The U.S. consumer price index, or CPI, rose by 8.5% in March, its highest inflation reading since 1981. For Americans concerned about falling stock prices and soaring inflation, U.S. I bonds may be an increasingly attractive option. The U.S. Department of the Treasury recently announced that I bonds will pay a 9.62% interest rate through October 2022, their highest yield since…
I’ve been paying close attention to Bonds as the global markets react to rising inflation and global central bank moves recently. The US Federal Reserve has yet to take any actions to raise rates, but we all know it will come at some point. Longer-term bonds are acting as if these risks are much more subdued than many traders/investors believe…
While many investors re-balance their portfolios back toward strategic benchmarks on a calendar basis, the author of today’s article advises that an unscheduled re-balancing may be in order now as the coronavirus-driven market turbulence of the last several weeks has thrown the composition of portfolios out of whack: “Sharp equity selloffs and government bond yield declines have mechanically turned many…
With longer life expectancies and lower interest rates, among other factors, the traditional 60/40 portfolio “just won’t be able to cut it anymore”, according to some financial experts. Instead, greater allocations to equities will be needed – and dividend stocks will become the new bonds for retirement. One place investors can look for higher yields for their retirement portfolios? Business…
With their own distinct risk and reward characteristics, foreign government bonds can be a useful addition to a diversified portfolio. But do they make sense for retirees now at a time when approximately 25% of the foreign bond market trades with negative yields? Surprisingly, they might — under the right circumstances. This is due to what the author of today’s…
“Social Security is what it is — and it isn’t what it isn’t,” states the author of today’s article who argues that, while Social Security is an asset, it is not a bond – and thus investors are ill-served by considering Social Security part of their retirement portfolio’s bond allocation. What is Social Security, what isn’t Social Security – and…
While the author of today’s article acknowledges that there is much to make dividend-paying stocks appealing as a source of cash flow in retirement, she warns “I get nervous when retirees use them to take the place of bonds altogether. And I think retirees should get nervous, too.” What’s not to like, for retirees, about dividend payers, according to the…
Only save in tax-deductible accounts – and disregard Roth accounts. Claim your Social Security benefit at age 62 – whether you need it then or not. Plan on your expenses dropping significantly once you leave the workforce. Double down on your employer’s stock. Ditch stocks for bonds when the market goes south. These are five of the 20 ways identified…
Stocks? Bonds? Exchange-traded funds? Mutual funds? Annuities? Unit investment trusts? Real estate? Given the wide range of options available when choosing investments for an Individual Retirement Account (today’s article notes you can invest in “almost anything” with an IRA), the critical question is what to select. For some insights on this question, taking into consideration how far you are from…
Half a percentage point. That is what one assessment suggests to expect return-wise from a balanced U.S. stock and bond portfolio over the next 10 years (before fees and taxes!). So what would the effects of an era of “persistently low returns” be on retirement strategizing? Today’s article examines the implications for 401(k)s, annuities, Social Security, medical care, alternative investments…