Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Best Way To Supplement CDs With Stocks?

Tuesday, December 27, 2011 - 7:19 PM
This New York Times article has an interesting portfolio to consider:
[The Larry Portfolio] tracks indexes that achieved nearly the same 10 percent annual return between 1970 and 2010 as a portfolio invested entirely in the Standard & Poor’s 500-stock index. And here’s the Larry Portfolio’s trick: It did so with less than a third of its money in stocks, with the rest in one-year Treasury bills.

Seems like one could replace one-year Treasury bills with CDs for even less risk and slightly better returns. That would especially be the case in today's environment when 1-year Treasuries have yields of only around 0.12%.

My Money Blog has a good review of this NYT article.
2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
Reply