Couric: Stocks Too Risky? Try Stamps
With all the doom and gloom talk about the economy, especially on âCBS Evening News,â anchor Katie Couric touted a âsafer investmentâ on February 11.
Couricâs magic bullet was a sure thing â unlike trading in a booming Asian stock market, speculating on the price of oil or gold or gambling in
âAnd are you looking for a safer investment than the stock market these days?â Couric asked. âWell, how about postage stamps? The post office announced today the cost of first class postage is going up a penny in May to 42 cents. So if you buy one of those Forever Stamps now for 41 cents, itâll be worth 42 in May. Return on your investment, 2.4 percent tax free.â
Yes, Couric recommended investing in the âForever Stamp.â The âForever Stampâ is offered by the U.S. Postal Service, and costs the same price as a first-class postage stamp, but is always good for first-class postage, regardless of any increase in postal fees. Couricâs suggestion implied flipping those stamps when the postage rate goes up to 42 cents on May 12 for a penny-per-stamp profit.
So, if you bought 100 "Forever Stamps" before the price increase in May, you would save an entire dollar on that postage.
The only problem with that â2.4 percentâ return Couric mentioned is that the post office wonât be giving you a penny back each time you use a âForever Stamp.â Not exactly a sound retirement strategy.
While a guaranteed 2.4 percent return wouldnât be bad, itâs less than other safe investment options. For example, the yield on a one-year certificate of deposit at many banks has a higher return of 3.5 percent, according to BankRate.com.