Is anyone familiar with the type of accounts that invest in different bond-types, give you the investements rate of return minus 3%, AND guarantee that your annual rate of return over time will never be less that an annualized rate of 3%?
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.
Greetings, Dek2000, and welcome. You wrote:<<Is anyone familiar with the type of accounts that invest in different bond-types, give you the investements rate of return minus 3%, AND guarantee that your annual rate of return over time will never be less that an annualized rate of 3%? >>Not the way you describe it, no. But it sounds suspiciously similar to an equity-indexed annuity. You will find a description of that at http://www.fool.com/retirement/annuities/annuities01.htm.Regards..Pixy
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