Higher yield strategies for your money

From Money magazine

TIMELINE: 1 year or less
OBJECTIVE: Best yield while taking NO risk
STRATEGY:

• Bank CD
• Bank money market account
• Money market fund
• Treasury bill

TIMELINE: 5 to 10 years
OBJECTIVE: Beat short-term yields while taking NO BIG risk
STRATEGY:

• 50% - Bank CD ... Bank money market account ... Money market fund ... Treasury bill
• 25% - Bond market index fund;
• 25% - High-yield or junk bond fund

TIMELINE: 10 to 20 years
OBJECTIVE: Diversification 101
STRATEGY:

• 20% - Bond funds;
• 30% - Growth funds;
• 50% - Equity-income fund

TIMELINE: Rest of your life
OBJECTIVE: Current income while beat the inflation
STRATEGY:

• 35% - Bond market index fund;
• 20% - High-yield or junk bond fund;
• 45% - High-yielding stock funds