New Book - Coming November 2010

New Book - Coming November 2010
Help! My 401(k) Has Fallen - And Must Get Up!

Monday, April 20, 2009

Muni Bonds vs CDs

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 .

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