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To: 1Old Pro

“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.


21 posted on 08/14/2019 8:03:13 AM PDT by MichaelCorleone (Jesus Christ is not a religion. He's the Truth.)
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To: MichaelCorleone
“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.

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.

26 posted on 08/14/2019 8:25:46 AM PDT by 1Old Pro
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