You probably do understand but just disagree with the logic: the risk premium on stocks and bonds today make their return unsatisfactory compared to CD, E/I bonds. In other words, today there is too much money sloshing around which has forced the returns in stocks and bonds down to historic lows.I agree that there is a lot of cash chasing limited returns.What I find a bit hard to understand is the need to focus on three options (liquid things like CD's, stocks and bonds). Many asset models show something like 14 asset classes. Even people who have recently retired will need to plan for long horizons so being in very low volatility and low return investments is a risk in itself.Rather then create a major debate about asset classes...If I felt the options are limited I would take a slight amount of the money and invest it in further education to better understand what is possible in such economic times.$400K seems to be a lot for someone's short term cash needs. Even a ladder of CDs implies that not all the funds in the ladder are needed in the immediate future so funds are pushed out and a higher rate of return is locked in.Maybe all I am showing is my lack of understanding of how some view their investment options and investment horizons. That would be my problem so I am more then willing to take responsibility if that is the case.Still amazed.John B. Corey Jr.
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