Last week, Forbes.com wrote the article, "Enhanced Yield: Buyer's Guide to Short-Term Bond Funds." They ask, "Where should you put your rainy-day fund?" The piece tells us, "A low-risk piece of paper from the U.S. Treasury yields 2.8%. You're probably not getting anything like that on the cash you have sitting in a bank. What follows is an instruction manual on extracting the most from uninvested cash. We'll look at money funds, CDs, bond ETFs, terminating ETFs and Treasury notes. Some of these options entail a bit of risk. All of them offer better returns than the stingy amounts paid on checking accounts." On "Money funds," Forbes writes, "These days the yield curve is rather flat, which is another way of saying that you don't get a particularly rich reward for stretching out the maturity of your fixed-income portfolio and taking the risk that rates will rise. So, there is much to be said for parking your cash in a money-market fund. You'll be at the low end of the yield curve but you won't be taking chances." The post adds, "The tricky business is attaching a money market fund to your transaction account (where you receive direct deposits and disburse electronic payments).... You can stash your rainy-day kitty in an exchange-traded fund that owns short-term bonds, those due in three years or less."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September