Goldbug, has your bonds produced the income/return you were looking for this year?

Goldbug wrote:

FrankN wrote: What kind of bonds are they?

I don't like detailing my finances but the backbone of it is in Treasury I bonds ( FAQ here ). I bought issues at different times so there's some older (pre-2005) EE bonds in there. As I mentioned, the income isn't great but it is inflation-proof and is largely a hedge against the stockmarket. There are a few corporate bonds I also hold as a fallback, but they have less security.

And I didn't mean to divulge into your personal finances I was just curious what kind of bonds in general, but it sounds like the total portfolio is working well for you. Glad to hear it!

FrankN wrote: What kind of bonds are they?

I don't like detailing my finances but the backbone of it is in Treasury I bonds ( FAQ here ). I bought issues at different times so there's some older (pre-2005) EE bonds in there. As I mentioned, the income isn't great but it is inflation-proof and is largely a hedge against the stockmarket. There are a few corporate bonds I also hold as a fallback, but they have less security.

What kind of bonds are they?

I've got a couple of 3-year investments, which I've been holding for nearly ten years now. Each time I just check that I can do without the funds right now, that I am happy with the returns, and each time so far I have let them roll over. They are bond accounts, so it is not possible to release funds early and the returns are fixed, but it is a lot more secure than shares so I tend to view it as insurance in case the stock market crashes.

Do a search of the worldwide web and view the various results. You could include savings accounts and certificate of deposits. On line banks tend to have the better rates but often do not have walk in branches. Expect you could find around 1% for short term and 2% for a CD out five years. Credit Unions have often provided good rates as they are not-for-profits and can pass that benefit to their customers. In today's financial environment ... burying cash in the back yard in general is about where it is at. Ally Bank, Sallie Mae Bank, Discover Bank, Navy Federal CU along with Pen Fed CU are starting points. Fidelity Rewards Visa Signature has a Visa Card (2% rewards no AF) and it could link to a Cash Management Account, 529, brokerage account and other giving you a wider array of options and they have been some good comments on the account.

What is the best thing to do? I look at interest rates on CDs and savings account and they are terrible. I'm just before going to bury my money in the back yard. Seriously, what is yielding the highest these days?

I would always recommend to research the market and re-evaluate your investments. Your time horizon, your risk tolerance, and your perspective on the market may have all changed. Its not necessarily a bad idea to rollover, but you should research your option before.

FrugalFran wrote: I have a couple of CDs that are locked in like that. I usually don't reinvest the money in the same place because while it's locked in, I research and come up with a better plan for it.

I do the same thing. I always research new ways to make more interest on my money. I rarely roll it over, I reinvest it a different way. I'm researching right now because I have a couple of CD's ready to mature.

That is a good idea. That way it gives you more a plan for the future.

Thanks for the ideas and tips. I am pretty sure lots of people just let investments rollover as they don't take the time to research other deals around. Maybe timing is to blame for that too. I plan to set a reminder for myself six months before maturity, so I am not caught out.

I would also agree with the advice below. You need to look at what returns you are getting and ask yourself if you need the money over the next 1, 3, or 5 years. It is always good to go out there and research to find the best possible rate at the lowest possible risk.

Right before the time is up I usually do some research and find out where the next best place would be to put that money. I really don't want to cash it out just yet because I'm afraid that I would do something crazy with that money. I think it's best if it is put away then that way I won't want to touch it.

I have a couple of CDs that are locked in like that. I usually don't reinvest the money in the same place because while it's locked in, I research and come up with a better plan for it.

Does anyone here have a savings plan that is tied up for a fixed term like 1,3 or 5 years? if so, what do you generally do when the term is up; let it rollover or cash out and perhaps reinvest elsewhere?