May 15, 2020
S&P 500 (2,831)
10-Year Treasury 0.64%
We hope this email finds you safe and well. All is good on this side. I have been working remotely since the middle of March.
As we have mentioned or written to all of our investment clients, we can buy CDs for you via TD Ameritrade Institutional. We have found the rates that TD Ameritrade Institutional offers to be more than competitive. Please let us know if you are interested in opening a CD account with us. Even if you already have an account under our management, a new account would need to be opened. We currently are not charging any fees for these specific CDs.
We are notifying all clients that have us managing a CD account, that when monies are coming due, or are already in their CD account, we are holding off on buying new CDs, solely because rates are near Zero. Keeping it in cash offers even a lower return, but with cash, unlike a CD, we have daily liquidity. The risk levels with cash or a CD are the same. The risks of holding money in cash are also that CD rates could drop even closer to Zero, and we would lose the opportunity of even these rates. We personally think it is best to see if rates change upwards over the next few weeks or months.
We are holding off reinvesting it, solely because a 1 year CD is currently 0.25%, and who knows if those will be the same tomorrow. A 6-month CD is currently offering no more than 0.20%.
Here is a grid of general rates offered today:
Typically we would never contact a client on this, but since we are suggesting to keep it in cash, We have been contacting our clients just to let them know, and giving them the option of me getting them a CD instead of cash.
Again, we will keep any extra monies in cash, unless for some reason we think investing in a CD, even with these low rates, is what we would consider to be a prudent move. At this point, w just don’t think investing for near zero rates, and tying up funds is a proper alternative.
Stay safe, strong, and smart!
Ronald R. Redfield CPA/PFS
Redfield, Blonsky & Starinsky, LLC.
1024 South Avenue W.
PO Box 2069
Westfield, NJ 07091-2069
908 276 7226 phone
908 264 7972 fax
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If you are a client of ours, and if you have questions regarding the company or investment mentioned in this report please call our office. If you are not a client of Redfield, Blonsky & Starinsky, LLC Investment Management Division and are reading these notes, we urge you to do your own research. We will not be responsible for any person making an investment decision based on these notes. These notes are a “by-product” of our research. We are not responsible for the accuracy of these notes. We are not responsible for errors that may occur in these notes. Please do not rely on us to monitor or update this or any other report we may issue. In theory, we could come across some type of data or idea, which causes us to eliminate our long or short position of the company or investment mentioned in this report from our portfolios. We will not notify reader’s revisions to these notes. We are not responsible to keep readers of these notes updated for changes or material errors or for any reason whatsoever. We manage portfolios for clients, and those clients are our greatest concern as it relates to investing. Certain clients of Redfield, Blonsky & Starinsky, LLC may not have the company or investment mentioned in this report in their portfolios. There could be various reasons for this. Again, if you would like to discuss the company or investment mentioned in this report , please contact Ronald R. Redfield, CPA, PFS (partner in charge of investment management division).
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