No. of Recommendations: 4
One year into retirement, time to roll the treasury that just matured into a new five year [Fixed Income Something].
Talked to the brokerage fixed instrument guy. Nothing of massive note, but for those that are not as wise in the ways of fixed instruments, like myself...a few matters I scribbled down.
- yields of course have been declining some (my addition - as have 30 year mortgage rates, etc, all lower than they were a year ago). Treasury market charging a slight premium currently. Five years are at about 3.6% now. Coincidentally about what Goldman Sachs pays in mm accounts.
- Where I am one would have to earn about 3.8 or 3.85% on a CD to get the same end result, with state taxes added into the mix.
- In the CD world he's seeing 3.85, 3.95, and 3.95 on three, four, and five year CDs respectively. Maybe a slightly better choice for a new five year rung.
- We talked about annuities some - they're my current two, three, and four year rungs as a year ago they were at about a 0.8% premium to treasuries and CDs and such. Maybe not quite as good now, and for a bit of diversification I don't think they will be the choice for the new rung.
- corporate bonds - almost all are being issued now with callable features. One somewhat interesting option was the National Bank of Canada is offering 4.4% for a five year CD. But, it is callable after two years.
Nothing of massive note. SWVXX (Schwab's money market mutual0 is paying about 3.58% as well, for yet another choice.
