“I’d keep it in FDIC bank CDs, no more than $100,000 each bank. And I’d keep her out of it as long as possible, until interest rates go up. But I’m overly cautious.”
The insurance limit is $250,000, but I tend to agree with the insured-accounts advice. I would keep the CDs very short (no more than a year) and look at credit unions for a slightly-oh so slightly-greater yield. Obama as president adds too much risk to stocks to make them attractive (they may do great, but the risk is just too high). Commodoties are for professionals only. 1% yields are near criminal (in essence, the government is imposing a 100% tax on savers by holding rates down), but plus 1% beats a loss.
Up until about five years ago, I used to make a few thousand dollars a year by researching small companies and evaluating information, trends, and ratios pretty well. Then, it got so things that happened seemed to have no connection to what the numbers told me, and good information became hard to come by. Part of it is that it's so tough for small businesses to grow. Another part is there seems to be manipulation where some people must know ahead of time what's going to happen.
I've accumulated some money in a Roth IRA CD, and wouldn't mind taking the interest off it to balance the budget, but it won't balance the budget if interest rates are less than 4%.
It isn't rocket science. There are a lot of young-at-heart, active, over 60 year olds. That interest rate goes to 4% and we'll all pretty much be spending the whole thing, much of it in local stores, movie theaters and restaurants. I suspect Obama's team is too stupid to realize that the low interest rates on savings are part of the problem.
If you have a joint account it is more than the $250,000.
2 Recognize that individual deposits are limited to $250,000.00 per depositor in each FDIC insured bank through December of 2009. This limit includes all checking, savings and Certificate of Deposit (CD) accounts at any one insured bank. For example, if an individual has $10,000.00 in checking, $40,000.00 in savings and a CD of $150,000.00, the total deposits equal $250,000. All the deposits are guaranteed. If two or more individuals hold joint accounts, the limit is $500,000 for each joint holder of the accounts.