Tag: treasuries
The Importance of Treasuries 2: The Value of High-Yield Bond Reinvestment
Reinvesting a portion of your returns is critical to compounding your investment portfolio. As we invest in Treasuries, we should reinvest some coupon payments into similar-yielding products. But what if we reinvested into much higher-yielding income-focused products like closed-end funds, mortgage REITs, and preferred shares? Welcome back to The Importance of Treasuries series (Part 1),…
The Importance of Treasuries: How to Define Risk
Many young investors get burned by trying to double or triple their money in a few months. Because of these unrealistic expectations, they chase bad cryptocurrencies, meme stocks, and shady real estate deals. These investors aren’t bad; they probably don’t know how to define their risk profile. Understanding how bonds work is essential to becoming…
Why Series “I”? The Benefits of Investing in Savings Bonds
With the Federal Funds rate hovering around 5%, there are many places to park your cash and receive a good deal of interest. Some of these investments include high-yield savings, certificates of deposit, treasury bills, and treasury notes. With so many choices, how is a saver to choose? How to invest is a deeply personal…
Investing for Interest 117: Treasury Bills vs. Treasury Notes vs. Treasury Bonds
Choice is the spice of life. When it comes to building an emergency fund, saving for our children, or investing for the future, we have many options. To effectively use these options, you must understand each of their individual metrics and make decisions that best suit your income needs. Welcome to the Investing for Interest…
T-Bill & Chill: What Are Treasury Bills?
Welcome to the world of Treasuries, where we maximize returns by investing with the US Government. I have covered Treasuries extensively over the last two years. However, I haven’t peeled back the onion on Treasury Bills, also referred to as T-Bills. Let’s take a look at how T-Bills compare to other Treasuries. What are Treasuries?…
Investing for Interest 115: Tips for Buying T.I.P.S.
Writing this article on Treasury Inflation-Protected Securities (TIPS) took me over a year because they are incredibly complex and tough to understand. Over the last year, I have come to understand them more; however, I have yet to become an expert. I will direct you to others who have even more guidance about TIPS. I…
Investing for Interest 114: Individual Treasury Bonds vs. Treasury Bond Funds
Investing in bonds was nearly impossible for 15 years (2008-2022). The Federal Reserve kept interest rates low to spur the economy meaning bond yields were abysmal (1-2%). However, the Federal Funds Rate is above 5% currently, and bonds are back to being a good source of safe yields. Now we must decide the best ways…
Fundrise vs. US Treasuries: Chase Yield Outside of The Stock Market
The average person avoids the stock market like the plague. Too many horror stories exist about people losing it all gambling on the stock market. Investing in the stock market has become a limiting belief, but wonderful alternatives exist. When the stock market tanks, you will want some assets that can still perform well. Today,…
Emergency Escape: Build a High-Yield Emergency Fund
Building an emergency fund is one of the most critical aspects of creating a financially secure lifestyle. Sadly, most Americans do not have $1,000 in savings to cover a minor emergency. Today, I want to cover some reasons to have an emergency fund and how we can use our emergency fund as an investment vehicle.…
Investing for Interest 104: Bountiful Bond Funds
Bonds are a great way to hedge yourself against the stock market’s volatility. However, bonds themselves can be volatile. There are various ways to invest in bonds allowing us to diversify our portfolio. Welcome back to the Investing for Interest 101 series (101, 102, 103), where we discuss building a portfolio of interest-bearing assets. Today,…
