Quote:
Originally Posted by wdfifteen
Locking in returns locks you away from your money. I'm assuming, at her age, she is not investing to build a portfolio, but to get the best return on money that will be for her own needs over the next months and years. I could be wrong. Shawn did not mention what her goals were, so all advice here must be based on assumptions.
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NOPE! It absolutely does not "lock you away from your $$$" ... that's utter nonsense
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Individual corporate bonds, Brokerage offered CDs (from lots of banks), and even treasuries have secondary markets that are traded daily ... just like equities. The coupon rates are guaranteed until the maturation date, and if Fed tightens their rates .... and they will start, but I have no crystal ball... then they can be sold for more than they are worth today. Meantime all future purchases will not have the same yields as today. Short term is attractive now.... won't be as attractive a year or so from now.
HTH ....