CD rates am I right here?

[Mainstreet]

That's sort of what I do with my Vanguard account for the most part. I have my direct deposit go to it with part of it staying in my money market fund and part going into VOO, their S&P ETF. Mostly set and forget. I haven't found a good reason to not stick with a low overhead S&P option. The managed fund really haven't been outperforming it on a consistent basis. They might for one quarter and then the next quarter be down. Most of the market action has centered around the mag 7 and they're all in it.

I thought about using Vanguard because of their low fees, but I'm mostly a novice at this stuff, not handling anything directly.

Sounds like S&P ETFs might be a good way to go for higher interest rates, safety and liquidity.

CD rates are not cutting it with inflation.

 

[Devilmaycare]

I thought about using Vanguard because of their low fees, but I'm mostly a novice at this stuff, not handling anything directly.

Sounds like S&P ETFs might be a good way to go for higher interest rates, safety and liquidity.

CD rates are not cutting it with inflation.

Hold up as sec. You have a couple things crossed up here. S&P ETF I wouldn't put in the safe category. It matches the S&P so it can go down. The long term trend line is always up though. It's a money market fund that's safe and more like a high interest savings. VMFXX is the vanguard one of those.

Since you said your a novice:

Money market fund is fund that invests in high-quality, short-term debt securities to provide investors with high liquidity and low risk.

Mutual fund is a fund that pools money to buy a portfolio of stocks or bonds to try to mitigate risk from singles stocks. Usually there's a theme to them like energy stock, large cap, small cap, etc. This is mainly what you buy in things like an IRA or 401k. Buys and sells are done at once after the market closes for the day.

Index funds are mutual funds that are indexed against some global list like the S&P500 or dow jones. Something like an S&P fund pretty much goes as the market goes.

Managed funds are mutual fund that are managed by someone trying to pick the stocks for it. They're only as good as the manager is lucky. Generally more volatile than an index fund.

Exchange traded fund (ETF) is fund similar to a mutual fund but is traded on an exchange. That means you can buy and sell intraday like stock. Generally the same as an index or managed fund but gives a little more power since you can buy and sell at will and don't have to wait until end of day for it to happen.

 

[Russ Smith]

I thought about using Vanguard because of their low fees, but I'm mostly a novice at this stuff, not handling anything directly.

Sounds like S&P ETFs might be a good way to go for higher interest rates, safety and liquidity.

CD rates are not cutting it with inflation.

Yeah the bulk of your money should be in stocks. CD's and HYSA are just for the cash you keep.

 

[Mainstreet]

Hold up as sec. You have a couple things crossed up here. S&P ETF I wouldn't put in the safe category. It matches the S&P so it can go down. The long term trend line is always up though. It's a money market fund that's safe and more like a high interest savings. VMFXX is the vanguard one of those.

Since you said your a novice:

Money market fund is fund that invests in high-quality, short-term debt securities to provide investors with high liquidity and low risk.

Mutual fund is a fund that pools money to buy a portfolio of stocks or bonds to try to mitigate risk from singles stocks. Usually there's a theme to them like energy stock, large cap, small cap, etc. This is mainly what you buy in things like an IRA or 401k. Buys and sells are done at once after the market closes for the day.

Index funds are mutual funds that are indexed against some global list like the S&P500 or dow jones. Something like an S&P fund pretty much goes as the market goes.

Managed funds are mutual fund that are managed by someone trying to pick the stocks for it. They're only as good as the manager is lucky. Generally more volatile than an index fund.

Exchange traded fund (ETF) is fund similar to a mutual fund but is traded on an exchange. That means you can buy and sell intraday like stock. Generally the same as an index or managed fund but gives a little more power since you can buy and sell at will and don't have to wait until end of day for it to happen.

Thanks for the clarification, especially defining the terminology. I was talking more about diversification. ETfs in S&P 500 companies sounds like a safer way to go as it spreads the risk over a number of businesses.

There is no guarantee one cannot lose money in the stock market. That's been why I have been individually hesitant to go there, although I receive a pension from a fund invested there.

 

[Devilmaycare]

Thanks for the clarification, especially defining the terminology. I was talking more about diversification. ETfs in S&P 500 companies sounds like a safer way to go as it spreads the risk over a number of businesses.

There is no guarantee one cannot lose money in the stock market. That's been why I have been individually hesitant to go there, although I receive a pension from a fund invested there.

No problem, I figured defining things would be helpful. Yes, I agree. As far as investing in the stock market, an S&P fund is a safer way to go. You're basically following the market as a whole then.

I mainly wanted to check the word safe since it can go down and you can lose money with it. When I hear safe I'm thinking something like a savings account or a money market fund since they don't go down and the main risk is the company going under and only being able to recoup up to the insurance caps.

 

[oaken1]

i still can't believe I just have like 24K in a CD that I'll never be able to cash because Wells Fargo says they have no record of it after they bought my bank years ago. And despite the fact that I LITERALLY still have the CD document.

The way the rules are stacked in favor of banks, corporations and anyone with enough money to say FU in this country is just pathetic.

depending on.."years"...wells had some serious issues roughly 20 years ago in regards to fraudulent accounts and predetory sales tactics and such. I forget all the specifics, but they were reprimanded in court and forced to make many things right...it had them really towing the line for a while and working to regain their reputation.
If your bank purchase fell anywhere in the timeline of their criminal activities you have some legal leverage to get your CD reinstated... just a matter of whether or not that 24k grew enough to make it worth hiring an attorney to get it done.

 

[Yuma]

Fidelity recently put out a video on the 60% - 40% where most people put 60% in stocks, and 40% in bonds. They were saying for right now they would advise 60% bonds and 40% stocks since the stock market prices are so high.

I am also looking at scenarios where stocks like Amazon, are boosting their returns by investing in Nvidia. So many of the big stocks are investing in AI stocks, that if the AI sector goes down at all, it's taking the rest of the market with it. Kinda scary.

 

[Yuma]

depending on.."years"...wells had some serious issues roughly 20 years ago in regards to fraudulent accounts and predetory sales tactics and such. I forget all the specifics, but they were reprimanded in court and forced to make many things right...it had them really towing the line for a while and working to regain their reputation.
If your bank purchase fell anywhere in the timeline of their criminal activities you have some legal leverage to get your CD reinstated... just a matter of whether or not that 24k grew enough to make it worth hiring an attorney to get it done.

I think I remember that. Every time I went into Wells Fargo they kept switching my accounts. I actually complained to the manager. I didn't have time to wait at the window in the bank for them to keep switching my accounts to "save" me money. I finally started telling them no, that I liked wasting money, LOL.