a transaction fee through Fidelity?
When you "auto roll" does it buy the next CD at the same bank?
The yield is assuming you hold for 12 months correct since APY annualized. So if a 6 month cd is paying 4%. Does that mean you will only get 2% at maturity?
You got it. Interest rates are almost always quoted on an annualized basis.
So that's a 4.5% guarantee profit on your 1000??
Thumps up 👍
Will I have less money since interest is not compounded in a brokered cd versus a bank cd? How do interest payment work for brokered cds?
Yes, compounding is better than not compounding. Brokered CDs pay interest at various intervals depending on the instrument you choose. Some pay annually. Some pay semi-annually. Some pay monthly, etc. The interest is paid into your brokerage account which you is up to you to reinvest.
Thank you 🙏 does fidelity charge a fee to purchase these
No fees on brokered CDs.
@@TedErhartCFP Thank you
What specific account do i need to open to buy cd's
Most likely you'll want to open an individual or joint account. But you can buy brokered CDs in retirement accounts (IRA, Roth, etc.) also.
So a $1000 3mo CD @ 4.6% equates to how much exactly? Thanks.
Good question. Remember, interest rates are almost always quoted on an annualized basis. So on a 3-month CD, the interest rate is 4.6%/4 = 1.15%. Therefore, a 3-mo CD yielding 4.6% (annualized) would pay out $1,011.50 at maturity.
@@TedErhartCFP Aaahhh thanks!!! Simple and plain!
It pays to use this method if you are really computer savvy. If you are in your mid 80" like I am I suggest that you look up the rates paid by several banks on the internet to understand which ones you would like to buy. Then call Fidelity and ask them to do the work for you if he picks one that you looked at. They are supposed to look out for your benefit. Trust but verify!
Can i buy cds and other fixed incomes during weekends? causa i think i can only buy stocks during weeks there
Only when the bond market is open.
What are SFP and SO in attributions? Could not find it anywhere. Thanks
Sinking fund provision and survivor option.
What happens to my brokered cd via Fidelity if I die ?
Thanks for walking through this.
Glad it was helpful!
I assume the CD doesn't show up in your Fidelity account until after settlement date? Bought a CD last week and everything is still pending with settlement date another full week out. What's to stop one from cancelling the pending CD and buying another one if rates go up? Or, conversely, the issuer cancelling the CD if rates go down while waiting for settlement date. New to brokered CDs, obviously. Good video.
With respect to cancelling a pending order, that's a good question. This is right off Fidelity's website: "Attempts to cancel, or cancel and replace, open orders are performed on a best-effort basis. There is no guarantee that an open order can be canceled, or canceled and replaced, either in whole or in part." Thanks for the question madcow! :D
When you hit Purchase what then happens? What are the options for how to pay? Thank You.
Good question. You won't be able to purchase unless you already have cash in your brokerage account.
@@TedErhartCFP Great Video. So what are the better options for putting cash in your brokerage account? With a bank account linked to the brokerage account, can you simply transfer cash to the brokerage account, purchase a money market fund, initiate cash management, or some other means? Do you have a video on this?
@@d3bjohn If you electronically deposit funds to Fidelity, they'll automatically go into the Fidelity sweep account (money market) you chose at account opening. Most likely will be SPAXX or FDRXX. These were most recently yielding around 4.5%.
@@TedErhartCFP Thanks. The Action in the transfer window (wish I could post a picture) are to "Transfer cash and buy a Fidelity mutual fund". I can either select an "Existing fund" from those that I already have or create a "New Fidelity Fund". It doesn't seem that the funds will sweep into an account automatically, though I do have FDRXX as one of the fund choices that I can select. I must have chosen FDRXX when I set up the brokerage account, many years ago. Presumably I could then Buy the brokered CDs using funds from the FDRXX fund, or from a new fund (e.g. SPAXX) if I choose that option.
On the right when it shows quantity offered of 5 or 10 or 200 What is that ? Is that a limit of cds . If there’s 10 for available does this mean $10,000. Limit ? Fidelity decimal usage or lack of is confusing
You got it, that is the number of $1,000 units available.
@@TedErhartCFP Ok, thank you.
Why take a 6 month cd of 4.5%? Is the 3 month cd of 3.95% not the better cd
Remember, rates are quoted on an annualized basis. So your actual return on a 6 month CD will be the stated yield divided by 2. On a 3 month CD, it would be divided by 4.
Is the cash/interest deposited into account once at maturity or monthly?
Depends on the specific CD. Short-term issues often pay at maturity. Longer term issues can pay monthly, semi-anually, etc.
@@TedErhartCFP Thanks. One more situation here and maybe you can link me to one or two of your videos. My MMA is 0.8% (Capital One 360). Right now their APY is 3.3% for a savings account. Sounds like a no-brainer but what are the hidden pitfalls to going to a savings account?
@@jsteve2 I'm a big fan of the online high-yield accounts including Capital One. I personally use Ally.com. They're all similar. No real downsides accept they typically limit the amount of transactions per month.
How to redeem CD on Fidelity when its maturity?
CDs and treasurys will automically pay out into cash (within your brokerage account) at maturity unless you've told Fidelity to automatically reinvest.
@@TedErhartCFP thank you so much for your responded
Is there a cost to make the purchase?
Great question. On Fidelity's platform, there is no cost to buy new issue brokered CDs. There is a 0.1% fee/commission to sell before maturity.
Just to clarify, if I buy the 6
months CD as the example you had I will receive only the fraction from 4.5% right
?
Like 4.5/2 semesters = 2.25%
Correct, interest rates are almost always quoted on an annualized basis.
Hi...I have a question about the CD interest. I recently bought a 5-year Fidelity CD that says it pays interest monthly. I know I have to leave my principal amount in there for 5 years but what about the interest? How is the interest paid exactly? Can I receive CD interest payments on a monthly basis (such as into my core/brokerage/cash account)? Or, is both the principal and interest unavailable to me for the full 5 years? Thanks!
Most CDs pay interest monthly, quarterly or semi-annually. Completely depends on the specific CD you purchased.
is there transaction fee?
No fees for brokered CDs or treasurys if you buy them online. I believe there is a nominal fee if you call in and have a rep make the purchase for you.
Very interesting topic. Thank you!
Glad it was helpful!
Can you show us the step by step buying the treasury(T-Note or Bond) at Fidelity?
Thanks for the request! I have a few videos in the works so just give me a little time. 😀
Do I have to pay taxes
yes
@@rachelwang6498 thx
@@rachelwang6498 will I get a ticket from the bank saying how much I owe? Or just give the info to my tax guy?
Thanks for the video. Silly question, but could I purchase a CD using my Roth IRA at Fidelity? I have been putting money in my IRA for a few years now but have not invested it into anything yet.
Definitely. CDs can be bought in any type of brokerage account.
@@TedErhartCFP Thanks!
Great starter tutorial! Is it better to choose a CD that pays out monthly? I assume there's no downside to this, that you get the total 4.5 (for example) yield, just paid out monthly instead of at maturity. Also, once the maturity date is up, and you do not auto roll, is that $1000 principal plus yield back in your Fidelity account ready to buy another CD of your choice? How does that work?
I think it's a matter of preference with respect to interest frequency. When CD matures, cash ends up back in your brokerage account and it's your decision what to do next.
@@TedErhartCFP Can the % on a cd change during the time frame your money is locked up? Can you explain what CP is and how it works?
@@mikem6796 As long as you buy a fixed rate issue (and most are), your rate is fixed until maturity. CP is "call protection." It is a feature that says the issuing bank can't pay you back before maturity. A bank would want to "call" a CD in early if interest rates fell sharply.
@@TedErhartCFP Can you explain a equation for the interest rate? Like 1000 at 4.78 for 3 years? Some i see are annual, monthly, semi annually. Thanks
@@MichaelCTruth Interest rates are almost always quoted on an annualized basis. But some CDs will pay the interest monthly or semi-annually. Further, if you buy a 3-year CD that is quoted at 4.78%, that is the annualized rate you will earn. Hope that helps.
👍👍👍