I would like to ask whether it is good to have fixed-income investments diversified. There are many ways to "diversify". Buying CDs across banks as you bump against FDIC limits. As Bruce suggested buying Treasuries which are in essence backed by the same promise as FDIC insured CDs. The real question may be to what purpose are you diversifying? What is the end goal or gain that you are possibly seeking by diversifying? If you are seeking greater than current CD returns while trying to minimize capital risk then we are into many completely different strategies. As soon as you step away from "risk free assets" then you need to devise some way to determine how much risk you are willing to take on, what kinds of risks you are willing to take on and how you plan on mitigating those risks. If the CD ladder has a strong probability of doing what you need it to do then no further diversification is needed. A ladder is diversified across time. jack
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