CD

StatisticalMan

There is no 48 month IRA. An IRA a a bucket. It is a tax sheltered bucket. "Stuff" goes inside the bucket. You have an IRA (either trad or Roth you need to check) and inside that IRA it has a 48 month CD). You can have as many IRA accounts as you want but annual contributions are limited to $7,000 ($6,500 for 2023). So if you made $7,000 in annual contribution this year for 2024 tax year then you can't contribute any more to any IRA. Both Fidelity and Vanguard are solid brokerages I would lean slightly towards Fidelity. Again though this sentence makes no sense. >Vanguards ETFs more and Fidelitys Roths Roth IRA is a bucket. It holds other stuff. If you open a Roth IRA at Fidelity you will contribute money to it and then invest that money. One of the investments could be a Vanguard ETF like VTI or a Fidelity Mutual fund like FZROX. Comparing investments to accounts just doesn't make any sense. It is why you don't have a "48 Month IRA" and why comparing an ETF from Vanguard to a Roth IRA account at Fidelity makes as much sense as saying which is better a truck or air?

Cruian

>No idea what a 48 month IRA is. Almost certainly a CD. Many banks and credit unions offer IRAs that are just savings accounts or CDs with the tax benefits.

1hotjava

So there is no “48mo IRA” You probably have an IRA with a 48mo CD in it. Once the CD matures it either renews or the money sits in the IRA as cash And yes you can have both Roth IRA and Trad IRA. But you can’t put in the max contribution to both, the max is combined for all IRA accounts whether Roth or Trad

ThazJustPeachy

You’re amazing. Be careful as there are lots of scammers. Would do this. 1. Put 200,000 into 1,2,3,6,9,12,18 month CDs. You can do it with one bank, or get an account with Fidelity or charles Schwab and they can help you. This is called ladder CD. I also like Marcus bank. You can get 4-5% interest and don’t take out. Keep re-investing. You can put 10,000 each account with each term.

ISObatteries

Until you know what to do with it , money market, CD’s, and Treasuries. Index tracking wouldn’t be bad either.

rastagomez

You would pay Federal, state and local tax on HYSA/CD. You would pay Federal tax only on Treasuries.

SFW808

What would be the comparable taxes on a HYSA or CD? (this is all very educational, I appreciate all this advice btw)

Intelligent_Train689

Neither. Purchase treasury bills. Higher rates than CD’s or HYSA’s. No city/state taxes on interest income. No FDIC limits since it’s literally the federal gov’t borrowing your money. Go to treasurydirect.gov. It’s incredibly easy.

SnooDoughnuts1763

>4 mil in 30 year is probably close to 1 mil today Not even remotely close... Also, VTI is a high performer so it's safe to say it's a better choice than gambling individual stocks, a HYSA, CD ladders, Treasury bonds, etc. There's a reason people repeat some of these tickers over and over. Granted you will find people that want slightly different things out of their portfolios so they may ha e JEPI, SCHD, VTI, or VOO but the results tend to be roughly the same.

Mickeynewkirk

When I inherited a large sum I put a lot of it into a CD I couldn’t touch for a few years while I figure it out. I would see if you can find someone who handles money as their job, and has a good reputation. Good luck!

Trading_View_Loss

Made my first money of the year today. Put all my savings into a 6 month CD. Try to get my money now motherfuckers.

stompro

I would second/third this. The kids will have full access to the UTMA at 18/21 (depending on your state). The money deposited must be used for the benefit of the child and cannot be taken back. UTMAs can also avoid some taxes, the first $1000 taxable gain each year is tax free, so it pays to do some tax gain harvesting. The second 1K is taxed at the child's rate, but then you have to file a return for them. 529's just added a great feature that lets the money roll over into a Roth after 15 years. So even if you don't use it all for education, you can boost you kids Roth savings. (Max of 35K total can roll into a Roth). One thing I don't get though, you can always remove contributions to a Roth IRA penalty free... if I convert from a 529 to a roth can I then just remove that money from the roth since it is a contribution? Get that money out of a CD, get into the market. Check out /r/Bogleheads and use one of their sample 3 index fund portfolios. CDs are for old people or short term specific goals.

AlgoTradingQuant

Well that’s simple then… fire your FA, go with a 50% equities (like VOO/VTI) and 50% fixed assets (like bonds/CD’s) and send me a box of chocolates 😁 I’d suggest spending a few minutes looking at Jack Bogle (the founder of Vanguard) wiki: https://www.bogleheads.org/wiki/Main_Page Here’s a great free tool for knowing “am I ready to retire”: https://ficalc.app/ PM me if you’d like… I’m always willing to assist.

lostallmyrice

At 5 years old money in a CD sounds like a poor choice.

AdministrativeBank86

WTF? Did these guys use a monkey with a dart to pick stocks? Yes, you would have been better off with a MMF or CD than with these guys. The money is spread so wide it's nuts.

SESender

Think of it like this - a HYSA gives you exactly what they say they will, for whatever day you refresh the HYSA - so today, they could give you 5%. Tomorrow? 6% next month if the markets do fun things? 1% So your true ‘yield’ over a year could average to 5, 6, or even 7! Or could go back down to 1.5! A CD or ‘Certificate of Deposit’ guarantees that return (unless the US government goes tits up, but if that happens everyone else is screwed along with you, end of society level doom) for the period you purchase for. So you purchase a 12 month CD at 5%? You get 5% for a year. HYSA increases during that time? Sorry (unless you get clever in flipping CDs). HYSA drops to that 1.5%? You look like a genius for ‘timing the market’

coolPineapple07

I love your last statement 😂 Are the returns better for CD over HYSA? Trying to understand why people prefer CD's since they more or less offer the same rate as HYSA

-Lorne-Malvo-

the dividend [rate is 3.4%](https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-asia-pacific-ex-japan-ucits-etf-usd-distributing/distributions) and if I am reading [this](https://www.vanguardinvestor.co.uk/investments/vanguard-ftse-developed-asia-pacific-ex-japan-ucits-etf-usd-distributing/price-performance) correctly your value went down over the last 12 months and the shares went up less than a dollar over 18 months. The 3 and 5 year mark are just as pitiful. You'd do better with a CD or a money market fund.

perpetual_peasant

I pulled 100k out of the market to put in 5% CD's. "Guaranteed" safe decent return so I can gamble a little on speculations, and the rest is still in S&P. Just research and do what you want. No one here is an expert.

drop-seoi-nage

Maybe I don't ask enough questions but they didn't really explain much about strategy. It was more like " we have a lot of smart people who are good at growing money and we take a small fee". And yes, agree, could have put it in a CD or saving account and done better.

phileo99

Like any public company, AAPL needs to do more than just status quo or tread water, they need to actually grow their revenues. The iPad/TV/WatchOS/Mac market is saturated, the revenue growth of yesteryear is unlikely to come from these mature markets and there are only so many cameras that you can stuff into the iPhone 2394 Super Duper Ultra Plus Pro Infinite Max. And the death of the MetaVerse and a slow economy means less incentive for consumers to spend $3500 USD on VisionPro. What can turn things around for AAPL is to make some bold acquisitions. AAPL has over $165 Billion in its war chest and now more than ever, needs to put that capital to good use instead of letting all that cash stagnate and collect dust. AAPL has shown examples of a working M&A strategy in the past. For example, back in 2018, AAPL acquired BuddyBuild, an up and coming CI/CD platform for Mobile Dev. They promptly killed off the Android side of the platform (which made up a significant portion of BuddyBuild's customer base), and folded the rest into TestFlight. They need to scale up this M&A strategy in a big way, like AVGO or CSCO big. For example with a couple rounds of bond raises, the could do the following: - acquire RIVN and embed M3 silicon chips into all of their cars and have it support only CarPlay - acquire OpenAI, drop Windows/Android support, and change it to support only Mac/iPhone/iPad - acquire AMD and have it dedicated to design/build only M3 silicon and graphic chipsets all of their monitors/displays. By adopting this approach, It may look like AAPL is buying their way into revenue growth. But I don't see anything wrong with that, at least they are putting that $165 Billion to use.

AmaroisKing

The three stocks are part of SPY/ QQQ. Just keep the 20% in the CD.

perfmode80

I've found for the most part that credit unions in major in-person retail banks have poor savings and CD rates. It's only the online only and obscure banks that have the best rates.

derprondo

Rates are good right now, but not good enough that they’ll beat the market on average. Also your money becomes illiquid in a CD. You can get similar rates in a money market mutual fund, but when they eventually cut rates your rate drops too, but with a CD you’re locking in the rate for the term.

SESender

Depends on how quickly you need to access they money. Need it at a moments notice? HYSA. No need for one year, but will probably need soon after? CD. Need it in 30? market Don’t need at all? Purchase a single stock

TollRoad2000

Should I put my money in a CD or Money Market account?

coolPineapple07

So better bet is to invest in CD? The interest gained is also tax free right? If so can you redeem it right away? How does it work

JonRadian

Some may think now is actually a good time to move some funds into CD accounts, seeing how interest rates will only go down from here (for things like high yield savings), so a fixed high CD rate seems pretty attractive if you are not a superBull.

Terrible_Champion298

Kind of pointless. Brokered CD are currently doing 5+% annually. That’s fixed income, no real risk.

effenel

Personally I believe it is less risk to wait 6-12 months in a CD at 5% then risk a market collapse. But, we can’t time the market, this year big ETFs grew over 20% while people ‘predicting’ a crash. I

kronco

I think the OP is using "mutual funds" to mean equities and is asking about equities vs. fixed income. (Not ETF vs. Mutual Fund vs. Individual stocks.) He is looking to get 10% a year "without taking too much risk". He does not mean why are people picking a mutual funds over an ETF. I suspect any post read where "not too much risk" is mentioned ends up recommending HYSA, CD or Money Market and not "mutual funds" and he wonders why equities (mutual funds) are not mentioned in the context of "not too much risk".

cooljuno411

I am looking to role my investment IRA (stocks) to a savings IRA (tax advantaged savings account with an APY). Please suggest a savings IRA with a high APY. The best I've seen was in the low 4% and anything over 5% was a CD IRA.

coolPineapple07

Any reason what made him chose CD over HYSA? I have about the same amount and saved it up in HYSA so I'm genuinely curious. How often do you get paid from CDs? And can you share the steps on how to invest in them? I'd like to take a look

Hotelbravo722

GTLB. Its quarterly growth has been conservative however thats not why I think it will go up. So Gitlab is one of the few full featured software development suites that still fully supports on-prem CI/CD runners. Why is this important? Because all modern software development/deployment relys on CI/CD runners. Now the only other big software player that still offers on-prem CI/CD runners is Atlassian who announced years ago that they will be moving that service to the Atlassian cloud. This is a problem for industries that due to regulatory/safety/security/practical reasons cannot move that infrastructure to the cloud, biggest industry that faces this problem is defense and aerospace. Which are the two major industries that use Atlassian. So given that Atlassian is priced at $240 right now and is killing off a major customer base and Gitlab is priced at $62 and slowly moving into that customer base I can see Gitlab easily go to $120-$150, solid fundamentals as a company and filling a niche in a very large and well funded industry.

LadsoStocks

5% is pretty decent! Depends on your risk tolerance. Considering your likely used to the nice growth from the CD you may want to just go with an ETF which would bring less risk than going all in on 3 major companies

LadsoStocks

5% is pretty decent! Depends on your risk tolerance. Considering your likely used to the nice growth from the CD you may want to just go with an ETF which would bring less risk than going all in on 3 major companies

monitorcable

How is it that every electronics brand in the past could make their own VCR, TV, CD player, radio, hair dryer, alarm clock, etc, which were essentially the same technology?

Direct_Beat_1938

As someone who’s been in a CD for almost 8 months; I’m genuinely kicking myself for it patiently waiting on getting out of it. Shit sucks.

-Lorne-Malvo-

You could get a better return with a CD or even a good money market fund. But yeah on paper VSIGX wins because of the .07 fee versus .25 Both funs show a near identical performance over 5 and 10 years. Both are savaged by the S&P 500. Why do people buy funds like these? There is no real growth and the dividend is a little less than CDs.

Vast_Cricket

For long term, hourly volatility matters little. MF or ETF are transparent. In all honesty, a 10% annualized return is a challenging target. If one factors in inflation the momentum stocks does not meet your requirement. VTI is one recommened here or by others also. This year I like cash cow small and medium cap etfs (consumer discreation). Most people here put in S&P index but often misunderstand it is meant for very long term not a few years. The CD, HYSA is just to park ones money for short term as interests that high will not been experienced down the road.

GroundStop_chaos

5% money market or CD or fixed annuity, if your looking to be risk adverse

Optimal-Soup-62

Actually, this is not the worst advice. I'm not remotely interested in taking on more equity positions and have moved a fair amount of money to cash, T Bills, and CD's.

UTrider

My emergency fund is 12 months. I have a combination of a laddered CD and t-bills. Each month I have enough money that matures to cover a full month of expenses plus a little. Then I have my disaster fund in a money market account with my bank. That's if the water heater goes out, followed by a leak under the sink the next month, then the transmission going out on the car the next. Had it happen, coved all the SURPRISE expenses without batting an eye. 8 months later the money was back up to what I consider my disaster fund (I own a house, a vehicle, a recreation vehicle, and have some health issues).

tyranids

Make a CD ladder. 1M at 5% right now you’d be getting 50k/yr.

neolobe

It says "every year." Not *in* one year. If it was one year, a fixed income asset like a bond, CD. For now you could even put it in a Money Market Fund, many of which is at 5%. But you'd want to be ready to move it when the rates go down. But OP didn't say "short term."

RichTannins

I think the laddered 3 tier approach would work for you. 3 months in a HYSA, next 3 months in short term convertibles like Tbills, and next 3-6 months in 6-12 month CD or some low risk ETF, basically if shit goes wrong you can start to collect appropriately from each tier as time passes. There is more info to this approach on the Boglehead site

dinithepinini

CD's

MadMatter_132999

Dude... why? Pop that in a CD and make 5% apr on it.

derprondo

Devops has been bastardized by herps and derps and has become a a job title that can mean 1000 different things. Where I work you could find 10 job postings and every job will be completely different. Do you have infrastructure experience? Being a software developer in a platform engineering group is where it’s at, this is what I do. Devops these days means you’re the CI/CD bitch a lot of the time.

3rdIQ

A friend retired about 5 years ago, and he rolled his 401K into an IRA through the investment department of a local bank. At a holiday happy hour at the end of 2021 some of us were casually discussing '19, '20 and '21 S&P 500 gains for those years. A couple of days later my friend told me his IRA had only small gains. As it turned out, he stressed "lowest risk" when opening his new IRA and the bank plugged him into a short term CD ladder while he contemplated his investment strategy with other options. The bottom line was... he got less than 1% returns for several years, and he got nervous about the market in 2022 and stayed in CDs in the 2% to 3% range.

LawnJames

Easier to build but more expensive, so it's CD vs cassette all over again.

StockCasinoMember

You could do a short term CD/Treasury Ladder. Make a little something with practically 0 risk while you wait for the market to implode.

myhappytransition

Theyve gotten to the point where they know bitcoin is sticking around. But they havent dug deeper ​ * No, bitcoin is not hackable * No, quantum is not happening, and even if it did, bitcoin is the most resistant to it of all tech on the planet * No, its not the same as tulips * No, its not the same as altcoin * No its not slow or expensive to settle * No, inflation is not good and deflation is not bad * No, its never too late to start protecting your wealth from the fiat system * Not your keys, not your coins. so the ETFs are worthless * Yes, all legacy investments will become pointless from bonds, stocks, and treasuries, to CD's and savings accounts. None will yield what simple self custodial bitcoin does Theyll catch up one day.

Garythegr81

Throw the money into 3 or 5 year CD. You can get 5% easy.

StatisticalMan

The fed does not want cash* to have a positive real return long term. Its inflation target is 2%. If inflation does fall to 2% the rate on cash will be ~2% because growing wealth in real terms without risk is inherently a bad idea. It will lead to rising inflation and also starve capital markets on funds. * note cash here is the investment term referring to high liquidity near zero risk options such as HYSA, MMF, overnight corporate paper, 1 & 3 month t-bills, and short duration CDs. They all compete for the same ultra low risk high liquidity holdings and so tend to move together. The fed funds rate directly influences deposit accounts (HYSA) but indirectly the rest move almost in unison because a MFF or short term CD is a reasonable alternative to a HYSA.

ClemPFarmer

Do you need that 30k in the next 5 years? If so, go for the CD. But those 5% rates won’t last forever either. Personally I’m a big believer in a low cost S & P 500 index since the success of investment advisors is always compared to it and very few can beat it consistently. And FXIAX is a great fund. If it’s a long term investment and you’re not going to touch it, put all 30k in there. Don’t bother DCAing. That index fund will be ok in a taxable account. If you’re interested in bitcoin, put some of that 30k in FBTC in your Fidelity account. You seem risk averse though so you may want to start out with a smaller amount in that Bitcoin ETF like 5k or less.

WackyBeachJustice

Get a CD player

BudsMcBenzy

Depends on your needs for the money Tex... I have cash that I want to keep as cash in high yield savings and CD's earning 4.35%-5%. Thinking about a down payment for a house or something in the future? that's the plan.\^ Good job maxing out that 401k, a lot of people don't. SPY and VOO are just popular. SPY was the first US ETF... Crypto is risky, and doesn't seem to be in line with your other interests of ETFs and robo advisors.. Managing your own account can be pretty fun and rewarding. I personally try to max out my Roth IRA earlier and earlier each year.. contribution limit for 2024 is 7k, I'm 3k in already.

stvaccount

Impossible. Invest in 5% pa interest CD or 2 year treas. generating 83.33$ per month

AnnArchist

You could get 8500 / yr from a CD @ 5%, which is entirely possible right now.

stvaccount

Like you put it in a CD that pays 5% interest. After 8 years you are guaranteed to have $11,819.64 or 1819.64 profit (almost 20% more). Zero risk (bank insurance) and good profits. Do you get the same from a stock? With a high shiller PE, the chances of the stock outperforming the CD are slim and the risk is immense (stock can go to 0$).

numbaonestunn

Well in the last year you would've made about $35,000 in VOO instead of about $5000 after tax in an HYSA and could've maxed a Roth $6500 for 2023 and $7000 for 2024 (actually still can do both). When you're young holding cash in an HYSA or MMF or CD is an absolute suckers move.

Form1040

> 2008 and 2020 was a scary time to have a significant amount of money in the market So was 1987. 20%+ loss in an instant. People were FREAKING out.  Look at a chart now and it’s hardly noticeable.  I know people who pulled out then and put everything in CD/bonds and STILL are not back in stocks. 

Meowmix311

Which means dividend stocks and 5 percent CDs are looking quite good. I'm thinking of rolling over my current 1 year CD in April for another 9 months or a year.  Can't beat 4.8-5 percent interest! 

Sugamaballz69

Money market fund, VMRXX/SWVXX, pays 5.3%, and you can withdraw at any time during regular business hours. The rate is variable though and rates are going down. If you really don’t need the money for a while and want to lock in a rate, a CD or an individual T Bill will work best

shit-at-work69

But HYSA rates may drop and maybe you want that money to sit for 6 to 14 months in a CD anyway

shit-at-work69

That’s not bad considering my state taxes is 9.3%! Effectively I’ll earn 5.24%. But also CapitalOne CD rates are 5.3%. Hmm hmm

dmackerman

IMO the .5% to 1% you get in a CD is not worth giving up the liquidity of a HYSA (while rates are this high)

Frosthartz

With your timeline and need for flexibility, I'd stick with the savings account for now. No sense locking anything up if you may need it sooner than a CD term.

3rdIQ

I have money market accounts at 5%, and I see 3-month, 6-month, and 12-month CDs in the 4.9% to 5% range. If you wanted easier access to your money you could gamble that the MM rate will hold for 12 months, or you could stagger (ladder) the CD purchases.

AverageBigfoot

Instead of a year long CD put it in a 52 week T-Bill. Around 5.3% yield and no state taxes due on the interest

floppydisks2

Right now there are banks or credit unions that offer high yield savings/checking accounts at 5% or more. You might want to consider that over a CD since it keeps your money liquid and you can access in case life happens, but you have to be disciplined to not touch it.

stvaccount

You don't get interest payments that you can invest further, which is a huge monetary loss on your side. If a bank pays you 5% for a CD, then it makes a huge difference if you get the interest once per day or once per year.

JerryLarryTerryGary

Ally has a no penalty CD at 4.55%. The term is 11 months but you can withdraw anytime after 7 days without penalty. It's the perfect middle ground to lock in a better rate as the HYSA rate will likely keep dropping throughout the year.

Burnt00Toast00

Put some of the money in the CD. The savings yield will decline when rates get cut, which is expected in March.

gunnersroyale

Heard of CD?

HamsterFriendly

Or nasa fcu with 9 months at 5.5% but personally OP sounds young and like they are figuring out the best financial path I'd avoid locking up my savings into a CD. How much money are we talking? Do you already have some funds invested? Do you have an emergency savings available or atleast funds in a "safe" fund that you could easily liquidate if needed?

HamsterFriendly

Another option is a growth CD so you have the option.

myd0gcouldnt_guess

Im about to lock up some of my emergency fund in a 12 month CD at 5%. Rates may fall in 2024 and this will lock in that high rate for the entire year.

Critical-Bat-5707

ally was offering a 8 month CD for 5.25% if you can deal with the extra 2 months

HD-Thoreau-Walden

You can’t keep adding to a CD so you would have to buy an additional new $2,000 CD each month and wouldn’t be able to get your money out of the last 5 or 6 of them until after the 6 months were up in those after your 10 month deadline.

BlingCringus

Don’t do the CD if you plan to throw 2k in every month. You won’t be able to contribute to a CD. So even if you’re getting a slightly better rate you’re only earning on what you initially invested. Whereas with the savings account you can easily slap 2k in and still get your 4.35% on a higher value of money and it’s liquid. If you’re thinking between savings and CD, consider a money market. Still liquid and some banks will give you a better rate if you have more money.

JohnWCreasy1

If rates were to go up, arguably your CD is worth less if you try to sell it, but otherwise it's like a bond just hold it to maturity and then you get all your principal + interest

Mushroom-Worldly

For a high yield savings account, you can get better rates. For example, Marcus by Goldman Sachs is a really good one. Been with them for a year now. They have a 4.5% APY but if you use someone’s referral link, you and them get 5.5% for three months. In this case, you’ll get more through an HYSA than many CD’s and you can deposit and withdraw whenever.

abrudda9

How long do the CD’s for ?

tears_of_an_angel_

do you know if CDs can lose value? one website said they can but it said if you’re ok with keeping your money in the CD for 1-2 years, the value should go back up but I don’t have 1-2 years

SeanCumm007

If you can get a higher return and you don't need the money for 6 months, then a CD will make you more money without a downside. You may have to fund your CD up front. So if you currently have $10k maybe you buy a CD with that and then keep depositing to your savings account the $2k monthly to rebuild your emergency fund and still earn some interest. ​ TLDR The only downside of a CD compared to a savings account is the ability to access it, for which they compensate you with a higher rate of return. **If you don't need to access it, you should probably choose whichever pays the higher return.**

Sugamaballz69

This is a great way to learn about investing, I wish my parents did this with me when I was a kid. Definitely open Roth IRAs. You could have them chose where the investments go so they can make direct decisions with their investments, naturally only have like 2 options: 1. Investing in large companies (S&P 500, $VOO) moderate short term swings, long term more profit, 2. Risk free interest bearing (Treasury bonds/money market fund) pay around 5.5% / year, you can do a CD or actual T bond if you want the rate locked in but also the money locked up for the duration, or a variable rate but money isn’t locked up at all (money market fund). Side note: interest rates are going down soon so this is something to consider with how you pitch the interest-bearing choices

Vurt__Konnegut

Half in a SPY index fund. Half in a 5.3% 12-month CD which you can get from several places, to protect you from any downturn. Or, if you're willing to take on more risk, put the CD portion into Amazon, Microsoft, Meta, Adobe, and Google. Don't put in any Apple right now.

Turbulent_Lack_2460

The other 50% would be divided in a HYSA and CD. The HYSA would be adequate for 6 months of expenses. I will invest more eventually. It's just what I'm comfortable with investing for now. Who knows maybe I'll regret not investing more earlier like I am now... Do you think VOO, VTG and SCHD is a reasonable combination?

White_Mocha

On your point about a CD, a CD ladder may work wonders for that amount if money.

throwawayinvestacct

My wife and I have a *big* house project we've finally decided to try and commit to saving for. Goal would be to commit to doing the project in ~summer 2025 or (depending how our saving goes) summer 2026 (though we'd likely owe an early deposit in early 2025/early 2026, so I'm treating it as ~1 or 2 years from now). Currently, the money is just slated to sit in an Ally HYSA (currently 4.35%). Knowing that the plan would be to use the money in the next 1-2 years, are there any meaningfully better ways to hold it? [They're reportedly offering 5.25% on a 1 year CD right now](https://www.ally.com/bank/high-yield-cd/), I guess ~1% more ain't bad. Anyone have any bright ideas about a similarly ultra-stable investment that's any better? Maybe a (reliable) financial institution with similar-ish rates but a solid new account reward? This is the largest non-retirement savings project we've engaged in since the down payment for the house itself, so want to be sure I leave no stone unturned.

petersom2006

It was a slow rise up and it will be a slow ride back down. But locking in a CD below a MM rate doesnt make a ton of sense. 5.2 will hold until we get the actual rate cut (maybe march, maybe longer). Many CDs are pricing that cut in already.

roastshadow

Those 5% MM funds are short term and can drop at any moment. Even a CD at 5% they seem to be 1 year or less, though there are some 1.5 year ones, many with caveats. I agree that as those rates pull back, we'll see an increase in the value stocks.

WallStreetWonk

Put in a 12 month CD

Dihydrogen-monoxyde

40K in checking is akin to lending your bank free money. Most of checkings are at 0.1 to 0.2% interest, unless you have a special deal. You can transfer to a saving acc. (not a CD) with a much greater rate. Check out [Raisin.com](http://raisin.com) , They have rates at 5.30 - 5.40 APY. That's about $2,100/year that would go into your pockect vs giving that to the bank.

Garythegr81

Put half the money into a money market account with auto reinvest into a target date fund. Take the other half and buy a 1 year CD at 5%. Go about your day.

Ssleeping

Nuke the CD’s

Sugamaballz69

If you’re going to early withdraw anyway, what’s the point? You’ll get a lower yield on the CD and have to pay a penalty for early withdraw, just put it in SWVXX or some other money market fund. The best is VMRXX (vanguard)

hueyflyer469

You’re killing it man, make sure you max out your Roth every year, and keep your money primarily in safe ETFs, you have plenty of savings to hold you over, and the CD money can pay for a down payment on a home when the time comes. Invest as much as you can while your costs are minimal, it will allow you to pull off the gas pedal a bit when life gets more expensive and chaotic (which it tends to from time to time)