Dandy wrote:I think it is wise to move money out of mutual fund money markets. With interest rates so low I not a big fan in moving all your money market funds to bond funds. Why not put at least some $ in other "safe" assets such as I bonds, CDs or other FDIC type vehicles. If/when interest rates rise your bond funds will take a hit (maybe for the length of their duration) but this will be offset by reinvesting their dividends and having some fixed income assets in I Bonds or CDs. As CDs mature you can make the call whether to keep going the CD route or putting the money in your bond funds. F;or some the goal of fixed income is to provide portfolio stability - this approach should add to stability allowing you to take more of the risk on the equity side. If you go the CD route Ally Bank, Discover Bank and Pen Fed credit union have some of the best rates.
SpringMan wrote:Assuming money is invested is in an IRA (or 401k, 403 etc) it is not so easy. Brokered CDs are different than bank CDs, they go up and down with interest rates just like bonds. I know banks and credit unions offer IRA accounts but they often have high fees just to maintain them. Switching IRA custodians, chasing the best CD interest rate sounds like too much hassle IMO.
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