Steve, If the 10 Year Yield were to reach 5%, would you
deem it a reasonable place to park some longterm money not
earmarked for investment? What are the downside risks, if
any?
I am not Steve but risk, as with all bonds is default. Depending
upon term and if you dont hold to maturity, the other risk to be
considerned with is capital loss
If you believe the US govt will never default, then treasuries
are the safest way to go. If not, you should consider shorter
maturities or treating them like any other investment and trade
them (have an exit plan instead of buy and hold)
IMO...would ladder duration directly via high-quality muni
and/or treasury bonds if considering parking $ in bonds.
Small yield enhancement via tax benefits v TLT.
10 Year Yield 4.725%
Posted by steve on 8th of Jan 2025 at 07:22 am
10 Year Yield 4.725%
Steve, If the 10 Year
Posted by RichieD on 8th of Jan 2025 at 09:19 am
Steve, If the 10 Year Yield were to reach 5%, would you deem it a reasonable place to park some longterm money not earmarked for investment? What are the downside risks, if any?
I am not Steve but
Posted by dogface on 8th of Jan 2025 at 09:44 am
I am not Steve but risk, as with all bonds is default. Depending upon term and if you dont hold to maturity, the other risk to be considerned with is capital loss
If you believe the US govt will never default, then treasuries are the safest way to go. If not, you should consider shorter maturities or treating them like any other investment and trade them (have an exit plan instead of buy and hold)
IMO...would ladder duration directly via
Posted by mitchell on 8th of Jan 2025 at 10:01 am
IMO...would ladder duration directly via high-quality muni and/or treasury bonds if considering parking $ in bonds. Small yield enhancement via tax benefits v TLT.
I think it's good strategy
Posted by matt on 8th of Jan 2025 at 09:33 am
I think it's good strategy for older folks especially like my mom who is 87 (will soon be 88) and not risk money in the market
Most likely but let's monitor
Posted by steve on 8th of Jan 2025 at 09:32 am
Most likely but let's monitor day to day and reaction to Monthly payrolls Friday
Make 5% great again ....
Posted by mla127 on 8th of Jan 2025 at 09:17 am
Make 5% great again ....