molifeney.com - Safety First

Safety First

In an erratic market it pays to have sound financial products in your Portfolio because you can bet that Uncle Sam won’t be passing the collection plate around for little old you or me. As faithful Molifeney.com readers you guys have already been schooled on the Beauty of Bonds as a safe investment. We’ve taking things a step further by putting together a list of some of the most conservative, yet best performing bond funds in the land for your viewing pleasure. These days you win by not losing, but you can’t win if you don’t play.

American Century Diversified Bond Fund (ADFIX): This bond fund invests at least 80% of assets in high- and medium-grade, non-Money Market debt securities. It ranks high on the Morningstar Credit Quality box and is a 5 Star Fund. It also has a one year return as of 9/30/08 of 5.52%

Pacific Income Advisors Moderate Duration Bond (PIATX): This fund has low expenses and the lowest initial investment requirement of the group at $1,000. It also ranks high on the Morningstar Credit Quality box.

T. Rowe Price

U.S.

Treasury Fund (PRTIX): Consider this fund the safest of the safe. It invests 100% of the assets in either U.S. Treasury securities or U.S. Government Agency securities so it is backed by the full faith and credit of the U.S. government. On top of that the one year return as of 9/30/2008 is a whopping 10.15%

If bonds don’t tickle your fancy, but you are still looking for a decent return on a safe investment then you may want to consider a Certificate of Deposit (CD). If you’re have problems stomaching the rollercoaster ride that is the stock market then check out these one year high fliers, they may be just what the Doctor ordered.

	Min Deposit	APR/APY	FDIC Insured
Capital One Direct Banking	$500	3.68%/3.75%	Yes
E Trade Bank	$1000	3.59%/3.65%	Yes
ING Direct	$1	3.93%/4.00%	Yes
GMAC Bank	$500	4.26%/4.35%	Yes
Nationwide Bank	$500	3.97%/4.05%	Yes