With cash earning 5% or more and intermediateterm bonds earning less than 5%, many have asked me if they should move all of their fixedincome portfolios to Tbills.
In this video, I share why I think that would be a big mistake.
Resources:
Savings Accounts: https://www.allcards.com/savingsacco...
Fidelity Fixed Income Rates: https://fixedincome.fidelity.com/ftgw...
10year / 2year Treasury Spread: https://fred.stlouisfed.org/series/T1...
History of Inverted Yield Curve: https://get.ycharts.com/resources/blo...
Asset Return Rates: https://pages.stern.nyu.edu/~adamodar...
Bengen Paper: https://finalytiq.co.uk/wpcontent/up...
Timestamps
0:00 Should Cash Replace Bonds In A Retirement Portfolio?
1:00 Interest rates
3:53 Credit risk
7:15 Interest rates on shorter/longer maturity
9:58 Recession
11:02 Annual Returns on Investments spreadsheet
15:38 The 4% Rule
17:25 Recap
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and DadThe Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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