Investors are always on the lookout, it seems, for new and profitable ways to help make their dollars work for them. One that has come up quite often on our clients’ radars recently is Series I Bonds (or just I Bonds).
It's natural to sit down at the end of the year and reflect on what happened. Here is a short recap of what happened in the markets and the world in 2022.
"Why would anyone buy a 5-year bond at 3.5% when you could get a 1-year bond at 4%?"
"Why don't I put all my money in a 4-month T-bill and make 4.9%?"
In investing, a key consideration is the time horizon. There is a general perception that investing is a risky proposition, but this risk can be mitigated by holding investments for longer periods.
How Do Treasuries Lose Money? US Treasury bonds are generally regarded as safe. Sometimes they’re referred to as “risk-free” assets. This is a bit of a misnomer.
There are parallels between concepts in finance and concepts in physics. Let's take a look.
While cash may offer stability and security in the short term, the DFA Returns Web chart from 1926 through February 2024 suggests that the growth potential in stocks offers a higher rewarding investment opportunity in the long run.
Fitch, downgraded US government debt from its pristine AAA rating to one notch lower at AA+. The Fitch downgrade serves as a reminder of the necessity of diversification, as no investment is entirely risk-free.
For anyone invested right now, it feels like we’re sinking. But just as boats have lifejackets to keep you afloat, your financial life should have its own lifejackets in place to help keep you from sinking in bear market times like these.
Investors are always on the lookout, it seems, for new and profitable ways to help make their dollars work for them. One that has come up quite often on our clients’ radars recently is Series I Bonds (or just I Bonds).
It's natural to sit down at the end of the year and reflect on what happened. Here is a short recap of what happened in the markets and the world in 2022.
"Why would anyone buy a 5-year bond at 3.5% when you could get a 1-year bond at 4%?"
"Why don't I put all my money in a 4-month T-bill and make 4.9%?"
In investing, a key consideration is the time horizon. There is a general perception that investing is a risky proposition, but this risk can be mitigated by holding investments for longer periods.
How Do Treasuries Lose Money? US Treasury bonds are generally regarded as safe. Sometimes they’re referred to as “risk-free” assets. This is a bit of a misnomer.
There are parallels between concepts in finance and concepts in physics. Let's take a look.
While cash may offer stability and security in the short term, the DFA Returns Web chart from 1926 through February 2024 suggests that the growth potential in stocks offers a higher rewarding investment opportunity in the long run.
Fitch, downgraded US government debt from its pristine AAA rating to one notch lower at AA+. The Fitch downgrade serves as a reminder of the necessity of diversification, as no investment is entirely risk-free.
For anyone invested right now, it feels like we’re sinking. But just as boats have lifejackets to keep you afloat, your financial life should have its own lifejackets in place to help keep you from sinking in bear market times like these.
This year has reminded us of the many important roles that fixed income can play in portfolios.
