Buying CDs (Certifcates of Depression) now must feel something like eating a stale leftover bologna sandwich (Ugh).
For those of you that simply need more income from your savings (everyone) and don't want the volatility of stocks - municipal bonds are a fantastic option. You can invest either in single bonds or mutual funds that hold munis.
I've already written about several advantages which muni bonds have over CDs right now - especially with interest rates on CDs being about the same as burying money in a coffee can in your backyard.
Franklin Templeton offers a great illustration on what your get (or don't get) with a CD. Over a 20 year period, investing in 6 month CDs would have gotten an average annual return of 0.64% after taxes and inflation.
Yes, that was 0.64% - not a typo. (Was that a Folgers can or Maxwell House?)
If you are not able to view the illustration, or would like more information on this or other investment ideas, please contact me at www.deanvoelker.com .