Preparing for Fixed Income Buying Opportunity

Interest rates are going up.   And going up big, it appears.  I'm using the 1980s 10 year treasury interest rates of 15.84%  as reference for a worst case scenario.  10 year treasuries are currently at 5.15% a 19 year high.

Here's what I'm doing:

• Closely monitor the effect on my "retirement paycheck" strategy.   My expectation is that the payments shouldn't drop, but the bond value and mutual funds values will fall, maybe even significantly but up to 15%, which will cause unrealized losses in those accounts.  Currently, they have fallen around 3-4% and may result in a negative net worth return for the first time since 2022.
• Hold current bonds and mutual funds investments, even if they go down significantly.  Plan on doing tax loss harvesting in the future with municipal mutual funds losses.
• Choose a long term interest rate to begin making major purchases of fixed income investments.  Tentatively, I'm thinking of 10% for the 10 year treasury.   Below 10%, I may scale in smaller amounts to buy treasury bonds or municipal bond funds.

For reference, a 10% yield would result in $10,000 year for every $100,000 invested or $100,000 per year for every million dollars invested.  Add 50% for a 15% yield for $15,000 or $150,000 per year respectively.  Now that would be great retirement paycheck..

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This is not financial, interest, bond nor investment advice. Please consult a professional advisor.

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