What is the best financial vehicle to put away money over time other than a savi

  1. Eugene Hardy profile image59
    Eugene Hardyposted 6 years ago

    What is the best financial vehicle to put away money over time other than a savings account?

    In the old days a savings account with 4% interest would be OK to park your money, but at 0.50% on savings your money could work better in another financial vehicle.

    But which one?

  2. DowntroddenInDC profile image84
    DowntroddenInDCposted 6 years ago

    Perhaps a short term indexed bond fund? Something with low turn over, and a shorter average bond maturity (less than 3 years). Just remember the more you chase yield, the more risk you're taking on. Also, with interest rates being so late, you'll get burned huge if interest rates go up (bond prices go up when interest rates go down).

    I'd stick with CD's and perhaps lock in longer terms (60 mo) for money you absolutely need for emergencies.

 
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