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Investing/Strategies / Retirement Investing
|Subject: Re: Invest extra cash?||Date: 4/14/2012 4:46 PM|
|Author: pauleckler||Number: 70546 of 73906|
To put this in perspective, Bankrate.com gives the national average yield of a 1 yr CD as 0.33%; of a 5 yr CD, 1.14%
Treasury yield curve Friday: 2 yr 0.27%; 5 yr 0.86%
AT&T 5.70%; Ameren 5.10%; Reynolds Tobacco (RAI) 5.40.
Bond fund: Fidelity Capital and Income (FAGIX) 6.13%
Closed end leveraged muni fund (Nuveen Muni Select, NQS) 6.80% (mostly fed tax free).
You can clearly get better returns in the short term with alternatives to CDs, but in the longer term at somewhat increased risk.
Is the added income worth the risk?
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