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For this portion of my retirement portfolio, I don't want to take on any risk.

Despite the term "risk free" there on some risks to consider. The two primary that you need to account for are reinvestment risk, what rate you get when reinvesting the allotment coming due and inflation risk, are you keeping pace with or exceeding inflation.

Joel offers solid advice on buying CD's. There is no need to settle for whatever you primary bank is handing out. Use the internet to find good rates and keep an eye out on early redeeming penalties. It is a pretty simple math game to figure out if it is profitable to cash out early and reinvest at new rates. What we usually can't get away with is repeatedly cashing out early trying to chase rates.

jack
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