Fixed Income

Currently, the yield on money market accounts is less than 0.5%, in many cases, considerably less than that. I would not, at this point, invest in money market vehicles unless you have nowhere else to park your money. Five year certificate of deposit (cd) rates are close to 3 per-cent, but this is an historically low yield and I would not invest in them at this time. If you have a large amount of cash, you might consider a strategy whereby you purchase some 3 year cd’s, in addition to some 1 year, 9 month, 6 month and 3 month cd’s. As each cd matures, you can re-invest it as you see fit. Hopefully, you have the option of a higher yielding option, such as a stable value fund. Stable value funds may currently only be offered as part of an approved pension plan. If your plan offers one, you should consider it. Such options include the MetLife Stable Value Fund and the Teacher’s Insurance and Annuity Association (not a stable value fund per se, but offering a similar yield).