artbuc wrote: ↑Thu Sep 12, 2024 7:13 pm
hudson wrote: ↑Thu Sep 12, 2024 6:18 pm
eager to learn wrote: ↑Wed Sep 11, 2024 6:56 pm
My esteemed listmates,I’ve learn that T-Payments could have this trajectory…
Beneath 4.5% in March 2025
Beneath 4.25% in July 2025
Beneath 4% in October 2025.
There are not any penalties for promoting early however one ought to contemplate the value of the bond/invoice because it may very well be decrease than what one paid initially.
If one just isn’t a classy investor, lacks time to conduct deep dives into the number of obtainable investments, then these projections would appear to recommend that an unsophisticated investor is perhaps higher off shopping for T-Payments now with a 6 month maturity?
Exterior of Index Funds, most unsophisticated investor would suppose that there aren’t many different h the place silk is low and returns are not less than truthful in comparison with low curiosity checking accounts.
Financial institution CDs charges rival T-Payments however they’ve penalties and curiosity forfeiture.
What’s an unsophisticated investor to do?
Definitely not purchase excessive load mutual funds!
Thanks.
I’d purchase CDs or treasuries which have the very best offers after taxes.
You already know that there are not any state taxes on treasury curiosity.
I solely hold a minimal quantity in cash market funds. Why? They’re very brief time period.
Period will get a vote; I actually like period matching.
Once I received able to drop out of funds and ETFs, I spent round $20K and purchased ten treasuries of varied durations together with TIPS. Some had been from public sale; some on the secondary market. I held them for a couple of days and offered all of them. It value me a couple of {dollars}, however I realized. Now I am all treasuries and CDs. I personal no funds apart from low stability cash market settlement funds.
Backside line: Treasuries held to maturity ship as promised to the penny.
hudson, what did you maintain for a couple of days earlier than you offered all of them?
artbuc,
Most likely:
3 or so T-Payments at public sale and or secondary market
3 or so intermediate Ts or lengthy Ts once more at public sale and secondary market
1 STRIP
3 TIPS: no brief, each intermediate and lengthy at public sale and secondary market
For the novice, it was eye-opening. I am nonetheless studying.
Backside Strains:
I’ve by no means actually realized a couple of kind of funding with out proudly owning it. Why? When it is my cash, I actually listen.
It additionally helps to put up what how I believe that one thing works. The suggestions is invaluable; particularly with TIPS.
