You bringing up FDIC limit brings up something I'd like clarification. SPIC limit.jhogue wrote: ↑Mon Nov 25, 2019 2:36 pm
Looking in the rear view mirror, your ten year ladder of CDs must seem like a sure-fire-no-brainer-strategy for any amount of cash up to the $250,000 FDIC limit. Low inflation and Trump’s tax cut didn’t hurt either.
Here’s the problem as I see it:
Domestic STTs and ITTs are now stuck in a lower-bound range of 1.5 - 1.8%, and trillions in negative yielding euro and Swiss franc bonds are piling ever higher in Europe. There is no way that you can build a new ladder of of ten year CDs going forward that will bring you the after-inflation and after-tax yield your old CD ladder did. Interest rates can stay the same or they can rise, but they cannot continue to fall at the rate they did over the last decade for the next decade.
I find the following: "SIPC coverage, however, has a limit. It’s capped at $500,000 per customer, with an exception of cash holdings, for which the limit is $250,000."
I'm assuming that the $500,000 limit would apply to all one would hold at, say, Vanguard? And, a money market fund would NOT be considered a cash holding? How does buying Treasury Bills via Vanguard brokerage get covered? Just part of that $500,000?