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Need some advice....Have 200,000 in cash.....very conservative ...and would like to draw monthly benefits from my cash...but want more than 7%....what should I be looking for that is safe and preserve my cash. Thank you for your help and FREE advice. jpk
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Need some advice....Have 200,000 in cash.....very conservative ...and would like to draw monthly benefits from my cash...but want more than 7%....what should I be looking for that is safe and preserve my cash.

Government I-bonds have a rate of 7.49% at the moment. This includes a fixed rate of 3.6% for the life of the bond as well as an inflation rate adjustment every 6 months. Just one suggestion.

For more info about savings bonds, go here:

http://www.publicdebt.treas.gov/sav/sav.htm
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Also, about the I-bonds, this thread might give you some useful information when considering whether or not to use them:

http://boards.fool.com/Message.asp?mid=13276730
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Government I-bonds have a rate of 7.49% at the moment.
Two objections:
1. JohnP14 wants income now. He won't get the full
return on I-Bonds unless he waits several years.
2. This year he is allowed to boy "only" $30K worth of I-Bonds; what about the other $170K?
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you might want to check out post #24727 on the Retirement Investing board.
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Government I-bonds have a rate of 7.49% at the moment.
Two objections:
1. JohnP14 wants income now. He won't get the full return on I-Bonds unless he waits several years.
2. This year he is allowed to boy "only" $30K worth of I-Bonds; what about the other $170K?


I'm sorry - It seems I should have been more precise with my suggestion. Obviously, there are limits to what you can do with I-bonds, which Latinus has pointed out. One will not be able to invest the entire amount of $200K in these bonds in order to set up a steady stream of income starting tomorrow. You cannot cash in I-bonds until 6-months after buying them, and then they lose a few months of interest if you cash them before 5 years have passed. Furthermore, it is likely that during a possible 30-year holding period there will be many years in which the I-bonds return less than 7%, and it is even conceivable that they may return 0%. (but if that happens, one must ask what kind of return other 'safe' investments will be giving at the same time)

I-bonds may be an ideal part of JohnP14's investment plan since he is very averse to risk. Perhaps $30k worth of I-bonds now, $30k worth of I-bonds next year, and the rest of his cash in laddered CDs is one possible solution which would fulfill all of his requirements.

Maybe I-bonds are not the right kind of investment at all.
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JohnP14 Date: 9/10/00 10:18 AM Number: 5036
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<<Need some advice....Have 200,000 in cash.....very conservative ...and would like to draw monthly benefits from my cash...but want more than 7%....what should I be looking for that is safe and preserve my cash. Thank you for your help and FREE advice. jpk>>

Ok, Read the three posts referenced in:


http://boards.fool.com/Message.asp?mid=13389228


Sincerely,

DHatch

P.S. Please do your own independent study and research to make sure you understand and are comforable with any suggested idea, concept, or program, and do keep in mind that often FREE ADVICE which you do not fully understand may not be worth any more than you paid for it.

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