Need fixed income reinvestment suggestions

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EvelynTroy
Posts: 394
Joined: Sat Jun 07, 2008 8:35 am

Need fixed income reinvestment suggestions

Post by EvelynTroy » Fri Feb 14, 2020 1:15 pm

I had a brokered CD called with proceeds arriving in my Schwab acct. 2/19 - don't know if its best to do this Fort Bragg CD -a nice 60 mo. Jumbo Step-Up CD (2.99% AYP) CD - Fort Bragg Fed. CU - easy membership, but its $40 ( for 2 years, not sure what that means, i.e. do you have to send another $40 after 2 years of holding a 60 mo. CD?) I have no military relationship so would have to pay the $40 membership fee.

Or choose some sort of safe, short-term or other bond ETF?

This is an IRA CD, and in my IRA acct. I hold Schwab U.S. Aggregate Bond ETF SCHZ (Intermediate Core Bond). Expense Ratio of 0.04%,
Duration 5.76 yrs. SEC Yield 2.23%. Maybe just move the CD proceeds into SCHZ. Any thoughts on where to reinvest the CD proceeds.

FWIW, my portfolio is balanced, with asset allocation of 60 % fixed income / 40% equity. As far as the 5 yr. CD with Fort Bragg I don't envision any need for the money before the 5 year maturity.
Thanks in advance for the help.
Evelyn

Topic Author
EvelynTroy
Posts: 394
Joined: Sat Jun 07, 2008 8:35 am

Re: Need fixed income reinvestment suggestions

Post by EvelynTroy » Fri Feb 14, 2020 8:46 pm

Bump Up

dbr
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Re: Need fixed income reinvestment suggestions

Post by dbr » Sat Feb 15, 2020 10:36 am

There are lots of choices for low volatility/cash investing that are all about the same.

I personally think a good long term plan for bonds in a portfolio of stocks and bonds is a diversified low cost intermediate term bond fund.

It is pointless to worry about yields over time.

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Stinky
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Re: Need fixed income reinvestment suggestions

Post by Stinky » Sat Feb 15, 2020 1:48 pm

Since you already have SCHZ, I’d consider just plopping it there.
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Topic Author
EvelynTroy
Posts: 394
Joined: Sat Jun 07, 2008 8:35 am

Re: Need fixed income reinvestment suggestions

Post by EvelynTroy » Sat Feb 15, 2020 2:54 pm

Thanks guys for your replies. I think you are both right, no need to futz about, just go with the intermediate term bond SCHZ that I already own. Especially, not wanting to add an additional ETF / Fund - more different instruments more complicated things can get.

Thanks again. Evelyn

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