|
Getting Higher Returns From CD's
Next articles: The Merriman Fright Simulator - One of the best-selling computer software programs of all time is Microsoft Flight Simulator, and we couldn’t resist a play on the name. We’ve assembled more than 324 month-by-month returns for seven investment strategies from 1972 through 1998 into an investment simulator. What investors want is a favorable final result. But to get that result, they may have to ride a very scary roller-coaster.
Can Buy-and-Hold Investors Beat Vanguard? - Our most highly recommended balanced buy-and-hold portfolio is made up of nine asset-class index equity funds and two asset-class bond funds by Dimensional Fund Advisors. These funds are available to most investors only through investment advisors. In the following article we compare the performance of the DFA portfolio with performance of three comparable portfolios composed of widely available no-load funds. And we compare a simple three-fund portfolio suggested by a popular financial columnist. .
In Stock Investing, Size Matters - In the late 1990s, many investors in U.S. equities came to believe that large-cap stocks such as those represented by the Dow Jones industrial average and the Standard & Poor's 500 Index were the only prudent place to put their money. For several years, they were rewarded for following that belief. But as we show in the following article, it isn't always that way.
The Best Investment I'll Ever Make, or How to Turn $10,000 into $20 Million - No, that's not a typo. In 1994 I made an investment that is likely to
grow from $10,000 to more than $20 million and you can do something similar.
I'll tell you how, however, this plan comes with a caveat: you probably won't
live long enough to see the final payoff.
A Great Gift You Can Give A Young Person -
|
by Paul A. Merriman
Publisher and Editor
If you invest in CDs, you can make your money do more for you. With a little savvy shopping, you can easily put more money in your pocket without taking any more risk. You might be surprised how much more you can make it you shop around for the best rate.
Start by shopping locally, beyond your own bank. Call around to banks and savings associations (and don’t forget to check your credit union if you belong or are eligible) in your own area. Then shop nationally. Every week, Barron’s publishes a list of top savings deposit yields. On the Internet you can search for the best rates in the country at www.bankrate.com by clicking on "high five" at the top of the page. This site will also send you free e-mail, if you wish, to keep you informed of the best CD rates. If you want somebody to shop for you nationally, stockbrokers can help. But you won’t necessarily get the highest rates.
We spent 20 minutes calling eight banks and one credit union in Seattle late in August asking for yields on one-year CDs for $5,000. We got quotes ranging from 5.0 percent at the state’s largest bank to 5.6 percent at a small community bank. In less than two minutes on the Internet, at bankrate.com, we found a rate of 6.2 percent offered by two banks: NetB@nk in Alpharetta, Ga., and Bank Direct U in Dallas. When we called a broker at Merrill Lynch, we were quoted a top rte of 5.65 percent. At 5.0 percent, a $5,000 one-year CD will mature for $5,250. At 6.25 percent, it will mature for $5,312.50. The difference, $62.50, can be yours in return for less than half an hour of shopping. For larger CDs, the differences are bigger, but the shopping takes no more time.
Source: http://www.fundadvice.com
|
Link to this article, just copy and paste following code:
<a href=http://www.investador.com/article29.html>Getting Higher Returns From CD's</a>
|
Article viewed 524 time(s). Read more: 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 |
|
