Posted on 08/14/2019 6:59:41 AM PDT by Leaning Right
“Investment income” is one thing, Old Pro, but that differs markedly from the risk-free returns that Treasuries afford the saver, and those that cannot afford even short term volatility on the principle.
Consult your financial advisor for a more detailed explanation.
Rather than being anti, check out mutual funds from say Fidelity or Vanguard. They have funds that provide relative safety and regular pay outs.
“Investing is an index fund provided by any one of several major financial houses is investing in America and over the long haul is risk free. Betting on America is a safe bet.”
Hi bert.
You might want to be cautious with the term ‘risk-free’, especially when it pertains to equities. But I agree - dollar cost average and over several years/decades the person should be fine.
And as one economist coined “in the long term we’re all dead.”
You are of course correct.
It boils down to faith in America. Is that faith risk free?
> They have funds that provide relative safety and regular pay outs. <
Could you please provide some specific examples? And no, I’m not being snarky here. I am familiar with bond funds. They have regular play outs. But those pay outs are low, because we are in a low interest-rate environment.
Long-term bond funds pay out more, but their share prices are much more volatile.
However, I am no expert. It’s quite possible that I’m overlooking a good investment type. So any examples would be appreciated.
Treasuries principal varies and would decline in a rising interest rate environment thus providing liquidity at a cost of principal loss. The interest might be risk free, not principal unless the holder waits until maturity. For liquidity the often used strategy employed would be a bond laddering approach.
Oh, I meant to mention that, in my opinion, the fact that we are all here is proof of our faith in America.
Many of us argue, fuss, and fight, but we all still believe in these United States, and what she stands for.
To answer your question, I would say faith in America is pretty close to being risk-free for the following reason:
We the People control our destiny. Since we control it, preserving it is only a matter of will.
There are about 60 million of us deplorables by my reckoning. Believe me, the Sleeping Giant is about ready shift from low gear to high gear. And when that happens, well, let’s just say that’s when the real fun begins.
GreenScam single-handedly collapsed our economy after promising us housing never goes down. Just another establishment hack raping the American people. Any 2 words he puts together necessarily has to be a lie. I wouldn’t ask this jackwipe for the time of day or if it is raining outside.
Evil punk.
Duration.
Pension funds and insurance companies time their investment so that they can redeem the bond at par.
When the bond matures, it is redeemed at par regardless of market conditions.
Unless it's callable.
Amen
My point is that rather than put money in a mattress and dis the American equity markets, there are places to invest for folks who have no experience what so ever. There are very large and stable Mutual funds that can safely invest your money in rather plain Jane funds and almost always provide some return greater and most importantly safer than a mattress.
“The treasury rate compared to inflation is about the same today as it was then...”
If you actually believe the inflation measurement is legitimate and hasn’t been manipulated to death.
They don’t care about saving and investing. The current shell game is built on everyone spending money as fast as they can get it or borrow it, to create “economic activity” which is supposed to serve as a stand-in for actual productivity. If we stop spending and start saving, then we won’t generate enough activity to keep borrowing, and we don’t have the money to pay the debts we have accumulated, so it would all collapse.
It’s like when Wile E. Coyote is running very fast and runs off the cliff. As long as he keeps running, he is okay, but as soon as he notices he is running on thin air and stops, he falls into the ravine.
Money pushers are just that
We know what Jesus has to say about them
“It’s like when Wile E. Coyote is running very fast and runs off the cliff. As long as he keeps running, he is okay, but as soon as he notices he is running on thin air and stops, he falls into the ravine.”
That is a great analogy.
Municipal bonds, especially General Obligations, can still be had at 4%-5%.
This is just another plan for wealth confiscation. More will be coming along shortly.
“Seniors used to rely on Treasuries yielding maybe 5% as a safe way to help fund their retirement.”
We haven’t had 10 year Treasuries yield that much since 2007, and then only briefly.
The era of very low rates really began in 2001. It was one of the drivers of the real estate bubble, when investors went hunting for higher yielding debt paper to purchase.
https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart
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