HW "Skip" Weldon wrote:
- quote -

On the risk/return scale, it seemed he was asking for next higher thing.
The fact that T-bills are not FDIC insured is a 'good thing', they are
backed by a higher authority.

Joe

www.joetaxpayer.com << now, without the stupid "blog' subdomain.

On Apr 21, 2:06 pm, "Gil Faver" <rowdy'sb...[at]xxyz.com> wrote:
- quote -

you are right, I'm confused. T-Bills seem to have lower rates than
CDs, so why would one invest in that? I guess I'm basically looking
for the next risky thing above CD.

<nonsense[at]mynonsense.net> wrote in message
news:d03eef1f-87cc-4568-9d2d-9b62c4f9203a[at]s16g2000vbp.googlegroups.com...
- quote -

That is correct. In order to get more you must take some risk.
Link to best CD rates:
http://www.bankrate.com/gookeyword/r..._cd_best_rates

On Apr 21, 11:57 am, "Alvin" <ac...[at]muncher.com> wrote:

- quote -

The rates seem half of what CD's are offering, i.e just 0.1-0.3 %?

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:iarru4hnpa36483bf59ibe7gbk86j7571t[at]4ax.com...
- quote -


you are dancing this guy around in circles.

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:iarru4hnpa36483bf59ibe7gbk86j7571t[at]4ax.com...
- quote -

http://www.treasurydirect.gov/RI/OFBills

On Tue, 21 Apr 2009 10:04:41 -0500, nonsense[at]mynonsense.net wrote:


- quote -

Arguably the closest thing to a short-term FDIC backed CD is a T-Bill.
For more, Google on "Treasury Bills".


-HW "Skip" Weldon
Columbia, SC

On Apr 20, 6:27 pm, "HW \"Skip\" Weldon"
<skip5700removet...[at]yahoo.com> wrote:
- quote -

Sure, what would be the next level of investment above CD, but
without FDIC insurance?

"HW "Skip" Weldon" <skip5700removethis[at]yahoo.com> wrote in message
news:veppu41egp315j1hsrr2su79vu9c91c8m9[at]4ax.com...
- quote -

or, you could shop around and get the best rate you can find for an FDIC
insured investment. It might not historically beat inflation, but that is
no reason to throw in the towel and accept the worst CD rates out there.

On Mon, 20 Apr 2009 12:25:12 -0500, nonsense[at]mynonsense.net wrote:

- quote -

The benefit of a CD is not the return. Historically, net of inflation
and taxes the net-net return is negative.

The benefit - the importance of which varies from saver to saver - is
that most CDs bring with them FDIC coverage up to the insurance limit.

To try for a higher return, you're going to have to give up the FDIC
coverage - so are you willing to do that? Your answer to that
question will help us give you suggestions.

Two other points:
1. One of the risks of investing is that we don't know what all of the
risks are.
2. The best investments are those you understand.





-HW "Skip" Weldon
Columbia, SC

On Apr 20, 1:34 pm, PeterL <po.n...[at]gmail.com> wrote:
- quote -

I have a SEP with Fidelity so am limited to what CD's they have. They
do have an exhaustive list, and all are between 0.5% for short term
and 1.5% for long term ( > 3 years ).

I notice Citibank is offering a nice 12-month cd at 2.5%, but I can
not use that one.


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On Apr 20, 10:25*am, nonse...[at]mynonsense.net wrote:
- quote -

Indeed they have fallen dramatically. Even if you shop around,
the highest rates are < 3% and falling rapidly.

If you're looking for super-safe stuff, I'd recommend staying
away from bonds. The way the market has been, you cannot
even trust the ratings agencies, so the AAA rating of bonds
is meaningless. Stick with the CDs and treasuries for now
(and treasuries are offering even lower rates than CDs but if
you have millions to stuff, that may be your only choice).

You could also look into buying I-bonds through your bank
or treasurydirect, but there is a $10K limit on those ($5K paper
+ $5K online). The rates on those vary with inflation. The
interest is exempt from state income tax, and federal taxes
can be deferred to when the bond is redeemed.
http://www.treasurydirect.gov/indiv/...res_ibonds.htm

Read up some place on tax-free vs taxable bonds/bond funds.
Almost any book on investments and/or financial planning
will cover the topic adequately. You could start here:
http://www.investopedia.com/university/bonds/

In general, corporate bonds are taxable, treasury bills/bonds
are exempt from state income tax, and municipal bonds are
exempt from both state and federal income tax.

Anoop

On Apr 20, 11:29*am, Bill Woessner <woess...[at]gmail.com> wrote:
- quote -

Yes do shop around, although it's nothing great, but certainly more
than 1%. My bank money market acct is 1%, so a CD should be higher.

On Apr 20, 1:25*pm, nonse...[at]mynonsense.net wrote:
- quote -

You need to shop around. My bank is offering 2.15% with $1K minimum.
GMAC is offering 2.75% with $500 minimum. Of course, it's debatable
whether or not GMAC will actually be able to pay that interest. But
at least your principal is FDIC insured.

--Bill

1-year CD rates are hardly 1% these days. It is hardly worth the
trouble of buying a CD at that rate. Is there anything else safe I
should invest in? I just an $20k CD mature and looking to put it the
money in a new investment. I have never investigated bonds, because I
don't quite understand how they work and all the tax implications
( i.e some seem tax-free,, others not ?)