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

Tuesday, March 9, 2010 - 9:25 AM
From Bankrate.com
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.
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Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
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.
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AnonymousAnonymous2,282 posts since
May 9, 2010
Rep Points: 3,922
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