EScroogeJr (< 20)

These investments should outperform CDs.

April 15, 2008 – Comments (3)

The interest on CDs and savings accounts is below the official inflation. The good news is, there are still safe investments offering a higher rate of return. These tax-free investment vehicles shold easily keep pace with real inflation, while comfortably beating the official inflation figures. Better yet, there are no frictional costs, and no need to cash out at any specific time. Here are some investment ideas for you to consider.

1. Salt, pepper and other spices.

2. Farina, oats, buckweet, spaghetti, dried milk and egg powder. 

3. Soap, shampoos, detergents, toothbrushes and toothpaste, shaving supplies and deodorants, diapers, napkins and toilet paper, garbage bags, aluminum foil, rubber gloves and paper towels. 

4. Wine and cigarettes.

5. Any types of clothing and shoes that are not meant to follow fashion tends.

6. Bed linen and underwear. 

7. Bricks, cement, oil paint, floor tiles, wallpaper and other construction materials. 

8. Notebooks, pencils, pens, printer paper, drawing pads, watercolors, crayons, scissors, glue and other such items.  

Investors with shorter time horizon should do well to consider such  investments vehicles as

9. Apple sause, cereals, Campbell soup, canned meat, sardines, honey and jams.

10. A year's supply of aspirin, tylenol, and multivitamins. 

Finally, if you have any delayed expences on low-tech and non-luxury items (used cars, basic furniture, plumbing system repairs, etc.), pay them now. By doing so you will avoid exposure to inflated prices farther down the road, effectively earning a higher rate of return than if you invest in CDs.