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but those are 10 year cd's . once again you have no guarantee you will see that after 10 years nor on your reinvested interest so the longest you can go out with out credit risk is a 30 year treasury and even then in the 31st year all bets are off as far as your guarantee
Don't forget he said bonds too which any default would have catastrophic impact to his returns, guaranteed returns
but those are 10 year cd's . once again you have no guarantee you will see that after 10 years nor on your reinvested interest so the longest you can go out with out credit risk is a 30 year treasury and even then in the 31st year all bets are off as far as your guarantee
Wait, you just said there were NO 3% CDs in the market, so can you admit for the first time in your life that you were wrong?
After the 10 year term is over I would seek out other 3% plus earning CDs, I absolutely would not invest in Treasuries as they are performing lower than CDs are and require a longer shove away period. CDs are going back up to 3.5% - 4% soon when Yellen increases the rates.
This Stock Market Bubble is going to start going down as people pull money out of the Casino and put it back into FDIC insured fixed income investments like CDs.
One of the reasons for the large Stock Market gains over the last couple of years is that "savers" have had to play around with Wallstreet due to not getting much at the Bank/Credit Union.
Quote:
Originally Posted by Lowexpectations
Don't forget he said bonds too which any default would have catastrophic impact to his returns, guaranteed returns
An investment grade Muni-Bond isn't going to default. They are essentially like CDs if you want to be honest, because you have the FDIC protecting CDs, but you have the State Government protecting Munis where they can just TAX to bring in the revenues needed.
no you said you were guaranteed 3% for your investing time frame . i said you will not find that risk free. you can get as high as 7% on risky bonds going out 30 years .
but you are talking guaranteed 3% over your investing years risk free.
you are assuming in 10 years you will find other 3% cd's ? and you say we are guessing outcomes ?
Wait, you just said there were NO 3% CDs in the market, so can you admit for the first time in your life that you were wrong?
After the 10 year term is over I would seek out other 3% plus earning CDs, I absolutely would not invest in Treasuries as they are performing lower than CDs are and require a longer shove away period. CDs are going back up to 3.5% - 4% soon when Yellen increases the rates.
This Stock Market Bubble is going to start going down as people pull money out of the Casino and put it back into FDIC insured fixed income investments like CDs.
One of the reasons for the large Stock Market gains over the last couple of years is that "savers" have had to play around with Wallstreet due to not getting much at the Bank/Credit Union.
An investment grade Muni-Bond isn't going to default. They are essentially like CDs if you want to be honest, because you have the FDIC protecting CDs, but you have the State Government protecting Munis where they can just TAX to bring in the revenues needed.
an investment grade muni isn't going to default ? what do you think detroits bonds were rated for those who bought them 20 years ago ?
An investment grade Muni-Bond isn't going to default. They are essentially like CDs if you want to be honest, because you have the FDIC protecting CDs, but you have the State Government protecting Munis where they can just TAX to bring in the revenues needed.
It means I would never hold any Bond longer than 5 to 10 years because a City in particular could totally CHANGE in terms of its economic standing in a 20 year or 30 year period for example. I don't think anyone should hold a Bond longer than 5 years, 10 years at MAX.
Detroit was built on GM and by the late 90's, GM was already damn near out of the City compared to it's significant size before. How a Detroit Muni Bond was graded investment grade in 1995 is beyond me.
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