Comments on: Rolling CD (Certificate of Deposit) http://chris.pirillo.com/rolling-cd-certificate-of-deposit/ News and Reviews! Geek, Internet Entrepreneur, Hardware Addict, Software Junkie, Book Author, Once TV Show Host, Technology Enthusiast, Shameless Self-Promoter, Tech Conference Coordinator, Early Adopter, Idea Evangelist, Tech Support Blogger, Bootstrapper, Media Personality, Technology Consultant, Thicker Quicker Picker Upper. Thu, 16 Feb 2012 23:17:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: RussH http://chris.pirillo.com/rolling-cd-certificate-of-deposit/#comment-589138 RussH Sat, 09 Feb 2008 04:10:35 +0000 http://chris.pirillo.com/2008/02/06/rolling-cd-certificate-of-deposit/#comment-589138 All in all, not a bad idea. However, keep some NASTY finacial facts in mind. - Good luck with 7% return given the impending recession and continuing market downturn. You will need at least 10 years to see this kind of return. That is completely counter to the idea of having a CD Ladder to keep CASH at hand for current needs. - The FED will continue to kill your CD rates of return. 1% - 2% is where it will be shortly if they keep on cutting rates. Your not going to get better than 3.5% on CDs today - HELOC better be fixed rate. Better allow partial withdrawls. Better allow prepayments without penalty. - Best HELOC rates are about 5-6% so you have to make that as a minimum just to break even. - Watch those STUDENT LOANS. You are screwed forever with them. No escape, no bankrupcy out, no matter HOW BAD things may get for you. Avoid STUDENT LOANS at all cost and pay them off FIRST. This whole idea is DUMB Grins RussH All in all, not a bad idea. However, keep some NASTY finacial facts in mind.
- Good luck with 7% return given the impending recession and continuing market downturn. You will need at least 10 years to see this kind of return. That is completely counter to the idea of having a CD Ladder to keep CASH at hand for current needs.
- The FED will continue to kill your CD rates of return. 1% – 2% is where it will be shortly if they keep on cutting rates. Your not going to get better than 3.5% on CDs today
- HELOC better be fixed rate. Better allow partial withdrawls. Better allow prepayments without penalty.
- Best HELOC rates are about 5-6% so you have to make that as a minimum just to break even.
- Watch those STUDENT LOANS. You are screwed forever with them. No escape, no bankrupcy out, no matter HOW BAD things may get for you. Avoid STUDENT LOANS at all cost and pay them off FIRST.

This whole idea is DUMB

Grins

RussH

]]> By: Dave Barnes http://chris.pirillo.com/rolling-cd-certificate-of-deposit/#comment-588213 Dave Barnes Wed, 06 Feb 2008 16:08:25 +0000 http://chris.pirillo.com/2008/02/06/rolling-cd-certificate-of-deposit/#comment-588213 Or, you could put the $3K into a high-growth mutual fund and then line up a Home Equity Line of Credit (HELOC) for $20K (just in case). Your $3K would grow at 7% per annum on average and the HELOC would only cost you $50/year to keep. After 10 years the CD: 1.035^10 x 3000 = $4232 After 10 the mutual fund + HELOC: (1.07^10 x 3000) - (10 x 50) = $5400 Or, you could put the $3K into a high-growth mutual fund and then line up a Home Equity Line of Credit (HELOC) for $20K (just in case).
Your $3K would grow at 7% per annum on average and the HELOC would only cost you $50/year to keep.

After 10 years the CD: 1.035^10 x 3000 = $4232
After 10 the mutual fund + HELOC: (1.07^10 x 3000) – (10 x 50) = $5400

]]> By: RaVeN DiZzle http://chris.pirillo.com/rolling-cd-certificate-of-deposit/#comment-588141 RaVeN DiZzle Wed, 06 Feb 2008 13:14:06 +0000 http://chris.pirillo.com/2008/02/06/rolling-cd-certificate-of-deposit/#comment-588141 Nice article, something my boss would like to read. Nice article, something my boss would like to read.

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