In an great article on CNN Money, US treasuries are shown as not always being a safe investment. Reason? Because interest rates can go up. In short, interest rates rising will have a serious effect on an investors return on money.
As stated in the article "I hope that you now get the larger point: that you're putting your capital at serious risk if you make a long-term loan to the safest borrower in the world, the U.S. government. Sure, getting your interest and principal from Uncle Sam is guaranteed. But that doesn't mean that you're making a safe investment. Be warned."
The complete article can be found here:
http://money.cnn.com/2010/05/17/markets/treasurybonds_safety.fortune/index.htm
Once again, FIA's show up as the best option for safe money!!
Keep up the great work and remember you provide your clients the greatest service out there.
Stay Focused.
MJN
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