Originally Posted by
Gunfighter
I'm looking for the best entertainment ROI not financial. Ferrari definitely wins that comparison. The more accurate comparison would.be new Miata vs used Ferrari.
IMHO capital that doesn't beat inflation should be liquid not tied up for months or years at a time. TBills, CDs and cash are simply storage places where money sits while the investor is finding a purpose for it. Cash is like short call, the purpose is being "promptly available" if needed.
Exactly this. That 5-6% isn’t “risk free”. It doesn’t even beat inflation! This is a losing investment! So your cash is tied up for what, 2, 3, 5 years? Shoot, you could’ve put it all in the S&P and in 5 years, dollars to donuts you’d at least have beaten inflation! Short term CDs should be used in lieu of a savings account for when you need to set cash aside for a purchase next year.