💎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: fred.stlouisfed.org/series/DGS20 www.bls.gov/news.release/pdf/cpi.pdf home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics www.wsj.com/economy/central-banking/boston-fed-president-says-december-rate-cut-isnt-a-done-deal-50ef1429?mod=hp_major_pos1 www.treasurydirect.gov/auctions/upcoming/ fred.stlouisfed.org/series/DFII10 www.fidelity.com/ REFERENCED VIDEOS: Best-Yielding Bond Offerings Now That The Election Is Over: ua-cam.com/video/gHQPekW8FBA/v-deo.html >>>>>>>>>> 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
Nobody on YT does this better than Jennifer does here. I am never confused when watching these videos. She doesn't bury us in extra topics & superfluous data. Thank you Jennifer for this wonderful series of weekly reviews. You are making us money!
I don’t like bond options with maturities out more than 5 years. With the country’s ever growing debt, I’ve very concerned we will have hyper inflation in 10-15 years. Treasuries will lose a lot of value. I’d want access to my cash in 2030/2035 to put into stock or other property that will rise with inflation.
who can afford even more expensive real estate? you'de have to have 1% rates and 40 year mortgages for the average person to qualify because wages are not going up for the average person. This thinking that real estate will protect you in hyper inflation is baffling to me. I'm not a gold bug but that is one of the few things i would want in a hyper inflation situation
I think you are being remarkably optimistic to anticipate hyperinflation that far off. If we reasonably conclude that there will be large tax cuts for the wealthy, large tariffs on imports and a gutting of our workforce through repatriation, it's hard for me NOT to imagine hyperinflation in 2-4 years. Unfortunately, with our newly reelected President's cavalier history towards bankruptcy and his open musings about politicizing the Federal Reserve, I'm starting to become nervous about the safety of Treasuries. Gold may become the only option left for us down the road.
I am 73 and remember when the 30 year treasury bond was over 15% in September 1981. I would not buy a 20 year at 4.7%. I will be buying the 10 year TIP at next week's auction which is a reopening. That is about as far as I would go with a treasury maturity. I have traded long dated TIPS in a Roth IRA, but quit doing that years ago. There is an interest rate risk that I call the risk of lost opportunity, which occurs when interest rates are in a long term uptrend (e.g. 1950 to mid-1982) after the purchase of a long bond and I then have two bad options for the funds tied up. I either sell at a loss or simply suffer with the lower yielding bond that is paying me less interest than I could receive with a new purchase. I believe investors are underpricing now future inflation risk and the likelihood that treasury yields will down the road many years become untethered from inflation expectations due to U.S. treasury supply overwhelming demand.
I'm 67 and buy only 7+10 year treasuries to hold to maturity. Rates up or down doesn't matter to me as I'm enjoying the income and security. I currently have 60% of my portfolio in these treasuries and will add more if needed.
Consider your entire bond holdings "What is the overall maturity if your bonds?," As long as you have maturities to cover short term needs and yield changes the longer bond can be purchased with the possability of only getting at maturity the intial investment or conversely the sky falls and that 4.7% yield makes it worth more
More bluntly, if you sell tranches of your long-term bonds when rates are RISING, you'll be selling AT A LOSS. To avoid losing your capital, you must originally buy at highest rate and sell tranches when rates are FALLING. Otherwise, it's best to hold for the entire 20 years - when you're 90 years old and hope not to die before then.
I wonder why there isn't a 15-year Treasury bond issued as a risk-free reference point for 15-year mortgages, which seem to be another popular option after 30-year mortgages.
Jen, would you consider doing a video on this issue, just in from The Kiplinger Letter (Dec 12, 2024): ""Look for T-bill prices to rise early in the new year, as their supply drops and investors such as money market funds bid up the remaining ones. Their yields will dip as a result. Then, that process is likely to reverse shortly before the deadline for raising the debt ceiling sometime in mid-2025. Assuming Congress votes to raise it, as we expect, there wil be a flood of new bills, further curbing prices and lifting yields." Thanks!
Sorry, just seeing this now. We get so many comments sometimes, we don't catch all of the member ones. Not sure it matters at this point, but the recent dip in T-Bill yields has been primarily driven by the cut in the Fed Funds rate.
The historical rate for 20 year treasuries is about 4.6%. Today it went up to 4.86%. Sure looks like a reasonable time to buy. The way I look at it, if I retire is 4.8% good enough for me to live on for 20 years? No one has a crystal ball, but reasonable assumptions can be made. Can a financial advisor get you 4.8% guaranteed for 20 years? Plus no state tax on treasuries.
What does everyone think about the ETF TLTW? Pays monthly with an annual rate of about 12% I don't see any big down sides to this. I've held 1000 shares for about a year and like that monthly income. Yes, it varies a little from month to month, but that's no big deal for me.
OID on TIPS - this week reopening will sell at a premium according to fidelity quote today. Does Fidelity OID reporting give the correct amount for a premium buy? Do I have to report adjustment of the Fidelity OID?
I bought 20 year Freddie Mac investment grade bonds at 6.0% last week. They are callable but I'm happy to get 6.0 for 1 year or 20 years. Freddie Mac will never default. 2008 proved that and Freddie Mac is not in conservatorship under FHFA. The gov't won't allow a default of our mortgage backbone.
@sbar39 would be awesome if it got up there. I would offload everything on the LT treasury and agency bonds. Use coupon payments on quality dividend growth etfs.
With the current domestic and international political instability, and our ever rising national debt, my instinct is to well stay away from any long-term fixed income instruments. It's pretty much a spin of the roulette wheel predicting interest rates going forward into 2025.
I'm 71 and have bought a bunch of them. My younger spouse will be glad I did one day, should I die. And my parents lived to be in their 90's, so it seems reasonable to me. Now on the 30 year bond, I would agree with you!
@@pdouglas3866 Good for you. My wife is older - but who knows who is going to reach 90 or 100. For us -it's a portion of our investments. We have plenty of other positions -so I doubt if we would sell the 20 year bonds. But if we did - say in 15 years - well we would have earned a lot of interest by then. And rates could be higher - so they would sell above par. No worries.
which platform do you use? i see better rates on etrade compared to schwab. also on schwab i've noticed schwab cd's that i've bought in the past hold their value better than bank issued cd becuase they keep a more liquid market for their own cd's
OK. Call me crazy. I'm 67 and my wife is older. A while back, I picked up $20,000 in 20 year T bonds at 4.75% and I paid a discounted rate. 🙂 I also had $20,000 in 20 year T bonds at 4.5%. Rates were falling at the time - and I wanted to add to this position. This particular cusip was now priced at 103.593. Found a different 20 year cusip (also at 4.5% priced at 101.664). SO - I sold the 20 T bonds that I had bought at discount, and bought $30,000 of a different cusip at 101.664. Small profit.😁 Wife and I have enough assets so we do not have to worry about selling at a loss. We might be gone before the T bills mature - but who cares? We're getting a decent return (comparable to a 7 year MYGA rate from 2022.
💎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:
fred.stlouisfed.org/series/DGS20
www.bls.gov/news.release/pdf/cpi.pdf
home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
www.wsj.com/economy/central-banking/boston-fed-president-says-december-rate-cut-isnt-a-done-deal-50ef1429?mod=hp_major_pos1
www.treasurydirect.gov/auctions/upcoming/
fred.stlouisfed.org/series/DFII10
www.fidelity.com/
REFERENCED VIDEOS:
Best-Yielding Bond Offerings Now That The Election Is Over: ua-cam.com/video/gHQPekW8FBA/v-deo.html
>>>>>>>>>>
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
Nobody on YT does this better than Jennifer does here. I am never confused when watching these videos. She doesn't bury us in extra topics & superfluous data. Thank you Jennifer for this wonderful series of weekly reviews. You are making us money!
I don’t like bond options with maturities out more than 5 years. With the country’s ever growing debt, I’ve very concerned we will have hyper inflation in 10-15 years. Treasuries will lose a lot of value. I’d want access to my cash in 2030/2035 to put into stock or other property that will rise with inflation.
TIPS comes to play in that
who can afford even more expensive real estate? you'de have to have 1% rates and 40 year mortgages for the average person to qualify because wages are not going up for the average person. This thinking that real estate will protect you in hyper inflation is baffling to me. I'm not a gold bug but that is one of the few things i would want in a hyper inflation situation
💯. I suppose ignorance is bliss and someone not aware of this could sleep peacefully holding 20 year bonds at over 4%. I’d be terrified.
I think you are being remarkably optimistic to anticipate hyperinflation that far off. If we reasonably conclude that there will be large tax cuts for the wealthy, large tariffs on imports and a gutting of our workforce through repatriation, it's hard for me NOT to imagine hyperinflation in 2-4 years. Unfortunately, with our newly reelected President's cavalier history towards bankruptcy and his open musings about politicizing the Federal Reserve, I'm starting to become nervous about the safety of Treasuries. Gold may become the only option left for us down the road.
I am 73 and remember when the 30 year treasury bond was over 15% in September 1981. I would not buy a 20 year at 4.7%. I will be buying the 10 year TIP at next week's auction which is a reopening. That is about as far as I would go with a treasury maturity. I have traded long dated TIPS in a Roth IRA, but quit doing that years ago. There is an interest rate risk that I call the risk of lost opportunity, which occurs when interest rates are in a long term uptrend (e.g. 1950 to mid-1982) after the purchase of a long bond and I then have two bad options for the funds tied up. I either sell at a loss or simply suffer with the lower yielding bond that is paying me less interest than I could receive with a new purchase. I believe investors are underpricing now future inflation risk and the likelihood that treasury yields will down the road many years become untethered from inflation expectations due to U.S. treasury supply overwhelming demand.
I was also surprised TIPS weren't discussed more here. That's the real "sleep well at night" option.
Good Advice!
Thank you for covering the question about 4.7% 20-year Treasury, the pros and cons!
I'm 67 and buy only 7+10 year treasuries to hold to maturity. Rates up or down doesn't matter to me as I'm enjoying the income and security. I currently have 60% of my portfolio in these treasuries and will add more if needed.
Do you have to hold them for 7-10 years? How often are dividends paid? And are the rates locked? I’m new to this
@@nelson3495 seven year treasuries pay their coupon every six months.
@@nelson3495 dividends are paid twice a year. A buyer can buy 1-year, 2 3, 5, 10, 20, or 30-year term treasury note in his/her brokerage account.
Consider your entire bond holdings "What is the overall maturity if your bonds?," As long as you have maturities to cover short term needs and yield changes the longer bond can be purchased with the possability of only getting at maturity the intial investment or conversely the sky falls and that 4.7% yield makes it worth more
It doesn’t have to be all or nothing. Invest some in the 20 year bond, not all.
Agree. I'm 67 and I have a wide spectrum of maturity dates.
I would invest in a TIPS ladder instead of one long nominal bond.
More bluntly, if you sell tranches of your long-term bonds when rates are RISING, you'll be selling AT A LOSS. To avoid losing your capital, you must originally buy at highest rate and sell tranches when rates are FALLING. Otherwise, it's best to hold for the entire 20 years - when you're 90 years old and hope not to die before then.
Big investors are shorting the long end treasuries. Rates seem set to go even higher
A- rated and higher insurance co MYGA with 2-7 year maturity paying 5.1 -5.5.
Jen, just curious, what happened to your bond ladder? Are you still buying short-term T-bill?
I wonder why there isn't a 15-year Treasury bond issued as a risk-free reference point for 15-year mortgages, which seem to be another popular option after 30-year mortgages.
Jen, would you consider doing a video on this issue, just in from The Kiplinger Letter (Dec 12, 2024): ""Look for T-bill prices to rise early in the new year, as their supply drops and investors such as money market funds bid up the remaining ones. Their yields will dip as a result. Then, that process is likely to reverse shortly before the deadline for raising the debt ceiling sometime in mid-2025. Assuming Congress votes to raise it, as we expect, there wil be a flood of new bills, further curbing prices and lifting yields." Thanks!
Sorry, just seeing this now. We get so many comments sometimes, we don't catch all of the member ones. Not sure it matters at this point, but the recent dip in T-Bill yields has been primarily driven by the cut in the Fed Funds rate.
The historical rate for 20 year treasuries is about 4.6%. Today it went up to 4.86%. Sure looks like a reasonable time to buy. The way I look at it, if I retire is 4.8% good enough for me to live on for 20 years? No one has a crystal ball, but reasonable assumptions can be made. Can a financial advisor get you 4.8% guaranteed for 20 years? Plus no state tax on treasuries.
Fed cuts rates and bond rates go up? Sounds alot like more inflation to me
What does everyone think about the ETF TLTW? Pays monthly with an annual rate of about 12% I don't see any big down sides to this. I've held 1000 shares for about a year and like that monthly income. Yes, it varies a little from month to month, but that's no big deal for me.
The price has fallen 11% in 1 yr......
25 Bonds is considered a round lot … at minimum gets a good price on the secondary
If the using “rule of 72” is less than twenty, buy via dollar cost averaging as often as possible.
What about the coming 2 yr Variable Note? Now at 4.71% until January reset
OID on TIPS - this week reopening will sell at a premium according to fidelity quote today. Does Fidelity OID reporting give the correct amount for a premium buy? Do I have to report adjustment of the Fidelity OID?
Thank you for your information. 🤓👍
God bless you 😇💕
Make America HEALTHY again in EVERY sections 💪🇺🇸👍
I bought 20 year Freddie Mac investment grade bonds at 6.0% last week. They are callable but I'm happy to get 6.0 for 1 year or 20 years. Freddie Mac will never default. 2008 proved that and Freddie Mac is not in conservatorship under FHFA. The gov't won't allow a default of our mortgage backbone.
I would like to to see a discussion of 'bond vigilantes'.
Were they terminating the intermittent 20-year bond auctions soon?
Waiting for 7 on 20 year
You really think it could go up to 7%?
@kirkhamster0024 in the 90s we hit 8.28
@sbar39 would be awesome if it got up there. I would offload everything on the LT treasury and agency bonds. Use coupon payments on quality dividend growth etfs.
Don't do it. If rates soar down the road...😮
Good video as always.
Shortest terms possible and 5% minimum. Otherwise, look elsewhere.
With the current domestic and international political instability, and our ever rising national debt, my instinct is to well stay away from any long-term fixed income instruments. It's pretty much a spin of the roulette wheel predicting interest rates going forward into 2025.
Buying 20-year bonds at 70 years old is insane. The odds of you living to age 90 are less than 50%.
So - let me ask: Are you saying we need to cash everything out before we pass? Some of us just want a decent rate of return in a no-risk investment.
I'm 71 and have bought a bunch of them. My younger spouse will be glad I did one day, should I die. And my parents lived to be in their 90's, so it seems reasonable to me. Now on the 30 year bond, I would agree with you!
@@pdouglas3866 Good for you. My wife is older - but who knows who is going to reach 90 or 100. For us -it's a portion of our investments. We have plenty of other positions -so I doubt if we would sell the 20 year bonds. But if we did - say in 15 years - well we would have earned a lot of interest by then. And rates could be higher - so they would sell above par. No worries.
Inquiring minds want to know, are you still funding your ladder?
Too long. Investment grade intermediate corporate ETF like VCIT paying 5%?. 7 year maturity.
Buy TMV.
The brokered CD rates are underwhelming. I can do better with a local bank and CU, e.g. 5.1% for 10 and 15 mo. maturities.
which platform do you use? i see better rates on etrade compared to schwab. also on schwab i've noticed schwab cd's that i've bought in the past hold their value better than bank issued cd becuase they keep a more liquid market for their own cd's
I can purchase this bond directly from the U.S. Treasury webiste correct?
Yes.
@@sueh6287 Thank you.
You make me nervous when you say “no default” situation. Heaven help us if the US defaults.
OK. Call me crazy. I'm 67 and my wife is older. A while back, I picked up $20,000 in 20 year T bonds at 4.75% and I paid a discounted rate. 🙂 I also had $20,000 in 20 year T bonds at 4.5%. Rates were falling at the time - and I wanted to add to this position. This particular cusip was now priced at 103.593. Found a different 20 year cusip (also at 4.5% priced at 101.664). SO - I sold the 20 T bonds that I had bought at discount, and bought $30,000 of a different cusip at 101.664. Small profit.😁 Wife and I have enough assets so we do not have to worry about selling at a loss. We might be gone before the T bills mature - but who cares? We're getting a decent return (comparable to a 7 year MYGA rate from 2022.
Jennifer , You are not 70 ! C'mon man...