What is short term dating

05-May-2020 20:09 by 9 Comments

What is short term dating

CDs give us a lot more options than a savings account. If this happens, however, most CDs charge a penalty.The term of a CD can range from a few months to more than five years, and the longer the term, the higher the rates. The amount of the penalty varies by bank and CD product.

The first invests in investment grade corporate bonds.You plan to spend it to buy a home or a car or something else in a few years.How can you invest the money until then to earn some extra interest? Put your money in the stock market, and it could be gone when you need it.Put it in a traditional savings account, and it earns practically nothing. Recently, a listener to our podcast, Michael, emailed me with just this dilemma: Hey, Rob.I wanted to get your thoughts or maybe you could point me to a podcast.For example, the SEC yield on Vanguard’s short-term Treasury fund is just 1.25%.

For my money, I want to do better than that in a bond fund.I am currently in the oil industry and have survived the layoffs at my company. Over the past two years I’ve stacked up some cash in my Ally Bank savings account at one percent interest.I don’t currently need the cash at this moment but could need the cash within the next year or two in order to purchase land for my family.The second buys bonds issued by corporations with a credit rating below investment grade. As an example, the Guggenheim Bullet Shares 2020 High Yield Corporate Bond ETF has a current yield to maturity of over 5%. Interest earned on bonds is taxed, as are any capital gains.One option to reduce the tax burden is municipal bonds (known as “munis”).Compensation may impact how and where products appear on non-editorial pages (e.g., comparison or "marketplace" pages).