We’re familiar with the saying “nothing ventured, nothing gained.” At least nothing is lost, either, right? But in some cases, the “nothing ventured” choice may come at a cost—opportunity cost, or “the cost of waiting.” When it comes to interest-bearing securities such as certificates of deposit (CDs), bonds, and other fixed income securities, keeping cash […]

Continue Reading

Whether you’re a millennial who’s tired of hearing older people reminisce about how they used to get 5% interest on their certificates of deposit (CDs), or an older investor who fondly remembers those days, it’s likely you’d welcome higher yields on your cash. The last decade was quite a dry spell for anyone trying to […]

Continue Reading

It’s not inaccurate to talk about the duration of your bond portfolio in simple terms—like time, or interest-rate sensitivity. However, a deeper understanding of duration can be vital these days as interest rates have been increasing from their record lows a few years back. First off, it’s important to make the distinction between duration and maturity. There’s a […]

Continue Reading

Key Takeaways Learn the basics of a diversified bond ladder Learn about the difference between short- and long-term bonds There is still risk associated with bonds, so research your choices carefully Like many investors, you might be concerned about rising interest rates as the Federal Reserve continues to tighten the screws. Bondholders may see higher […]

Continue Reading

Key Takeaways U.S. savings bonds are non-marketable, long-term debt securities issued by the Treasury Department to help pay for the government’s borrowing needs Their payout structure is deferred, yet effectively guaranteed, and historically stable Rates are low, but their low volatility means savings bonds can still be relevant for today’s investors U.S. savings bonds were […]

Continue Reading

Key Takeaways Types of bonds include Treasuries, municipal bonds, savings bonds, and corporate bonds Learn how interest rate changes affect bond prices, and why that might matter to a bond investor Bonds carry an element of risk, so it’s important to understand how bond ratings work Some investors use bonds when attempting to diversify and […]

Continue Reading

Key Takeaways Investors are hearing a lot these days about an “inverted yield curve” Yield curve inversions have occurred ahead of market downturns and recessions Learn about the yield curve, how it works, and what it could mean for the markets If you’re hearing a lot of talk about a possible “inverted yield curve,” you […]

Continue Reading

A rate hike cycle churning its way through the fixed-income world appears to be putting a charge back into certificates of deposit (CDs), a once-venerable mainstay that saw demand cut in half during nearly a decade of rock-bottom rates. You remember CDs—those plain-vanilla, timed bank deposits that pay a little rent for stashing your savings out […]

Continue Reading

Interest rates have been changing, driven by a number of factors including Federal Reserve policy, fiscal policy, exchange rates, economic conditions and expectations for inflation.  December 2016 marked the second time in a decade that the Fed had hiked interest rates. Since then, the Fed has hiked rates three times in 2017 and twice so […]

Continue Reading

Key Takeaways Muni bonds are debt securities issued by cities, states, and other municipalities to fund capital expenditures Interest payments from muni bonds are generally exempt from federal income tax Muni bond rates are often lower than those for higher-risk corporate debt If you’re aiming for something near the polar opposite of “hot investment topic” […]

Continue Reading