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Treasuries Vs Cds

bboy
  |     |   8 posts since 2019

I'm looking at 20 and 30 year treasuries at about 5%. Also looking at 5 and 7 year CDs. It seems like locking up for 20-30 years is better than possibly losing all or most income if rates fall to 0-1% again?

If love to hear feedback on this.

Thanks!

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5


Answers
fliegeroh
  |     |   116 posts since 2022
Yes, I agree. It's very tempting.
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4
LongTimeDAFan
  |     |   69 posts since 2022
We've purchased the 20 year Tbonds, basically for long-term income since we don't have a pension and aren't old enough for SS yet. We were sick and tired of chasing rates every six months. Some people may not have that kind of time, but we do (knock on wood). The 20 year is always higher than the 30, and not quite as long-term. We plan on holding these bonds for their remaining years, as I said for guaranteed income. (Again, knock on wood - lol) And I like the non state and local income tax feature.
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4
Kirkland
  |     |   374 posts since 2014
It is a crazy idea to buy 20 and 30 year at 5% and below. We just had 5% GDP growth and you are rushing into super long duration? Be careful people, hold tight to your liquid cash.
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4
John19
  |     |   394 posts since 2022
If rates skyrocket to 18% before you can sell it, you will be ruined. Bonds I have to sell scare me and make me nervous.
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2
betaguy
  |     |   180 posts since 2022
"If rates skyrocket to 18% before you can sell it, you will be ruined."
He may be disappointed in his decision, but he won't be ruined. Stop with the grandiose.
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4


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