KKD has recently gone through a three pattern,
wave 4 corrective phase. Its now ready to go on a wave 5 tear. I don't see any let down in their sales and while they haven't opened as many new stores they have vastly improved thier distribution into other retailers. I wouldn't be surprised if this got back into the
fifties by late feb, early march.
<<In Japan, 4.25% would be a whopping return right now. Don't know if we're going to the extremely low rates of Japan, but we have been heading in that direction.>>
But the collapsing dollar would make zero percent in yen look very attractive.
If interest rates stay low, there would be no reason to cash in. Just wait to maturity.
In Japan, 4.25% would be a whopping return right now. Don't know if we're going to the extremely low rates of Japan, but we have been heading in that direction.
<On the other hand, if rates stay low for several years, I'll be more than 20% better off locking in 4.25%.>
Thought that you posted that you would lose 1/2 your interest if you canceled early. In two years your would lose 1 year worth of interest which would make a 90 day penalty even more attractive. Do you have a graduated penaly clause with decling penalty as time marches on?
First of lets go to a site that has very few postings as there are some folks here that may try to go off the deep end in contacting the bank. The board is CBIZ and let me know when you are there. I will identify as being there.
>>Even at 3.50%, you come out ahead at a little under 12 months if you go with a 90 day of interest cancelation penalty.<<
On the other hand, if rates stay low for several years, I'll be more than 20% better off locking in 4.25%. I don't regret locking in 5% a year and a half ago, at least not yet.
>>Either way we win on the CDs. If we have a crash, we are locked in. If market takes off, sure they will bump the rates. I would like to see a bump first so I can lock in higher rates.<<
To get a kick in the over all yield and hedge my bets, I like to put a small portion into high yield closed end funds like PHK as an example. As well as receiving a nice payout, they have appreciated in price recently. If they go down, I'll cost average into them to lock in a higher yield, but very carefully.
Thanks for your help mirto, but I have a complication in that I am single. Most of my assets are in a Large Rollover IRA and a Living Trust with it split between 5 Institutions which already is a little cumbersome but not unwieldy. Your response is appreciated.
<Without sounding Trite or uppity I am a little interested in how you are able to use CD's as for FDIC insurance wouldn't you need 10 different banks for each million,and couldn't that be a logistical nightmare?>
No, you don't need 10 different banks. Here is how it works. Assume $100,000 for each CD.
1. Under your name.
2. Your wifes name.
3. You in trust for your wife.
4. Your wife in trust for you.
5. Joint account.
Those are just some of the normal ones, but you can bump it up to at least $800,000 with some basic combinations and all approved by the FDIC. Need more, let me know.
<50% of the interest earned. A good deal if cashed in sooner rather that later.>
Even at 3.50%, you come out ahead at a little under 12 months if you go with a 90 day of interest cancelation penalty. If interested, please let me know. I will give you the contact and tell her to take good care of you and give you the small bump. Have done that with other folks. The Bank I found is very solid and has many branchs and of course FDIC insured. Sure you probably know you can have FDIC insurance for a lot more than $100,000.
Either way we win on the CDs. If we have a crash, we are locked in. If market takes off, sure they will bump the rates. I would like to see a bump first so I can lock in higher rates.