09-01-2018, 02:51 PM
I like Mikes CD idea much better than a bond you may cash. Multiple CDs even better. You could still leave a CD alone and suffer no interest penalty if you truly needed to cash one out. Accepting a 5% loss on an early bond sale that doesn't even yield that much in the first place does not pass my risk/reward requirements. It makes staying in cash for minimal yield look pretty good IMO.
Offtopic but my new broker is Vanguard. They are pretty famous for low fees and small investor friendly. I don't think they have even one bond fund that isn't upside down for the past few years. It's not like they are incompetent. Bonds are just that horrible in this rising rate market that pretty much bounced from free credit. Vanguard suggests I invest 40% of my port in bonds due to my age. I don't think so anytime soon. Think I'd rather just ask Mike where the good US CD rates are and call it a day.
Offtopic but my new broker is Vanguard. They are pretty famous for low fees and small investor friendly. I don't think they have even one bond fund that isn't upside down for the past few years. It's not like they are incompetent. Bonds are just that horrible in this rising rate market that pretty much bounced from free credit. Vanguard suggests I invest 40% of my port in bonds due to my age. I don't think so anytime soon. Think I'd rather just ask Mike where the good US CD rates are and call it a day.