Certificate of Deposit

Archive for November, 2008

Question: What would you do with $1,000,000?

I would buy a foreclosed home in a nice area between $100,000 and $300,000. I would buy a Mitsubishi Lancer and a Ford Mustang. I also would go on vacation to Hawaii for a month. Then take the rest of the money and invest in stocks, certificate of deposits and put the rest into a high yield checking account.
Actually, i would put the rest into multiple high yield checking accounts at different banks so that more money is insured by the FDIC.

Answer: Assuming it was after taxes, otherwise a big chunk will disappear before I get the check, or very shortly afterwards, as the IRS will want theirs. Then too it could be an inheritance, the estate tax deduction, but the only one that might apply to would be if my wife had been hiding a fortune all this time. Just the same, I would rather have her than the money.

I feel that some things have purpose to them, but then most people really do anyway. It amazes me about how atheists and agnostics will say that we are all an evolutionary accident, but as soon as a storm blows away their home or death takes a loved one they mutter “why this?” If someone were to hand me a million, my first two reactions would be “are you kidding?” and “is this legal?” (not wanting to be holding the bag of ill-gotten gain just before the cops close in). Assuming the legitimacy, then my having this largesse would mean a higher purpose graciously handed to me beyond the reasons (gag or good) of the gifter. I would make a substantial share in donations to causes I feel need the extra help, and there are many.

A quarter million would be nice to pay off the mortgage and credit card and long-lingering student loan and start a renovation of my house (new paint, new carpet, new airconditioning, and refinishing some cherished old stuff we inherited) and yard (getting rid of that crab apple tree and replace those two bradford pears with something more substantial).

The balance would be split between safe investments and speculative matters that are looking good right now (oil is rising again and with impending inflation there are currencies and gold to watch).

Thanks for the pipe dream moment.

Question: Certificate Of Deposit Safety?

Our Certificates of Deposit (CDs) purchased through your trading account (i.e. Ameritrade) safe?

note: they are FDIC insured, i’m just not sure if i’m comfortable having cd’s online and not in a brick and mortar city bank

Answer: Before sending money, Google the bank, and check the address, phone number, even call them to verify they are who they say they are.
I did it last year and got a higher return.

Iran-Contra Hearings Day 3: Richard Secord Testimony Part 8 – TOW Missiles Sales (1987)

Most investors have heard or even invested in Money Market accounts or Money Market funds but what exactly is Money Market? There is more to the Money Market than just cash or certificates of deposit. We will discuss what is Money Market below. 

What are money markets?

To answer the question of what a Money Market is, let’s examine what the Money Market actually comprise of. The Money Market is composed of several individual markets, one for each of its short term credit instruments. 

What are the markets in the Money Market?

In a Money Market or money market fund, there are markets for: 

• Treasury bills

commercial paper

negotiable certificates of deposit or CDs

bankers’ acceptances

commercial bank borrowings

What is a bankers’ acceptance?

Bankers’ acceptances are drafts drawn on banks to finance international trade on a short term basis. 

What is a money market fund?

A money market fund is treated like a cash mutual fund where you have to buy it and liquidate it when you want to sell or redeem for cash. A money market fund is often referred to as just cash because owning a money market fund is similar to owning a high interest checking account. The interest rates on any of the money market funds will not be comparable to owning any securities or mutual funds.