Low Yield CD's and Discipline

Staying disciplined with investing is one of the hardest things to do, especially now. On one side, it's very easy to sell and limit your losses, and sometimes that is the best thing to do. On the other side, it's very tempting to jump back in because a lot of good companies have been beaten down the last few weeks. It doesn't help as an individual investor when you read the papers, watch CNBC, or listen to the business lunch hour programs on the radio (WBBM in Chicago runs a good hour show by the way). There are so many differing opinions that can influence you one way or the other.

I made sure my first 5 buys used up only 25% of my capital ($2500). It's very tempting to use the remaining 75% to open up long and short positions now, but in order to remove that temptation, I decided to move $2500 into one of the 6 month low yield CD's at 3.65%. That leaves me about $5000 to put into play if more quality company's get punished further. Somewhat disciplined, but somewhat flexible. The Fed is looking to lower rates again, so it made sense to me to lock in some of the current rates, and put some discipline to control my emotions.

Speaking of CD's, I will put in a plug for ING Direct. I've used them for a number of years and they have usually offered some of the highest Savings and CD rates. But that's not their real secret of their success. They have one impressive customer service line up. There have been a few instances where I have called them up at 9pm on a Sunday evening, and within two phone rings, someone actually picks up the phone. Whether I need information about CD's, investment funds, or mortgages the same person is able to answer all of my questions and take care of business. Not too many banks can do this. As simple as that sounds, it is very hard to achieve.

I did some comaprison shopping of other 6 month CD rates on bankrate.com. Some banks were able to offer 4.7% which was rather impressive. However, I feel comforatble with ING. I never heard of giantbank.com, or Uncle Joe's Super Bank before.

The Ten Grand portfolio page will be up shortly.