Someone gives you $50,000. Where do you put it right now?

[El OchoCinco]

Quote from Ivanovich:



I've decided to look into putting it into Everbank's foreign currency CDs. The Iceland Krona is paying close to 13%.

What do you think will happen a year from now when you change the kronas back to dollars?

 

[Ivanovich]

Quote from optioncoach:

What do you think will happen a year from now when you change the kronas back to dollars?

It's only a 3 month CD. I'll re-look at the expiration.

Furthermore, it will be a nice hedge to other dollar long positions I have in Forex.

 

[TraderAnon]

Yes, I always check out the fdic.gov site before opening (or now, closing) accounts. I checked out this Everbank a long time ago, but am always apprehensive about non-physical banks. Has anyone here ever had problems getting your money out of this bank?

Quote from Bob111:

it's looks like they located in US(or at least your money going to US address) , so -it should be just INT by end of the year.
looks very attractive imo. is there any way to check bank(such as this one) security,rating, stability, etc?

Thank you!

 

[Ivanovich]

They're in the US, and FDIC insured. I think that pretty much speaks to the fact that you'll be ok.

 

[Bob111]

Quote from Ivanovich:

It's only a 3 month CD. I'll re-look at the expiration.

Furthermore, it will be a nice hedge to other dollar long positions I have in Forex.

there is a possibility of losing some of a principal with those currency CD's, but they did not explain how much exactly. and what about situation, when dollar lost like 10% in 3 months? will you receive more than your initial APY?
What i'm trying to understand, is downside and upside of this CD. if they put cap on upside and no cap on downside then i would think twice(unless you are hedged like in your case)
some sort of risk calculator would be nice, since there is risk on losing principal involved.


regarding security\stability-on bankrate.com they got 3 stars. not the best, but decent score.

 

[tradestrong]

Quote from Bob111:

there is a possibility of losing some of a principal with those currency CD's, but they did not explain how much exactly. and what about situation, when dollar lost like 10% in 3 months? will you receive more than your initial APY?
What i'm trying to understand, is downside and upside of this CD. if they put cap on upside and no cap on downside then i would think twice(unless you are hedged like in your case)
some sort of risk calculator would be nice, since there is risk on losing principal involved.


regarding security\stability-on bankrate.com they got 3 stars. not the best, but decent score.

It looks like what they are doing is giving you a "speculative" APY. It's based on if the currency appreciates (proabably at the same rate it's recently been appreciating against the dollar).

So, they probably offset the principal if the currency depreciates against the dollar.

In other words, what it sounds lke to me is that they give you a "definite" interest rate and speculate on the appreciation. As an example (I'm throwing numbers out there), for the Iceland Krona, you might get 3% interest and then a speculative 10% appreciation. If the Krona doesn't appreciate at all, you get the 3%. If it depreciates let's say 10% against the dollar, you get a 3% interest rate and then a 10% loss of the principal, so you'll lose like just under 7% in that case.

That's what it sounds like to me how it works.

 

[midlifeguy]

$10,000 VCGH
$10,000 CASB
$10,000 ING
$10,000 FUN
$5,000 XLF
$5,000 Fidelity Select Utilities

Quote from Ivanovich:

I have $50,000 cash sitting in a savings account doing essentially nothing. I don't want to add it to my trading account. I just want it to sit somewhere relatively safe and earn decent interest.

Thoughts?

 

[CFerret]

Wil simply trade those instruments I do usually.

Don't think any interest is as "decent" as trading profits. Espeially during these times of uncertainity.

 

[lar]

Real Estate Tax certificates in Davis, Ca.

 

[Cutten]

If someone gave me $50k, the last place I would dream of putting it would be a cash account where the after-tax yield is going to be lower than the CPI. That is the definition of investing insanity.