Coping with Low Interest Rates

Many investors pine for the days of high interest rates on certificates of deposits and other savings, and if we all live long enough, those rates may return. But what can you do in the meantime?

• Comparison shop for CD rates. You may be able to boost the yield from CDs and still maintain liquidity by staggering your investments. For example, if you currently have $50,000 invested in short-term CDs, consider putting $10,000 each in one-, two-, three-, four- and five-year certificates. As each CD matures, purchase another five-year certificate. Staggered maturity dates mean you will have a CD maturing each year.

• Consider municipal bonds. For investors in high income tax brackets, municipal bonds can offer greater security than many corporate bonds, plus tax-free income. Yields are generally lower than corporate bonds, but federal and in some cases state tax savings make the after-tax yields higher.

• Consider a gift annuity. For your gift of cash or stock, we will pay you a fixed income for life. Furthermore, you’ll receive a charitable deduction and the satisfaction of making an important contribution to our programs. Call us for details.

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