Money Markets Questions
29 RepliesJump to last post
<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Prod.
Institution
Rate
CM
APY
Min Deposit
Advertiser comments
< = value=11629_18 name=>
3 yr CD
Goldwater Bank
Scottsdale, AZ
Posted: 12/11/09
2.99
S
2.99
$50,000
< = value=14205_18 name=>
3yr CD
Discover Bank
New Castle, DE
Posted: 12/11/09
<?: prefix = v ns = "urn:schemas-microsoft-com:vml" />
2.57
D
2.60
$2,500
Rates that consistently beat the competition. Open a CD today!
Just got this tip from a vet this week:
Assuming you're selling a taxable bond:Suppose your client has $20,000 in their money market earning 0.003%. That's $60/year. (Similar case can be made with 0.006% 6-month CD's.) Next, show them what their $20,000 would yield in a 7% corporate bond. That's $1,400/year.
Then, do the math right in front of them. $1,400 - $120 = $1,280. They're losing $1,280 per year by refusing to move from their money market into bonds. Leaving $1,280 on the table. Ask them what they'd buy right now if you handed them $1,280 cash. Twelve $100 bills. He said right then is when the light bulbs start going off in their heads. Silly clients.
[quote=Wet_Blanket]Anyone have a recommendations for a no load short duration fund? Just for my personal investments. I have cash sitting that I want to get to work for about a month, until my current puts expire worthless.[/quote]
Um, can’t you buy your favorite short duration load fund at NAV?
Ok one year. And I am just saying this is what clients find on their own at BankRate.
< = value=14664_15 name=><?: prefix = o ns = "urn:schemas-microsoft-com:office:office" />
1 yr CD
Ally Bank
Midvale, UT
Posted: 12/11/09
<?: prefix = v ns = "urn:schemas-microsoft-com:vml" />
1.83
D
1.85
$0
Always competitive rates. No monthly fees. Member FDIC.
Any one that wants a CD deserves a CD.Clients who want CD deserve CD’s, no doubt. Clients who want CD’s are also so afraid of everything that buying a CD at an online bank freaks them out.
[quote=gethardgetraw]Just got this tip from a vet this week:
Assuming you're selling a taxable bond:Suppose your client has $20,000 in their money market earning 0.003%. That's $60/year. (Similar case can be made with 0.006% 6-month CD's.) Next, show them what their $20,000 would yield in a 7% corporate bond. That's $1,400/year.
Then, do the math right in front of them. $1,400 - $120 = $1,280. They're losing $1,280 per year by refusing to move from their money market into bonds. Leaving $1,280 on the table. Ask them what they'd buy right now if you handed them $1,280 cash. Twelve $100 bills. He said right then is when the light bulbs start going off in their heads. Silly clients.[/quote] Then run a duration equation in front of them. 30 year maturity = 25 year duration, 2 percent interest rate increase = 50% decline in market value, clients love that for their safe CD money! Just giving you a hard time, we are all dealing with this, I have tried the short term bond funds but let them know about possible principle fluctuation, I like to mix in TIPS as well.
It's complicated. I work for a RIA, but have my FINRA licenses with a firm that distributes the mutual fund we are the IA for. I don't have my personal account with them and I expect a head ache for any load waivers. I just have a TOS account that seems to handle everything to my liking. But thanks for your concern.[quote=Wet_Blanket]Anyone have a recommendations for a no load short duration fund? Just for my personal investments. I have cash sitting that I want to get to work for about a month, until my current puts expire worthless.[/quote]
Um, can’t you buy your favorite short duration load fund at NAV?