Treasuries continue to pay higher rates, do seniors and pension funds move monies out of equities over to treasuries and the like?

[GON]

Seeing interest rates continue to rise on treasuries. Radio stated the interest rates on some treasuries hitting eight percent.

Will seniors and pension funds make moves out of equities and into treasuries? At what rate do treasuries make more sense than equities?

 

[cptbarkey]

Are there money managers on this forum?

Spitballing its dumb not to take advantage of high savings rates, credit card rewards, for the sole sake of keeping up with inflation.

 

[thastinger]

There have always been those special treasuries that paid 10% but limited you to 10K.
Seems like things would have already slowed WAY down, to me anyway. Who is out there making big purchases that are financed these days?
Personal inflation is different for everyone, you only notice it when you buy something, there are probably folks on those "Alaskan Bush People" shows that don't even know inflation has happened.
I'm happy that rates are up though as the savers have been being punished for 20+ years.

 

[Leo99]

Personally, I've moved from equities to lower risk investments like Treasuries.

 

[BMWTurboDzl]

Seeing interest rates continue to rise on treasuries. Radio stated the interest rates on some treasuries hitting eight percent.

Will seniors and pension funds make moves out of equities and into treasuries? At what rate do treasuries make more sense than equities?

Radio is wrong there are no bonds paying 8%.. The highest is a little over 5%.

 

[Rand]

Radio is wrong there are no bonds paying 8%.. The highest is a little over 5%.

I can get over 5% on a CD.

 

[sloinker]

I recently bought an annuity through USAA. It pays a fixed amount for life for myself and spouse with a possibility of any leftover funds to be distributed to our daughter upon both of our deaths. The rate of growth they note as applied to our actuarial demographic is 4.5%. I thought this was kind of high but at the end of the day it means little if USAA doesn't go belly up the money shows up at my bank once a month. This annuity was bought in March of this year prior to bonds getting as high as they are now.

 

[Astro14]

Seeing interest rates continue to rise on treasuries. Radio stated the interest rates on some treasuries hitting eight percent.

Will seniors and pension funds make moves out of equities and into treasuries? At what rate do treasuries make more sense than equities?

Look, this is not a question that can be answered in isolation.

Without knowing the investment goals, retirement age, risk tolerance, existing pension benefits, and other factors for an individual, you cannot answer this.

Do i have a large percentage of the portfolio in bonds? No.

Have I looked at buying treasuries? Yes.

Will I move monies from equities to treasuries? No.

Do we have cash on the sidelines, looking for opportunities? Yes.

 

[thastinger]

Radio is wrong there are no bonds paying 8%.. The highest is a little over 5%.

I-Bonds might be, they were paying 9.62% between Mar and Oct, the rate varies and those are the ones I mentioned above that limit you to 10K.

 

[atikovi]

Seeing interest rates continue to rise on treasuries. Radio stated the interest rates on some treasuries hitting eight percent.

Where? Can't believe that unless you have to lock up your money for 30 years or the rate is only for a small amount. I prefer to keep my money in insured bank accounts instead of trying to squeeze out a few more percent on uninsured products that clearly say, May Loose Value. Have half a dozen totally liquid accounts paying over 5%. Great time to be alive. Love getting $2500 interest every month for doing nothing and basically storing money at the bank.

 

[TheOilWizard]

I-Bonds might be, they were paying 9.62% between Mar and Oct, the rate varies and those are the ones I mentioned above that limit you to 10K.

I-bonds are currently at 4.3% with 3 months penalty if withdrawn before 5 years, which drops the effective return even lower. You're better off using a high-yield savings account.

 

[thastinger]

I-bonds are currently at 4.3% with 3 months penalty if withdrawn before 5 years, which drops the effective return even lower. You're better off using a high-yield savings account.

Rog, wasn't sure what they were paying at present. Agree, there are regular savings accounts paying more than that.

 

[alarmguy]

I can get over 5% on a CD.

Agree. Even my savings bank pays 4.97% on a savings account and the cash isnt tied up.

 

[MSCH]

GON, I do asset shifts based on potential rate of return in securities versus equities.
I've already stated my plan in another thread, which uses 6% as my target baseline for decisions.
if I can get 6%+ in securities and money market, more of my assets will shift to the securities and money market side of things.

 

[Wrenchturner44]

Another option for those of you whom have Fidelity accounts. Normal SPAXX brokerage cash funds account is paying 4.99% and Money Funds account (symbol FZSXX) is paying 5.19%.

 

[MSCH]

Another option for those of you whom have Fidelity accounts. Normal SPAXX brokerage cash funds account is paying 4.99% and Money Funds account (symbol FZSXX) is paying 5.19%.

try FRHXX as well

 

[zzyzzx]

No idea. I thought that the main shift was people moving money out of money market accounts and into T-bills. And I'm not buying any new stock, except for 401K contributions and capital gains distribution and dividend reinvesting. I'm also not selling any stock.

 

[PimTac]

My portfolio has gotten more conservative over the past several months. Also added ballast.