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FWD: CD for 401k Investment
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David S Meyers CFP
Feb 7, 2012, 12:08:38 PM2/7/12
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Salvaged from the filters, not sure why it was caught:
Subject: CD for 401k Investment?
From: Tony Sivori <TonyS...@yahoo.com>
Is there any legal reason why FDIC insured Certificates of Deposits
could not be offered as an investment option in a 401k?
--
Tony Sivori
--
David S. Meyers, CFP(R)
http://www.MeyersMoney.com
disclaimer: for educational purposes only. This is not financial advice.
JoeTaxpayer
Feb 7, 2012, 9:25:53 PM2/7/12
to
On 2/7/12 12:08 PM, David S Meyers CFP wrote:
>
> Salvaged from the filters, not sure why it was caught:
>
> Subject: CD for 401k Investment?
> From: Tony Sivori<TonyS...@yahoo.com>
>
>
> Is there any legal reason why FDIC insured Certificates of Deposits
> could not be offered as an investment option in a 401k?
No. I can buy brokered CDs in my IRA. Any 401(k) that has a brokerage
>
> Salvaged from the filters, not sure why it was caught:
>
> Subject: CD for 401k Investment?
> From: Tony Sivori<TonyS...@yahoo.com>
>
>
> Is there any legal reason why FDIC insured Certificates of Deposits
> could not be offered as an investment option in a 401k?
option mat very well allow this.
Gene E. Utterback, EA, ABA
Feb 7, 2012, 10:10:10 PM2/7/12
to
>"David S Meyers CFP" wrote in message
>news:yobk43y...@panix1.panix.com...
The issue here isn't so much a legal one as a logistical and financial one.
CDs don't pay much, to you or the issuer. So it doesn't surprise me that
its not available inside a 401k. After all, HOW is the investment company
going to get paid if a CD is used inside a 401K?
Please don't take this to mean that there are NO 401Ks that offer them,
there may well be - I've just never seen it.
Gene E. Utterback, EA, RFC, ABA
>news:yobk43y...@panix1.panix.com...
>
>Salvaged from the filters, not sure why it was caught:
>
>Subject: CD for 401k Investment?
>From: Tony Sivori <TonyS...@yahoo.com>
>
>Is there any legal reason why FDIC insured Certificates of Deposits
>could not be offered as an investment option in a 401k?
>
>--
>Tony Sivori
>
Not that I'm aware of.
>Salvaged from the filters, not sure why it was caught:
>
>Subject: CD for 401k Investment?
>From: Tony Sivori <TonyS...@yahoo.com>
>
>Is there any legal reason why FDIC insured Certificates of Deposits
>could not be offered as an investment option in a 401k?
>
>--
>Tony Sivori
>
The issue here isn't so much a legal one as a logistical and financial one.
CDs don't pay much, to you or the issuer. So it doesn't surprise me that
its not available inside a 401k. After all, HOW is the investment company
going to get paid if a CD is used inside a 401K?
Please don't take this to mean that there are NO 401Ks that offer them,
there may well be - I've just never seen it.
Gene E. Utterback, EA, RFC, ABA
Da...@panix.com
Feb 8, 2012, 1:33:18 PM2/8/12
to
rescued from the filters:
From: Tony Sivori <TonyS...@yahoo.com>
JoeTaxpayer wrote:
> From: Tony Sivori<TonyS...@yahoo.com>
>> Is there any legal reason why FDIC insured Certificates of Deposits
>> could not be offered as an investment option in a 401k?
>
contribution to the minimum required to get the company match, and invest
the difference in an IRA with CDs as the investment vehicle.
From: Tony Sivori <TonyS...@yahoo.com>
JoeTaxpayer wrote:
> From: Tony Sivori<TonyS...@yahoo.com>
>> Is there any legal reason why FDIC insured Certificates of Deposits
>> could not be offered as an investment option in a 401k?
>
> No. I can buy brokered CDs in my IRA. Any 401(k) that has a brokerage
> option mat very well allow this.
Indeed, great advice. It looks like I will end up cutting my 401k
> option mat very well allow this.
contribution to the minimum required to get the company match, and invest
the difference in an IRA with CDs as the investment vehicle.
Da...@panix.com
Feb 8, 2012, 1:33:18 PM2/8/12
to
Gene E. Utterback, EA, ABA wrote:
>
> The issue here isn't so much a legal one as a logistical and financial
> one. CDs don't pay much, to you or the issuer.
(Sorry, I forgot to include this in my first reply)
>
> The issue here isn't so much a legal one as a logistical and financial
> one. CDs don't pay much, to you or the issuer.
I made plenty in 2008 by buying heavily when the market was down. I'm in
my mid 50's and I don't want to push my luck.
The closest thing I have available is a "guaranteed interest account 2
year", which currently pays a whopping five one hundredths of one
percent (0.05%). I think any CD would have a much better return,
and be insured by the FDIC to boot.
The "guaranteed interest" account is guaranteed only by Principal, and of
course my nightmare is that Principal (down rated about 6 months ago from
AAA to AA by S&P) could one day be in the news in the manner of Bear
Stearns, Enron, or many others.
Da...@panix.com
Feb 8, 2012, 1:33:20 PM2/8/12
to
>>From: Tony Sivori <TonyS...@yahoo.com>
>>
>>Is there any legal reason why FDIC insured Certificates of Deposits
>>could not be offered as an investment option in a 401k?
>>
>>
>>Is there any legal reason why FDIC insured Certificates of Deposits
>>could not be offered as an investment option in a 401k?
>>
> Not that I'm aware of.
>
>
> The issue here isn't so much a legal one as a logistical and financial
> one. CDs don't pay much, to you or the issuer. So it doesn't surprise
> me that its not available inside a 401k. After all, HOW is the
> investment company going to get paid if a CD is used inside a 401K?
Previously I had my money in the S&P 400, and despite the fact that
> me that its not available inside a 401k. After all, HOW is the
> investment company going to get paid if a CD is used inside a 401K?
Principal never shows any fees in any of my statements, I am confident
that they made money by hosting my 401k.
> Please don't take this to mean that there are NO 401Ks that offer them,
> there may well be - I've just never seen it.
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