Sir, I must report you to the moderators. To link Ameritrade with pimping is a serious slander on the honesty and integrity of pimps everywhere.
Personally, I go with the ultimate in safety with my fixed income. The Federal goverment has their own problems but they ultimately have the ability to print the money to pay me. What it does to inflation and purchasing power is anyone's guess. I think California has significant issues still to be resolved to remove my "credit risk" concerns.
I believe it's actual bonds, not a fund with bonds. Minimum purchase of $5k on specific dates.
True, I think these are only rated 1A IIRC.
Having once been abused (repeatedly) by Merrill Lynch, I can assure you that if they are making these available to small investors it is only because the big investors know better than to buy them. I wouldn't trust the ratings they have. They can change very suddenly and almost always not for the better.
The mentally challenged Meredith Whitney almost got yields to the pont where I would be interested, but not quite.
Since I will soon be a CA resident, I am looking into investing in a CA-focused muni fund to minimize what will be a rather high state income tax bill but so far I remain unenthusiastic about such funds for all the reasons outlined above. I might stick with a national muni fund.
Don't you just love to be one of those receiving CA pension payments.California has passed laws dis-allowing discharge of public pensions in bankruptcy, or even reduction of (to be earned) future pension benefits.
Most states have this sort of thing built into their legal machinery put in at the behest of the government worker unions. It's amazing how quickly they can be changed if the do-do really hits the spinning blades. I think Rhode Island had a similar law but it was amazingly modified when the entire state was faced with collapse. California may or may not avoid a similar debacle. I tend to think they won't but I also think the bond holders will ultimately be protected at the expense of the public employee pensions should the burden become unsustainable.Don't you just love to be one of those receiving CA pension payments.