Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hi Warmwinter:

I would offer several suggestions.

First CDs from several different banks gets around the 100,000 limits. Just make sure the banks are independent of each other.

Second I like the Treasury Direct process to purchase 5 year treasury notes. They are absolutely guaranteed by Uncle Sam if you hold for the required 5 years. While the paper value may fluctuate you know at the end of 5 years you get your money back and interest payments every 6 months.

I also hold some fairly high yielding state bonds which I have purchased from one of my banks. They pay 13 to 15% with an acceptable risk level. At least I trust the state - it's not Louisiana by the way.

I have avoided bond mutual funds because the values fluctuate more than I want to tolerate. It is fairly simple to by federal and state bonds. They just sit in your bank account and deposit interest occasionally.

Good luck

Jim in New Orleans
Print the post  


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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.