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lee kramer

08/25/03 4:55 AM

#144289 RE: Benj #144281

Hi Benj: Big Serious Money is money you may want for retirement. Or money to pay for kids college. That kinda money should not be in stocks, it should be in US Government T-notes or bonds, preferably selling at, near or below par (100). You want that money to be there when you need it. In the meantime you earn interest. Example: You buy some 10 year T-notes with a 4% "coupon" [currently they are yielding 4,38%]. There's something called the Rule of 72; Divide the yield into 72 [in this case 4 into 72]... the result is 18. In 18 years your principal DOUBLES, and over those 18 years you receive your 4% which the government pays semi-annualy. Why US T notes or bonds when you can get higher yields elsewhere? Because the US government is probably the safest, least likely to default. Nice to see you back Benj.

onedrill

08/25/03 6:08 AM

#144297 RE: Benj #144281

Did you just get back from Moran?