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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75781  
Subject: Re: Invest extra cash? Date: 4/14/2012 4:46 PM
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To put this in perspective, Bankrate.com gives the national average yield of a 1 yr CD as 0.33%; of a 5 yr CD, 1.14%

Treasury yield curve Friday: 2 yr 0.27%; 5 yr 0.86%

Dividend stocks:

AT&T 5.70%; Ameren 5.10%; Reynolds Tobacco (RAI) 5.40.

Bond fund: Fidelity Capital and Income (FAGIX) 6.13%

Closed end leveraged muni fund (Nuveen Muni Select, NQS) 6.80% (mostly fed tax free).

You can clearly get better returns in the short term with alternatives to CDs, but in the longer term at somewhat increased risk.

Is the added income worth the risk?
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