Comments on: A Comparison of No-Risk Investment Options http://www.finetunedfinances.com/2009/03/a-comparison-of-no-risk-investment-options/ Make Your Wallet Run Like New Again Fri, 12 Mar 2010 22:26:12 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Jason Van Steenwyk http://www.finetunedfinances.com/2009/03/a-comparison-of-no-risk-investment-options/comment-page-1/#comment-224 Jason Van Steenwyk Mon, 16 Mar 2009 17:19:09 +0000 http://www.finetunedfinances.com/?p=367#comment-224 You have a 10 year strategy and you want to use CDs? Good God, man, why? If principal protection is what you want, you're still better off with that money in a fixed deferred annuity than in a CD kicking off taxable interest. You still get the downside protection. You don't have surrender charges after 10 years (with most products anyway). It's a better deal even with the fees and commissions associated with an annuity. At any rate, you don't think mutual funds have fees and commissions? Are you even comparing apples to apples? I think you're being penny wise and pound foolish. With a 10 year strategy, an annuity backed by a AAA rated company is going to give you much more in your pocket, after taxes, and a AAA-rated company is going to be on a sounder footing than the woefully under-capitalized FDIC, which is currently begging congress to increase their line of credit. You have a 10 year strategy and you want to use CDs?

Good God, man, why?

If principal protection is what you want, you’re still better off with that money in a fixed deferred annuity than in a CD kicking off taxable interest. You still get the downside protection. You don’t have surrender charges after 10 years (with most products anyway). It’s a better deal even with the fees and commissions associated with an annuity.

At any rate, you don’t think mutual funds have fees and commissions? Are you even comparing apples to apples?

I think you’re being penny wise and pound foolish. With a 10 year strategy, an annuity backed by a AAA rated company is going to give you much more in your pocket, after taxes, and a AAA-rated company is going to be on a sounder footing than the woefully under-capitalized FDIC, which is currently begging congress to increase their line of credit.

]]> By: Online Bank CD Rates http://www.finetunedfinances.com/2009/03/a-comparison-of-no-risk-investment-options/comment-page-1/#comment-190 Online Bank CD Rates Thu, 12 Mar 2009 03:25:45 +0000 http://www.finetunedfinances.com/?p=367#comment-190 That is a very unique investment strategy. Basically using the the interest on the CD to hedge your stock bets. A 10-year CD may not be the best option at this time though. It may be wise to do the same thing, but have a laddered CD portfolio with varying maturities. That is a very unique investment strategy. Basically using the the interest on the CD to hedge your stock bets. A 10-year CD may not be the best option at this time though. It may be wise to do the same thing, but have a laddered CD portfolio with varying maturities.

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