On Sun, 17 Sep 2006 14:33:52 -0500, Elle wrote:
- quote -

While IMO the above is a sensible advice, it may not be worth
the hassle -- the amount in question is just "a few thousand".
The difference 0.25% makes over 6 months when investing 5k is
about $6.25 (before taxes). Also, splitting the money into
multiple CDs may mean lower rates. If security is the prime
concern I would just put all money into a good savings account,
e.g. at emigrantdirect, and use the time thus saved on something
more productive or fun.

As you may be aware, what is called the "yield curve" is
just barely inverted or nearly so right now. This means
interest rate behavior by maturity is capricious, and many
short term vehicles pay better than long term ones. Right
now, I would find a good money market account and keep my
eyes peeled for shorter term CDs (six months and less) that
beat the money market yield by at least 0.25%, pouncing on
these every so often. At some point in the next few years,
the yield curve may return to what's more usual: Longer
maturities pay a higher yield. As rates seem to be
approaching that point, consider constructing a ladder of
CDs, with rungs say 6-months apart.

Bankrate.com gives a good idea of competitive CD and money
market rates.

For more on what the "yield curve" is, I think the following
is an excellent site, with wonderful emphasis on and
presentation of historical data:
http://www.smartmoney.com/onebond/in...ory=yieldcurve

MM wrote:
- quote -

first of all you have to define what you consider to be "better
option". Second there are tax consequences for Treasury vs CD vs money
market, depending on whether you live in a high tax state.

That said, I don't know if any of the three makes a huge difference.

- quote -

MM wrote:

- quote -

Impossible to say without knowing your tolerance for risk and the
make-up of the rest of your balance sheet. Also, I for one do not
consider 5-10 years a "short" period.

Any of the three investments you list are roughly equivalent, and will
create (potentially) taxable interest income annually. But they're
pretty safe, and should at least keep up with inflation.

Have you considered buying physical gold, i.e. coins? Based on the info
you gave, that could be your best choice. ;-)

-Mark Bole

If I have a few thousand dollars to invest over a reasonably short
period (5 to 10 years) which would be a better option for me:

Treasury Bond
CD
Money Market


Thanks,
MM