Offbeat Offerings: Certificates of Deposit

Financial Planning
How to Value a Stream of Payments
Are you overlooking a large pool of assets? That may occur when it is hard to put a number on an asset--for example, valuing a guaranteed steady payment stream, such as pension plan and Social Security payments, for retirees. Ignoring those assets may cause you to be too over-invested in fixed income.

Getting Started
Certificates of Deposit
A certificate of deposit (CD) is an interest-paying savings vehicle. A CD has a stated maturity date, a specified interest rate and can be issued in any denomination by commercial banks, thrifts and credit unions. Putting your cash reserve in a CD can earn you more interest than using a cash deposit account.

Features
Will Your Savings Last? What the Withdrawal Rate Studies Show
Determining a "safe" withdrawal rate for retirement savings is a tricky balancing act for retirees. If it is too large, they may run through assets too quickly, but if it is too little, their lifestyle will be below where it could be. Many studies have attempted to determine the "maximum" safe rate. Lessons from what the studies have found.

Stock Strategies
Money in the Bank: How to Find Opportunities in a Fallen Sector
In the past year or so, bank stock prices have fallen sharply. But declining stock prices yield opportunity. Many good banks have been tarred with the same brush as the troubled banks. How do you analyze a bank? A brief look.

Offbeat Offerings
Offbeat Offerings: Certificates of Deposit
An investor reference for products that are not your typical offerings. This issue's focus is on certificates of deposit (CDs).

Investor Professor
Stand Up and Be Counted: How to Value a Stream of Payments
Are you overlooking a large pool of assets? That may occur when it is hard to put a number on an asset--for example, valuing a guaranteed steady payment stream, such as pension plan and Social Security payments, for retirees. Ignoring those assets may cause you to be too over-invested in fixed income. But how do you value a stream of payments? A look at one approach

First Cut
The First Cut: Dividend Achievers
A starting point for investors. This issue's focus is on finding stocks with the highest long-term dividend growth rate, and stocks with the highest yields.

Stock Screens
The Election-Year Effect: For Now, 2008 Stock Market Bucks the Trend
So far this year, the market has been unable to overcome a series of obstacles, and as of the first week of June, the S&P 500 was down 7.3% This has carried over to the AAII stock screens: of the 56 screens tracked at AAII.com, only 20 are up for the year, although 43 are outperforming the S&P 500.

Investment Newsletters
Long-Term Newsletter Performance: It's Not Easy to Beat the Market
How have investment newsletters performed over the very long term? Overall, beating the market is a relatively rare phenomenon.

AAII Model Portfolios
Shadow Stock Portfolio Update and the Disappointing Election-Year Market
As of the end of May, micro-cap stocks continue to lag the market and the Model Shadow Stock Portfolio reflects that trend, with a weak three months. But even though the market appears gloomy, the bottom line is that it may be wise to stick with your long-term asset allocation or make only minimal adjustments.

Departments
Letters to the Editor
Member questions and comments on recent AAII Journal articles.

Departments
Briefly Noted
Current news items of interest to individual investors.