Interest Rates Tank
Interest Rates Tank
I just noticed in the newspaper that the interest rate on a 2 year Treasury is less than 1%! I can not remember it being lower, but maybe a long time ago it was.
Where do retirees such as me go to find a decent safe return on their savings? If you bought some bonds or bond funds a year or two ago, the total return has been good. But what to do now?
Where do retirees such as me go to find a decent safe return on their savings? If you bought some bonds or bond funds a year or two ago, the total return has been good. But what to do now?
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Re: Interest Rates Tank
The 10 year was below 1% for a bit. I believe that's a first, ever.
- willthrill81
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Re: Interest Rates Tank
To put it bluntly, there are no 'safe' (i.e. non-volatile) places where you can get a 'decent' return on your money right now outside of maybe a good stable value fund in your 401k plan.
The Sensible Steward
- whodidntante
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Re: Interest Rates Tank
It could go lower still.
"May you live in interesting times."
"May you live in interesting times."
Re: Interest Rates Tank
Ally pays 2.10% on a 13-month FDIC insured CD...Van wrote: ↑Tue Mar 03, 2020 2:51 pm I just noticed in the newspaper that the interest rate on a 2 year Treasury is less than 1%! I can not remember it being lower, but maybe a long time ago it was.
Where do retirees such as me go to find a decent safe return on their savings? If you bought some bonds or bond funds a year or two ago, the total return has been good. But what to do now?
Re: Interest Rates Tank
Thanks. I'll look into Ally.
- willthrill81
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Re: Interest Rates Tank
Still? Better jump on that. They'll probably pull it very soon.Thesaints wrote: ↑Tue Mar 03, 2020 2:57 pmAlly pays 2.10% on a 13-month FDIC insured CD...Van wrote: ↑Tue Mar 03, 2020 2:51 pm I just noticed in the newspaper that the interest rate on a 2 year Treasury is less than 1%! I can not remember it being lower, but maybe a long time ago it was.
Where do retirees such as me go to find a decent safe return on their savings? If you bought some bonds or bond funds a year or two ago, the total return has been good. But what to do now?
The Sensible Steward
Re: Interest Rates Tank
Interest rates are set in the market. It's a pretty efficient market. Unfortunately for you, the supply of money to be lent is abnormally high compared to the demand to borrow, so rates are low. If you want higher bond rates, your only option is to accept is more risk. Either that or to move to a different asset class.
Re: Interest Rates Tank
Or get an FDIC insured deposit. This is one of the rare occasions when the small retail investor has an advantage over Big Money.MarkBarb wrote: ↑Tue Mar 03, 2020 3:06 pm Interest rates are set in the market. It's a pretty efficient market. Unfortunately for you, the supply of money to be lent is abnormally high compared to the demand to borrow, so rates are low. If you want higher bond rates, your only option is to accept is more risk. Either that or to move to a different asset class.
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Re: Interest Rates Tank
One option is to pay off your mortgage I you still have one.Van wrote: ↑Tue Mar 03, 2020 2:51 pm I just noticed in the newspaper that the interest rate on a 2 year Treasury is less than 1%! I can not remember it being lower, but maybe a long time ago it was.
Where do retirees such as me go to find a decent safe return on their savings? If you bought some bonds or bond funds a year or two ago, the total return has been good. But what to do now?