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.
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
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??
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
My broker and I found investment grade (AAA-A) instruments that return 8% to 81/2%. Check it out.
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.
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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