JL Sargent Posted March 25, 2014 Share Posted March 25, 2014 Last time I checked we could get 1.5% on a 5yr CD. We want to do better. Got any ideas how we can? Maybe T bills? Quote Link to comment Share on other sites More sharing options...
Coytee Posted March 25, 2014 Share Posted March 25, 2014 Check your PM's Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 2.75 or thereabouts on ten year US bonds. Over 3 if you go 30years but you will be locked in for a long time because the value of the bonds will drop when rates rise. If you are fine with 3.5 but have to hold and forgo being able to invest in a higher rate later then there you have it. The are other ways but not at the same true guarantee, Richard has already pmed about it. Quote Link to comment Share on other sites More sharing options...
T2K Posted March 25, 2014 Share Posted March 25, 2014 gloggle Warren Buffett and Vanguard. Keith Quote Link to comment Share on other sites More sharing options...
Max2 Posted March 25, 2014 Share Posted March 25, 2014 Buy longer debt..... Seriously, guaranteed investment products aren't money makers, even if you wanted to tie your money up for a decade or three. Even then, all usual debt products are subject to interest rate risk, which can put you in a pickle if early liquidity becomes an issue. IMO, look at short BB rated bonds. Stick to a maximum of two year maturities. Also, you might want to check out some preferred stock that is paying a decent dividend and has a consistent track record on the equity pricing. You want state backing? Check out some tax free school bonds, yields are much lower, but you get to skip out of state taxes and the G.O.'s (general obligation) are usually backed by the state taxing authority. Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 Well it depends on what the OP means by guarantee. It's called a "flight to safety" for a reason. No one flees to dividend payers or cities or schools. Interest rate risk is unavoidable regardless of issuer. Quote Link to comment Share on other sites More sharing options...
sputnik Posted March 25, 2014 Share Posted March 25, 2014 Annuities are not really my cup of tea but this seems like good info on the breeds and one might be right for your situation. http://www.fool.com/retirement/annuities/annuities.htm Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 Funds are riskier than owning individual bonds. I do not recommend bond funds. CD's are not guaranteed. They are not even federally insured by the FDIC. Quote Link to comment Share on other sites More sharing options...
JL Sargent Posted March 25, 2014 Author Share Posted March 25, 2014 Thanks guys. Lots of good stuff to think about. Coytee, tried to give you a call Quote Link to comment Share on other sites More sharing options...
Coytee Posted March 25, 2014 Share Posted March 25, 2014 try again, my phone hasn't been with me. Quote Link to comment Share on other sites More sharing options...
Boxx Posted March 25, 2014 Share Posted March 25, 2014 Take a jump and buy some AT&T (T). Current yield 5.3% Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 Refer to original post and tell me how ATT is a guaranteed investment. Quote Link to comment Share on other sites More sharing options...
Boxx Posted March 25, 2014 Share Posted March 25, 2014 Refer to original post and tell me how ATT is a guaranteed investment. It's not guaranteed, however I thought that the by saying "Take a jump...." it would imply that. Nothing anymore is truly guaranteed. "If you like your doctor from your current plan, you can keep him......" Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 Nothing ever has been. So on a relative level, when someone asks about a guarantee, they probably don't mean take a jump. Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 OK Mark. Up to 250,000(as of today) I stand corrected about the insurance. Funny how US bonds with the same or better relative risk pay more isn't it? Quote Link to comment Share on other sites More sharing options...
Boxx Posted March 25, 2014 Share Posted March 25, 2014 (edited) Nothing ever has been. So on a relative level, when someone asks about a guarantee, they probably don't mean take a jump. When do we ever act on a relative level here with any subject? Edited March 25, 2014 by Boxx Quote Link to comment Share on other sites More sharing options...
joessportster Posted March 25, 2014 Share Posted March 25, 2014 Guarantee. I don't believe that exists, playing stocks now days sure seems very risky to me. I am not a conspiracy theorist but sure do believe it is falsely built up now I keep hearing how much better unemployment is, and how the economy is improving. I sure don't see it when i look around. I still see businesses closing there doors, people laid off, prices going up...............sure have seen no improvements around me............ I personally Know people that yeild much better profits by investing in hard goods Quote Link to comment Share on other sites More sharing options...
Max2 Posted March 25, 2014 Share Posted March 25, 2014 OK Mark. Up to 250,000(as of today) I stand corrected about the insurance. Funny how US bonds with the same or better relative risk pay more isn't it? No series 7 for you! Quote Link to comment Share on other sites More sharing options...
oldtimer Posted March 25, 2014 Share Posted March 25, 2014 Could have passed it with flying colors. My derivatives courses had test questions taken straight from the exam. Yes, I made A's. Why does a US bond pay more than a CD and is more flexible? If rates rise you can stay with both but if rates decline you are still stuck in the CD unless you pay a penalty. With a bond you can cash out at a premium. Ask your favorite banker. You'll probably find him on the golf course. Quote Link to comment Share on other sites More sharing options...
holtrp Posted March 26, 2014 Share Posted March 26, 2014 Haven't looked into it myself but a co worker of mine says he is doing very well loan sharking out money in prosper.com Quote Link to comment Share on other sites More sharing options...
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