Comments on: Consider Buying Long-Term Certificates of Deposit

By: Anonymous

Anonymous — Sun, 28 Mar 2010 17:06:00 +0000

SOUNDS GREAT TO ME.

By: John

John — Mon, 08 Mar 2010 03:23:05 +0000

Let me ask you this: Why not buy a 7 year cd at a credit union (Say like a Navy Fed), at 4%. a long CD like that typically has a 6 month interest penalty to get out early. So if I break the CD after 1 year, i lose half my interest. But so what, I just made 2% on a 1 year CD. Today, where can you find that deal?

If I hold it for 2 years, I have a 3% 2 year CD and so on. Why ever buy a short term CD?

Is there anything wrong with my thought process?

By: Patrick

Patrick — Sun, 09 Nov 2008 04:54:05 +0000

My wife and I have a 5 year CD ladder which we started just over a year ago. It’s not a ton of money compared to our retirement savings, but it is enough to make a difference. I think the CD ladder provides some smoothing on the overall returns in our portfolio (the same way bonds would I guess).

By: savings

savings — Wed, 29 Oct 2008 12:20:23 +0000

Most CDs paid a fixed interest rate until they reached maturity. But, like many other products in today’s markets, CDs have become more complicated. Investors may now choose among variable rate CDs, long-term CDs, and CDs with special redemption features in the event the owner dies but with enough money to invest go for the long term CD.

By: jim

jim — Tue, 28 Oct 2008 22:31:00 +0000

Just because Warren Buffett does something doesn’t make it the right decision for everyone. If you have money to put into the market, that’s great, invest it. If you don’t, long term CDs are a safe option.

By: ajc

ajc — Tue, 28 Oct 2008 22:23:26 +0000

Then why is Warren Buffett – for the first time ever – moving his PERSONAL MONEY (i.e the money he has squirreled away over the years, other than the $40+ Billion that he has tied up in Berkshire Hathaway) …

… OUT of bonds and INTO the stock market?

By: Miss M

Miss M — Tue, 28 Oct 2008 17:32:18 +0000

Well it’s not a long term CD but I did just buy my first CD today, the 1 year 4.25% from ING. Rates are definitely going down for the short term, not sure about long term. Also I may need that money in the next 2-3 years.

By: Patrick

Patrick — Tue, 28 Oct 2008 15:41:50 +0000

At this time, a long term CD is perfect for those who want to make sure they are going to receive a solid return on their investment. For more riskier investments, the stock market is the place to invest in. There should be a rebound within the next year and tons of money could be made.

By: jim

jim — Tue, 28 Oct 2008 14:41:51 +0000

I don’t think that’s flippant at all, I think a lot can change in just a year…

By: mapgirl

mapgirl — Tue, 28 Oct 2008 14:29:12 +0000

My folks are in some long term CD’s at 5% interest rates. That’s one good thing about their broker. He put them into some seriously safe investments now that they are old. They will be receiving that rate till this whole thing blows over in a few years. (Not to be flippant, but in 3 yrs everything could change. For the better, one hopes.)