Could Treasury Yields Cross 5% or even 6%? | Are You Crazy For Waiting To Go Long?
ฝัง
- เผยแพร่เมื่อ 17 ก.ค. 2024
- How high could Treasury yields go & are you crazy to for waiting for 5% or even 6% or more to go long? That's what we're talking about in this week's Treasury update video!
📢 There's just a few more hours to save on our final summer sale of the year! Get 10% off our bond courses with coupon code summer2024 until midnight ET/9pm PT on Sunday, July 7th!
⭐ Get our popular bond course bundle & save even more: www.diamondnestegg.com/home#_...
⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 / @diamondnestegg
⭐ What's The Difference: Bond Courses vs TH-cam Membership: • Bond Investing Basics ...
#jenniferlammer #bondbeginners #bondmasters
-
------
WATCH NEXT
TIPS vs I-Bonds: • Buy I-Bonds or TIPS 20...
How To Build A Bond Ladder: • How To Build A Bond La...
*Sources can be found in first pinned comment
_________
DISCLAIMER
EVERYONE'S FINANCIAL JOURNEY IS DIFFERENT. YOUR PERSONAL FINANCIAL SITUATION IS UNIQUE. NEITHER DIAMOND NESTEGG, LLC, OUR WEBSITE, OUR TH-cam CHANNEL, OUR OTHER SOCIAL MEDIA CHANNELS, NOR THIS CONTENT & INFORMATION (THE “SERVICE”) ARE INTENDED TO PROVIDE FINANCIAL, LEGAL, TAX OR OTHER ADVICE. NO FINANCIAL DECISIONS SHOULD BE MADE SOLELY BASED ON THE SERVICE. THE SERVICE IS PROVIDED FOR INFORMATIONAL & ENTERTAINMENT PURPOSES ONLY & IS NOT INTENDED TO BE A SUBSTITUTE FOR ADVICE FROM A PROFESSIONAL FINANCIAL ADVISER OR QUALIFIED EXPERT.
ALL OPINIONS & FORWARD-LOOKING STATEMENTS OF THE SERVICE EXPRESSED HEREIN ARE AS OF THE DATE OF PUBLICATION & SUBJECT TO CHANGE. IT IS YOUR RESPONSIBILITY TO VERIFY ALL INFORMATION YOURSELF.
ANY INFORMATION PRESENTED BY THE SERVICE IS NOT AN OFFER TO BUY OR SELL, NOR A SOLICITATION TO BUY OR SELL ANY SECURITIES OR PRODUCTS MENTIONED. DIFFERENT INVESTMENTS HAVE VARYING DEGREES OF RISK & THERE IS NO ASSURANCE THAT THEY WILL BE SUITABLE FOR YOUR PORTFOLIO. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ALWAYS CONSULT A QUALIFIED FINANCIAL, LEGAL, OR TAX PROFESSIONAL REGARDING YOUR SPECIFIC SITUATION.
DIAMOND NESTEGG, LLC IS A REGISTERED INVESTMENT ADVISER IN THE STATE OF NEW YORK AND OTHER STATES WHERE IT IS EXCLUDED OR EXEMPTED FROM REGISTRATION REQUIREMENTS. REGISTRATION AS AN INVESTMENT ADVISER DOES NOT CONSTITUTE AN ENDORSEMENT FROM SECURITIES REGULATORS.
DIAMOND NESTEGG, LLC RECEIVES COMPENSATION FROM TH-cam FOR THE PRESENCE OF ADVERTISING BEFORE, AFTER, AND DURING THIS VIDEO CONTENT AS WELL AS VIA TH-cam’S SUPER THANKS & MEMBERSHIP FEATURE. DIAMOND NESTEGG, LLC DOES NOT CONTROL THE CONTENT OR PRESENCE OF ANY ADVERTISEMENTS. THE PRESENCE OF ANY ADVERTISEMENT DOES NOT CONSTITUTE AN ENDORSEMENT OF THE AD, COMPANY, ENTITY, OR PRODUCT BY DIAMOND NESTEGG, LLC.
----------
CONTENT DISCLAIMER
THE VIEWS & OPINIONS EXPRESSED THROUGH THE SERVICE ARE SOLELY THOSE OF DIAMOND NESTEGG, UNLESS OTHERWISE SPECIFICALLY CITED. MATERIAL PRESENTED IS BELIEVED TO BE FROM RELIABLE SOURCES & NO REPRESENTATIONS ARE MADE BY DIAMOND NESTEGG AS TO OTHER PARTIES' INFORMATIONAL ACCURACY OR COMPLETENESS. ALL INFORMATION OR IDEAS PROVIDED SHOULD BE DISCUSSED IN DETAIL WITH A QUALIFIED ADVISER, TAX OR LEGAL PROFESSIONAL PRIOR TO IMPLEMENTATION.
OUR TH-cam CHANNEL MAY PROVIDE LINKS TO THIRD-PARTY WEBSITES FOR YOUR CONVENIENCE. WE HAVE NO CONTROL OVER THE ACCURACY OR CONTENT OF THESE LINKS.
THE COMMENTS ON THIS CHANNEL, AND OUR OTHER SOCIAL MEDIA CHANNELS, ARE THOSE OF THE CREATORS & DO NOT NECESSARILY REFLECT THE VIEWS & OPINIONS HELD BY DIAMOND NESTEGG, LLC.
COMMENTS, CHATS & CONVERSATIONS ARE A SPACE FOR CIVIL & RESPECTFUL DISCOURSE & CONSTRUCTIVE EXCHANGES OF INFORMATION, VIEWPOINTS & OPINIONS. WE WELCOME FREE EXPRESSION, REGARDLESS OF VIEWPOINT, BUT RESERVE THE RIGHT TO REMOVE ANY RESPONSE AND SUSPEND OR BAN INDIVIDUALS FOR ANY REASON. PLEASE NOTE THAT COMMENTS, CHATS & CONVERSATIONS MAY BE SUBJECT TO PREAPPROVAL.
DUE TO THE SOCIAL NATURE OF THE SERVICE, THESE VIDEOS MAY CONTAIN CONTENT COPYRIGHTED BY ANOTHER PERSON OR ENTITY. DIAMOND NESTEGG, LLC CLAIMS NO COPYRIGHT TO SAID CONTENT & CANNOT BE HELD ACCOUNTABLE FOR THE COPYRIGHTED CONTENT. DIAMOND NESTEGG SHARES & STRIVES TO VERIFY INFORMATION BUT CANNOT WARRANT THE ACCURACY OF COPYRIGHTS OR COMPLETENESS OF THE INFORMATION ON OUR SERVICE. ANY COPYRIGHTED MATERIAL SHARED ON THIS SERVICE IS INTENDED TO BE SHARED BY FAIR USE. IF YOU HAVE A COMPLAINT ABOUT THE USE OF COPYRIGHTED MATERIAL, PLEASE CONTACT DIAMOND NESTEGG PRIOR TO MAKING A COPYRIGHT CLAIM. ANY INFRINGEMENT IS UNINTENTIONAL & WILL BE RECTIFIED TO ALL PARTIES' SATISFACTION.
PLEASE REFER TO OUR TERMS OF SERVICE & PRIVACY POLICY LINKS FROM OUR WEBSITE FOR MORE INFORMATION.
📢 There's just a few more hours to save on our final summer sale of the year! Get 10% off our bond courses with coupon code summer2024 until midnight ET/9pm PT on Sunday, July 7th!
⭐ Get our popular bond course bundle & save even more: 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 th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
>>>>>>>>>>
WATCH NEXT
Our Bond Courses vs TH-cam Membership | Which Is Right For You: th-cam.com/video/H5h4Eyh0hjo/w-d-xo.html
Bond Beginners Course Sneak Peak | I-Bonds vs TIPS: th-cam.com/video/uXPzbje1g2E/w-d-xo.html
Bond Masters Course Sneak Peak | How To Build A Bond Ladder: th-cam.com/video/p90IDmXn19s/w-d-xo.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
>>>>>>>>>>
SOURCES & FOLLOW-UP VIDEOS FOR TODAY'S VIDEO:
Dollar-Cost-Averaging Into Treasury Auctions: th-cam.com/video/Yx0TQ8z7spg/w-d-xo.html
www.treasurydirect.gov/auctions/results/
fred.stlouisfed.org/series/DFII5
www.bls.gov/news.release/empsit.nr0.htm
www.ismworld.org/supply-management-news-and-reports/reports/ism-report-on-business/
www.treasurydirect.gov/auctions/upcoming/
home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
www.fidelity.com/
>>>>>>>>>>
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.
You're on a 'Mission of Mercy', at least in my case! I've got a couple of bucks at stake that I cannot afford to lose. The information here alone has helped me overcome my public education and grow my funds. Thank you...🇺🇸 👍☕
Given the example of the 70-year old, I would immediately setup a 1-Year ladder that matures monthly. I would buy 15 units of each, which means at maturity each month, $15,000 becomes available. This would allocate less than $180k of a $200k portfolio. Then, buy 15 units of the 52-week T-Bill at auction each month. If and when the 2-year Note reaches 5%, switch auction buying habits according to the rate. Maybe continue to buy 10 units of the 52-week T-Bill and 5 units of the 2-Year Note? Once the 3-Year reaches 5%, switch buying habits again. I'm sure there is a perfect buying solution to make the most money possible, I just don't know if it's worth it to figure it out.
I’m 71 and have about 70% of my portfolio in treasuries and investment grade corporate bonds. The corporates are all 10 year duration and callable at that time. Yields are above 5.5%. The treasuries are in 1 ,2 and 5 year ladders. This 70 % bond allocation is a little too conservative and plan to DCA to build up my ETF holdings if equities move lower. I think it’s important to remember one still has to focus on growing there portfolio.
72 here. I'm 2/3 in short term closed end fixed income funds and 1/3 in large cap value equity funds. I'm also looking to add stocks on a substantial correction. We could both live to 100, capital growth is needed!
Have you ever considered MYGA's ??? they are paying 5.5% with tax and withdrawal options...
Buy T-bill no state tax ……8 week T-bill currently paying approx 5.4 %
Rolling over my 4-week T-bills.
I just put $15K into 20-30 year bonds at 4.625% and I feel good about it. The 30 year bond is already up a couple hundred dollars 😊
its always hard to beat the S&P500. and if it tanks, you know big brother steps in.
Both political parties will keep increasing the deficit. (spending like drunken sailors) Both presidential candidates have a history of fiscal irresponsibility. Just my 2 cents worth.
Nobody can predict exact T Bills interest rates. So it is best not to worry too much and get all worked up if interest rate is not what you expected. Just spread the amount of money you want to invest across 2 or 3 different T Bills, like 4 week, 26 week and 52 week or whatever you choose and relax.
Appreciate your clear and balanced delivery.
Have been working on a near-to-medium-term TIPs ladder to which we recently added funds that matured from TBills AND moved accumulated funds in MM fund to same ladder. Have a fair amount invested on the long end already, waiting for ~maybe~ 5%+ or 6%+ to back-up the truck and really load up on long bonds.
Excellent content well delivered!
If rate cuts occur in September or Nov and (maybe) once more before the end of the year, yields will probably drop 0.25-.50 from where they are now, so I'm tempted to pick up some more 3-5 year notes before end of summer.
But I've heard the argument that even with rate cuts, yields stay where they are or even climb higher. That's because China/Japan are not buying our bonds like they used to so the government is desperate to attract new buyers or it will have disastrous auctions. They're almost forced to keep yields high or else no one would buy them.
Curious what Jennifer’s take on this.
By far the biggest buyer of US treasuries are domestic buyers, mostly institutional. Having said that, your overall premise may be correct. Even domestic buyers will demand higher rates to offset the risk presented by the US debt situation.
If rates are cut short T Bills will definitely go down. Longer duration T Bonds are less likely to follow suit and could go up based on other comments in this thread.
@@keithmachado-pp6fv When people use the term 'longer', do they generally mean 10 yrs and longer, or would 5-7 also count?
T Bonds are 20 and 30 year duration. I would also include the 10 year T Note as long term and anything between 2 and 10 as medium term.
Excellent video, thank you!
I’m about 85% invested in both ETFs and bond funds. My cash position is growing, simply because income is greater than our spending. Most of the cash is invested in 6-month T-bills, which currently pay 5.3 to 5.4%.
While I have 45/100 of my capital earning 5.3% interests from T-bills and 45/100 earning 4.5% interests from T-bonds, I too am waiting for 7%-8% returns from my future 30y bonds. I would wait and see the coupon rate of the next waves of 30y bonds from 8/15-10/15. A 30y bond with a 4.5% coupon interests selling at 90/100 dollars will actually give us a 5/100 return.
For the 70 year old question. We would need to know the reason for the bond ladder. Does he need it for living expenses or is this part of his portfolio allocation?
Personally I don’t think the 10 year is going to cross above 5.0% this year. So if he needs this income “laddered” I would start locking 25% ($50k) now and look for additional buying opportunities in the next few months. I’m guessing one rate cut this fall/winter. An additional 1% on $200k is $2000 over five years so I think it’s more important to lock in your living expenses at rates that will hopefully remain above inflation.
Thank you for all of your help. Money Market accounts are doing great right now when do you expect them to drop?
The 3 C’s are important to me while the exemption from state tax is important to me too. NJ is a high taxation state …. I wish I lived in New Hampshire 😊
I'm waiting for 20 yr Treasury bond coupon rates to reach 5%. But, meanwhile I put all my dry powder into Agency/GSE bonds (and corporates) that are (mostly) 20 year maturities and I expected a lot to get called, but so far nothing has been called (not even ones over 6%), and if Treasury 20 yr coupons reach 5% I am not sure of the best time to sell the agency bonds to switch to Treasuries.
I’ll be buying again this week. Probably 1 , 3 & 6 months.
I'm buying a 17 week tomorrow - a small one, just to keep my ladder evenly spaced. Fingers crossed it holds at last week's rate, 5.385%
Fixed income is my weak link and I subscribed to hear about bonds. I been deep into bonds over last couple days and talking to Fidelity. You ask other alternatives, that is easy when we are ready for the income phase it is a portfolio of solid, healthy dividend payers with forward growth to outpace inflation. We are not retiring on a fixed income to be frugal. However between my growth phase I stash some cash between our investment moves. I'm liking some bonds over HSA, or ETFs. Since we sold a house we have cash in a Taxable account and that is when my dive into this started, lol. Thanks for sharing. Everyone go meet your goals.
Tell me if I am missing something. When you buy a long term bond, you really don’t lock in the interest rate. For example, I recently bought a 20 year T Bond paying 4.75% at $98 for a YTM of 4.86% and it is now trading at $101 so I am showing a quick 3%+ gain. Let’s say interest rates continue to drop so it goes to $103. If I hold to maturity, I am guaranteed to get my 4.75% but would also know it will drop back to par, so my YTM is no longer 4.86% or even 4.75% from this point until maturity. In fact, if I sold at $103 and locked in the gain and then bought another 20 year bond at par paying 4.5% I would end up in the exact same place as holding the 4.75% bond to maturity.
Buying some 3yr this week. In general starting to DCA into 2 to 7 year duration. I kinda think we've seen the peak yields for this cycle.
Still buying 1month to 3 month tbills and chill every week! I would like to learn more about picking corporates but aren't we, as retail, last to the party on these and we are left with riskier choices (when US bonds are AA with books that look like junk how can we trust the ratings?).
Your answer to the 70 yr old makes me think you should go into politics,
I have money market vanguard funds paying me 5.28% I see no reason to take on duration risk until I am getting paid a premium for it. Yes I would buy a Treasury long bond fund paying me 5.5% or 6% but long treasuries around 4 1/2% are not showing me any reason to buy a lower yield.
Exactly how I feel. Traditionally, since longer maturities have higher risk, they have paid a higher rate. But in the current inverted rate curve environment, taking on higher risk by buying long results in a LOWER rate. So I am staying in the sweet spot, short term, at least until the curves normalize.
Hypothetically, if the fed considers inflation under control or unemployment creeps higher and they decide to lower and hold rates in the 2-3% range, maybe by 2025 or 2026, having locked in 4.5% annual yield for 10 years could seem like a pretty good decision.
But you pay state/city taxes on corporate bonds which depending on the state could be a very high tax on corporate and/or MMF interest earned….no state tax for treasuries.
An advantage of buying them in a tax deferred account.
@DiamonNestEgg What are your thoughts on MYGA's paying 5.5% for 5/6/7 year terms? They seem tied to Fed rate loosely, but pay better with some liquidity.
FAGIX? Anyone consider this?
Any thoughts on the etf BOXX instead of buying short term treasuries?
My concern is, I’m 90 and my airs won’t be able to cash in the T bills until maturity date, Right?(when I go to the forever box)
How much would you be willing to invest in treasury notes and bonds? While there’s no fdic protection, we should trust the US government right?
What is the difference between the expected yield and coupon?
Thinking and analyzing I now am considering purchasing Premium Bonds … never have. But I can Buy my coupon rate of interest for over PAR price. I want to complete my long term ladder (2028,2029 & 2030)and want a 4.75-5% Coupon.
Jen!! How do I properly analyze this! This will complete my ‘sleep well at night’ ladder set.
Is now a good time to set a little aside for a 5-Year Note (moving from short term to long term)? There's an auction coming up soon that I want to set some money aside to earn at least 4 to 5% for 5 years. I wouldn't be too hurt if rates climbed half a percentage point but I'd hate if they went down even a little.
You may be able to get higher rates with Agencies. The caveat is they are likely to have call features.
I’m buying this week but only out to 1 yr treasuries and up to 2 yr Agencies that are state tax feee(callable).
Schools First CU 37 mo CD @4.85%...waiting for longer treasuries to go 5% or over.
I’m 53 and I will retire at 65 or maybe a little later. As soon as Feds cut rates young people will take flight to equities which will drive up price of equities and decrease returns on bonds. IMHO. I’m going to try to buy in larger chunks at each auctions.
What are I-Bonds doing now?
Thanks for the video. What do you think of 10 year agency bonds at 6%?
Callable?
@@lulubelle551 Good point. Yes. Just like my CD that are being called. Hopefully, the government can't do math.
If they aren’t callable you’ve found the Golden Goose.
I am buying a decent amount of 3 yr bills
We have long term funds in Pimco's PDI, PCN and PTY which all yield 10%+; I'm comfortable with the modest volatility in each of these funds and our plan is to move more of our treasuries portfolio in that direction if treasuries don't go much higher or start to soften.
Thanks I'll stick with my 17 week ladder, although last month yields dropped a tiny bit. Since last fall, I DCA'd about half as they matured into HYSA (5.36%), Agencies (5-5.95%), Corporates (7-7.5%) and Large Cap equities. My Fidelity MM only earns 4.99% so it's hard to stomach keeping money there. If the short end T bills drop below 5% and I can still get more than 5% elsewhere (keeping in mind the tax implications) I'll move more out. If the Agencies and HYSA rates drop too, I'll likely put more into an SP 500 index ETF. Meanwhile, I plan to work another 3 or 4 years. I am looking at an in service roll over of about 1/3 of my TSP G fund (2.25%) into a fixed index annuity if I can find a trustworthy fiduciary to sell me one. So far all I've gotten are slick pitches, heavy on the sell and very light on the facts.
Hi Anne. Please email jennifer@diamondnestegg.com - we’re going through the annuity introductions this month. Best - Eva
Hello Jen, is the email you posted on someone I can trust for an Annuity? I’m looking for the cheapest and best option to get a $1000 a month pension for life you I can get citizenship in Panama or Costa Rica.
@@user-nm7wb6we5s This SEC doc doesn't pop up on Google and its 4 yrs old but it seems like a good place to start www.sec.gov/resources-for-investors/investor-alerts-bulletins/ib_indexedannuities
Your Corporates earning >7% sound pretty high risk to me. You must be a sounder sleeper than I am.
@@pdouglas3866 Prospect Capitol, callable, investment grade and only as much as I could lose without crying too much
Why aren't you discussing call protected CDs? 😊 You can buy a 12-month call protected CD getting your guaranteed return of 5%, there are other examples going at 18 months, 2 years.
I have multiple CDs of 1 and 2 year between 5.4% and 5.6%. None have been called yet and all are trading at or below par.
Taxes. CDs get hit with both state and federal taxes. Not so with Treasury issues.
My CDs are in an IRA so the State tax issue is not relevant. I hold treasuries and agency bonds in taxable accounts which saves on state taxes.
Doesn't Treasury bill rate move with fed rate? If fed rate drops by .25% this year, then all treasury rates will move lower by the same %, no? Why would you expect treasury rates to go up?
On the very short end you are correct, but the long end yields are a function of supply and demand. A Federal Reserve rate cut does not necessarily mean that notes and bonds will become more expensive (with a concomitant fall in yields).
5% or 6%? what about above 10% like in the 70's and 80's???????
The 70s and 80s are over
@@QueefMcGeesHouse aaaah, but we have waaaay toooo muuuuch money in the system, and they are gonna lower rates!?!?!?!
@@kendarcie6613 Maybeeeeeeeeeeeeeeeeeeeee probably not.
Why would I buy bonds if I can use a High Yield Savings account at around 5.3% give or take?
HYS rates can change at any time. Remember, we've had crappy savings rates for well over a decade after the Great Recession.
I’m afraid I’ve waited too late to lock in more long-term bonds.
I can never find the links at the end of the video can someone help?
They’re in the Description of the video.
Renewing a 6 month T-Bill this week
TLT long
why dont you park your money in a 6 months treasury via SGOV?. steady pricing and %4•6 divi monthly
If someone has a 5% bogey for their safe money, one option would be MYGAs (multi-year guaranteed annuity), MYGA;s are the insurance industry's version of CDs.
As of 7/7/24, a 7-year MYGA from an "A-rated:" insurance company is available paying 5.65% (withdrawals are limited to 5% each year). The MYGA can be purchased with as little as $25K. IRA or non-IRA money can be used. Either way, so long as the interest is not withdrawn, income taxes are deferred.
MYGA's are not for me -- because I prefer to stay "liquid", but if illiquidity is not an issue, MYGA's might be an option.
Can you tell me which company and where I can buy this MYGA please. Thanks
I buy MYGA ladder from gainbridge
Just looking into this, rates vary wildly by STATE. NY for instance, sucks.
I've been getting a little more than 5% in Vanguard Federal Money Market for quite a while.
I've switched to Bank CDs. Buying a 6.17 APY 9 MO ...Good luck!
What bank/s ???
Higher rates like these are sure to be attached to higher risk.
@@variousstuff6469 they aren't
The after-tax yield for a 6.17% CD is the same for me as the APY of the current 3-month T-Bill when you take in to consideration no state tax on the T-Bill. Of course this is specific to my state (NJ) and income bracket, so may be different for others.
@@petrao8669 Not with an insured bank......
i've been preparing so to speak for the eventual "when to buy longer term Treasury notes". i dont think i would ever lock into a 5% 20 year bond. i have been building my own portfolio of dividend producing equities, mainly REITS since last fall. Reits at all time lows for many good quality ones. If rates fall i'll make some nice capital appreciation in addition to the dividends. i am moving money gradually into strong dividend value stocks with my ultimate goal of owning 30 to 40 high quality dividend producing equities across mutiple sectors, my own "dividend ETF." i'll still have my other ETF's but those are all dividend producers. Maybe not the sexiest highest flying portfolio but rather one that has some room to grow, throw off income to spend and allow me to sleep well at night.
Thanks for sharing!
Those REITs scare me but that doesn't mean there aren't some good ones. Otherwise I'm with you on having a about 20% of my assets in a nice portfolio of quality dividend payers - especially the energy picks and shovels that pay quarterly.
@@ATHJD07 I cant imagine the stocks would go much lower but it is the stock market. No one has the crystal ball but if i'm wrong at least i get the dividends. To get the biggest bang for the buck you have to buy when they are low and beaten up (mainly because of interest rates). At some point (and i believe it wont happen in '24) when rates start to fall the stock prices will rise. While waiting i can collect 4.5 to 6% yields. But i have researched what i bought and these REITS are high quality. Yes, there are much higher yields out there but to me those are warning flags. The 2 biggest downfalls for investors FOMO (fear of missing out) and GREED! Haha
In theory, I agree rates should eventually go higher than 5% with our ballooning deficits, but in reality, that would be too painful for the U.S. Government to endure with the interest rate expense on the debt, so cowardly politicians will come up with another financial engineering gimmick like Q.E. or minting a trillion-dollar coin to erase the debt before they let the country go broke. 2025 could be a crazy year with debt ceiling debates and the tax debate, however, I would stay short on the curve for now, or buy TIPS.
IMO economic indicators (not just the headline ones) are all going downhill fast. Interest rates will come fast and furious as the situation declines. The bond markets are just waking up to this reality and yields are going down ahead of this. No way we will see 5% yields again for the foreseeable future.
Aren't we already getting 5% or better in MMfunds ? I see Vanguard is paying 5.29 yield on their MMF.
Unfortunately you can't lock that rate in like you can with a Bond if it were to go down, and by that time higher yielding bonds are expensive
The interest earned in a MMF is taxed by the state/city but US treasuries are not taxed by the state/city governments.
I am 81 and have been using my dividends earned in my portfolio for buying treasury bills. When the rate goes below 5% then I will move them back into my high yield savings account at over 5% . If and when that goes down then I will look at ETF's and build up my dividend on CD's .
When rates go down will you still be able to earn 5% on your High Yield Savings Account?
Instead of waiting for 5+%, why not buy TIPS right now. The scenario you’re waiting for, 5+% long duration treasury, would only happen in the event inflation expectations were to increase substantially from here.
10 year TIPS breakeven is now 2.28% so you’re locking in a real yield of 2+%. So if nominal long duration treasuries do go to 5%+, your TIPS would benefit as well. But if the nominal treasuries don’t go up from here or even go lower, by buying the TIPS now, you don’t miss the boat locking in some high yields now.
Dumb question, is a note or bond same as a TBill?
Maturity. Bills
Bank CDs: Banks sometimes invest in fossil fuels with that money. Fossil fuels are cooking the planet..
Skip the T bills etc. At 70 u can go at anytime. And inflation will eat u up. Plop it in Vanguard 500 mutual fund. Live a little.
S&P is way overvalued. A fool and his money....
thats great until he gets whacked 20%..live a little with your own money
At 70 you can also easily live another 25 years if you’re genetically predisposed and take reasonably good care of yourself. Running out of money by outliving it is something some of us have to seriously consider.
I picked up a 52 Wk T-Bill to keep my ladder 🪜 ... laddering. 😀