Brokered CDs on Fidelity 2023: How to Buy New and Secondary CDs

Channel page for all my content: bit.ly/BizWithBrian
Brokered CDs on Fidelity 2023: How to Buy New and Secondary CDs - In this video I explain in detail what a certificate of deposit is, and how to purchase them as new CDs and used certificate of deposits on the secondary market. There are many details to review to ensure a person doesn't make a costly mistake. Some CDs may not be insured, some are not offered in certain states, and some CDs may be "callable" from a bank. These are all details a person needs guidance on what to look for.
𝐓𝐨𝐩 𝐑𝐞𝐬𝐨𝐮𝐫𝐜𝐞𝐬
⭐ Get 2 FREE stock worth up to $3,000 on Webull: bit.ly/BWB_WeBull
Get FREE stock worth up to $200 on Robinhood: bit.ly/Robinhood_TRADING
⭐ Top CD Rates Today: save-better.sjv.io/3e99AA
00:00 - Intro
01:17 - Certificate of Deposit (CD)
03:07 - Differences in CDs from Bank vs. Credit Union
03:55 - Banks vs. Brokerages for CDs
06:50 - Buying a New CD on Fidelity - not call protected
15:01 - NEW CD Blue SKY and Call Protected
17:00 - Fractional CD
19:28 - Secondary Market CDs
23:14 - Secondary Market - Quantity Requirement
#bestcdaccounts #highyieldsavingsaccount #investing101 #investingforbeginners #passiveincome #fidelity
🔥🔥🔥 𝐖𝐚𝐭𝐜𝐡 𝐍𝐞𝐱𝐭 🔥🔥🔥
Best No Penalty CDs: • 𝐁𝐞𝐬𝐭 𝐍𝐨 𝐏𝐞𝐧𝐚𝐥𝐭𝐲 𝐂𝐃 𝐀𝐜𝐜...
Best High Yield Savings Account: • 𝐓𝐡𝐞 𝟔 𝐁𝐞𝐬𝐭 𝐇𝐢𝐠𝐡 𝐘𝐢𝐞𝐥𝐝 ...
Mutual Funds vs. Index Funds vs. ETF: • 𝐌𝐮𝐭𝐮𝐚𝐥 𝐅𝐮𝐧𝐝𝐬 𝐯𝐬 𝐈𝐧𝐝𝐞𝐱 ...
Recession Proof Stock: • 𝐓𝐡𝐞 𝐁𝐞𝐬𝐭 𝐒𝐭𝐨𝐜𝐤 𝐭𝐨 𝐁𝐮𝐲 ...
New 401K Changes: Is your 401K at Risk? • New 401K & IRA Changes...
📙📗 𝐁𝐎𝐎𝐊𝐒 𝐈 𝐑𝐄𝐂𝐎𝐌𝐌𝐄𝐍𝐃 📗📙
Educating yourself with knowledge is the best investment you can make.
The Psychology of Money: amzn.to/3tShbbc
The One Page Financial Plan: amzn.to/3Vk0KAg
The Intelligent Investor: amzn.to/3XlWj9L
The Millionaire Fastlane: amzn.to/3gsnmj6
The Millionaire Next Door: amzn.to/3ETiwEX
💡📷💡 𝐌𝐘 𝐄𝐐𝐔𝐈𝐏𝐌𝐄𝐍𝐓 💡📷💡
My primary camera - amzn.to/3liMfjr
Secondary camera - amzn.to/3Yc2s8y
Mobile camera - amzn.to/3grPbYN
Main microphone - amzn.to/3AxWpkQ
Backup microphone - amzn.to/3VkeWZM
Primary Light - amzn.to/3TYVy3m
Hair Light - amzn.to/3lse8G4
Camera stand main - amzn.to/3EtPs5x
Camera stand mini - amzn.to/3AClpaI
Light stand main - amzn.to/3EsYHTp
Hair light light stand - amzn.to/3EUuoGX
Light umbrella - amzn.to/3tPpRz1
LET'S CONNECT:
- Instagram: / bwbconsulting
- LinkedIn: bit.ly/BriansLinkedin
- Business Inquiries: [e-mail]
DISCLAIMER: Links on this page may be affiliate links which have no cost to you, but I may earn a commission for anyone that signs up or makes a purchase from those sites.
All opinions expressed by Brian are solely provided as content. Do not treat any opinion by Brian as gospel that needs to be recreated. Brian is not a fiduciary or financial advisor. All financial topics are for illustration where the outcomes are not guaranteed or expected. There exists real risks in all forms of investment, so do your homework and make your own decisions.

[@BusinessWithBrian]

Please know that I will try my best to respond to your comments, but I may not make it to all of them. Also, there exists a nefarious element that will try to spam or scam others. I will never ask for personal information or ask you to send me money in any form. Those are scammers. Also, I am not a licensed financial advisor, so please do not request personal advice with your funds, as I am unable to overstep those boundaries. I am here to share information as best I can. WHAT TO WATCH NEXT: ♦Where to Park Cash: Guaranteed 5-6% kzbin.info/www/bejne/Zqi2qYd3rbqJm5Y ♦8 Best Fidelity Index Funds To Buy and Hold Forever: High Growth kzbin.info/www/bejne/rpWopqGjgdebmJY ♦Investment Ladder Strategy with CDs T-Bills and MYGAs kzbin.info/www/bejne/gJDadKluidmhf80 ♦The 6 Best High Yield Bank Accounts of 2023 kzbin.info/www/bejne/mpaan62Hit-dsMk

[@steveludwig4200]

Brian: I purchased two brokered CDs (4yr and 5yr) at 5.10 and 5.05% around 11/15/23. Rates across the board dropped a couple days later (after Fed no new hike news) to 4.70 and 4.65% appx BUT the value of each of the CDs in my account have shown LOSSES every day since and I am REALLY confused as to how this is possible? Seems like since I have a Cd with a higher rate than current is offered with everything else equal that the value to the market should be increasing? Please help me out here. Thanks!

[@user-hs4xi7cv1u]

Brian, Thanks for helping us all! Most excellent videos!

[@BusinessWithBrian]

My pleasure! Thanks for the comment

[@robstreicher5561]

Loved your video. Very thorough and succinct. Great job!

[@BusinessWithBrian]

Glad you enjoyed it! And thanks for the great comment

[@chillinvillin21]

Dude great video! Glad you showed up on my feed.

[@BusinessWithBrian]

Glad you enjoyed!

[@acepokemontrainer1]

Thanks for this video, very helpful for beginners like me trying to understand all the financial lingo!

[@BusinessWithBrian]

Glad it was helpful! A few years ago, I found it so frustrating that I couldn't find a good source for explaining all the nuances with the lingo and terms, which forced me to dig in and learn. I'm still uncovering new info every day, and I try my best to share what I can. Thanks again for the comment!

[@juanitoboyneta1161]

Your explanation is clear and precise. Thank you

[@BusinessWithBrian]

Glad it was helpful!

[@jethrobo3581]

Fantastic video! Thanks for the info...

[@BusinessWithBrian]

Glad it was helpful!

[@juanitoboyneta1161]

Kudos to you. Great video

[@BusinessWithBrian]

Thank you!

[@victorbarone5307]

Wow Bryan I want to thank you for this great video. I have been investing in the stock market for many years and i am blessed to say with dollars cost averaging I have done very well. Also after retirement as you know I have transitioned to fixed income. (cds). Obviously with higher rates and having nice principal balance that also is working out nicely. One thing I am trying to lock in longer maturity dates due to the fact the rates could stabilize and stall. So what your video did for me was teaching me how to understand the secondary market. before your video i was intimidated by the secondary market. I have also learned from you that if I am dillegent, I can actually wait for someone who really needs to sell their cd and actually beat current rates. So thats an option I didnt have until I saw your video. Thank you'

[@cohental2000]

Thank you, Brian!

[@BusinessWithBrian]

My pleasure!

[@herculesrockefeller8969]

Thanks Brian, the secondary market was interesting, but always a little daunting to me. Now I have a better understanding of how it works!

[@BusinessWithBrian]

Glad it was helpful! It is scary for many, but even if you leverage a brokered CD, there may be no need to utilize the secondary market.

[@jad1079]

I would be interested in learning how selling a CD on the secondary market works. For example, whether Fidelity gives you guidance on what to price it at.

[@K1LLSW1TCH3D]

Great info Brian. One thing I am looking to understand is what term, or info should I be looking for/at if I want to know if the fund, or particular CDs compound daily, monthly, or annually. Is it the Coupon Frequency that I should be looking at?

[@johnever3226]

thank you Brian for another well explain video ,, this is so helpful for me and my spouse ,, all we do is put money on our savings account and don't know how to make it grow ..

[@BusinessWithBrian]

Glad you found value in it, and thanks for your comment!

[@rdbitb7980]

Hi! Just discovered your channel and I am hooked! Wow tysm! I am literally binge watching your videos one after another and I cannot thank you enough. One thing I am struggling to completely understand is what the options are for early termination of a brokered CD. Is my only option to sell on secondary market? Or can I cash out with an early termination penalty of a certain amount of months of interest? And if I can terminate with a certain penalty why is it not clearly listed among all the other details you show here on Fidelity? For example near the details of whether its callable, whether its FDIC insured etc. should be the early termination penalty.

[@BusinessWithBrian]

Wow....glad you found my channel. Yes, if you have a brokered CD and want to cash it in your only option is to sell it on the secondary market through the broker. Brokered CDs do not offer a early withdrawal fee. That's the key difference between a brokered CD and buying directly from a bank. Hope that helps.

[@2Eaglez]

Excellent instructions for using Fidelity platform. Did notice that callable bonds did not offer auto roll. (Like you I would not select auto roll.) I also noticed that that callable CDs offer slightly higher rates, but not enough to take the chance. On shorter maturities, (under a year), do you know if they actually ever call these? Thanks for this video.

[@jimmyboy129]

Terrific videos! Very disappointed that you didn't go to the last screen in your secondary cd explanation. I tried those and find there is almost no correlation between the yield to maturity and the actual yield after Fidelity's cut, the accrued interest and other seller adjustments. Can you talk about that?

[@altep8148]

Loved the Video. I guess this gives us more options for IRAs?

[@BusinessWithBrian]

Yes, so long as your IRA offers brokered CDs within its ecosystem, then it is an option.

[@Lucylucy5]

🎉🎉🎉🎉🎉 Brian thankkkk you so much this was so helpful 🎉

[@BusinessWithBrian]

You're so welcome!

[@jeannestake6632]

Love your videos. Is there a possibility that you could do a video on buying agency bonds?

[@BusinessWithBrian]

I'll look into it!

[@jeannestake6632]

@@BusinessWithBrian Thanks

[@khan200us]

Hi Brian. Greetings from Toronto Canada. I love your videos. I don't have access to Fidelity being a Canadian resident but would definitely explore it with my brokers(National Bank Direct Brokerage and Wealth Simple). My question is, can I buy an international CD, for example Turkish CDs or Indian CDs through the Brokerage account? I am heavily invested in Stocks and now looking towards fixed income options. T-Bills appears to be a very good short term option to park emergency cash. Any other product for specially Canadians?

[@Sea_New_Things]

Looks like the Alagarve region of Portugal in the background of the banks vs brokerage breakdown section

[@BusinessWithBrian]

I have no idea. But it certainly looks beautiful

[@David_Arteman]

Re: non Call Protected CD's... what does Call Price of "100.00" and Call Type of "Par Call" mean? I had recently bought a few CD's BEFORE being aware and seeing your video but I still need further clarification. Also given the current climate is it REALLY bad to have a non call protected CD at 5% since rates will MOST likely go higher? Thanks

[@datrucksdavea2080]

how does the taxes work. Say U own a broker CD for over a year, than U sell it on the secondary market for a profit is that interest income or a long term capital gain? ty great video

[@Lotuslaful]

Why would you choose a cd vs a mm fund at the same interest rate ?

[@mickeyflanagan4019]

I have money in a brokerage and I would like some of it to be FDIC insured. It's in their Money Market holding fund now that is SIPC insured. Would it work to put it into a Brokerage CD ladder that is FDIC insured? That way I still get the FDIC protection as if it was in a back account without actually having to give it to the bank? Thanks for any tips. Subbed and liked.

[@jeromelucani2449]

Thank you for your video. You made mistake though. It locks you "out" of auto roll not "in" when you buy fractional CDs

[@appliedar8737]

Hi Brian, sweet channel, just found it and subscribed. So lets say next month I can get a call protected 5 year CD at 5% and I predict that CD rates will go down to 2.5% next year what would that do to the value of my CD? Is there a calculation that would predict what increase in value my CD would have on the secondary market for every 1% drop in CD rates?

[@BusinessWithBrian]

That is a fantastic question, and you are thinking of how to gain from when the rates go down. It makes me so happy to see someone seeing the opportunity. I literally have it in my video launch plan to discuss that very point in the next two weeks, but I am struggling with how to make the thumbnail 😊. There's no easy way to calculate that value because it is all based on supply and demand. You could sell your CD at a 2% to 2.4% premium (hypothetically) because if the rates are at 2.5% for a 4 year, if you have yours with a 4 years left at a premium of 2.4% they'd still be making 2.6% on the CD from you. There's nothing wrong with fishing to see what you can get, so I'd never start too low. Plus, you can see other secondary market CDs and what they are selling for to get an idea of what the market can take. Your question made my day! Thank you so much for the sub and the question.

[@trevorchico]

@@BusinessWithBrian Awesome to hear! I look forward to that next video. Now is there some sort of financial instrument similar to options contracts to leverage the CDs increase in vale? I assume not. Maybe a thumbnail of you wrestling with JPOW would work ;)

[@sithlord7264]

The bank does CD, they borrow your money and give you a rate. But the catch is you can't touch your money for 15 months

[@tashundraroberts2795]

QUESTION: when buying a cd, do you buy it then let it sit, or is it something you have to constantly put money into?

[@kevinbachus5887]

awesome walk through for fidelity accounts. Thank you Is the FDIC insured limit 250,000 per account?

[@BusinessWithBrian]

Thanks. The insurance is per account holder per institution. But make certain to read the terms and conditions in every scenario to verify that it meets your needs.

[@bobs1755]

Great videos! How much should the rating of the lender be considered before picking a CD? Lots of small and online “banks” that may not survive our current environment. I would be hesitant to rely solely on FDIC if things go south

[@BusinessWithBrian]

Thank you for the comment. I appreciate it. Which lender rating are you referring to? There are so many different types from different bodies. Sadly, many ratings like the FDIC compliance exam rating composite is not publicly shared. There are some places where you can buy in-depth reviews for about $28. However, FDIC does have reporting on bank financials that any of us can look up. But it doesn't provide a good picture of the risk of their loans, etc. It's very one-dimensional. This is an area where I truly wish there was more transparency in bank-health. But maybe there's a resource I am not aware of. You're right that there may be several banks that may not survive due to poor lending practices. I doubt that Silicon Valley Bank is an isolated incident, but I genuinely hope that it isn't widespread. There are a lot of red flags with SVB, that would not be common for most banks. Like having 80% of their funds not fall into FDIC coverage because the accounts exceeded $250K, and how prevalent they are in VC funding. I know someone personally impacted, where he's a VP of one of those startups that banked with SVB, and now they are scrambling to secure funding. Your question is sound, but I don't have a solid answer because of a lack in bank transparency.

[@jad1079]

In the event of a bank failure, the FDIC pays out fast to insured deposits--within a few days.

[@pearlperlitavenegas2023]

@@jad1079 what's your source?

[@user-dd9kq7lp9i]

America first credit union has great bump rate cds

[@egrnhl]

How does the brokerage firm pay the interest since it does not compound? What are t 0:48 he options to receive the principal at maturity?

[@BusinessWithBrian]

New CDs from a brokerage site has the interest as fixed interest. In this case, the fixed and APY rate are the same. Some banks (on the brokered site) may offer interest payments at different intervals (annual, semi-annual, at maturity, etc), and when the interest is paid out it goes directly to you cash balance account with the brokerage site. Read the details for your specific broker to ensure they handle it the same as I described from Fidelity. At maturity, you have the option to re-invest or cash out the principal.

[@theslayerlex5366]

Hello Brian I am a new subscriber to your channel now I want to know if I put in 100,000 in a CD for 3 months is it better 3 months 6 months or a year which Brokered CD are the best thanks

[@BusinessWithBrian]

Thanks for the note. When it comes to which is the best, that is all solely personal preference. There's far too many factors to take into consideration.

[@MonstaMack555]

How does FDIC insurance work on a brokered zero coupon CD that was bought in the secondary market ? Say its a 10 year term but was purchased at year 5. Are you only insured up to the initial issued price ?

[@BusinessWithBrian]

You'll want to verify with your broker for certain. But as I understand it, the FDIC coverage is only for the initial offering provided by the bank for the principal, or par value.

[@suzycreamcheese8888]

Have you looked at new issue Fidelity CDs today? as of 3/18/23 there are only 3 month CDs available, one bank offering at 6 mo., none for 9, 1 year,18, 2 year at Fidelity. Evidently all bought up. The rates dropped slightly as well between 3/16 and 3/17. I assume flight to safety last week but will there be any offerings in these categories next week? I can't find any news or explanation.

[@BusinessWithBrian]

Please don't read too much into what you are seeing today. It's the weekend, and brokered CDs often fall off over the weekend. Banks tend to re-assess their stance on Monday's and then you see a flurry of CDs later that day. Plus, the available CDs change multiple times a day during the week. I'm seeing a lot of banks offering 5% and above on CDs, but next week will be telling if brokered push that ceiling. But please, do not get too worried over the available brokered CDs over the weekend.

[@suzycreamcheese8888]

@@BusinessWithBrian Thank you for the assurance. I have never seen no offerings and I have a CD maturing next week. Will wait until after the Fed meeting Wed. to make a move. I appreciate your speedy response!

[@BusinessWithBrian]

Did you feel any better on Monday when there were CDs again? Given the environment, I understand the concern.

[@suzycreamcheese8888]

@@BusinessWithBrian Yes indeed! 5.2 for 9 months. Glass half full mindset in these times.

[@mrfudd13]

An account is required, but are there payment requirements? Do you have to have the funds deposited in your Fidelity account to purchase?

[@BusinessWithBrian]

Yes, you will need to have adequate funds in the account to make any purchase or investment.

[@marthabelzie1386]

You save the day!

[@BusinessWithBrian]

Thank you. I hope it provided you some insight. Brian

[@acilirp]

Does the interest compunds in a brokerage CD?

[@BusinessWithBrian]

No it does not, they are at a fixed rate. The APY is the data point keeping all things equal. A brokered CD with a 5% APY has the same result as a Bank CD compounding daily with a 5% APY. The difference is the fixed rate. The brokered fixed rate is at 5%, but the initial rate on the bank CD may lower in the high 4% range that compounds to achieve the 5% APY. There are many reasons why banks offer CD that compound daily or monthly. Main reason being that if you choose to have the interest payment paid out versus kept in the CD, then the payment is at a lower rate than the 5% and you'll never achieve the 5% because it wasn't kept in the CD to compound and grow. Point being that the APY is the key number to pay attention to. But please feel free to research it further so you fully understand the difference.

[@wayne8268]

how about shwabb vs ed jones

[@BusinessWithBrian]

Are you looking for a comparison between Schwab versus Edward Jones? I think it comes down to personal preference.

[@dadlesvostrosdecomer8786]

Great Video! So if my investment is 100,000 at 4.00 interest for a 3 month CD, what would be the gain?

[@BusinessWithBrian]

I think I've already responded, but since my account was hacked a week back, it seems like some of my comments have been deleted. If its' a 4% APY, then you'd make $1,000 after 3 months. Equation is 4%/12 = 0.33% Take the 0.33% times 3 months and you get 1%. 1% of the $100,000 is $1K.

[@sirlucius3016]

I buy a CD with X bank thru fidelity. Bank folds next week. What happens after that? Am i dealing with fidelity or the bank at that point

[@BusinessWithBrian]

Great question. It would be with the bank directly. Just as if you sold a CD on the secondary market from bank X to person Y, and if that bank goes bankrupt ......person Y would work with Bank X, and not you or Fidelity for selling it to him/her. Here's a link with all the legal speak about it: chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/www.fidelity.com/bin-public/060_www_fidelity_com/documents/fixed-income/cddisclosure.pdf

[@mantiscity]

How do you stop the auto roll

[@BusinessWithBrian]

When you buy the CD, it gives you the option to auto roll or not. If you've already bought it and not sure, you'll want to reach out to your specific exchange.

[@user-xw2jk7mv4j]

Brian I have watched many of your videos, they are good, tend to overlap in various fixed income topics. But aside from your educational value, I have not found a video that addresses the fundamental fixed income risk we are all facing……reinvestment risk. Obviously, interest rates are at an historical high right now(last 25 years), the easiest thing to do right now is Fidelity/Schwab Government Money Market fund ( return should be 4.5-5.5% for the rest of the year into next year)……no need for T-Bills, Bonds, ladders, callable, CDs, primary, secondary…blah, blah, blah. However, depending on inflation timing, interest rates will go down……at that point…..all the fixed income “ noise” is irrelevant…..the key then/now is where to lock in yield for the next five to ten years…..a video that addresses and “ SOLVES” reinvestment risk ( to the extent there is a solution) would be golden.

[@matthewcanavan8275]

HOw do we open up a fidelity account to buy these bonds and cds?

[@BusinessWithBrian]

Fidelity has a section on their website for opening an account.

[@IXIFrostIXI]

Making me want to just switch to savings instead of investing after maxing 401s to be honest

[@BusinessWithBrian]

For liquidity, that's fine.

[@tonyg3389]

can i buy brokerage CD ira and how ?

[@BusinessWithBrian]

Are you asking if you can buy a brokered CD within your IRA? If so, then it depends on your IRA and which broker you use. If I have my IRA with Fidelity, then yes, I could buy brokered CDs.

[@SleepingMe]

Their CD is the compound interest

[@BusinessWithBrian]

Brokered CDs are not compounding interest, but it is a fixed rate that achieves the APY. If a bank CD has compounding interest daily that results in a 5% APY, then the fixed rate from that bank is closer to a 4.89%. The compounding is what allows it to reach the 5% APY. Whereas a brokered CD is typically not compounding, but if it states it is a 5% APY, then it is a fixed rate at 5%.

[@user-mw1xp5yh6u]

I bought a CD at Fidelity from City National Bank. Semi annual interest was due on Sept 30, it has not been paid. Fidelity says they have 10 days before its considered late. Asked what does Fidelity do if its officially late? Answer, they try to find out why. My advice, don't buy, not worth it if you need to live off the interest payments.

[@kerrybyers257]

I can’t understand why brokered CDs do not let you compound the interest. Interest payments are paid as scheduled to your holding Acct. Bank CDs compound the interest unless you opt for an interest payout. As I understand.

[@BusinessWithBrian]

That's correct. But don't get too concerned. The overall annual percentage yield (APY) for a brokered CD is typically the same as a bank CD. It's actually a useful tool that benefits the banks. Because if you pull your CDs out early, they wind up paying you less money because of the compounding interest.

[@FooFightersTheBestTheBesr]

Thanks for the video. Why would somebody sell a cd in secondary for a discount? Wouldn’t it be better to take interest penalty?

[@BusinessWithBrian]

That depends on the length of time of the CD and how early you try to withdraw, and what direction the fed takes rates. Let's say that you buy two CDs today at 5.1% for 12 months. You do this once for a secondary market CD and one from a bank. Let's say that in 6 months you need your cash, and the rates from the fed have dropped substantially. With that drop, let's say that CDs are now offered at 3.5% at that time. The CD from the Bank has collected 6 months of Interest, and your penalty is to forfeit 3 months of interest back. Effectively, you received only 3 months of interest over a 6 month period. Not the worst outcome. But for the brokered CD, you wouldn't need to discount it at all, because you are selling a 5% CD that has 6 months left. Not only would you not need to discount the CD, but you could put a premium on it where you actually make more money selling it as a 4.5% APY, because it is still much better than the 3.5% offered at that time. You actually come out well ahead with the Secondary Market CD in this situation. Granted, it is all hypothetical. There are several variables a person needs to take into account. Both has their pros and cons. I hope that helps. Brian

[@vasantshah1316]

Brian Cd is fdic cover

[@BusinessWithBrian]

Yes, they are covered by FDIC if it states it in the details. Some CDs on brokered sites are not covered. Always verify.

[@lilacbirman]

This was very informative and helpful since I'm looking into buying a CD at Fidelity. Subscribed! Thank you

[@BusinessWithBrian]

Awesome! Thank you!

[@rontina8686]

Great timing, currently buying brokered CD's on Ameritrade. You can't beat the current rate 4.8 to 5%. Very interested to see just how high the rate will go in 2023......

[@BusinessWithBrian]

I hope you find some value in the video when you make your purchases on Ameritrade. CDs are a solid investment for the short term amongst an overall portfolio. I agree, it will be an interesting journey to see how far rates will go this year.

[@hatidzhetupeva4645]

Do you need to have an account created already to open a CD? When I click on CDs & Ladders all options are in black and I cant click on any of them... I love your videos. Already have 2-3 CDs active quick and easy. Thank you

[@BusinessWithBrian]

I have never tried to look as a guest. I tried just now, and you are correct that you have to have an account to see all the CD details. I see some new CDs right now at 5.1% for 1 year and 4 year.

[@christinebelzie194]

Thank you for doing this video. I learned a lot from it.

[@BusinessWithBrian]

So glad it was helpful. All the different pitfalls and options can be overwhelming. Just trying to make it a little easier on everyone to better understand all the nuances. Thank you for the comment! Brian

[@puzzleetpuzzles7951]

Also i would not call it "Investment". Inflation is 6.49% and you lending money for 5.00%. You pretty much trying to offset inflation and still loosing money.

[@BusinessWithBrian]

I can't argue with inflation. I'd rather make something, rather than lose a solid 6.49%. Your point is valid.

[@K0ua]

I love this video!! Can’t wait to watch more of your videos. It’s not too slow or too fast. Very detail on “what I would look for for myself” 👍👍👏👏👏 great job

[@BusinessWithBrian]

Thank you! You just made my day. Not every comment is as kind as yours. I appreciate it.

[@jkmwpc]

Great explanation...thank you. I had not previously considered secondary market CDs. It looks like a good way to invest large sums for a short term and yield 5% plus rates! Thanks!

[@BusinessWithBrian]

Glad it was helpful! Lots of options to consider, and they change all the time.

[@christinebelzie194]

I would really appreciate it if you talked about Fidelity’s CD Ladders.

[@BusinessWithBrian]

Absolutely. It is a video I want to do in the coming days/weeks. I've had it on my list for quite some time, and now is definitely the right moment. Thanks for bringing it up. Brian

[@hatidzhetupeva4645]

Im waiting for the same thing!

[@TheVirensolanki]

Hey Brian i loved this video and can relate to this since i am using Fidelity platform for CDs. Can you in your next video focus on Bond buying (US Treasuries) exactly the same way on the Fidelity platfom.

[@BusinessWithBrian]

It is absolutely on my short list. I plan to cover CD ladders and then a couple more videos on Treasuries to include buying on Fidelity. Thanks so much for the suggestions, and I'm right there with you. Thanks!

[@davidbrooks8809]

Was wondering can you add money to a CD on a weekly or monthly basis

[@BusinessWithBrian]

It depends on the CD. It has to be an "add-on" CD that allows you to keep adding money. I go into all the different types of CDs in the video prior to this one. Navy Federal offered a 5% add-on CD, if you qualify.

[@davidbrooks8809]

Thanks for spending time covering this!!

[@stevemurzyn9711]

Very good explanation about Fidelity brokered cd's. Can you use this investment in a IRA ?

[@BusinessWithBrian]

Yes, you can buy brokered CDs with an IRA. Just make certain to verify with your exchange and for your specific IRA.

[@wa210]

Yes, i have a rollover IRA and can buy brokered CD's on Fidelity.

[@g.t.richardson6311]

@@wa210 same, just got a big rollover, didn’t want dump all into market at once, did do some and left some in core account, which even paying decent too Set up 2month thru 10 month cds will invest over the year

[@wa210]

@@g.t.richardson6311 I had 3 cd's lined up. 3 month @5%, 6 month @5.10% and 9 month @5.20%. Pulled two of them tonight. I figure rates going up, and only 6 month going through. Also wait out the bank debacle, although mine are only 10k each. Have a 4.60% i opened in CU in Jan. I figure hang in my Fidelity MM for now and still earning 4.22% monthly. Also 40k in cash in 401k MM sitting idle @4.25% . Stocks haven't got nearly pulverized yet, before I start buying again. Figure hang for now and see what developes.

[@g.t.richardson6311]

@@wa210 good plan, mine are all 5000/10000 too I am still heavily in stocks in that IRA, My Roth is 90% stock funds, wife same she younger. Also td ameritrade taxable account with lots good dividend payers Cds/ibonds only about 15% overall portfolio My local credit also about same 4.5% Keep some there too Take care

[@davidbrooks8809]

What do you think about 5% worthy bonds

[@BusinessWithBrian]

My answer is the same as you had posed on another video. I don't know this company, and I can't provide an honest opinion.

[@davidbrooks8809]

Thanks

[@puzzleetpuzzles7951]

Current Series I Bond is 6.89%. So if you have around 10 000 to invest or less, i suggest you don't use Brokered CD and go for Bond. Its better in every single scenario.

[@BusinessWithBrian]

Yes, the I bond is a great option if you have limited funds. The major downside is liquidity. You can't resell or withdraw an I-bond prior to 1 year of holding it. I go over I bonds in this video: kzbin.info/www/bejne/in_LendspM5moac

[@wa210]

I also believe you have to stay in a I bond for 5 years. Correct me if i am wrong.

[@puzzleetpuzzles7951]

@@wa210 1 year for series I

[@dannynone2784]

@@wa210 I bonds have to be held for at least 5 years to avoid losing the last 3 months of interest penalty for early redemption.

[@wa210]

@@dannynone2784 Yeah, knew there was some rule of 5 years, just forgot.

[@Trust_but_Verify]

Has someone has successfully got the secondary market CD with a lowered limit price? What was the ask and the lower limit you put in?

[@BusinessWithBrian]

I would also love to hear if anyone has had success.

[@shadowgov9721]

If rates keep going up , since they cannot control inflation , maybe 5 % not a great deal

[@BusinessWithBrian]

Maybe. I won't personally know until after fact :-)

[@Trust_but_Verify]

I am expecting additional 0.75% interest hike over x times.

[@wa210]

Correct, and reason I am waiting to load up on CD's. FED just orated about needing to raise rates much higher than expected to tame a still hot inflation period. IMO, CD's for a 1 yr will easily top 6% soon. From the news, the market tanked and overnight CD's on Fidelity jumped over 5.25% on 1 year CD's.

[@hatidzhetupeva4645]

What does "call price" mean? Do they compensate if they call it back earlier & do they pay out all interests to the date on the call back ?

[@BusinessWithBrian]

They pay you back your principal and you keep all interest paid to that point. They do not pay you any additional interest beyond the call date they chose to call back the CD. This gives them all the leverage. So if you sign up for a 5.1% CD for 2 years that is callable, and let's say hypothetically that rates crash down in two months and are back at around 1.5% for a CD. Then a bank owning a callable CD may choose to call back all those callable CDs that are well above the new 1.5%. This is all purely hypothetical. I hope that helps explain it further

[@johnsmith1953x]

*If the CD is NOT CALLABLE, its 100% WORTHLESS* Why? Bank can recall it, then give you a near 0% rate. I've seen this.

[@BusinessWithBrian]

I think you meant if a CD is not call protected. If a CD is callable ( or not call protected), then the bank can "call" it back and pay back principal and any interest due. Yes, it does happen, and that's why I stay clear of them.

[@h-community]

There is better option to buy treasury bills that are marketable as well. Interest income is exempted from all state and local taxes. In interest going up environment go for treasury bill for 4, 8, 13, 17, 26 and 52 week durations and when you think interest rates are high enough, buy 2-5 years treasury notes for longer term. These are far better option rather than paying 50$ for 50k CD from fidelity

[@BusinessWithBrian]

Thanks. And if you want directions on how to buy T-Bills, here you go: kzbin.info/www/bejne/roPYg4eXo7qIj6c

[@vamsianilkchandu3296]

it is very good information. thank you so much. How can I contact you for investing advice??? Good job

[@BusinessWithBrian]

I appreciate your comment. It's very kind of you. However, I am not a financial advisor. I merely love investing, and now that I retired early, I want to share as much as I can so others can retire early too. Thank you again for your comment!