On the right track for now

greek marina-3-boat-A

Hawaii Kai, Koko Marina Shopping Center.  2011.

I did some banking yesterday, withdrawing money from one bank and depositing it in a 36 month CD 1.5% interest at a different bank. I won’t miss the money for that time period, and the interest rate is better than the one I previously had.  Further, the interest is compounded monthly.

I am avoiding the stock market, because some economists are predicting a major recession in three years. With that in mind, I prefer to invest in something safe like a CD, since I am risk averse and don’t want to lose a dime, especially at my age.

David mentioned an annuity, but I am not sure I want to tie up my money for 5 years.

Several realtors have asked us if we are interested in selling our house, as inventory in our neighborhood is low. It definitely is a seller’s market, and buyers are beating the bushes for single family houses.

We want to live in our 3 bedroom 2 bath house until we die. We enjoy gardening outdoors.  Living in a condo or retirement facility doesn’t appeal to us.

I think we are on the right track for now.

14 Responses to “On the right track for now”

  1. Linda Starr Says:

    smart moves, nice to know you’d be able to see if you wanted to

  2. DJan Says:

    Interest rates are so low everywhere. I remember when I actually made money in my savings account. No more.

  3. Joanne Noragon Says:

    Interest rates are unbelievably low. On the other hand, so is the inflation that lifts interest rates.

  4. Tom Sightings Says:

    1.5% sounds pretty good to me. We had to shop round for 0.7% (altho’ for shorter term). Sounds like you have the perfect retirement home.

  5. honoluluaunty91 Says:

    Seems that we are at the age when we need to decide where and how we want to live the rest of our lives. I am still debating on selling or staying. Maybe renovating.
    Your living on the Marina must be wonderful. Congratulations on such a nice life!

  6. Cathy Says:

    House prices here seem to be going and higher – trouble is if you sell you’ll be paying it all out again on a new place

  7. Christine Says:

    I think you are too.

  8. Joared Says:

    Our area houses in demand, too. Have seen 2 or 3 periods like this since we’ve lived here with some drop in housing prices, but much more in other areas. Won’t be surprised when this happens again. I support the living in place concept, too, and so far works for me. I think the Fed may raise rates by end of this year but seems to not filter down much, if at all, to raise savings rates, but they sure yank loan interest rates upward quickly each time.

  9. DeniseinVA Says:

    Sounds sensible. Not sure if we will move or not.

  10. SchmidleysScribblins Says:

    I agree with you and I bought an annuity. I have to live to age 80 to break even.

  11. Claire Says:

    What became of your reverse mortgage on your house?

    • gigihawaii Says:

      We still have it. No problem. As of now, we are debt-free. No back taxes, no credit card debt, and no mortgage. The reverse mortgage kicks in when we are both dead, so it does not affect us while we are still alive.

  12. Beatrice Says:

    Whatever you decide is best for you, then that is the best coice, Gigi. We do not miss living in a house as the mill apt we rent in Nashua, NH is within walking distance of so many things. We do have investments, but use the services of a financial advisor vs. doing it on our own. And, like you, we also have cash available in a bank account.

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