UnThreaded | Threaded | Whole Thread (32) | Ignore Thread Prev | Next
Author: Lokicious Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35399  
Subject: Re: Ladder CD's? Date: 1/20/2005 12:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
"Alas, the last of my CDs earning 7% or better mature this year. Renewing them with anything is going to hurt."

Bruce, ny friend, we have to be adult about this. Unless we want to get pushed into reckless asset allocations out of desperation and acquiescence to the stock market bias of the tax code, we have to stick with the best we can get. A 4.6% 5-year CD makes my stomach turn, but it's better than a 4.2% 10-year T-bill, it's better than Vanguard's Total Bond Market Index Fund, unless interest rates go down over the next 5 years, and it's probably going to be better than 5-year TIPS. I must admit I'm thinking about 10-year TIPS, but that's really only going to be a winning choice if the official inflation rate (not the one you and I have to contend with) is higher than the traders are expecting.

My "net worth" is actually well ahead of schedule, right now. But that's assuming the stock market doesn't crash again, nor real-estate. My "fixed-income" portfolio is behind schedule, and falling, despite concerted effort to save more, and I don't believe my actual expenditures, under inflation, have slowed enough to compensate.

If I didn't have Social Security inked in at zero, I wouldn't be worried.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (32) | 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:
Dividend Growth Investing

Good Time for Dividend Champions?
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