Tuesday, March 9, 2010 - 9:25 AM

Can't Take the Low Bank Rates? Fixed income alternatives for retirees

With paltry interest rates on money market accounts and funds -- and yields on certificates of deposit not much better -- retirees are looking for safe alternatives.

The article doesn't give any new alternatives, but it does review the basic alternatives which include corporate bonds, munis, Treasuries, mutual funds and stocks.

KenBDG5,178 posts since
Nov 29, 2009
Rep Points: 117,676

1. Tuesday, March 9, 2010 - 4:31 PM

I decided to take the plunge last year and bought my first municipal bond. I get 5% for the next 10 years which is better than the 10 year T-note rate. I also got the bond on a discount when the subprime crisis resulted in prices dropping on a lot of securities. So my APY is actually more close to 7% with the maturing price appreciation. The bond is insured so that gives it a bit more protection with respect to repayment of principal and interest. So I get a nice interest rate (completely tax free!) plus capital appreciation upon maturity. CDs can't beat that.

Anonymous2,211 posts since
May 9, 2010
Rep Points: 3,219