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you are either recommending a risk free asset or you are not . the op does not understand it is only risk free in certain regards or conditions but not others .
all investments are subject to the same things , market risk , interest rate risk and inflation risk . the only difference is to what level they are effected and under what conditions ..
RIF. Let's look at my post that you quoted:
Quote:
Originally Posted by TaxPhd Again, I'm not saying that, and I continue to be baffled as to why you are arguing that I have said it.
The rate paid on the bond is risk-free. This isn't a debatable point, your protestations to the contrary notwithstanding.
The real return on the investment (which would include the effects of inflation) is not risk-free. I've never said anything contrary to this.
If you want to keep arguing against a point I've NEVER made, fine. But you are really starting to look a little foolish pursuing this the way you are.
I'm not sure if you aren't able to understand the highlighted sentences, but I think that most people will be able to, and they are a pretty clear summary of what I have said in this thread.
I have never made a recommendation of any sort.
Continuing to insist that I said things that I in fact have never said is now beyond making you look a little foolish. It's progressed from foolish, and now you are starting to look a bit unhinged.
Are you current on your meds? Seriously, I'm worried about you.
Why is this going back and forth for so long? Risk free rate of return is a pretty common concept in investing and performance measurement. Nothing in the world is entirely risk free but as a reference point 3 month tbills are it
Why is this going back and forth for so long? Risk free rate of return is a pretty common concept in investing and performance measurement. Nothing in the world is entirely risk free but as a reference point 3 month tbills are it
taxphd was referencing 10 year bonds not t-bills in this discussion . he called the 10 year bond a t-bill in error . except for a risk free yield i would never refer to a 10 year bond at this point and rate as risk free when someone asks for a risk free investment . i certainly would point out to them there are risks involved and not make a blanket statement to a newbee who has little knowledge about investing ..everything has risk , it just varies as to what those risks are . .
Quote:
Originally Posted by TaxPhd
Sure there is, but not at 5%. Current t-bill rate is 2.42% on 10 year t-bills. Lower for shorter terms.
Last edited by mathjak107; 04-03-2017 at 06:31 PM..
taxphd was referencing 10 year bonds not t-bills in this discussion . he called the 10 year bond a t-bill in error . except for a risk free yield i would never refer to a 10 year bond at this point and rate as risk free when someone asks for a risk free investment ..
I corrected and clarified the error. Lowexpectations is right - why is this even a discussion?
you clarified the error where you said t-bill instead of bond . that does not change the fact that telling a newbee with no knowledge of investing that a 10 year bond is risk free is not the correct thing to tell them . .
it is only a risk free income stream and in fact in the op's case may be highly risky since he already said he does not want to possibly hold it until maturity .
he has both inflation risk and interest rate risk .
it can be quite risky at this point and that is my gripe . you certainly should have qualified and reinforced that fact to the op if recommending a 10 year bond to someone asking for a "risk free " investment who appears to have no knowledge of these things and that is just what i did . then you argue with me i am wrong .
really !
Last edited by mathjak107; 04-04-2017 at 01:45 AM..
you clarified the error where you said t-bill instead of bond . that does not change the fact that telling a newbee with no knowledge of investing that a 10 year bond is risk free is not the correct thing to tell them . .
I didn't say that. All of the relevant passages have been quoted, and is abundantly clear that I NEVER said what you are claiming.
Quote:
it is only a risk free income stream and in fact in the op's case may be highly risky since he already said he does not want to possibly hold it until maturity .
he has both inflation risk and interest rate risk .
it can be quite risky at this point and that is my gripe . you certainly should have qualified and reinforced that fact to the op if recommending a 10 year bond to someone asking for a "risk free " investment who appears to have no knowledge of these things and that is just what i did . then you argue with me i am wrong .
really !
I never made any recommendation.
Is there some strange reason why you continue to assert that I have said things that I in fact have never said? For it to happen once is understandable, mistakes happen. But for you to continue, when it has been pointed out over and over that you are claiming things that have never happened, is beyond a simple mistake.
You really are becoming unhinged, and continuing down this strange path of false accusations will only serve to further erode the very little bit of credibility you may have left.
What might be some strategies for him to achieve a 5% risk free return ? Or is that even possible. He is 64.
Quote:
Originally Posted by Lowexpectations
There is no 5% return risk free
Quote:
Originally Posted by BeerGeek40
There is no such thing as a risk free return. They don't exist.
Quote:
Originally Posted by TaxPhd
Sure there is, but not at 5%. Current t-bill rate is 2.42% on 10 year t-bills. Lower for shorter terms.
there is no investment risk free !. they all have either market risk ,interest rate risk or inflation risk or a combination of the 3 . fixed income can only give you a risk free yield but is still very subject to the other parameters . that is what the op needs to know !
Last edited by mathjak107; 04-04-2017 at 03:36 PM..
there is no investment risk free !. they all have either market risk ,interest rate risk or inflation risk or a combination of the 3 . fixed income can only give you a risk free yield but is still very subject to the other parameters . that is what the op needs to know !
What I said, is the rate is risk free. That is a true statement, and nothing that you say will change the truthfulness of it.
We probably ought to start calling you Dorothy, given your love of the straw man.
and what i said is the investment is not risk free and " nothing you say will change the truthfulness of what i said" .
you can argue the income stream being risk free all you want , as far as the op is concerned it is not a risk free investment .
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