What does the Federal Reserve's policy rate cut mean for our portfolios? Will interest rates keep falling? What changes should we make? Topics covered include: What determines interest rates, and where are those drivers currently What is the best estimate of bond returns How duration works and why it changes What are some current fixed income investment options Show Notes Asset Camp FedWatch—CME Group Summary of Economic Projections—US Federal … [Read more...]
463: How to Lock in Higher Yields in Case Interest Rates Fall
With cash yields expected to fall, here's how you can keep your portfolio income elevated by purchasing longer-term individual bonds and bullet ETFs Topics covered include: How future short-term interest rates, inflation expectations, and term premiums impact long-term interest rates How each of those rate drivers contributed to the close to 1% drop in interest rates in the past three months How yield to maturity is our guide to locking in a fixed return using individual bonds … [Read more...]
457 Plus: Yield-to-maturity, Cumulative vs Annualized Returns, Number of Funds, DSU and AGNC
In Plus episode 457, we explore how to calculate yield-to-maturity, cumulative returns, and annualized returns and how the measures differ. We explain why it is so challenging to identify an appropriate investment vehicle. We answer member questions on David's leverage loan holding (DSU) and preferred stock mortgage REIT with AGNC. … [Read more...]
135 Plus: Investing Cash, Active Versus Passive, and SEC Yields
This week December 3, 2016 on Money For the Rest of Us Plus we look at why the model portfolios are a jumping off point to investing rather than a one size fits all solution. We discuss using actively managed funds to complement passive ETFs. We explore how SEC yields are calculated and how yield to maturity assumes reinvestment of interest/dividends. Finally, we look at where cash should be invested. Audio duration: 18:44 … [Read more...]
