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CD Tips To Ponder

Wednesday, February 6, 2013 - 9:22 AM
From Bankrate.com:

http://www.bankrate.com/finance/s...he-sec.asp

Some advice as a reference.

"If you are comfortable taking some risk with principal, it could pay to venture out of the CD realm and into those bonds, structured notes or dividend stocks that we just warned you about. After all, leaving your money in CDs is also risky -- you may not lose principal, but you will lose purchasing power if inflation exceeds the yield you're getting, which it most assuredly will. Allocating 10 percent or 20 percent of your portfolio to other fixed-income investments can help you achieve the yield you're looking for."

The Bond Market behaves like a stock market recently.  A diversified equity portfolio with stock funds (maybe 10% - 20% of one's total portfolio) may be the way to go (To each his own though).
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