Al Jacobs Talks Interest Bearing Investments

In the latest Al Jacobs newsletter he talks about interest bearing investments, what kind of interest rates are possible and the return they can generate after long periods. His main focus is on high grade corporate bonds and suggests that these investments should be apart of everyone's portfolio and not just the rich as commonly thought! It's a good read.

Maximising Interest Rate Returns
"Before I get into specifics, I'’ll acknowledge that, from today'’s perspective, an anticipated annual 7.5% return may seem somewhat optimistic —though not as outlandish as it would have seemed in mid-2004 when both money market funds and savings accounts were yielding less than 1 percent. Since that time the Federal Reserve Board'’s 17 successive 1/4 percent rate hikes have brought the current Discount Rate to 6.25% and the prime to 8.25%. As a result, FDIC-insured bank savings accounts at 5% and 12-month CDs at 5.75% can be found."
On The Money Trail

# Retirement Planning News, Stock Market News