Discussion on inflation and reserve funds
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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