“Changing expectations of inflation may have your advisor recommending TIPS. But you should know they don’t work like conventional bonds and may carry more risk.” Lyle Boss What exactly are TIPS? Treasury inflation-protected securities (TIPS) are a security issued by the U.S. Treasury. TIPS are indexed to inflation to offer investors protection against a decline […]
“Is adding high-dividend paying stocks an effective means of outpacing inflation and ensuring you have enough money for retirement?”- Brian Swerdlow Occasionally, even people years away from retirement become concerned about risk. That’s understandable. We all enjoy growing our wealth, but no one likes to lose money. For this reason, some financial experts introduce the […]
Are you interested in investing in Municipal Bonds? They can provide great benefits if there benefits match up with your goals. Be careful; make sure you know how they work and how to maximize your investment and learn the disadvantages. Mutual bond do have a place in many portfolios, but use caution and make sure you fully understand the advantages and disadvantages.
Just a simple rate movement over time of 3% (3.25% discount rate) would reduce the actual value of all inforce US Treasuries by as much as 40% of their market value. Think what would happen if interest rates went even higher? Disaster would loom and trillions of dollars would evaporate if these assets were liquidated. Of course there would be a winner: the US Taxpayer. Treasuries would be replaced with a higher earning interest rate bond, but at a far less value a third of its market value of the original bond.
Considering using bonds for investing in your retirement account? Before you make any commitments, take time to understand exactly how cooperate bonds work, the benefits they offer and the restrictions associated with them.
Take deferral facts with saving bonds.
We are now facing an economic situation similar to about 20 years ago, and I know from experience that you’re not going to like what’s about to happen to you and your important money.
Look before you leap when it comes to bond mutual funds. Bond funds are similar to stock mutual funds in that they are pooled investments under the control of a fund manager who makes investment decisions. The most significant difference between the two is that a bond fund contains a selection of bonds, rather than […]
“Both bond funds and bond exchange-traded funds (ETFs) invest in baskets of bonds or other debt instruments. Bond funds consist of pools of capital from investors and have a manager who decides where to invest. Bond ETFs consist of an index of bonds whose goal is to match the returns from an underlying index.” George […]
Have bonds earned a place in your portfolio? Beginning in 2020, the Federal Reserve cut interest rates to multi-decade lows, dropping the rate on 10-year Treasuries from a robust 2% to 0.5%. This steep decline was a blow to savers, especially those who traditionally look to bonds as safety anchors for their retirement portfolios. Since […]