No. of Recommendations: 1
This is exactly right. I have a fair amount of investable cash, as well as emergency savings, in an account with my credit union earning almost 2.6%. I think this means that if I ever see a spike in interest rates that causes "fixed" bond yields to rise sharply -- tax-deferred -- then it might be time for a shifting of assets. But not until then.

Have you considered a 5 year CD while you wait? The 6 month CD at my CU is 2.75% and the 5 year CD is 4.75%. The penalty for early redemption is 3 months interest. I calculated that I need to hold the 5 year CD for 7 months to earn a greater return with the penalty than the 6 month CD.

IF
Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.