Investing in CDs and/or Treasuries
Can you please provide a calculator for investing in CD’s and treasuries. For example if you invested in a 1 year CD with a fixed rate of 2%, and a few months later the CD rate rose to 3%. Would if be worth it to accept the penalty for early withdrawal and re-invest the CD at the higher rate? Thank you
Terry Says
How much money are you talking about investing?!
I don’t have a crystal ball. I think rates will be rising. Buy 13 week or 26 week Treasury bills (currently yielding 4.5%) and stagger the purchases so they can roll over at higher (or lower) rates when they come due.
What is with this 2% hypothetical. While you debate the calculations, you’re accepting 50% lower rates!!!
