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Perhaps this is a really elementary question, but I'm temporarily stumped:

I have about a third of my retirement portfolio in a traditional IRA. The rest is in Keogh accounts and a Roth IRA. I am interested in keeping some of that money in long-term CDs. However, my brokerage (Fidelity) does not appear to offer CD products. Also, I'd want to shop for the most competitive rates.

Is it possible to purchase CDs from sources which are outside of my brokerage with IRA money?

Or, for longer timelines, does it make more sense to go with bonds or government issues over CDs? Just seems like there must be better alternatives than Money Market funds for the portion of my portfolio that I want to keep in something other than stocks.
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Usually Trasuries offer better rates than long term CDs. You can buy Treasuries direct from the Governemnt. I believe the web site Treasdirect.com. Check on your search engine.
Otherwise, long term CDs can usually be obtained from a bank or full sevice brokerage. You can open a separate IRA account with an institution that offers CDs if that is what you are looking for.

Bill
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You can put anything in your IRA that your custodian allows. (There are a few things that are universally restricted, like your personal residence.)

If your custodian doesn't allow you to put CDs in your IRA, you're going to have to find another custodian. Any bank offering IRA CDs would be happy to help you transfer your IRA, or a portion of your IRA, to them.

Corporate bonds have some risks that government bonds don't. Without knowing anything about your situation it's completely impossible for anyone to suggest whether some investment makes more or less sense for you.
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W401K informs,

Usually Treasuries offer better rates than long term CDs. You can buy Treasuries direct from the Governemnt. I believe the web site Treasdirect.com. Check on your search engine.
Otherwise, long term CDs can usually be obtained from a bank or full sevice brokerage. You can open a separate IRA account with an institution that offers CDs if that is what you are looking for.


That's great news!

Could you point me to an institution that will sell me a US Treasury note with more than a 6% yield?

The highest yield for a 5-yr CD on Bankrate.com is 6.15%. (Discover offers a 10-yr CD at a yield of 6.00%) see link:

http://www.bankrate.com/brm/rate/high_home.asp

The current yield on the 5-Yr US Treasury note is 4.69%, the 10-Year yield for a Treasury note is 4.94%

intercst
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John,

As typical of a Texan, thanks for pointing out my error with such class and not taking the opportunity to rub my face in it using pointless sarcasm.
There are instances of banks that sell CDs whose yields are lower than Treasuries. However, as you point out correctly, if one does their home work and shops around, you can find plentiful choices of CDs that yield in far excess of Treasuries.
To the Fool community, I apologize for posting incorrect info on the board.

Thanks for correcting my error.

Bill
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However, my brokerage (Fidelity) does not appear to offer CD products.

Are you sure about that? Several years ago I bought CD's within my Fidelity brokerage account. Supposedly they found you the best rate (although you can probably do better do a search yourself.) Perhaps they don't offer this service any more. As I recall, I did it via the rep in my local Fidelity Investor Center rather than over the web.

jtmitch
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Thanks, all, for the replies.

I'll give Fidelity a call. They may indeed offer the service, but it's impossible to find any CD-related information on their web site.
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