Subject: How to maximize returns on your short- and long-term cash

From: Schwab August/September eBulletin <[email-masked]>
Date: Tue, 29 Aug 2006 15:58:46 -0600

Charles Schwab and Co., Inc.
eBulletin
August/September 2006
A Monthly Newsletter for Schwab Independent Investors 

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What About Cash?
by Rande Spiegelman, CPA, CFP(R), Vice President of Financial
Planning, Schwab Center for Investment Research(R)

At times, depending on what's going on with the markets, the
economy and interest rates, you might hear some financial gurus
warn, "Cash is trash!" Other times, these market mavens might
proclaim, "Cash is king!" In fact, it's not unusual to hear both
points of view at the same time. 

One thing's for sure right now -- after years of relentless
tightening by the Federal Reserve -- money market yields are more
attractive than they've been in a long, long time. So, is cash
royalty or refuse -- or neither? As usual, the answer depends on
your situation and financial goals.

Read More
http://q1.schwab.com/s/r?l=126997&m=100380005yjpp00092125d 

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How to make your cash work harder

The recent pause in the Fed's long string of interest rate hikes
presents an opportunity to evaluate your cash strategy. With
more increases uncertain, what's the smartest way to invest your
cash? The answer depends on your time horizon. How much of your
cash will you need tomorrow or in six months? Can you invest a
portion of your cash for a longer term, say, one to three years?
The longer you can invest, the greater your potential to benefit
from the higher yields that are now available. 

o A portion of your cash typically needs to be readily available
  to facilitate the purchase of securities and pay periodic
  expenses. This short-term cash is usually invested in highly
  liquid assets such as money market funds. You can earn as much
  as 4.7% interest on your cash with Schwab Money Market Funds. 

  Money Market yields as of 08/17/06. Yields quoted are past
  performance and no guarantee of future results. 

  Learn More 
  http://q1.schwab.com/s/r?l=126998&m=100380005yjpp00092125d

o Keeping a portion of your cash in longer-term CDs reduces your
  overall portfolio risk by protecting a portion of your
  portfolio from market decline.
  
  o If you know exactly when you'll need your money or if you
    want to lock in an interest rate for a specific period of
    time, you can choose a CD with matching maturity date. Find
    rates as high as 5.35% (as of 8/17/2006) on CDs with terms
    of three, six or twelve months with Schwab CD OneSource(TM),
    a marketplace of a hundred CDs from banks nationwide.
	
    Login For CDs
    http://q1.schwab.com/s/r?l=126985&m=100380005yjpp00092125d
	
  o If you are looking for higher yields on your cash with only
    marginally higher risk, the Schwab YieldPlus Fund(R) could be
    a smart alternative. It has a minimum investment of just
    $2,500 or $1,000 for retirement and Custodial accounts.
    Because this is an actively managed fund for which the net
    asset value can fluctuate, it provides the most benefit if
    held for at least one year.
   
    YieldPlus
    http://q1.schwab.com/s/r?l=126993&m=100380005yjpp00092125d
   
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next issue. 

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Looking for high-yield CDs? 

5.35% APY 3-month CD as of 08/17/06 

Schwab CD OneSource(TM) Go >>
http://q1.schwab.com/s/r?l=126985&m=100380005yjpp00092125d
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Investor Highlights

Join us for the webcast "Investing Globally: Current Views and
the Long-term Outlook"

Tuesday, September 19, 2006
7:00-8:00pm ET (4:00-5:00pm PT) 

Gain insight into Schwab's current views and long-term approach
to international investing when Liz Claman, anchor of CNBC's
Morning Call, hosts Liz Ann Sonders, Jeff Mortimer and Don
Elefson at a live Town Hall from Atlanta, on September 19. Our
guests will discuss how to look across the wide range of
developed and emerging markets to find opportunities, sectors to
consider in these markets, the political issues to be aware of
and how fund managers are allocating assets around the world.
Liz Ann, Jeff and Don will be joined by other Schwab financial
experts to answer questions from investors in our studio
audience, online and on the phone. 

Register Now
http://q1.schwab.com/s/r?l=127001&m=100380005yjpp00092125d

Liz Ann Sonders
http://q1.schwab.com/s/r?l=126990&m=100380005yjpp00092125d

Jeff Mortimer
http://q1.schwab.com/s/r?l=126991&m=100380005yjpp00092125d

Don Elefson
http://q1.schwab.com/s/r?l=127004&m=100380005yjpp00092125d

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Charles Schwab Bank Offer

3rd-party research reports.

Learn what the experts at Goldman Sachs, Reuters, and other top
firms say about investments you're considering. 

Click below to access reports.
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