I don’t think you are ready yet, but an alternative to CD’s that you may want to start watching or learning about is Private Money Mortgages. Don’t do 2nd TD’s; stay in 1st TD’s. With much of the air out of the bubble, a well secured (65% Loan/Value) 1st Mortgage (TD) can yield 8 -10%. If you believe the market will drop 35% from here, even a 65% LTV will not be safe enough.
TD’s are not insured and are not liquid when times are tough, but absent a terrfic downdraft in values, they typically yield 3-4 times CD rates and are reasonably safe when made properly.
Institutional financing has gone from stupidly loose to stupidly tight. That is providing a fantastic market for private money lenders. We can now get reasonable to terrific LTV’s as well as great yields and often great credit.
