From: bondguy1824 
Newsgroups: misc.invest.financial-plan
Subject: Re: need advice
Date: Fri, 19 Oct 2007 09:30:35 -0500
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On Oct 19, 5:01 am, "M.Balarama"  wrote:
> I have over $150,000 in CD that gives me 5.3%-I get about $800 a month...I
> need the income---like the safe principle--but would be willing to risk
> principle for a higher rate paid out at least quarterly..
> any idea?/
> thanks
> Michael

Michael,

    You could buy a high rated preferred.  Generally, they pay
quarterly.  You aren't going to get the safety of FDIC insurance, but
there are double and triple-A rated issues that should provide you
with enough piece of mind.  Preferreds these days are really 30-year
or longer maturity bonds that are callable anytime after five year.
Usually they are issued at $25 par amount and are listed on the NYSE.
The most important thing to keep in mind that as securities, unlike a
CD, their price will fluctuate with interest rates, credit events,
liquidity, and any other risk associated with bonds, sometimes more so
given the maturity and whether the call is "in the money" or not.  You
may be to purchase one that is QDI eligible, where the dividends are
taxed at 15% rather than ordinary income.  You can purchase them
through any broakerage firm, but I would suggest dealing with one that
knows tha product well so as to explain all the ins and outs.  Hope
this helps.