Valued Contributor
IOBA
Posts: 2,659
Registered: ‎08-13-2009
Re: Do I have a problem? ;)

crunching_numbers - That is an idea worth looking at!   Will you pm the information on who you use?

 

Just off the top of my head....the benefits of doing the CD's vs the bonds:

 

1.   No start up fees (to a broker or anyone else).

2.   Interest is paid monthly.

3.   Interest is usually a fixed rate.   (Even with bonds, the rates can fluctate.)

4.   You start earning the interest right away.  (With bonds, you have to wait on other factors, like the broker to process the deal.   There were other variables I had noted when I looked into bonds before, but I do not know if those apply to your broker.)

5.   Taxes are sooo simple!   You don't have to figure out any additional fees, etc.

6.   The money is guaranteed and backed up by the FDIC/NDIC (if you purchased with an insured institution).   Bonds are not "guaranteed".   They are not likely to defualt, but there is no promised land.

 

crunching_numbers - Please send me the information and I will compare the two ideas.