📢 We want to hear from you! Let us know what topics you want us to cover in 2025: forms.gle/bwmuPMJqytUyd72aA 💎Get our popular bond course bundle & save $80: www.diamondnestegg.com/home#_paa2isucf 💎Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners 💎Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters 💎And join our super-supersaver membership for regular market updates & monthly live member Q&As ua-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin >>>>>>>>>> WATCH NEXT >> Our Bond Courses vs UA-cam Membership | Which Is Right For You: ua-cam.com/video/H5h4Eyh0hjo/v-deo.html >> Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: ua-cam.com/video/uXPzbje1g2E/v-deo.html >> Bond Masters Course Sneak Peak | How To Build A Bond Ladder: ua-cam.com/video/p90IDmXn19s/v-deo.html >>>>>>>>>> SOURCES & REFERENCED VIDEOS 1. WEEKLY UPDATE: ua-cam.com/video/PUxnVzwwATg/v-deo.html 2. Corporate Bond Investing Videos: ua-cam.com/play/PLsv_4H5rP97FcOfmuWfbBZ-C24vZbmbSD.html&si=cZh3uBFdIItgYXsO 3. Agency Bond Investing Videos: ua-cam.com/play/PLsv_4H5rP97G839te4TerQ0E7jcejhnAi.html&si=MuszS2kkmkaTRL2l home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics www.federalreserve.gov/monetarypolicy/fomcpresconf20241218.htm treasurydirect.gov/auctions/announcements-data-results/ >>>>>>>>>> Here is the overview for Bond Beginners: 1. Bond Basics What A Bond Is & How A Bond Works Why Invest In Bonds New Issue vs Secondary Market Bonds Interest Rates & Bond Prices Current Yield & Yield To Maturity Always Remember This! Buying At Par, Above Par & Below Par Different Types Of Bonds Wrap-Up 2. The Risks Of Bond Investing Seven Key Bond Risks Credit Risk Interest Rate Risk Reinvestment Risk/Call Risk Inflation Risk Liquidity Risk Currency Risk & Country Risk Bond Risk Mitigation Strategies Wrap-Up 3. US Treasuries Overview What Are US Treasuries Why Invest In Treasuries Where Can You Buy Treasuries How Are Treasuries Taxed Wrap-Up 4. Treasury Bills What Are Treasury Bills (T-Bills) When Do T-Bill Auctions Happen Where Should You Buy At Auction Auto-Roll When Buying At Auction Where To Find Recent Auction Results High Rate vs Investment Rate Reopening Auctions Cash Management Bills (CMBs) Buying & Selling On Secondary Market Wrap-Up 5. Treasury Notes & Bonds What Are Treasury Notes & Bonds When Do Auctions Happen Buying Treasury Notes & Bonds Auction High Yield vs Interest Rate Floating Rate Notes (FRNs) Treasury Zeros (STRIPS) Wrap-Up 6. TIPS (Inflation-Protected) What Are TIPS When Do TIPS Auctions Happen Nominal vs Real Yields Negative Yields How Do You Adjust TIPS For Inflation Taxes On Phantom Income Secondary Market Liquidity Wrap-Up 7. I-Bonds (Inflation-Protected) What Are I-Bonds How Does I-Bond Interest Work I-Bonds vs TIPS The Annual I-Bond Limit Wrap-Up 8. Agency Bonds The Universe Of Bonds What Are Agency Bonds How Are Agency Bonds Taxed Treasuries vs Agencies Who Might Want To Consider Agencies Yield-To-Call & Yield-To-Worst Where Can You Buy Agency Bonds Wrap-Up 9. Municipal Bonds Our Bond Universe Gets More Complex What Are Municipal Bonds How Safe Are Munis How Are Munis Taxed The De Minimis Rule Social Security & Medicare Premiums Treasuries, Agencies & Munis Who Might Want To Consider Munis Wrap-Up 10. Corporate Bonds Our Bond Universe Is Complete What Are Corporate Bonds How Safe Are Corporates Corporate Bond Hierarchies Five Key Features Of Corporate Bonds How Are Corporates Taxed Treasuries vs Corporates, Etc. Who Might Want To Buy Corporates Wrap-Up >>>>>>>>>> Here is the overview for Bond Masters: 1. Stocks vs Bonds Historical Performance Are Bonds Really Less Volatile Why Invest In Bonds Accumulation vs Decumulation Allocation of Stocks vs Bonds Wrap-Up 2. Which Bonds Might Be Right For You Treasuries & Other Types of Bonds Nominal vs Real Yields Inflation vs Non-Inflation-Protected Taxable vs Tax-Advantaged Accounts Wrap-Up 3. Bond Ladders & Other Bond Strategies Normal vs Inverted Yield Curve What Is A Bond Ladder 5 Important Bond Laddering Questions Laddering When Rates Are Rising Laddering When Rates Are Falling Laddering When Rates Are Uncertain What Is A Bullet What Is A Barbell Wrap-Up 4. Holding to Maturity vs Selling Early Why Hold to Maturity When To Sell Early Before Maturity Tax Implications Of Selling Early Wrap-Up 5. Individual Bonds, Bond Funds, Etc. Why Buy Individual Bonds Why Buy Bond Funds Bond Fund Considerations Key Bond Fund Concepts CDs vs Treasuries Other High-Yield Investments Wrap-Up 6. Our B.E.S.T. Model Portfolios By Age Our B.E.S.T Model Portfolios By Age Model Portfolios In The Industry B.E.S.T Model Portfolio Difference How Much Do You Need To Retire? How I Use The Rules of 100, 110, & 120 B.E.S.T Model Portfolios (20s) B.E.S.T Model Portfolios (30s & 40s) B.E.S.T Model Portfolios (50s & 60s) B.E.S.T Model Portfolios (70s+) Wrap-Up 7. The Decumulation Phase What Is The Decumulation Phase? Bear Markets & Recessions What Can You Do In Bad/Bear Markets Decumulation Tax Considerations The 4% Rule The Bucket Strategy The Flooring Approach Jen’s Bucket Strategy With A Twist Wrap-Up >>>>>>>>>> Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY
Thanks, Jennifer. I grabbed the Jefferies Bond with a maturity date 15 years out, even though it'll probably be called early. But should it not be called earlier this maturity date suits me just fine. 20 yr and 30 year bonds do not. The time and effort you take to hunt these down is more than I have time for. So I really appreciate your work. Merry Christmas.
I prefer shorter dated bonds. The corporate bonds look interesting. Just wondering how safe they are? We are in such a volatile, weird time right now. Thanks Jen. We can always count on you and your team. Merry Christmas 🎁🎄
Do you have any statistics on how many callable bonds actually make it to maturity without ever being called? I seem to recall one of your videos from several years ago suggested that we never buy a callable bond.
My reason for moving to T-Bills was to have a monthly risk free income stream while the stock market goes through it's corrective phase. That has already started to play out with some S&P 500 companies trading at March 2020 levels. I'm not looking to lock in at 6% for the long term when stocks are down 35% or more. I'm sticking with T-Bills for now and investing the interest in carefully selected stocks that are trading well below their 200 dma.
I will always choose the highest coupon regardless of call date…because it softens my risk on the long end, which is risk number 2 mentioned. Short end risk is not as important in my opinion.
When a bond is called, is the idea to possibly redeem the bond well before maturity if the rate drops, in case that is not appealing to go with a lower rate? If it is redeemed way ahead of the maturity date (after the call and a potential rate/yield drop), is there a penalty for taking your money out of it? Thanks!
Can you do a session on after tax investement to minmize taxes i.e. municipal bonds/muni money market and thoughts on this? Trying to minimize taxes in after tax accounts for roth conversions.
Just wondering why there would be any tax issue in a Roth? Do you mean the tax issues at the time you convert from a taxable account into the Roth? Thanks.
Thanks! If you could also touch, even briefly, what is "Make Whole Call" and how to calculate the risk of a callable bond with this provision, that would be great!
People need to start realizing that inflation occurs with economical growth. High debt with shrinking economical growth in a services economy is disinflationary not inflationary. Inflation is coming down. Only way it goes up is if oil, metals and housing go up showing economic growth or checks to households while shutting down the economy. Also don't forget the fed is still in QT process and once they realize we are in a recession they will stop and that's when bond yields will come down.
Economic growth would mean more supply which would mean lower prices, the opposite of what you describe Inflation is always and everywhere a monetary phenomenon because only one institution controls the supply of money
@@brianborse3555 Nope. Prices always increase while economic growth is thriving. Jobs plentiful and expanding businesses. Deflation the exact opposite. 2000 and 2008 examples.
@gabrielw7773 This might be an issue of semantics: economic growth normally refers to increased productivity and expanded supply, which should lower prices if demand remains constant. Some people conflate growth with demand-driven expansions which outpace supply and hence results in higher prices; but true growth reflects sustainable productivity gains, while inflation often arises from unsustainable factors like excessive expansion of credit and the money supply. P.s. Keep in mind that the United States may feel like a closed system to the people who live there, but it is part of a global financial system, which adds complexity to consumption patterns
The bond market vigilantes know that inflation is going to rise and is way higher than the government stats. Large US labor unions are getting double digit raises. So why should anyone accept single digit long term bond yields. Fed only controls short term rates.
The fed owns most of the treasuries. They continue to sell theirs due to QT. They will soon stop once they realize the recession is here. Inflation is going down due to all economic indicators like oil, metals and homebuilders are all falling. Inflation is going down as inflation lags oil, metals and homebuilders, it's just that Fed is still doing QT and will stop once the stock market starts to crash with QE. 70's we were a manufacturing economy today we are a services economy which is disinflationary when you have high debt and shrinking economic growth. You have to have manufacturing and economic growth to have inflation or checks to households again while shutting down the economy.
Do you want to lock up your money for 10 years for 4%. No, neither do other people, so going to need to pay higher rates for longer-term investors to entice investors.
Can still get a 5.45% MYGA with a 6 yr term from an A-rated insurance carrier. Buy an amount that stays with your State Guarantor Association for it to be insured. MYGAs are the annuity/insurance industry version of a CD but with more options on how to take interest.. Can withdraw a certain amount each year (amount based on carrier), or draw some years and not others, take monthly payments for the term, take all interest and return of principal at end of the term so that it grows compounding, etc etc. No fees, no commissions. Solid, simple product. Good for the fixed income mindset.
📢 We want to hear from you! Let us know what topics you want us to cover in 2025: forms.gle/bwmuPMJqytUyd72aA
💎Get our popular bond course bundle & save $80: www.diamondnestegg.com/home#_paa2isucf
💎Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
💎Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
💎And join our super-supersaver membership for regular market updates & monthly live member Q&As ua-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
>>>>>>>>>>
WATCH NEXT
>> Our Bond Courses vs UA-cam Membership | Which Is Right For You: ua-cam.com/video/H5h4Eyh0hjo/v-deo.html
>> Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: ua-cam.com/video/uXPzbje1g2E/v-deo.html
>> Bond Masters Course Sneak Peak | How To Build A Bond Ladder: ua-cam.com/video/p90IDmXn19s/v-deo.html
>>>>>>>>>>
SOURCES & REFERENCED VIDEOS
1. WEEKLY UPDATE: ua-cam.com/video/PUxnVzwwATg/v-deo.html
2. Corporate Bond Investing Videos: ua-cam.com/play/PLsv_4H5rP97FcOfmuWfbBZ-C24vZbmbSD.html&si=cZh3uBFdIItgYXsO
3. Agency Bond Investing Videos: ua-cam.com/play/PLsv_4H5rP97G839te4TerQ0E7jcejhnAi.html&si=MuszS2kkmkaTRL2l
home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
www.federalreserve.gov/monetarypolicy/fomcpresconf20241218.htm
treasurydirect.gov/auctions/announcements-data-results/
>>>>>>>>>>
Here is the overview for Bond Beginners:
1. Bond Basics
What A Bond Is & How A Bond Works
Why Invest In Bonds
New Issue vs Secondary Market Bonds
Interest Rates & Bond Prices
Current Yield & Yield To Maturity
Always Remember This!
Buying At Par, Above Par & Below Par
Different Types Of Bonds
Wrap-Up
2. The Risks Of Bond Investing
Seven Key Bond Risks
Credit Risk
Interest Rate Risk
Reinvestment Risk/Call Risk
Inflation Risk
Liquidity Risk
Currency Risk & Country Risk
Bond Risk Mitigation Strategies
Wrap-Up
3. US Treasuries Overview
What Are US Treasuries
Why Invest In Treasuries
Where Can You Buy Treasuries
How Are Treasuries Taxed
Wrap-Up
4. Treasury Bills
What Are Treasury Bills (T-Bills)
When Do T-Bill Auctions Happen
Where Should You Buy At Auction
Auto-Roll When Buying At Auction
Where To Find Recent Auction Results
High Rate vs Investment Rate
Reopening Auctions
Cash Management Bills (CMBs)
Buying & Selling On Secondary Market
Wrap-Up
5. Treasury Notes & Bonds
What Are Treasury Notes & Bonds
When Do Auctions Happen
Buying Treasury Notes & Bonds
Auction High Yield vs Interest Rate
Floating Rate Notes (FRNs)
Treasury Zeros (STRIPS)
Wrap-Up
6. TIPS (Inflation-Protected)
What Are TIPS
When Do TIPS Auctions Happen
Nominal vs Real Yields
Negative Yields
How Do You Adjust TIPS For Inflation
Taxes On Phantom Income
Secondary Market Liquidity
Wrap-Up
7. I-Bonds (Inflation-Protected)
What Are I-Bonds
How Does I-Bond Interest Work
I-Bonds vs TIPS
The Annual I-Bond Limit
Wrap-Up
8. Agency Bonds
The Universe Of Bonds
What Are Agency Bonds
How Are Agency Bonds Taxed
Treasuries vs Agencies
Who Might Want To Consider Agencies
Yield-To-Call & Yield-To-Worst
Where Can You Buy Agency Bonds
Wrap-Up
9. Municipal Bonds
Our Bond Universe Gets More Complex
What Are Municipal Bonds
How Safe Are Munis
How Are Munis Taxed
The De Minimis Rule
Social Security & Medicare Premiums
Treasuries, Agencies & Munis
Who Might Want To Consider Munis
Wrap-Up
10. Corporate Bonds
Our Bond Universe Is Complete
What Are Corporate Bonds
How Safe Are Corporates
Corporate Bond Hierarchies
Five Key Features Of Corporate Bonds
How Are Corporates Taxed
Treasuries vs Corporates, Etc.
Who Might Want To Buy Corporates
Wrap-Up
>>>>>>>>>>
Here is the overview for Bond Masters:
1. Stocks vs Bonds
Historical Performance
Are Bonds Really Less Volatile
Why Invest In Bonds
Accumulation vs Decumulation
Allocation of Stocks vs Bonds
Wrap-Up
2. Which Bonds Might Be Right For You
Treasuries & Other Types of Bonds
Nominal vs Real Yields
Inflation vs Non-Inflation-Protected
Taxable vs Tax-Advantaged Accounts
Wrap-Up
3. Bond Ladders & Other Bond Strategies
Normal vs Inverted Yield Curve
What Is A Bond Ladder
5 Important Bond Laddering Questions
Laddering When Rates Are Rising
Laddering When Rates Are Falling
Laddering When Rates Are Uncertain
What Is A Bullet
What Is A Barbell
Wrap-Up
4. Holding to Maturity vs Selling Early
Why Hold to Maturity
When To Sell Early Before Maturity
Tax Implications Of Selling Early
Wrap-Up
5. Individual Bonds, Bond Funds, Etc.
Why Buy Individual Bonds
Why Buy Bond Funds
Bond Fund Considerations
Key Bond Fund Concepts
CDs vs Treasuries
Other High-Yield Investments
Wrap-Up
6. Our B.E.S.T. Model Portfolios By Age
Our B.E.S.T Model Portfolios By Age
Model Portfolios In The Industry
B.E.S.T Model Portfolio Difference
How Much Do You Need To Retire?
How I Use The Rules of 100, 110, & 120
B.E.S.T Model Portfolios (20s)
B.E.S.T Model Portfolios (30s & 40s)
B.E.S.T Model Portfolios (50s & 60s)
B.E.S.T Model Portfolios (70s+)
Wrap-Up
7. The Decumulation Phase
What Is The Decumulation Phase?
Bear Markets & Recessions
What Can You Do In Bad/Bear Markets
Decumulation Tax Considerations
The 4% Rule
The Bucket Strategy
The Flooring Approach
Jen’s Bucket Strategy With A Twist
Wrap-Up
>>>>>>>>>>
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that:
1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances
2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY
Thanks, Jennifer. I grabbed the Jefferies Bond with a maturity date 15 years out, even though it'll probably be called early. But should it not be called earlier this maturity date suits me just fine. 20 yr and 30 year bonds do not. The time and effort you take to hunt these down is more than I have time for. So I really appreciate your work. Merry Christmas.
That one is the most favorable to me as well. I don’t want long dated bonds. 15 years is max.
I prefer shorter dated bonds. The corporate bonds look interesting. Just wondering how safe they are? We are in such a volatile, weird time right now. Thanks Jen. We can always count on you and your team. Merry Christmas 🎁🎄
Do you have any statistics on how many callable bonds actually make it to maturity without ever being called? I seem to recall one of your videos from several years ago suggested that we never buy a callable bond.
My reason for moving to T-Bills was to have a monthly risk free income stream while the stock market goes through it's corrective phase. That has already started to play out with some S&P 500 companies trading at March 2020 levels. I'm not looking to lock in at 6% for the long term when stocks are down 35% or more. I'm sticking with T-Bills for now and investing the interest in carefully selected stocks that are trading well below their 200 dma.
You are amazing and your enthusiasm is infectious. Thank you for sharing your vast knowledge!
I attended Fidelity's fixed income webinar today, and I just kept thinking," Jenns information is so much better organized and presented "
Thank you for all you do for the investment community, happy holidays.
I will always choose the highest coupon regardless of call date…because it softens my risk on the long end, which is risk number 2 mentioned. Short end risk is not as important in my opinion.
When a bond is called, is the idea to possibly redeem the bond well before maturity if the rate drops, in case that is not appealing to go with a lower rate? If it is redeemed way ahead of the maturity date (after the call and a potential rate/yield drop), is there a penalty for taking your money out of it? Thanks!
How easy or difficult is it to sell these agency bonds partially thru maturity?
Can you do a session on after tax investement to minmize taxes i.e. municipal bonds/muni money market and thoughts on this? Trying to minimize taxes in after tax accounts for roth conversions.
Just wondering why there would be any tax issue in a Roth? Do you mean the tax issues at the time you convert from a taxable account into the Roth? Thanks.
Can you not just sell Federal home loan bond on open market? Is it an illiquid security?
Yes, there is a secondary institutional market for FHLB bonds.
Thanks! If you could also touch, even briefly, what is "Make Whole Call" and how to calculate the risk of a callable bond with this provision, that would be great!
You have a GREAT channel. You are a superb teacher.
Nobody on YT does this better than Jennifer does here.
@@ScooterOnHisWay2024 Agreed. She and this channel are awesome!
I concur completely!
Love the corporate information, but want to see corporates investment grade 5 years or less.
Agreed. I prefer the shorter terms, as well. No way would I buy a corporate bond, longer than 10 years.
How low will rates have to make a 6% bond to be called? What year or % do I need to look at ?
Happy Holidays, thanks for all your advice
Jen, please teach us how to invest in municipal bonds. Thank you.
None of these for me. I don't want any long dated bo nds
yes, should rate go crazy upside, these are big losers in opportunity cost. They will tank in value. You will be stuck . see TLT for an example.
The fed cannot fool the bond market.
People need to start realizing that inflation occurs with economical growth. High debt with shrinking economical growth in a services economy is disinflationary not inflationary. Inflation is coming down. Only way it goes up is if oil, metals and housing go up showing economic growth or checks to households while shutting down the economy. Also don't forget the fed is still in QT process and once they realize we are in a recession they will stop and that's when bond yields will come down.
Economic growth would mean more supply which would mean lower prices, the opposite of what you describe
Inflation is always and everywhere a monetary phenomenon because only one institution controls the supply of money
@@brianborse3555 Nope. Prices always increase while economic growth is thriving. Jobs plentiful and expanding businesses. Deflation the exact opposite. 2000 and 2008 examples.
@gabrielw7773 This might be an issue of semantics: economic growth normally refers to increased productivity and expanded supply, which should lower prices if demand remains constant. Some people conflate growth with demand-driven expansions which outpace supply and hence results in higher prices; but true growth reflects sustainable productivity gains, while inflation often arises from unsustainable factors like excessive expansion of credit and the money supply.
P.s. Keep in mind that the United States may feel like a closed system to the people who live there, but it is part of a global financial system, which adds complexity to consumption patterns
@@brianborse3555 So what happened that started making us complain about inflation in 2020? No problems with inflation until 1 event in 2020.
Currently talks of government shutdown loom. How worried should I be about my ibonds? Thank.
How does a rate cut make bonds go up!? This is crazy!
The bond market vigilantes know that inflation is going to rise and is way higher than the government stats. Large US labor unions are getting double digit raises. So why should anyone accept single digit long term bond yields. Fed only controls short term rates.
@@edcooper4301not to mention a number of states have pushed their state minimum wages to $15/hr or higher.
The fed owns most of the treasuries. They continue to sell theirs due to QT. They will soon stop once they realize the recession is here. Inflation is going down due to all economic indicators like oil, metals and homebuilders are all falling. Inflation is going down as inflation lags oil, metals and homebuilders, it's just that Fed is still doing QT and will stop once the stock market starts to crash with QE. 70's we were a manufacturing economy today we are a services economy which is disinflationary when you have high debt and shrinking economic growth. You have to have manufacturing and economic growth to have inflation or checks to households again while shutting down the economy.
Insufficient compensation for the actual rate of currency debasement, which is being priced into the future value of the dollar
Do you want to lock up your money for 10 years for 4%. No, neither do other people, so going to need to pay higher rates for longer-term investors to entice investors.
Are these also state tax free?
FHLB, FFCB and TVA are exempt from state income tax. Fannie Mae and Freddie Mac are not.
Thank you!
Can still get a 5.45% MYGA with a 6 yr term from an A-rated insurance carrier. Buy an amount that stays with your State Guarantor Association for it to be insured. MYGAs are the annuity/insurance industry version of a CD but with more options on how to take interest.. Can withdraw a certain amount each year (amount based on carrier), or draw some years and not others, take monthly payments for the term, take all interest and return of principal at end of the term so that it grows compounding, etc etc. No fees, no commissions. Solid, simple product. Good for the fixed income mindset.
The ten year is at almost 4.6% . Shouldn't this raise MM
No. MMs are tied to the short end yields which have been coming down. Mortgage rates are affected by the 10 year yields which are going up right now.
My financial advisor got me cooked on TLT
I cooked myself too. What they think will take tlt higher ?