UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: piranha1 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35400  
Subject: Fixed Income Question Date: 5/7/2003 3:37 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I have been fairly agressive with my investments in the past, but am planning to retire in 4-5 years. I have decided that I want a certain portion of my investments to be in fixed income. I want to have 5 years of living expenses in fixed income.
I had thought I would start a 5 year CD ladder and move money from my agressive investments every year to always have that 5 year ladder in effect. I placed this years money in DBPIX (Scudder Preservation Plus Income Fund) which is available only for retirement accounts (where all my funds are). This fund invests in bonds and has an insurance wrapper which guarantees a FIXED NAV of $10 and distributes income on a monthly basis. I did this so I could start my ladder the 1st week of January, so that the yearly living expenses would always be available at the start of the year.
The income distribution for the month of April was .3173% which compounds to 3.87% for the year. Current 5 year CD's are only 3.3% and the 1,2,3, and 4 year CD's are obviously lower.
The question (I finally got around to it) is "Is a CD ladder still a better choice than just using a Fund like this". I want maximum return with pretty much NO risk.

piranha1
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement