On Thu, 17 Sep 2009 13:31:45 -0400, Wayne.B
wrote:

On Thu, 17 Sep 2009 06:53:29 -0400, JohnH
wrote:

Given - CD maturing. Amount sufficient to pay off mortgage. Mortgage
rate is 5.25%. New CD rates - 3% for five years, 4% for seven years.

What would you do?

Stock market exposure is high enough.

Will be at the golf course pondering the situation. Back later.

No, I don't want to buy a red barn.

There is a strong probability that we will be heading into a highly
inflationary economy some time in the next few years. If so, 5%
mortgages of any kind will be totally unobtainable and cash will be
trash. I'd consider splitting the cash between two exchange traded
funds: TIP (Inflation protected treasury notes), and GLD, a gold
fund. For high current income and inflation protection consider LINE
(Linn Energy), currently yielding 11.6% and with a *lot* of oil in the
ground.

http://finance.yahoo.com/q?s=TIP

http://finance.yahoo.com/q?s=gld

http://finance.yahoo.com/q?s=LINE


Thanks, Wayne. Right now I'm not interested in putting more into the
market. This is purely a CD vs mortgage decision.
--

John H