Re: Alternative to Money market Funds?...Yes!

"Nashville Pete" <[EMAIL PROTECTED]> wrote in message news:<[EMAIL PROTECTED]>...
> Look at World Currency Certificate of Deposit Accounts at everbank World
> Markets  www.everbank.com There are CD's in Euro's and AUS$ guaranteed by
> the FDIC yielding 1.25% and 4%. You do have a currency risk but frankly I
> believe the US$ is headed downward over the next 1-2 years at a minimum time
> frame. You get an extra kicker if the dollar declines further.

The key here is currency risk.

While I, too, believe the dollar will fall, no professional forecaster
has a better than random record of forecasting the dollar (ie throwing
darts at a board has the same chance of being right).

So I do not recommend taking on currency risk for the safest part of
your portfolio.  Normally interest rates are higher in other countries
for a reason, which makes their currencies more vulnerable.

If you want to take on currency risk, a better place to do it is by
buying a diversified international equity fund that does not hedge
currency.

> 
> Another choice is put your money in I-bonds. Buy them at your local bank
> branch. They are inflation protected government bonds available in as small
> denominations as $25 and up to $10,000. You can ladder them over time.
> Yields change every quarter. I have some money in Euro and AUS$ CD's and
> I-bonds.


I think there is an early redemption charge on I Bonds?
>