No. of Recommendations: 1

I believe responses have convinced you to stick with the CD to maturity, but wanted to add comment that Fidelity Low Price Stock FLPSX, is closed to new purchases. Since you are dealing with Fidelity, you may already own this fund, in which case you of course could add to it.
Although 2005 return was 8.7%, 3 and 5 year return was much better, 16.7 and 14.9%. Glad I have owned for many years.
Enjoy your CD return.
Senior Citizen.

Senior Citizen, thanks for your message. Yes, I already own this fund (Hallelujah) - I got in just before it closed to new investors.

Peter (ptheland) alerted me to the fact that I have probably been getting interest payments on the CD since I first bought it - not, as I imagined, that I would get the whole 5 years' interest at maturity. I checked with Fidelity and he is correct - I've been getting $18.50 into my core account every 6 months, and I just never noticed.

So, his calculation is correct - that cashing out the CD at a loss now only makes sense if I am confident that I can get a 10.5% or more return each year for the next two years. As great as FLPSX is, the fund has moved more into mid-caps and has gotten really large, and I wonder if that will make it harder for it to keep up the amazing returns it has had.

BTW, the posts about calculations have been killing me. This is clearly such a standout group of people. I have to admit that every time I see that "^" sign, I scratch my head just trying to remember what it signifies, let alone where I would find it on a calculator. I'm just glad I have access to people for whom this stuff comes easily.


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