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Author: jdlmary Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75821  
Subject: CDs Date: 7/18/2000 10:38 PM
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I've been putting some money in CDs because of the low risk, but 6% seems like a low rate of return. What other investments have low risk but a better bang for the buck.
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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23478 of 75821
Subject: Re: CDs Date: 7/19/2000 7:25 AM
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Greetings, Jdlmary, and welcome. You asked:

<<I've been putting some money in CDs because of the low risk, but 6% seems like a low rate of return. What other investments have low risk but a better bang for the buck. >>

It depends on what you mean by "low risk." You can get a slightly better rate of return sans a guarantee on the principal by using U.S. Treasury securities like T-Bills and Notes. You could also look at short- to intermediate-term corporate, municipal or U.S. bonds. Those instruments would provide relatively stable investments at a slightly higher rate of return than many CDs.

Keep in mind that potential return and risk go hand in hand. The higher the possible return, the greater the risk. Nothing in life is free. Therefore, if you wish to better your return, be prepared to assume more risk as well.

Regards..Pixy

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Author: ELNbluemax2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23479 of 75821
Subject: Re: CDs Date: 7/19/2000 8:27 AM
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My EE US Savings Bonds that were 7.5% until they matured in 96 have only been getting 4% since. If I cash them and don't convert them to HH Bonds, all the tax will be due now. Any suggestions, Pixy??

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23480 of 75821
Subject: Re: CDs Date: 7/19/2000 9:04 AM
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ELNbluemax2 asks:

<<My EE US Savings Bonds that were 7.5% until they matured in 96 have only been getting 4% since. If I cash them and don't convert them to HH Bonds, all the tax will be due now. Any suggestions, Pixy??>>

No, not really. If you desire a higher return without converting to HH bonds, then you will have to pay the taxes to get the proceeds into something else. Unless you have a tax problem, there's nothing wrong with that. Sooner or later that piper must be paid anyway, and that being the case then why tolerate a return with which you're unhappy when a better one possibly exists elsewhere with a similar risk?

Regards..Pixy

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Author: zot7 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23487 of 75821
Subject: Re: CDs Date: 7/19/2000 2:21 PM
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My broker and I found investment grade (AAA-A) instruments that return 8% to 81/2%. Check it out.

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Author: zot7 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23488 of 75821
Subject: Re: CDs Date: 7/19/2000 2:30 PM
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check out General Electric Cap Corp. These are 8.25% due in 6/15/15 with a call on 6/15/01 at par. I don't know the current price.

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Author: ELNbluemax2 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 23493 of 75821
Subject: Re: CDs Date: 7/19/2000 5:45 PM
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I don't know what happened to my reply this morning a little after 9AM in regard to EE bonds and Series 1 bonds. Nothing was posted for over 2 hrs.
Nevertheless, I thought a lot of people would be interested in checking out savingsbond.com. They have a chart of the impact of switching from 4% Bonds and the new Series 1 bonds that are 7.49% now. It's free, but, you have to just register to get that site.

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