You could look into MYGAs. Multi-year guaranteed annuity. They are CD like in many ways in that they accumulate interest for "x" years and then you can transfer the money into whatever account you want. They are NOT insured by the FDIC although state insurance will cover them up to a certain dollar level so it is best to invest in higher quality companies.

I'm not fond of insurance companies so I reluctantly invest in a few of these and usually for 3 yrs although I do have one 5 yr term all paying 5%+ per year.

You can see rates at places like immediateannuities.com

At the bogleheads forum they have a long thread with a lot of useful info and an ex-insurance executive who answers questions and he isn't someone who pushes most insurance products (he is anti-variable annuities for example).

Definitely worth looking at depending how much you are investing. You can still get 5% from some A- rated companies for 3 yrs. I used them along with a bunch of treasuries (nominals as well as TIPs) for my fixed income investing.


Rich

Retirement Investing FAQ

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