No. of Recommendations: 0
I am not familiar with the investment you describe, but the returns stated sound terrible.

First, Fools believe that an S&P Index Mutual fund is a reasonably reliable, conservative investment. The average return is 12%. Corrections and down turns in the market do occur, but Fools believe they will be short--probably less than 3 years.

If you are uncomfortable with stocks, then laddered maturity, investment grade corporate bond portfolios can be constructed that will yield 8% these days. You can read more about them over on the Bond and Fixed Income board. Enter the word bond in the board box below and press find.

3% after taxes probably will not cover inflation. Most of us need better returns than that. CD's sound better. Even Savings Bonds sound better.
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