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> Amusingly, municipal bonds are in the top 4 likely candidates for our next set of major financial problem There's several kind of muni bonds, however, each w
by strlen 16y ago
> Amusingly, municipal bonds are in the top 4 likely candidates for our next set of major financial problem
There's several kind of muni bonds, however, each with their own set of trade offs. The higher yield, the higher the risk. Some are guarantees, but only offer a very low yield. If the guarantees lapse, the problems are likely to be very deep, irrespective.
For what it's worth, I'm sticking with FDIC insured bank CDs across two banks, but I my expectation is more of "retain value" rather than "investment".
- illumin8 16y agoInsurance annuities are not as risky as municipal bonds. What's more, your state's insurance commissioner guarantees them, similar to the FDIC guarantee on deposit accounts, up to a certain dollar amount (I think it's something like $100K). So you have $2 million in F-you money? Stick $100K each into 20 different insurance company annuities (staying below the guaranteed amount and diversifying your risk) and enjoy guaranteed monthly (inflation adjusted) checks for the rest of your life. The only thing that will stop your income stream is the complete destruction of the entire US financial system. I suppose that is possible, but if that happens your money won't be safe anywhere, except perhaps gold bars buried in your back yard...