The C in CDs stands for Certificate. I thought it was just a metaphor in these days of electronic records, same as coupons in bonds. That’s until I received the actual certificates from PenFed, each in a separate envelope, on 2-part carbonless copy paper, with my name and terms printed on with a dot-matrix printer.
They still make dot-matrix printers? Those are a lot more expensive than laser printers now.
I read these interesting articles this week:
Our new fund offering: What it is and what it isn’t by John Ameriks at Vanguard Blog
He’s talking about the new Global Minimum Volatility Fund from Vanguard. The fund seeks lower risk. Why not just invest less in stocks? That will lower the risk. People still want stock-like performance. That’s the problem.
Loss of a 3% Reward Checking Account – Old Florida National Bank by Ken Tumin at DepositAccounts.com
With the arrival of 3% CDs, a 3% reward checking account lost some appeal, but it still offers better liquidity than 5-year CDs. Ken reports there are still 16 banks and credit unions that offer a reward checking account with a 3% or higher interest rate and a balance cap of $25k. I’m keeping my 3% reward checking account with $20k balance cap.
Picking Municipal Bond Funds & The Importance of Low Fees by Jonathan Ping at My Money Blog
I like low fees, but I also note that the R-squared between cost and performance is only 0.217 in the chart that Vanguard showed. Does a low R-squared mean a low fee is actually not that important? I think they need to narrow it down to specific types of funds and compare short-term to short-term, long-term to long-term, etc.
Hanging on for the military pension by Doug Nordman at Military Guide
Should someone hang on to get the military pension (requires 20 years of service)? It’s similar to EE bonds. The cost of quitting gets tremendously high near the end.
Shopping for a Health Savings Account by Ann Carrns at New York Times
I may have to do this soon in January after Alliant Credit Union slashed the interest rate on its HSA to 0.65%.
A look back before looking ahead by Joe Davis at Vanguard Blog
Vanguard’s chief economist looks at some of the big surprises from his 2013 outlook. My biggest surprise is how well the stock market has done this year. I’m not complaining. Just surprised.
[Photo credit: Flickr user Aotearoa People's Network Kaharoa]