No. of Recommendations: 0
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%?
Print the post Back To Top
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.
Print the post Back To Top
No. of Recommendations: 0
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
Print the post Back To Top
Advertisement