Fixed Income Products

Financial Planning - Financial planning in general. (Moderated) 

  Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Fixed Income Products kramer31 06-27-2008  Re: Fixed Income Products PeterL 06-27-2008  Re: Fixed Income Products Will Trice 06-27-2008  Re: Fixed Income Products Douglas Johnson 06-27-2008  Re: Fixed Income Products TB 07-02-2008  Re: Fixed Income Products kastnna 07-02-2008  Re: Fixed Income Products beliavsky 07-02-2008  Re: Fixed Income Products Tad Borek 07-02-2008  Re: Fixed Income Products Paul Michael Br... 07-04-2008
Posted by kramer31 on June 27, 2008, 4:59 pm Hi. I recently opened an IRA with Scottrade. Now, I was pretty disappointed with the selection of financial products. The only fixed income products (bond funds don't count--they float) are $10K minimum CDs with a minimum of 1 year terms. They give 0.2% on all of your cash holdings (which is basically nothing). I want something with a reasonable rate of return without a time limit that I can put my money in while I am waiting to invest it. 2.X% is fine or even high 1.X% as long as I can take it out to trade when I want to (I have a Money Market Account with a bank that I get 2.75% on). I called up their customer service. The guy told me that since they aren't a bank, they can't offer those sorts of products. That seemed like a BS answer to me since they could loan that money to banks. He did however say that if there are any products out there that I would like to see, I just had to give him a CUSIP number (whatever that is) and they would add that product. So my question is this: does anyone know of any fixed income (i.e. interest bearing) financial products whose CUSIPs I could give to them. If I can't get this fixed, I'll have to switch to a different IRA provider. Any recommendations there? Low trading fees are important, too. -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by PeterL on June 27, 2008, 5:29 pm > Hi.  I recently opened an IRA with Scottrade.  Now, I was pretty > disappointed with the selection of financial products.  The only fixed > income products (bond funds don't count--they float) are $10K minimum > CDs with a minimum of 1 year terms.  They give 0.2% on all of your > cash holdings (which is basically nothing).  I want something with a > reasonable rate of return without a time limit that I can put my money > in while I am waiting to invest it.  2.X% is fine or even high 1.X% as > long as I can take it out to trade when I want to (I have a Money > Market Account with a bank that I get 2.75% on).  I called up their > customer service.  The guy told me that since they aren't a bank, they > can't offer those sorts of products.  That seemed like a BS answer to > me since they could loan that money to banks.  He did however say that > if there are any products out there that I would like to see, I just > had to give him a CUSIP number (whatever that is) and they would add > that product. > > So my question is this: does anyone know of any fixed income (i.e. > interest bearing) financial products whose CUSIPs I could give to > them. > > If I can't get this fixed, I'll have to switch to a different IRA > provider.  Any recommendations there?  Low trading fees are important, > too. > You are not likely to get higher interest rates with your requirement. You want low trading fee and high interest rates, sure, we all want that. I too have money market accts that pay higher, but not from inside an IRA. -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Will Trice on June 27, 2008, 6:36 pm PeterL wrote: > You are not likely to get higher interest rates with your > requirement. You want low trading fee and high interest rates, sure, > we all want that. I too have money market accts that pay higher, but > not from inside an IRA. My E-Trade IRAs have a choice of money market funds. But the interest rate varies so that doesn't necessarily meet the OP's requirement. -Will william dot trice at ngc dot com -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Douglas Johnson on June 27, 2008, 7:32 pm > 2.X% is fine or even high 1.X% as >> long as I can take it out to trade when I want to (I have a Money >> Market Account with a bank that I get 2.75% on).  I >> If I can't get this fixed, I'll have to switch to a different IRA >> provider.  Any recommendations there?  Low trading fees are important, >> too. E*Trade Bank is currently paying 3.15% on demand deposits. I assume they'll let you open an IRA account. -- Doug -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by TB on July 2, 2008, 11:48 am kramer31 wrote: > Hi. I recently opened an IRA with Scottrade. They give 0.2% on > cash holdings (which is basically nothing). I want something with a > reasonable rate of return without a time limit that I can put my money > in while I am waiting to invest it. The scenario you're describing is the reason I suggest that people look closely at money-market rates when choosing a discount broker. Saving a couple bucks per trade may be nothing compared to the "lost income" from a chronically lousy MM rate. A money-market fund would meet your criteria of "no time limit", and that's a common way to get a better rate - use something other than the "default" sweep fund. But it's a hassle and could introduce other costs. When you want to buy another investment, you'd need to sell enough of the money-market fund to provide the needed cash to settle your trade. For some MM funds, there's a minimum trade in & out of the fund. And each trade in and out might trigger a ticket charge. As an example, Vanguard's money-market funds are likely to be "non-NTF" meaning you pay a trade fee every time you buy or sell them. If the ticket fee is say $10 in both directions that might eat up the rate advantage. Check that though - review Scottrade's list of NTF (no transaction fee) money-market funds to see if any have good rates. As others have suggested the easiest answer may be simply using another IRA custodian. If enough people head for the doors because of lousy MM rates, perhaps the brokerage firms will pay better rates. Before you do so, call and ask -- TD Ameritrade had a not-so-advertised better fund available for IRAs that they pulled out of their pocket when I called and said "I'm yanking my accounts, what are you doing to do about it?" -Tad -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Similar Threads Posted Financials in a fixed income account July 26, 2008, 10:15 am Fixed Income investing and alternative minimum tax question February 18, 2007, 12:38 pm Re: Options for fixed payouts September 22, 2006, 6:46 pm Mortgage - fixed versus interest only April 10, 2007, 3:24 pm Mutual of America Fixed Annuity April 13, 2007, 4:14 pm Re: Stock Volatility [was Re: Options for fixed payouts] September 23, 2006, 3:48 am Top Ten Highest Fixed Deposit Rate in the World November 19, 2006, 8:37 am 7ARM vs 30yr fixed, 255K loan, 0% down March 1, 2008, 1:01 pm Which is a better place for income? April 9, 2007, 4:53 pm What to do with disposable income... May 13, 2007, 6:31 am