In article
<ceb2e8f5-c7a9-46c8-a354-7d8740cd7d62@[EMAIL PROTECTED]
>,
raylopez99 <raylopez99@[EMAIL PROTECTED]
> wrote:
> An investor I know wants to have income, capital preservation (very
> im****tant) and some small capital gains for $500k to be invested with
> a term of 3 years from today. Capital preservation is im****tant, much
> more so than capital gains. In fact, the investor has the entire $500k
> in jumbo CDs. Ironically, after three years the investor intends to
> speculate in commercial real estate. Go figure.
>
> I suggested that in lieu of CDs, there's probably an ETF/mutual fund
> that has short-term bond and/or conservative stock allocations that
> should outperform CDs--is this true?
If capital preservation is the first goal, then market exposure
is out of the question for a 3 year time frame. You need to
be looking at something that is guaranteed. I'd be looking at
brokered CDs and maybe a few of the highest rated cor****ate bonds
if they are high enough to juice the returns a bit.
-john-
--
======================================================================
John A. Weeks III 612-720-2854 john@[EMAIL PROTECTED]
Newave Communications http://www.johnweeks.com
======================================================================
--------------------------------------
Misc.invest.financial-plan is a moderated newsgroup where Moderators
strive
to keep the conversations on-topic for financial planning. Other posting
guidelines include a request for brevity and another for trimming posts to
which we respond. For all of the other tips and suggestions, see "FROM
THE
MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on
the
Newsgroup.
|
