|Discussion on inflation and reserve funds||<– Date –> <– Thread –>|
|From: Leigh Stork (txbicyclecamping62yahoo.com)|
|Date: Fri, 17 Aug 2018 23:42:03 -0700 (PDT)|
Discussion on inflation and reserve funds. Brian is a proponent of the Austrian THEORY of economics. There are other theories of economics. One way to get a higher rate of return on reserve funds would be to invest at least part of the reserve funds in the T. R. Price Spectrum Bond fund. This diversified fund of many different classes of bonds provides a higher rate of return for slightly higher risk. There are other bond funds like short term bond funds that would provide a risk/reward ratio higher than the laddered CDs, municipal bonds, municipal bond funds or money market funds. The key questions on much of this is: how long before you will need the money, how much money will you need, and how much money do you have. You get both more safety and a higher rate of return with a mix of different asset classes. Figure out a chart with: this is the estimate of when we will need money, for what projects, and for how much. Then match the amount of risk you are willing to take and the corresponding investment with your needs for the money, amounts, and timing. Lee StorkMBA Finance Michigan State50 years of personal investment history
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