📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin 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.
2:55 You also don't have to pay any interest to a party who has held the bond while it was accruing. This is essentially a loan until you get the next coupon or it is called.
As the fed rates get higher, the smaller the impact of every basis point added. Using .25 increases causes inflation because it slowly increases the rates and the workers that borrow that money to buy a house etc have time to demand higher wages. This is why the current increases are having almost no effect. What is needed is 1.00 increases and much more quickly.
Thank you so much for your very detailed and easy to understand video tutorials. Myself being a fairly very savvy and knowledgeable financial investor i am learning new things about these Treasury investments that I never ventured into before. Thank you again and you are a "Godsend " financial educator and savior for the common man. Keep up your good work and Bless your heart.
A couple questions: 1) are agency bonds always sold at par so the coupon rate equals the actual yield? 2) is there historial data that shows at what rate spread would the agency bond be called? For example, right now short term fed rate is 5.25% and 10 year agency bond is offered at 6%, so is this agency bond at risk of being called when fed rate falls to 5% or 4.75% or 4.5% etc?
Thanks for the great content. Few questions: A. Are the interest earned taxable every year or can be deferred till maturity? B. Are the interest compounded every month or yearly? C. At maturity how do you get the money back (invested amout plus all the accrued interest)? You have to manually sell it or your brokerage firm will do that for you?
Great info as usual. Following your presentation I just purchased a recently-issued FHLB bond at $100 @ 6.0% with a first call date of 07/25/24 (12 months) and 10-year maturity of 2033. Being an Oregon resident with a 9.75% state tax rate, the equivalent taxable yield is about 6.87%. Although you mentioned the state tax exemption for agency bonds, it is also worth reminding people to calculate the equivalent yield to see how much of a benefit it may be for them to buy an agency (or Treasury) bond (in addition to consulting their tax advisor).
Coupon payments are taxed at the Federal Marginal Rate and not the long-term capital gain rate - correct? So, that would be a slight downside compared to investing in long term equities.
I haven't bought any, but another member did buy some in their retirement account - it'll depend on your individual preferences, circumstances & expectations
Great Video! I looked to see if I could buy New Issue Agency Bonds on E-Trade and Vanguard, where I have accounts and NO, you can't! I may consolidate my accounts to Fidelity.
Thank you for showing me about buying Agency Bonds on Fidelity but I ran into something that's frustrating: Why is Yield to Maturity (YTM) not used in the Order Ticket? For example for CUSIP 3134GYTB8, YTM is 5.621% but on the order ticket only effective yield of 4.769260% is given. Should the effective yield be used to compare with T bill's investment rate or should YTM be used? In other words what number (YTM/effective yield/investment rate) should be used to compare different offerings to maximize return? Hope you can provide some guidance so that a purchase can be made without going through time consuming trail and error process (comparing effective yields of each investment). Thanks
Thank you. Are Agency Bonds Federally Insured up to 250K? I did not see it on your sample screen. But, I assume so. Thanks for such great informative PODCasts.
buying these long-term agency bonds with higher yields is pretty much a short-term play because the chance that they will be called within a year or so is almost guaranteed.
Thank you for the informative video. The few times that I have checked out agency bonds I couldn't find any that were call protected, so I lost interest pretty quickly. If anyone has knowledge of agencies that do offer call protection, I'd love to hear about them.
Unfortunately, none that we're aware of. As an FYI, agency bonds aren't issued by TreasuryDirect. Our July member video has a more detailed explanation of agency bonds & our August member video has some follow-up on agency bond questions that have come up recently.
Vanguard does not appear to offer new issue agency bonds , so if that is what you are looking to purchase (e.g., what is in this video), then Fidelity would be the better choice
@@DiamondNestEgg Thank you but no. I have a Vanguard account, I have a Fidelity account (i only opened this to get the bonus they offered). I have money i need to transfer to an IRA and I could go with either one of these or open it else (like JP Morgan Chase since they have a bonus too, although it being small). I think i'll just stick with Vanguard as the expense ratio are good with them and I don't know about the other two. I was not asking specifically for new issue agency bonds even though I hijacked this to question this... (sorry, you are great though)
@@DiamondNestEgg Thanks Jen. I was wondering why I couldn't find any new issue agency bonds on the Vanguard website after watching your prior video, but my sister was buying them at Fidelity. Would have been nice in my Rollover IRA, but not worth the effort to transfer it Fidelity. But I hope you're right on rates going up and maybe I can get some better yields in longer term Treasury notes.
Hello. Thank you for this video. I have 1 question. If I buy this 10 year agency bond and i decide i need to cash out in 2 or 3 years, am I able to withdraw before 10 years or am I stuck? Thanks!
You have to sell on the secondary market & pay whatever the market price is at the time of sale. Would suggest watching our other agency bond videos for more details: th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
I tried to find the GNMA agency bond but Fidelity said they don't carry any. Wondered how one finds these? Also of the lineup of offerings can you indicate your thoughts of the order of safest to less safe of the options on this list? Because if people builders and/or farmers start defaulting on loans I just thought this could turn into a nightmare-
We've tried looking for them on Fidelity, Schwab & Vanguard, but they do not seem to carry the GNMA bonds either. This may be due to the large investment requirement of $25K. In terms of credit risk, all the new issue and secondary market agency bonds we've seen recently have the same credit rating as US Treasuries. Just keep in mind that agencies tend to be less liquid on the secondary market & are callable.
OOH - Thank you. I forgot the less liquid aspect. But short term in a ladder perhaps a good option now??.as its just abit better than the treasuries re interest@@DiamondNestEgg
Hi Margaret. Unfortunately, Vanguard does not seem to offer new issue agency bonds currently. We’ve been checking for weeks and have only found ones on the secondary market. I’ll be taking more about this on Friday’s member live Q&A.
You can sell beforehand but you have to pay whatever price is on the secondary market. Would suggest watching this one first if you’re interested in agency bond details: 6% Agency Bonds Explained | Investing In Agency Bonds vs US Treasuries (What Are Agency Bonds) th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
how do you know which one is state and local income taxes exempted? I am at the page and called Fidelity, the agency can not see that is exempted, please help. thank you Under Attributes Legend, it only showed SFP, not TE
No, and you can't place orders for new T-Bills using the proceeds from maturing T-Bills until you have the cash from the old maturing T-Bills in your account (at least not online). This means if your T-Bills will mature on Thursday, and the new auction is on the prior Monday, you cannot place an order at auction to buy those new T-Bills that week, even though the settlement date (the date you have to pay for the new T-Bills) is on the same day as the maturity date of the old T-Bills. So you have an entire week where your money sits uninvested. This is not a problem with TreasuryDirect... I can place an order any time I want, and don't have to have the funds available until the settlement date. In fact, they send me the funds from matured T-Bills one business day before the bill actually matures (and my bank has "early pay" so it is credited to my account as soon as they get the ACH transfer), so for that last day, I get interest from both the maturing T-Bill and from my high yield savings account. TreasuryDirect does direct ACH transfers as needed from your bank/credit union, and there is no need to "fund" a separate account like you need to do at brokerages.
Idea on a new topic: how to diversify your fixed income investments (why diversify, what other investments are available, all-in-one funds like Vanguards 'BND', risks of the different options, how to buy them, etc...)
Hi, I love your videos, they are so well done! I have tried to buy the agency bonds but Fidelity says that The quantity entered exceeds the remaining quantity available for this offering. Where can I find when there will be new issues of these bonds? thanks!
Thanks Jennifer for the tutorial video! Yer the cat's meow! My bank is having a customer appreciation day next week. Free cheeseburgers, hot dogs, fries, deserts, and drinks. Plus raffle prizes! In this era of high inflation I'll be hitting those cheeseburgers pretty hard! Stay cool!
That was a very clear presentation! I like how simple Fidelity's purchase process is. 👍 That $10k minimum purchase price reminds me of when I went to Las Vegas for the first time and checked out a high dollar value slot machine section. All the machines were mechanical back then. There was no card to load money onto and then insert into the slot machine. These machines weren't $1 slots, $5 slots, or $10 slots. Not even $20. Nope. $100 slots! Yes, $100! There was one guy in the section going from machine to machine, depositing what looked like a medallion! And, he didn't have just one of them. He had a stack of these discs! 😮 It's all good. God bless you and your good fortune if you can afford one of these puppies. 🙂 I'm sticking with Treasuries from Treasury Direct for now. You gotta love that $100 minimum purchase price. It's a super low barrier.
FYI - there are some with lower minimums of $1,000 if you're ever interested (like the Freddie Mac ones which are not exempt from state & local income taxes). We'll be covering other types of bonds in the future that may be a better fit for you, but yes, Treasuries do offer a lot of advantages right now!
@@yappering The way I look at it, if it gets redeemed that means the interest rate is trending back down, it will then free up funds for other opportunities, if rates continues to move higher and 10 yr bond yield goes up beyond 6%, we're going to have a much bigger problem and I would be content on making 6%.
I think it can work if you creatively apply it in your bond ladder and anticipate holding it short. Esp in a retirement account- given as I now understand its not too liquid- AND rates likely will rise in the near future- it seems to be a win-win.
📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details!
⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf
⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 th-cam.com/channels/nexoc6tvesvcCEzZhmI-Ag.htmljoin
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.
I love all your "Step-By-Step Tutorial" series, this is so useful and great content, please keep it coming!♥♥
Ya I love it to. There are many educational theory videos on finance, but when it comes to actually executing on it, she's the best.
2:55 You also don't have to pay any interest to a party who has held the bond while it was accruing. This is essentially a loan until you get the next coupon or it is called.
As the fed rates get higher, the smaller the impact of every basis point added. Using .25 increases causes inflation because it slowly increases the rates and the workers that borrow that money to buy a house etc have time to demand higher wages. This is why the current increases are having almost no effect. What is needed is 1.00 increases and much more quickly.
Thank you so much for your very detailed and easy to understand video tutorials. Myself being a fairly very savvy and knowledgeable financial investor i am learning new things about these Treasury investments that I never ventured into before. Thank you again and you are a "Godsend " financial educator and savior for the common man. Keep up your good work and Bless your heart.
Glad the videos are useful & fyi, these are not Treasury investments, although I'll be talking more about those again soon as well
A couple questions: 1) are agency bonds always sold at par so the coupon rate equals the actual yield? 2) is there historial data that shows at what rate spread would the agency bond be called? For example, right now short term fed rate is 5.25% and 10 year agency bond is offered at 6%, so is this agency bond at risk of being called when fed rate falls to 5% or 4.75% or 4.5% etc?
Thank you for the awesome explanation as usual. Your videos are very detailed and explain what I have questions about quite often.
Does it matter if the agency bond is callable?
Thanks for the great content.
Few questions:
A. Are the interest earned taxable every year or can be deferred till maturity?
B. Are the interest compounded every month or yearly?
C. At maturity how do you get the money back (invested amout plus all the accrued interest)? You have to manually sell it or your brokerage firm will do that for you?
If rates go up only buy short bonds 3 to 6 months
Great video! How can you tell which bonds are exempt from state and local taxes?
th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
6% Agency Bonds Explained | Investing In Agency Bonds vs US Treasuries (What Are Agency Bonds)
th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
@@DiamondNestEgg What about Federal Income Tax? Are there any Agency bonds which has federal Income tax exemption on interest income?
This is a great video. Love the tutorial! Fidelity is quite a complex site to navigate so I appreciate this.
Subscribed!
Great info as usual. Following your presentation I just purchased a recently-issued FHLB bond at $100 @ 6.0% with a first call date of 07/25/24 (12 months) and 10-year maturity of 2033. Being an Oregon resident with a 9.75% state tax rate, the equivalent taxable yield is about 6.87%. Although you mentioned the state tax exemption for agency bonds, it is also worth reminding people to calculate the equivalent yield to see how much of a benefit it may be for them to buy an agency (or Treasury) bond (in addition to consulting their tax advisor).
10% State tax?????? That is insane!
@@fattymatty5380 No sales tax in Oregon. Income tax ranges from 8.75 to 10%
Is this the same like a CD account at a bank just a higher return? Insured?
Coupon payments are taxed at the Federal Marginal Rate and not the long-term capital gain rate - correct? So, that would be a slight downside compared to investing in long term equities.
I do not have account with Fidelity, but have Schwab. Is it similar to purchase agency bond ?
Thanks for the info. Do you know if these are callable and how often that actually happens?
Yo diamond, looking at 6.50% agency bond.but there is no s&p rating on fedelity whats up with that. Love your videos 3:39
What does it mean when it said "the quantinty entered exceeds the remaining qty available for this offering"? the qty I entered is 10.
Is there much liquidity in the secondary market for these in case i need to unload one in an emergency?
6% Agency Bonds Explained | Investing In Agency Bonds vs US Treasuries (What Are Agency Bonds)
th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
Hi Jan, would you buy this in the retirement account?
I haven't bought any, but another member did buy some in their retirement account - it'll depend on your individual preferences, circumstances & expectations
You didn’t say anything about requirements for holding these. Can you sell at anytime?
There is a secondary market for these, you’ll have to see whether your broker can do this. There are probably fees.
Great Video! I looked to see if I could buy New Issue Agency Bonds on E-Trade and Vanguard, where I have accounts and NO, you can't! I may consolidate my accounts to Fidelity.
Correct that Vanguard & E*Trade do not offer new issue agencies
Thank you for showing me about buying Agency Bonds on Fidelity but I ran into something that's frustrating: Why is Yield to Maturity (YTM) not used in the Order Ticket? For example for CUSIP 3134GYTB8, YTM is 5.621% but on the order ticket only effective yield of 4.769260% is given. Should the effective yield be used to compare with T bill's investment rate or should YTM be used? In other words what number (YTM/effective yield/investment rate) should be used to compare different offerings to maximize return? Hope you can provide some guidance so that a purchase can be made without going through time consuming trail and error process (comparing effective yields of each investment). Thanks
Nowaday...how callable are these? Since, interest rates are predicted to go down..are agency bonds called more often now?
Good editing. 5 Stars.
What does "call" mean?
Question: When the bond is call, can I take my money back and invest somewhere eles, or do I have to stay with a new interest rate?
Thanks
When a debt instrument bond cd etc is called the issuer returns your investment to you. They are ending the obligation ahead of the maturity.
@@skeptick6513 Thanks
thank you jennifer ,, very informative video ,,
Why get a callable agency bond???
Thank you. Are Agency Bonds Federally Insured up to 250K? I did not see it on your sample screen. But, I assume so. Thanks for such great informative PODCasts.
These are not FDIC-insured
buying these long-term agency bonds with higher yields is pretty much a short-term play because the chance that they will be called within a year or so is almost guaranteed.
Is there an agency bond mutual fund or ETF that is tracking the rates?
Thank you for the informative video. The few times that I have checked out agency bonds I couldn't find any that were call protected, so I lost interest pretty quickly. If anyone has knowledge of agencies that do offer call protection, I'd love to hear about them.
None of the recent new issues I've seen are call protected
Besides what is shown on Fidelity, is there a more complete auction schedule for Agency Bonds. I don't see anything on Treasury Direct.
Unfortunately, none that we're aware of. As an FYI, agency bonds aren't issued by TreasuryDirect. Our July member video has a more detailed explanation of agency bonds & our August member video has some follow-up on agency bond questions that have come up recently.
Agency bond and CD look so much better then bond mutual fund. Is it a good idea to use them now and skip bond mutual funds? Thank you.
That depends on your individual preferences, circumstances & expectations
Would you recommend Fidelity or Vanguard? I have both accounts but want to open an IRA. Just curious what your thoughts were on it.
Vanguard does not appear to offer new issue agency bonds , so if that is what you are looking to purchase (e.g., what is in this video), then Fidelity would be the better choice
@@DiamondNestEgg Thank you but no. I have a Vanguard account, I have a Fidelity account (i only opened this to get the bonus they offered). I have money i need to transfer to an IRA and I could go with either one of these or open it else (like JP Morgan Chase since they have a bonus too, although it being small). I think i'll just stick with Vanguard as the expense ratio are good with them and I don't know about the other two. I was not asking specifically for new issue agency bonds even though I hijacked this to question this... (sorry, you are great though)
@@DiamondNestEgg Thanks Jen. I was wondering why I couldn't find any new issue agency bonds on the Vanguard website after watching your prior video, but my sister was buying them at Fidelity. Would have been nice in my Rollover IRA, but not worth the effort to transfer it Fidelity. But I hope you're right on rates going up and maybe I can get some better yields in longer term Treasury notes.
Hello. Thank you for this video. I have 1 question. If I buy this 10 year agency bond and i decide i need to cash out in 2 or 3 years, am I able to withdraw before 10 years or am I stuck? Thanks!
You have to sell on the secondary market & pay whatever the market price is at the time of sale. Would suggest watching our other agency bond videos for more details: th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
Please correct me but @7:40 the maturity date appears to be 07/12/2024 2024? WOW.
2034
I tried to find the GNMA agency bond but Fidelity said they don't carry any. Wondered how one finds these? Also of the lineup of offerings can you indicate your thoughts of the order of safest to less safe of the options on this list? Because if people builders and/or farmers start defaulting on loans I just thought this could turn into a nightmare-
We've tried looking for them on Fidelity, Schwab & Vanguard, but they do not seem to carry the GNMA bonds either. This may be due to the large investment requirement of $25K. In terms of credit risk, all the new issue and secondary market agency bonds we've seen recently have the same credit rating as US Treasuries. Just keep in mind that agencies tend to be less liquid on the secondary market & are callable.
OOH - Thank you. I forgot the less liquid aspect. But short term in a ladder perhaps a good option now??.as its just abit better than the treasuries re interest@@DiamondNestEgg
Great Video. Would buying Agency Bonds on eTrade be similiar?
I haven't found any new issue agency bonds on E-Trade in recent weeks
How to look up new issue agency bonds on Vanguard? I tried and don’t know how to tell which ones are new issue bond.
Hi Margaret. Unfortunately, Vanguard does not seem to offer new issue agency bonds currently. We’ve been checking for weeks and have only found ones on the secondary market. I’ll be taking more about this on Friday’s member live Q&A.
Hi. I'm walking through this on Sunday, 7/30, and this option is NOT listed. Does that mean it is sold out? Will it come back?
congrats on 100k
The one you showed in the video has a maturity date of 2034. Did this mean we have to buy it for 10+ years?
You can sell beforehand but you have to pay whatever price is on the secondary market. Would suggest watching this one first if you’re interested in agency bond details: 6% Agency Bonds Explained | Investing In Agency Bonds vs US Treasuries (What Are Agency Bonds)
th-cam.com/video/0l3U0oTIiWY/w-d-xo.html
What happens if I sell the agency bond before maturity?
You get the market price
how do you know which one is state and local income taxes exempted? I am at the page and called Fidelity, the agency can not see that is exempted, please help. thank you
Under Attributes Legend, it only showed SFP, not TE
It’s in the video
Td amertrade does not have auto renew on t bills
No, and you can't place orders for new T-Bills using the proceeds from maturing T-Bills until you have the cash from the old maturing T-Bills in your account (at least not online). This means if your T-Bills will mature on Thursday, and the new auction is on the prior Monday, you cannot place an order at auction to buy those new T-Bills that week, even though the settlement date (the date you have to pay for the new T-Bills) is on the same day as the maturity date of the old T-Bills. So you have an entire week where your money sits uninvested.
This is not a problem with TreasuryDirect... I can place an order any time I want, and don't have to have the funds available until the settlement date. In fact, they send me the funds from matured T-Bills one business day before the bill actually matures (and my bank has "early pay" so it is credited to my account as soon as they get the ACH transfer), so for that last day, I get interest from both the maturing T-Bill and from my high yield savings account. TreasuryDirect does direct ACH transfers as needed from your bank/credit union, and there is no need to "fund" a separate account like you need to do at brokerages.
You're the best, ty :)
yup. this rate is gone! When do you think it will be back again?
Not sure, you'll just need to keep checking back unfortunately.
Why does video title says 6.27% agency bonds while purchase shows 6% yield? Am i missing something?
I explain it in the video
Thank you.
Same for Schwab and Vanguard pls !
Vanguard does not seem to offer new issue agency bonds. Noted on Schwab!
@@DiamondNestEgg Yes I confirmed as well. Seems like only Fido (and I killed my account 2019 :) )
Idea on a new topic: how to diversify your fixed income investments (why diversify, what other investments are available, all-in-one funds like Vanguards 'BND', risks of the different options, how to buy them, etc...)
Noted
or try VRIG etf, it buys treasury, corp investment grade, and securitized bonds like mbs. currently yield 6%
@@johnsonch7292 Excellent advice. 5-star fund with low fees .03. Saves a ton of hassle vs. buying all these bonds on ones own
@@lesbolstad0.3 fee. It's actively managed fund
@@johnsonch7292is it tax exempt?
Hi, I love your videos, they are so well done! I have tried to buy the agency bonds but Fidelity says that The quantity entered exceeds the remaining quantity available for this offering. Where can I find when there will be new issues of these bonds? thanks!
You just need to keep checking back regularly unfortunately
Very good.
The only problem is that it’s callable.
Most of them are at the moment
This mean it could change during maturity
@@jonny6758rate would remain fixed unless it’s called
Thanks Jennifer for the tutorial video! Yer the cat's meow! My bank is having a customer appreciation day next week. Free cheeseburgers, hot dogs, fries, deserts, and drinks. Plus raffle prizes! In this era of high inflation I'll be hitting those cheeseburgers pretty hard! Stay cool!
Glad the tutorial was helpful & have fun at the picnic Rose. I generally go for hot dogs in July :-)
That was a very clear presentation! I like how simple Fidelity's purchase process is. 👍
That $10k minimum purchase price reminds me of when I went to Las Vegas for the first time and checked out a high dollar value slot machine section. All the machines were mechanical back then. There was no card to load money onto and then insert into the slot machine. These machines weren't $1 slots, $5 slots, or $10 slots. Not even $20. Nope. $100 slots! Yes, $100! There was one guy in the section going from machine to machine, depositing what looked like a medallion! And, he didn't have just one of them. He had a stack of these discs! 😮 It's all good. God bless you and your good fortune if you can afford one of these puppies. 🙂
I'm sticking with Treasuries from Treasury Direct for now. You gotta love that $100 minimum purchase price. It's a super low barrier.
FYI - there are some with lower minimums of $1,000 if you're ever interested (like the Freddie Mac ones which are not exempt from state & local income taxes). We'll be covering other types of bonds in the future that may be a better fit for you, but yes, Treasuries do offer a lot of advantages right now!
On savings, Apple and Morgan Stanley are paying 4.1% on savings, doesn't get any better so far
Thanks for sharing
5 % or higher widely available on high yield / money market
Lets go!!! ❤❤
The 6.27% one is not buy-able somehow
Seems it’s already oversold/ not enough available
I went for the 6.15% with shorter duration.
Glad you managed to pick some up - I know you've been eyeing these for awhile
@@DiamondNestEgg Thanks Jennifer, it looks like the 6.15 is sold out today.
@@yappering The way I look at it, if it gets redeemed that means the interest rate is trending back down, it will then free up funds for other opportunities, if rates continues to move higher and 10 yr bond yield goes up beyond 6%, we're going to have a much bigger problem and I would be content on making 6%.
Jan 2024 is a darn early call date.
Seems that is the the standard currently with this issuer
WooHoo Diamond Girl 👍 🎶🎶
Yikes! Ten years maturity date and callable in January 2024! I’d pass !
yep
👍🏻👍🏻👍🏻
FEDERAL HOME LOAN BANKS BOND
7.00000% 11/22/2038
The agency bond you showed was not call protected. I thought you were against these types of bonds.
I address the call feature in all our agency bond videos - you can't find new issues that are not call-protected right now
I think it can work if you creatively apply it in your bond ladder and anticipate holding it short. Esp in a retirement account- given as I now understand its not too liquid- AND rates likely will rise in the near future- it seems to be a win-win.
I didn't do it myself yet- I went with treasuries. But it is a bit higher..