I'm buying the 20 year Treasury since it's yielding 5%. Yeah, there are risks with locking up money that long. Inflation could increase significantly. The U.S. government could default.
A worst scenario for our retirement is the 20 year Treasury yield goes down for a long period to 1% as it did in 2020, or hovers around 2.5% as it did from 2012 to 2019. That would reduce our retirement income significantly.
I am ok with the risk that interest rates go up, even if it is to 7-10%, since I don't think it would be more than for a couple years, which is survivable. And we would still have some cash to invest at those higher rates.
This is not financial, investment nor fixed income advice. Please consult a professional advisor.
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