How to Invest in 2023

I'm liking short term treasury bills because they are state income tax free for a portion of a portfolio.
 
Yeah I’ve been doing money markets, with a yield of about 4.5%. I don’t get the yield of high 4% so give up a little yield but quicker access to cash.
 
My CU is offering 15-month CDs @ 5% APY...trying to figure out where I think rates are headed. Thinking the odds of them going higher outweigh the odds of them going lower, so maybe hold off and try for better. 5.5? 6? I haven't had a 6% CD since soon after graduating from college! It's not amazing returns, but it's a nice, steady tailwind that helps move you in the right direction over time.
 
daedalus said:
My CU is offering 15-month CDs @ 5% APY...trying to figure out where I think rates are headed. Thinking the odds of them going higher outweigh the odds of them going lower, so maybe hold off and try for better. 5.5? 6? I haven't had a 6% CD since soon after graduating from college! It's not amazing returns, but it's a nice, steady tailwind that helps move you in the right direction over time.
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How long are you going to wait? If you wait you are missing out on the interest while waiting. The money market will move up with interest as well. I’ve never done a CD. Are there penalties for early withdrawal or just forfeit some interest?
 
daedalus said:
My CU is offering 15-month CDs @ 5% APY...trying to figure out where I think rates are headed. Thinking the odds of them going higher outweigh the odds of them going lower, so maybe hold off and try for better. 5.5? 6? I haven't had a 6% CD since soon after graduating from college! It's not amazing returns, but it's a nice, steady tailwind that helps move you in the right direction over time.
Click to expand...

Why do a CD when you can buy treasury bill and not pay state income tax? They are extremely liquid and you can just buy 6 or 12 month bills and get a better than a CD.
 
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